Digi-Key, area communities say they are ready for major expansion
THIEF RIVER FALLS—It's hard to imagine what a 1-million-square-foot facility looks like.
Imagine if the Metrodome were built in Thief River Falls instead of Minneapolis. The 900,000-square-foot stadium that was once home to the Twins and Vikings is about 100,000 square feet smaller than Digi-Key Electronics' expansion in Thief River Falls.
At least that's how staff of the electronics distributor describe the project. The new building will have four floors totaling 2.2 million square feet of usable space. That would bring the total usable space with the current building at 701 Brooks Ave. to 2.9 million square feet.
"It's going to triple the footprint of our campus," said Rick Trontvet, vice president of administration at Digi-Key.
After receiving millions of dollars in incentives from the state and local governments, Digi-Key committed this summer to building the $300 million project in Thief River Falls. The worldwide exporter broke ground on the project in September, though the expansion won't begin in earnest until April.
The investment should create 1,000 jobs over the next decade in Thief River Falls, expanding the company's current workforce of 3,500.
Digi-Key staff and advocates, including local leaders and state legislators, spent months convincing the Legislature to back the expansion. With construction on the horizon, Digi-Key faces its next set of challenges: hiring in a tight market and finding a place for those workers to live.
Overcoming those obstacles start by having countless meetings with officials from surrounding cities and formulating a strategy that includes collaboration from groups across the region, Trontvet said.
"This can't happen by ourselves," he said. "We need to work with our governments and communities to make this happen."
100 per year
Digi-Key tends to attract people from all walks of life. The Herald recently sat down with four employees: Tammy Sparby, who opened up a day care center in Thief River Falls, former dental assistant Renae Jensen, Lynn Kartes, who worked for Frito-Lay in Roseau, Minn., and Rob Giffen, who traveled overseas doing volunteer work.
"Everybody can look at what they did prior to Digi-Key and there is going to be an opening somewhere," Jensen said.
Hiring in response to the expansion already has begun in anticipation for the project, but it's nothing new, Trontvet said. Digi-Key has added 1,000 positions in the last decade, averaging 100 each year. It's a strategy it will use to hire enough people to fill the new building.
"It's not going to happen all in one bunch," he said. "We feel that rate of growth will continue."
About 3,200 of the 3,500 employees who work with Digi-Key are based in the Thief River Falls facility. About 1,800 live in Thief River Falls. Another 1,400 commute more than an hour from other communities to Thief River Falls. Buses come in daily from East Grand Forks, Crookston and Bagley, bringing with them Digi-Key employees.
The busing program is part of a larger strategy to attract workers to the company.
"They get to work a four-day workweek ... and they get a ride to work," he said. "It's been very popular."
Sparby, an assigned accounts representative, said it will be exciting to watch the progress of the building day by day. The current building is getting tight for use, and the fact that Digi-Key is expanding to give employees more space and amenities shows it cares about its employees
It's also proof of the company's commitment to the community, said Giffen, who works in human resources.
"It's just fun to watch a local company grow like that," Kartes said.
Trontvet said the key to attracting workers is to show Digi-Key is a company that treats employees well instead of making them feel like they are a number.
"We need to continue to be a good employer to work for," he said. "We realize that to grow we need to not only do the traditional recruitment that we do ... but we also have to have a good reputation."
Digi-Key looks to other communities for potential workers, as well as a source for housing.
"We're not just hiring people from Thief River Falls. It's a regional hiring situation for us," Trontvet said. "It's a company that really relies on the region."
Thief River Falls officials meet with Digi-Key often and sometimes receives updates daily on strategies to attract residents, court housing developers and update infrastructure to handle the expected increase in population, Thief River Falls Mayor Brian Holmer said. There are a lot of moving parts and matters to address, from electrical to plumbing to housing, he said. It also includes looking into amenities it has and should offer, such as restaurants, shopping and activities, he said.
City planners have platted out multiple locations across the city that could be developed into housing, said Mark Borseth, community services director with Thief River Falls. It added 169 housing units between 2014 and 2016 and has 378 in the development stage.
"The city has been pretty proactive ... to plan for growth and expansion," Borseth said.
Figuring out how many and which type of housing units can be tricky, Holmer said. It's likely the housing market will fluctuate from low to high supply, which is typical during periods of growth, he said.
Trontvet said the company is in contact with various cities in northwest Minnesota that ask how they can build a housing market to attract workers for Digi-Key. Officials from various cities also have met with each other to plan for the growth, Holmer said. That includes research into housing studies, impacts and comprehensive planning.
"It is a regional issue," he said. "It's going to be a balancing act for every community."
Holmer is confident Thief River Falls and other communities can handle the growth from Digi-Key's expansion.
"We have a challenge ahead of us," he said. "We're up for the challenge."