A plan to expand a Duluth factory and bring new jobs is working its way through city government.

On August 26, the Duluth Planning Commission held a special meeting on plans for a new TIF district for the Sofidel paper mill.

TIF, which stands for tax increment financing, is a way to encourage new development through tax incentives.

For Sofidel, the TIF will go towards the expansion of it’ papermill on North Central Avenue. The plant, originally opened in the late 1980s, was purchased from ST Paper in January of 2024.

Sofidel plans to invest around 180-million-dollars in the site, and says the expansion will add 160 new jobs to Duluth.

In its meeting, the planning commission voted to approve a measure confirming that the TIF plan conformed to Duluth’s redevelopment plans.

In the Duluth City Council meeting on the same night, the council voted to support a grant of up $3.1 million dollars from the Minnesota Investment Fund for Sofidel.