A north Minneapolis manufacturer of heating and cooling equipment that has doubled sales since 2010 plans to expand its plant and increase from 350 to 425 jobs.
Unison Comfort Technologies, located in an industrial area between W. Broadway and Lowry Avenues near Interstate 94, makes high-efficiency heating, ventilation and air conditioning (HVAC) systems for commercial and industrial customers. The company will spend $627,000 to convert the 10 percent of the 240,000-square-foot factory — about the size of two Target stores — from space now used to park 60 cars to production. The new jobs will pay an average of about $17 an hour plus benefits.
The news was welcomed on the North Side, which is considered the city's weakest economic zone and has the highest concentration of poverty and unemployment in the Twin Cities. A city economic development official said this is the first of what will be several positive economic developments for north Minneapolis over the next few months.
The Minnesota Department of Employment and Economic Development is assisting the expansion with a $400,000 grant from the Minnesota Job Creation Fund. The company will receive the funding after meeting its hiring and investment commitments.
"We have doubled the business in the last five years," said Unison President Jay Althof. "We need to expand and hire people. We are pleased to secure this funding, which enables us to continue expanding … and revitalizing our north Minneapolis industrial neighborhood."
Unison Comfort, owned by privately held Greenheck Group, based in Schofield, Wis., operates smaller plants in Sacramento, Calif., and Brownsville, Texas. It expects to sell more than $100 million in equipment this year.
Althof said strong demand in the last several years for new equipment in old buildings around the country has combined with a surge of new construction since 2012 to drive double-digit annual increases in production and sales. Unison Comfort, which moved into and renovated its Minneapolis facility in 2006-07, also operates an adjacent training center and showroom.
The Job Creation Fund, proposed by Gov. Mark Dayton and funded by the Minnesota Legislature at $24 million in 2013, is Minnesota's tool to compete for jobs and business expansion. Unison Comfort is the third HVAC company to announce expansion plans in Minnesota in the last year, joining Daikin Applied Americas Inc. in Owatonna and Price Mechanical in Maple Grove, according to the Department of Employment and Economic Development.
Detractors say such economic-incentive funds are ineffective, compared with a well-trained workforce and good transportation. State officials say they need something to compete with adjacent states and the awards are tied to new job creation.
The job creation fund is a "pay-for-performance program" that provides up to $1 million to businesses after they meet certain criteria, including minimum requirements for jobs and investments. Businesses must create at least 10 full-time jobs and invest at least $500,000 to qualify.
Neal St. Anthony • 612-673-7144
