Farmland’s closing, whether it is temporary or permanent, isn’t likely to be the worst economic disaster in Albert Lea history, City Manager Paul Sparks said – in fact, it’s probably not even the worst economic disaster in the plant’s history.

Saturday, July 14, 2001

Farmland’s closing, whether it is temporary or permanent, isn’t likely to be the worst economic disaster in Albert Lea history, City Manager Paul Sparks said – in fact, it’s probably not even the worst economic disaster in the plant’s history.

Salary cutbacks in 1983 and a plant closing in 1994 caused economic ripples that probably outweighed the anticipated effects of the plant’s hiatus in the wake of last Sunday’s fire, Sparks said. The plant employed in excess of 1,200 in 1983, and the impact of salary slashing was profound for the local economy.

While Farmland remained the city’s second-largest employer until the fire, it employed 500 to 550 at that time, Sparks said – and that was only after a recent round of around 100 hires in anticipation of an expansion.

In essence, Albert Lea has already absorbed much of the blow from the processing plant’s steady contraction.

&uot;I think for the economy the impact is a lot softer than what people might think,&uot; Sparks said.

Nevertheless, the effects could be noticeable, and the biggest concern will be the welfare of the employees who now must decide whether to wait for word from Farmland on whether it will rebuild here. Many may choose to move on or find other local jobs, Sparks said.

&uot;We need to be worried about them,&uot; Sparks said. &uot;We need to worry about how to help them. The best thing to fix the course is to do everything to get the plant rebuilt here.&uot;

Pam Bishop, executive vice president of Greater Jobs, Inc., agreed.

&uot;We’re interested in meeting with them when they’re prepared to do so,&uot; she said.

In the meantime, Farmland’s absence could have a trickle-down effect, Bishop said, with businesses who served Farmland feeling the effects and passing them on to other companies.

The city of Albert Lea’s sewer fund could take a hit; Farmland was the city’s largest sewer customer, Sparks said.

Again, however, the plant isn’t as strong as in the past. The facility used to account for about a third of the city’s sewer use, but now makes up about 15 percent, he said. For the first half of 2001, Farmland paid $210,000 for city sewer service. Yearly, the fund’s revenues top $3.2 million.

A six-month hiatus won’t be disastrous for the fund, but a couple of years would start to put the city in a pinch, Sparks said.

&uot;We’ll probably have to look at the situation at the end of the year,&uot; he said.

One economic solution, if necessary, is to find new companies to fill the void. A lack of ready labor is a major obstacle to building manufacturing plants for many southern Minnesota cities, and now Albert Lea has a large pool of available, experienced industrial workers, Bishop said.

&uot;Other companies may see it as an opportunity to capture the people who are laid off,&uot; she said.

Sparks and Bishop both said efforts to recruit new employers should intensify.

&uot;We will redouble those efforts and try to expand the employment base,&uot; Sparks said.

The planned addition of a Home Depot could provide some new jobs, but the store isn’t scheduled to open until next spring.

The first choice is to secure a new Farmland site in Albert Lea.

&uot;The longer it takes for them to rebuild, the stronger the economic impact will be,&uot; Bishop said.

&uot;The economy is going to weather this O.K.,&uot; Sparks said. &uot;Our challenge is going to be to get the plant rebuilt and get the workers going for their sake.&uot;