Their product might be small in size, but their vision is a big one, and Tracy city officials are glad to be a part of that vision.
Iterrro Life Science Investor Relations Manager Glenn Thuringer presented in front of the Tracy City Council on Monday to share his thoughts about the proposed $1.5 million project that would create pet treats and biscuits in the former Salmon Automotive building on 4th St.
“Because we’ve gone smaller with our big harbor, having enough shrimp to attract the big players for distribution, we really just don’t have enough shrimp, so this is an alternative,” Thuringer said. “The other pet treat product is one that we would do for the long-term — a biscuit; that’s where we take the heads of the shrimp and process them. That’s freeze-dried.”
Earlier this month, the Tracy EDA passed a motion to act as legal sponsor for the project and loan application for a $250,000 loan from the Department of Employment and Economic Development. The loan would be secured with new equipment, on a seven-year, 1% interest loan through the Minnesota Investment Fund (MIF). The City of Tracy would retain 40% of principal and interest payments, with a maximum of $100,000, which will be placed in a new EDA Revolving Loan Fund. These funds can then be used for future business expansion projects.
A public hearing was held Monday with no members of the public attending. Later, the council OKd a resolution for the loan application on behalf of Iterro and officially making the City a legal sponsor for the processing plant project.
Thuringer said it is Iterro’s hope that this turns into a long-term project. One of the reasons the company choose the former Salmon building to use for processing is that because of the work done already inside the building by their predecessor, Chasing Our Tails, which also produced dog treats before leaving town.
“The floor is epoxied, the walls and ceiling have the right kind of material on them. I think every room that we’d actually do the processing in has a drain.”
Iterro would employ about eight people in the Tracy facility.
Council member Seth Schmidt asked what kind of truck traffic would result from the work Iterro would be doing. Thuringer said there would be no large trucks going to and from the building. When asked about any potential odor that would emanate from the building, Thuringer said the cooking would be self contained enough to prevent any noticeable smells coming from the building.
There are no negative tax consequences to Tracy taxpayers if Iterro’s plans don’t come to fruition.
“It just works out the right way for everyone,” Thuringer said, adding that Iterro would like to get started sooner rather than later, in the range of three to six months.
“I think this is a project the city’s been searching for,” Schmidt said. “It’s something that expands our tax base and adds employment.”
In other business …
• The council passed a resolution approving Change Order No. 1 for the four-unit T-hangar, grading, taxilane and slab at the airport. The change is in regards to the contract time due to previous weather conditions. The change order will increase the substantial completion date by 90 days.
• The council passed a resolution approving a payment of $227,273.46 to Dale Johnson III Construction for work completed on the hangars. The remaining balance to finish and retainage is $729,423.86. The total contact amount is $1,145,501.70. The City had made previous payments totaling $188,803.38 with a retainage amount of 5%, or $21,898.83.
