IRRR Board Meeting Recap - June 7

department of iron range resources and rehabilitation

June 7, 2022


FOR MORE INFORMATION:

Sheryl Kochevar, Communications Director

218-735-3021, Sheryl.Kochevar@state.mn.us


Communities, broadband, outdoor recreation and higher education in northeastern Minnesota receive over $7.1 million in economic development funding

Approximately $7.1 million in grants and other funding was approved at today's Iron Range Resources & Rehabilitation Board meeting. Total combined project investment is approximately $83 million. The projects are expected to increase the regional tax base, create permanent and construction jobs, provide essential services, support higher education and expand outdoor recreation. The infrastructure grants combined are anticipated to impact 46 jobs and create 356 construction jobs.

Development Infrastructure Grants: $2,029,000

Agency Investment $2,029,000 | Total Investment $45,952,471 | Leverage 21.6 : 1

  • City of Grand Rapids: $150,000 to construct infrastructure for the development of a five-story mixed use commercial building with a restaurant and lobby on the street level, four stories (39-rooms) of boutique hotel and an arts venue in the basement level. The building will be located on a cleared downtown parcel that resulted from a fire in 2020.
  • Itasca County: $100,000 to construct infrastructure and roads for the redevelopment of Itasca County Campground which includes the construction of 41 RV sites.
  • City of Keewatin: $279,000 to construct infrastructure for two redeveloped main street sites to accommodate a new 3,000-square-foot credit union facility.
  • City of Virginia: $1,500,000 to construct infrastructure and structural reinforcement for the development of a new 166,000-square-foot hotel and extended stay facility with 132 rooms, located adjacent to the Iron Trail Motors Event Center. 

Broadband Infrastructure Grants: $166,000

Agency Investment $166,000 | Total Investment $450,165 | Leverage 1.7 : 1

  • White Township – Wynne Ridge & Rock N Pines Roads (Giants Ridge Area): $65,000 to expand Mediacom fiber optic to serve up to 25 unserved households in White Township.
  • Paul Bunyan Communications – Unorganized Township/Ash Lake Area (North of Orr): $101,000 to expand Paul Bunyan Communication fiber optic to serve up to 75 unserved households in the Ash Lake area. 

Community Infrastructure Grants: $3,455,000

Agency Investment $3,455,000 | Total Investment $34,687,821 | Leverage 9 : 1

  • City of Babbitt: $250,000 to construct phase II of a new wastewater treatment facility in order to modernize essential water services and meet permit limits. Work also includes the replacement of old sewer collection system piping.
  • City of Bigfork: $250,000 to construct infrastructure and a new facility for a community wellness addition to Bigfork School and ISD 318.
  • Breitung Township: $200,000 to upgrade water meters, construct water and sewer infrastructure, and reconstruct roads in several community areas.
  • City of Chisholm: $400,000 to construct phase I infrastructure and site work for a new 23,000-sqaure-foot public safety facility that will house fire, police and ambulance services for 63 emergency personnel staff and provide services to the city and the surrounding townships.
  • City of Chisholm: $400,000 to replace the utilities, reconstruct a road and repave several streets throughout the city. Work also includes restoration of portions of the public library and replacement of the city hall roof.
  • Chisholm HRA: $210,000 to renovate the interior and exterior of eight units at Mapleview Apartments to meet code compliancy.
  • Crane Lake Township: $250,000 to reconstruct part of Bayside Drive leading to the public boat access point on Crane Lake which serves Crane Lake, Voyageurs National Park, Quetico Provincial Park and the Boundary Waters Canoe Area Wilderness. Greater public access is needed to accommodate future development which includes a new RV campground and the Voyageurs National Park Visitor Center.
  • City of Ely: $150,000 to reconstruct three city streets and extend utilities, construct a new roadway and new sanitary sewer and water mains to support the development of 11 affordable residential housing lots.
  • Greenway Township: $70,000 to complete ADA accessibility and OSHA-complaint infrastructure upgrades at Pengilly Swan Lake Country Club and Community Center which serves Pengilly and the surrounding communities.
  • Lake Vermilion Fire Brigade: $165,000 to construct a helipad and docking system for Lake Vermilion Fire Brigade’s emergency response whose service area covers 61 square miles with approximately 3,000 residents.
  • City of Mountain Iron: $360,000 to modify each of the Quad Cities (Eveleth, Gilbert, Mountain Iron, Virginia) wastewater treatment facilities in order to accommodate a portable belt press donated by Saint Louis County.
  • City of Silver Bay: $250,000 to reconstruct a road that serves the newly developed Black Beach park and campground.
  • City of Virginia: $500,000 to reconstruct streets and sidewalk, and replace water and sewer infrastructure, which is phase II of city-wide capital improvements.

Regional Trails Grant: $828,024

Agency Investment $828,024 | Total Investment $1,922,474 | Leverage 1.3 : 1

  • Cook County/Grand Marais Economic Development Authority: $25,000 to reconstruct existing and construct new trails within the Pincushion Mountain Trail System which is utilized for mountain biking, fat tire biking, hiking and snowshoeing.
  • Crow Wing County: $15,000 to develop a master plan for an ATV route to connect the 20-mile Miller Black Bear ATV Trail to the communities of Crosby and Ironton.
  • City of Ely: $130,755 to construct part of Bear Run Trail, which will connect to the Taconite State Trail and onward to area resorts. The grant will also support environmental planning and design work to continue along segments of the Prospector Loop.
  • Lawron Trail Riders Snowmobile Club: $40,000 to develop a trailhead in Lawrence Township which will consist of a parking lot, pavilion, signage and safety training course for new riders of all ages.
  • Lutsen Trailbreakers Snowmobile Club: $12,500 to rebuild several segments throughout 50 miles of trails connected to the state trail system surrounding Lutsen.
  • City of Tower: $461,900 to expand trail connections and construct a trailhead, restrooms, signage, parking area, and access road surrounding Tower Harbor. The project includes the development of a comprehensive site plan of the Depot/Harbor area.
  • City of Virginia: $142,869 to redesign and rebuild the southern and eastern portions of Silver Lake Trail in order to a safe and secure route for users.

Iron Range Higher Education Account: $600,000

  • Minnesota North College, Iron Range Engineering (IRE): $600,000 to continue the IRE program that, in collaboration with private industry, allows students to earn a Bachelor’s of Science degree in engineering from Minnesota State University Mankato. Students earn their degrees attending classes at the Minnesota North College campus, Virginia Campus.

 Giants Ridge Recreation Tax Account: $70,000

  • Giants Ridge Recreation Area: $70,000 to purchase a mini excavator to maintain the mountain bike and hiking trails as they age, in particular to rebuild berms, dig out drainage and reconstruct trails sections.

Iron Range Resources & Rehabilitation funds its loans and grants through taxes paid by Minnesota’s mining industry. The projects approved at today’s board meeting support the agency’s FY22 spending plan which focuses on leveraging capital, improving the quality of life and retaining and creating well-paying jobs. The agency works to supports businesses, communities and workforce development projects that make northeastern Minnesota a desirable place to live, work and play.

Other infrastructure project funding partners include: private businesses, cities and their economic development authorities, counties, Minnesota Department of Employment & Economic Development (DEED), Minnesota Public Facilities Authority (PFA), Point Source Implementation Grant (PSIG), Water Infrastructure Fund (WIF), Blandin Foundation, Minnesota Department of Natural Resources (MNDNR), Bigfork Independent School District 318, Community Development Block Grant Program, Minnesota State Bonding Funds, Federal Congressional Funds, Minnesota State Department of Education, Chisholm and St. Louis Counties Housing Redevelopment Authorities, Legislative-Citizen Commission on Minnesota Resources, Minnesota Department of Natural Resources, Grand Rapids Area Foundation, Lake Vermilion Fire Brigade, and Pengilly Swan Lake Country Club.

Other trail project funding partners include: Federal Recreational Trails Program, Legislative-Citizen Commission on Minnesota Resources, Minnesota Department of Natural Resources, and State of Minnesota ATV Dedicated Account.

Fiscal Year 2023 Budget & Spending Plan

The FY23 Iron Range Resources & Rehabilitation budget and spending plan was approved at the June 7 board meeting. The agency’s business and community development programs have been receiving increasing numbers of funding requests for quality and impactful projects. Unprecedented levels of federal funding are also coming into the region, creating leverage that will help accelerate economic growth and post pandemic transformation.

The agency’s FY23 spending plan of $52 million includes financial support dedicated to business development as well as public works infrastructure and broadband. Community funding in a diverse array of programs and services helps support asset development that sets the stage for growth and makes northeastern Minnesota a desirable place to work and play. The budget focuses on leveraging capital, improving the quality of life, and retaining and creating jobs.

Budget highlights include:

  • Supporting public works infrastructure and business and industry with spending of $21.3 million, 40% of the budget. The agency is poised to fill funding gaps for one-time federal dollars that are currently available.
  • Setting the table for economic development with $22.5 million of resources flowing through the community and workforce development programs and supporting Giants Ridge to provide a high quality of life for everyone.
  • Producing a fiscally sound spending plan that includes reserve funds for unforeseen needs.