News > Stearns Electric Plans for New Headquarters to Replace 50-Year-Old Facility

Stearns Electric Plans for New Headquarters to Replace 50-Year-Old Facility

May 2, 2023

In February, the board unanimously voted to move forward with a new headquarters facility, adjacent to the current facility, on land already owned by the Cooperative. Years of discussion, investigation and professional analysis on renovation verses new construction took place. It was ultimately determined that new construction was a better option than renovating the existing building, which was built in the 1970’s. By approving the new facility now, Stearns Electric is prepared to watch the market and act quickly to lock in a more favorable interest rate when the timing is right.

The Cooperative anticipates a new headquarters will be built within the next three years. During the planning and construction phase, Stearns Electric will also look at sell and lease options for the existing facility.

Stearns Electric has had two office facilities since 1989 – in Melrose and St. Joseph respectively. The Melrose office is the geographic center of our service territory, which serves parts of six different counties, while the St. Joseph office is near the growth areas around St. Cloud and Sartell. Having two offices positions the Cooperative best in outage response time and strategic disaster recovery plans.

The existing headquarters has outgrown its current space. The need for a new facility is driven by our mission to safely deliver reliable energy. Outdated equipment and cramped facilities are impacting the efficiency and cost-effectiveness of service. In particular, the garage, shop and mechanic areas need more space and updated equipment to accommodate the size and demands of today’s vehicles and provide appropriate space for employees.

As we move through the design and development phase of this project, we will look at every possible avenue to reduce costs even more and keep the impact of this facility as minimal as possible on our membership. At current projections, we anticipate the cost of the new building will be $20 million, plus an additional $7.5 million in interest. Final construction costs will be known within the next year. The current rate analysis includes a $3.00 per member increase to the Fixed Charge to account for the new facility.

Investments like this position the Cooperative to meet the current needs of members and provide room for growth over the next several decades. We are still early in the process and have a lot of decisions to make, but we feel it is important to share information on what we know currently.