The outdoor patio furniture manufacturer that made its home in Wadena may open again as Homecrest Outdoor Living. But it was close to being sold to Chinese investors, said Mike Bullinger, a key investor in the potential Homecrest deal.
"We saved it," he said.
Chinese investors just wanted the Homecrest name, logo and designs, Bullinger said. The furniture would have been lost to China.
Bullinger is a key investor in the most recent Homecrest deal and is from Fargo, N.D. He works with Western Products Inc., a home exterior improvement company.
He has experience turning around companies that were failing. He was involved with a manufacturing company in Wahpeton, N.D. It was in bankruptcy court and he bought it and kept the manufacturing in Wahpeton. It now employees 130 people, he said.
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Bullinger thinks that if all the pieces come together and Homecrest opens again it will be successful -- but not without hard work. He said the sales staff will need to be sharp.
"The real key is we need some economic development help," he said.
The help he's talking about is including the property to the Job Opportunity Building Zone (JOBZ) and the approval of a Minnesota Investment Fund (MIF) loan from the Department of Employment and Economic Development. If those pieces don't come together, Bullinger said the deal won't work.
"As far as the success of Homecrest, nothing is a guarantee," he said.
Beyond the economic development help, Bullinger said Homecrest will need an outstanding sales staff and hard workers in the plant.
He is excited about the possibilities with Homecrest.
"I'm fortunate here," Bullinger said. "We've got a great name, a great product."
People interested in submitting a resume for potential positions at Homecrest can stop at the plant or at the Workforce Center. Although opening the plant isn't a sure thing yet, Bullinger said he wants to be ready with a staff if this does work out.
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"We've got to make sure people are available," he said.
Wadena Mayor Wayne Wolden is excited about the interest in Homecrest.
"I think it's going to be great for this town," he said.
JOBZ, which gives tax exemption to businesses in those districts, is a reality in Minnesota, Wolden said. The good paying jobs, the people that are brought to town as a result, is a positive result from JOBZ, he said.
"There might be a little pain tax-wise, but the retail aspect, school, housing, are all affected by this move," Wolden said.
If the deal comes through, Bullinger hopes to start producing furniture by Feb. 1, he said. Everyone wouldn't be hired right away, he said, but the plant could eventually grow.
Bullinger is already putting together a management team and he has confidence that the team will put the plant in the right direction.
"We're not just turning the lights on," he said. "[We have] fresh, new ideas."
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The Homecrest manufacturing deal is only for the newer of the two plants.
Wadena Economic Development Director Dean Uselman said he is also continuing to work on filling the old Homecrest plant. He has had a few people interested in parts of the plant but ideally Uselman said he would like to fill all or most of the plant, not just a small portion.
Before the Homecrest deal with Bullinger is finalized, the MIF loan and JOBZ will need to be in place.
A public hearing is set for 5 p.m. on Jan. 8, 2008, to consider the execution of a business subsidy agreement between the city of Wadena, Bullinger Enterprises, LLLP, and Homecrest Outdoor Living, LLC. The proposed agreement would include the business in the MIF loan program and provide the corresponding benefits provided by the MIF loan program.
A second public hearing also at 5 p.m. on Jan. 8, is to consider including the business in the JOBZ program and provide the corresponding benefits provided by the JOBZ program.
Citizen input and participation regarding the project is encouraged. Both written and oral comments will be considered.
A resolution was passed by the Wadena City Council on Friday amending the JOBZ district. It was forwarded to the state. The Wadena County board passed a resolution Dec. 20 amending the Jobz district.
