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Management Side
Sofidel Duluth, Minnesota paper mill seeks tax break for major expansion, adding 160 jobs

DULUTH, Minn. (From news reports) -- The City of Duluth is proposing to help back Sofidel, a paper manufacturing company, by providing $14 million in tax assistance.

City leaders say the incentive can in turn help the community by creating up to 160 new jobs.

"We're really excited that someone is here and ready to make that investment to not only make that an active site but also the jobs that it brings with it," said Trishia Hobbs with the Duluth Economic Development Authority.

Sofidel is an Italian based tissue paper manufacturer which recently acquired the Duluth paper mill property in West Duluth.

"They will be planning an expansion which is really exciting, it will allow them to diversify their product line for more everyday use," said Hobbs.

The $250 million investment project in the Duluth mill will include approximately 600,000 square feet expansion. The redevelopment includes four building additions to expand manufacturing, packaging, warehousing and shipping.

But to make a project of this size happen, financial help is needed.

"When we get big projects like that with such an emphasis on jobs, it can be a big undertaking and it's also a tool for us to make ourselves attracted for those opportunities," said Hobbs.

The city is hoping to use a tax increment financing tool to help. TIF assistance is used by the government to fund eligible projects, keeping the development costs low, if it is likely to increase property tax revenue when the project is complete.

"We know that tax base growth is a huge priority for the city and we want jobs for the folks who live here as well as well as anyone who might consider calling Duluth home in the future," said Hobbs.

Duluth city council members are expected to take up a vote on the proposed financial package for Sofidel on October 15th.

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