Douglas Machine is planning a $3.8 million addition.

The news broke at Monday night’s Alexandria City Council meeting.

The project will expand the facility at 3404 Iowa Street by about 45,900 square feet and include warehouse, manufacturing and office space.

The expansion is expected to add 15 full-time employees within two years.

As part of the project, Douglas Machine is requesting to be designated as a “Job Creation Fund” business through the Minnesota Employment and Economic Development. Nicole Fernholz, director of the Alexandria Area Economic Development Commission, explained the process to the council.

The fund awards eligible companies up to $2 million in rebates for creating or retaining high-paying jobs, constructing or renovating facilities, or making other property improvements.

To get the designation, companies must:

  • Be engaged in manufacturing or another eligible business activity.

  • Get local government support for the project through a council resolution – an action the council approved Monday night after a 4-0 vote.

  • Invest in at least $250,000 in property improvements within one year of being designated.

  • Create at least five new full-time permanent jobs within two years of being designated.

  • Pay at least $13.27 per hour in wages and benefits, adjusted annually.

  • Have other location options outside Minnesota.

  • Cause no undue harm to Minnesota business competitors.

  • Certify that the project would not occur without Job Creation Fund assistance.

The council adopted a similar resolution for Alexandria Industries’ expansion project, which is underway. It’s a $17.8 million expansion, $13 million of it in new equipment.

Douglas Machine, which is employee-owned, builds automated packaging machinery. It has about 665 employees at its Alexandria facility.

Its customers come from a wide range of industries, markets and locations.

It has manufactured more than 11,000 machines that are in more than 30 countries.