Graco Inc. will relocate at least 225 jobs, along with its Industrial Products and Process divisions, to a new facility in Dayton, Minn. The company says the expansion is needed because it's running out room at its headquarters in Minneapolis.

The 225 jobs represent more than 25% of its Minneapolis-based workforce, which currently has about 800 employees at its facilities near Boom Island Park.

The manufacturing company announced Thursday it bought 100 acres of undeveloped land in Dayton, a northwest-metro suburb along Interstate 94.

"Graco's business has been growing considerably, so we're expanding to support that growth and give our divisions more elbow room," said Charlotte Boyd, Graco's spokeswoman. "In 2019, we began the process of finding an additional location to either renovate or build. As part of the process, we looked at where the majority of our employees live and where we could find the appropriate size land or building, which led us north."

The new land is about three times the size of the Minneapolis campus' footprint and will allow for future growth, too, according to Boyd. It's also near two of its existing facilities in Rogers.

"The 530,000-square-foot building we're planning will include manufacturing, engineering labs, demonstration labs and office space for our Industrial Products and Process divisions," Boyd said. "We currently have 660,000 square feet total in Minneapolis, spread across four buildings."

The first phase of completion is scheduled for 2022.

The deal closed in late December for an undisclosed amount, according to Boyd.

The city of Dayton assisted through an undisclosed tax incremental finance subsidy and Xcel Energy Inc. is providing a utility rider, Boyd said.

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