If approved, Fleege said Cirrus aims to begin remodeling the building by September. The sale of the former aircraft maintenance facility and the subsidy package DEDA approved will now advance to the Duluth City Council for its consideration.
"It really is about economic development and creating a future for Cirrus here," said Fleege, noting that the new facility could help cement Duluth's future as the company's headquarters. The maintenance base is equipped with a massive foam fire-suppression system, which represents a liability due to the presence of environmentally hazardous materials, including per- and polyfluoroalkyl substances.Īs part of its sales agreement with Cirrus, DEDA is prepared to offer a forgivable loan for up to $470,000 to cover the cost of "remediating, treating, removing and disposing of the PFAS materials, any contaminated fire-suppression system piping and equipment, any contaminated sewer system facilities and any related contamination." Fleege said Cirrus intends to turn the building into what it calls an "innovation center."Ĭirrus will be expected to invest at least $7 million in the facility, but Fleege said it will likely far exceed that commitment, with improvements expected to total more than $10 million. The building now accommodates office and operations staff, freeing up more room for production in its other local manufacturing facilities. With Cirrus in need of more space for its growing operations, the company began leasing the aircraft maintenance facility earlier this year. "Maintaining and operating a building is not our core function," Fleege said. AAR's departure resulted in the loss of about 240 jobs. , with the travel industry in a pandemic tailspin. Through the first six months of this year, Cirrus has shipped more than $260 million worth of aircraft, with its sales trending 23% ahead of last year's pace, according to the General Aviation Manufacturers Association.īy relinquishing its ownership of the former aircraft maintenance base, DEDA will relieve itself of an ongoing financial burden. The airplane manufacturer also is poised to receive a $500,000 forgivable loan, courtesy of the Minnesota Investment Fund. To further assist Cirrus' expansion in Duluth, the company is in line to receive a $1.2 million tax abatement package, with half of that relief coming from the city and the remainder provided by the county.
A business subsidy agreement states: "The subsidy is needed because there are alternative locations under consideration, and the project cost is economically unfeasible without the subsidy." In addition to promoting job growth, DEDA hinted that other communities might lure Cirrus away but for the assistance being offered. Clint Austin / File / Duluth News TribuneĬirrus is Duluth's largest single provider of manufacturing jobs.
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