Abdallah Candies is getting $170,000 from the state of Minnesota to help finance its $12 million expansion in Apple Valley.
The aid comes in a grant from the state’s Job Creation Fund, the Department of Employment and Economic Development said Thursday. The department said the expansion is expected to create 17 jobs.
Abdallah owner Steve Hegedus said he knew he wasn’t going to get the maximum $1 million that businesses can receive through the fund, but $170,000 was much less than he had hoped.
“We appreciate any help we can get, but on the other hand we have some huge capital expenses to deal with,” he said. He’s not yet certain how that less-than-expected amount will affect the expansion, but said they will “backwards-engineer” the project to work with the funding.
The plans for the expansion, at Johnny Cake Ridge Road and W. 147th Street, were revealed this year when the city of Apple Valley agreed to subsidize the project with revenue from a tax-increment financing district. The state announcement Thursday said that aid will amount to $736,000 in site development support.
Abdallah also plans to remain at its longtime home in Burnsville, although some jobs are expected to shift to Apple Valley.
The first phase of the project will be a 70,000-square-foot candy manufacturing facility. Another 50,000 to 70,000 square feet could be added later.
JESSIE VAN BERKEL, CASEY COMMON