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Serving Northern St. Louis County, Minnesota

Lamppa project officially back on track

Change orders expected to be completed by Sept. 1; new ten-year lease approved by all parties

Marshall Helmberger
Posted 7/11/19

TOWER— The completion of the new plant for Lamppa Manufacturing is officially back on track following the city council’s approval of a new lease for the company on Monday night. Representatives …

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Lamppa project officially back on track

Change orders expected to be completed by Sept. 1; new ten-year lease approved by all parties

Posted

TOWER— The completion of the new plant for Lamppa Manufacturing is officially back on track following the city council’s approval of a new lease for the company on Monday night. Representatives of Lamppa Manufacturing signed the lease earlier in the day, so the council’s unanimous approval of the slightly-modified lease was the final step in reinstating the ten-year agreement

The project had appeared to be in doubt for weeks after Lamppa officials exercised an escape clause in the previous lease over concerns about construction delays and poor communication about some of the equipment that had been installed in the facility.

But representatives of the city, Department of Iron Range Resources and Rehabilitation, and Lamppa Manufacturing met June 25 in Eveleth to get the project back on track. Under the agreement worked out at that meeting, the city agreed to swap out the current welding room fume extractor for a different unit, will incorporate the cost of a gas manifold system for the welding station (at a cost of $8,300) into the project loan, will cover the company’s moving expenses (estimated at $4,000), and will provide free rent from the anticipated move-in date of Sept. 1 through the remainder of the year. The term of the original 10-year lease will be extended to Dec. 31, 2029.

The Tower Economic Development Authority approved the agreement at a special meeting on July 1, and the city council followed suit in a special meeting immediately afterward.

Approval of the revised lease was the final step in putting the project moving forward again. The parties now expect the new equipment will be installed and the facility will be ready for occupation by Sept. 1.