Highly visible abandoned buildings in the cities of Virginia, Eveleth and Hibbing have been demolished through a commercial redevelopment grant program funded by Iron Range Resources & Rehabilitation.

One Hour Photo

The former One Hour Photo/Golden Boy Market on Virginia’s Second Avenue was demolished last month. The blighted property went into tax forfeit status earlier this year after being abandoned by its owner eight years ago. The structure was beyond repair, and the demolition enables the city to actively market the vacant lot for commercial development.

“The demolition of this building marks the city’s significant commitment to revitalizing the Second Avenue corridor,” said Britt See-Benes, Virginia’s city administrator. “Since the demolition, residents have expressed their excitement about the positive change they see ahead in this area of Virginia.”

The now vacant lot has water and sewer connections in place, adjacent parking and can hold a commercial building up to about 3,000 square feet, which the City says creates an ideal location for a small retail or service shop such as a coffee shop, cafe, boutique, or bike repair shop. 

“Reduction of blight and the number of vacant buildings paves the way for new development and decreases vandalism,” said See-Benes. “It strengthens Virginia’s community and economy.”

Days Inn

The former Days Inn on Eveleth’s Hat Trick Avenue is in the process of being demolished. Originally developed in the booming economy of the 1970s, the site was home to the regionally popular Holiday Inn and Lord Stanley’s Restaurant. The Holiday Inn closed in the early 2000’s, re-opened as a Days Inn about a decade ago, was eventually abandoned and then recently tax forfeited to the county. The 7-acre property is situated along Highway 53, the main traffic thoroughfare that runs north and south through the Iron Range, another highly visible location suitable for new retail or other commercial use.

“I’ve had many inquiries about the property over the years, and now the site marketing and planning can move forward,” said Eveleth Mayor Robert Vlaisavljevich. “Preparing this site for redevelopment was an excellent partnership between City of Eveleth, Iron Range Resources & Rehabilitation and St. Louis County.” 

Suburban Lanes Bowling Alley

Hibbing had slightly different circumstances with the Suburban Lanes Bowling Alley. This commercial site is not tax forfeited but has sat vacant for 19 years under private ownership. Located on Highway 37, it was built and opened in 1961 and thrived until 1997 when it closed to the public. During its vacancy, the facility endured extensive water damage resulting in toxic levels of mold and mildew. 

“The owner has been approached by several potential buyers over the years,” said John Tourville, Hibbing’s economic developer. “But the building itself had become the obstacle for a successful sale and subsequent new development.”

Now that demolition is complete, the Hibbing property could support a multi-outlet retail site or other business. The city and owner will work with land-finding agents to connect with potential developers.

“Abandoned commercial sites can have a very negative impact on small communities,” said Mark Phillips, Iron Range Resources & Rehabilitation commissioner. “Our agency’s grant program lessens the financial burden on taxpayers and local units of government that are striving to demolish these buildings and prepare the way for redevelopment that is essential to the vitality and economy of the region.” 

Commercial redevelopment grant money is still available to cities, townships and counties this fiscal year. Email Chris Ismil or call him at 218-735-3010. 

Pictured above: The former One Hour Photo building in Virginia is demolished.  

Freebs Fitness & Tanning is the newest free-weight gym and tanning salon in Hibbing, opened Nov. 1 by Brian and Melissa Freeberg. The Freebergs owned Endless Summer Tanning in downtown Hibbing for years until recently expanding their business into a different building with a 24-hour gym.

Their 3,100 square foot facility is one mile from the original tanning salon and offers free and selectorized weights, nutritional and fitness supplements, personal training, fitness classes, tanning beds and skin care products.

Melissa has been interested in fitness since the age of 13 and has been a licensed and certified fitness instructor for 20 years. She teaches beginner and advanced fitness training classes at Freebs, along with one free fitness class each month.

Gym membership starts at $38 per month and includes tanning discounts. “There are currently 48 members, and the numbers are climbing,” said Melissa. “My husband and I are so excited about this expansion and the community impact we can make through improving people’s fitness.”

Freebs was assisted with a loan guaranty by Iron Range Resources & Rehabilitation for equipment purchases. A loan guaranty is an agreement between the agency, a private lending institution and the borrower, and the agency shares in some of the financial risks of business development. Businesses headquartered within the agency’s service area that have been operating under the same management for at least two years are eligible candidates. 

Email Scott Sundvall for more loan guaranty information or call him at 218-735-3015.

A small business with an aging building can benefit immensely from energy efficiency upgrades, benefits such as reduced utility bills, improved building aesthetics and increased building life. However, these upgrades can be financially cumbersome to small businesses that often operate on smaller margins.

The Business Energy Retrofit (BER) grant program can help alleviate energy upgrade costs to small businesses. It is funded by Iron Range Resources & Rehabilitation and administered through a partnership with Arrowhead Economic Opportunity Agency (AEOA). Two Grand Rapids businesses recently took advantage of this program.

ReStore

The Itasca County Habitat for Humanity ReStore received a BER grant to pay a portion of the costs for electricity connection to its warehouse, blown-in insulation and energy efficient lighting fixtures. These upgrades were part of a larger renovation needed to expand its growing operation.

ReStore opened in 2007 and by 2010 it slowly began to make a profit. ReStore relies on residents’ donations such as furniture, windows, building materials, dishes and appliances. It then sells the items to the public at value prices. Proceeds benefit Itasca Habitat, which has built 41 and restored 14 homes for qualifying local families since its founding in 1993.

“The donation volume was increasing, and the customer base was growing,” said Amanda Lamppa, Itasca Habitat’s executive director. “The store became so popular, especially among antiquers, refurbishers, and bargain shoppers, that we needed to expand our retail space, warehouse and receiving area.”

The ReStore wanted energy efficiency improvements to be a part of the renovation, so it applied for a BER grant to help offset costs. Lamppa said she is looking forward to the energy cost savings resulting from the grant.

P&D Sewing Center

One mile away from ReStore is P&D Sewing Center, another small business that received a BER grant. Tanya and Scott Jackson have owned the Grand Rapids sewing business since 2001, repairing and selling sewing machines, notions and gadgets.

P&D’s grant helped pay for a new roof, insulation, windows, air conditioning system, an on-demand hot water heater, interior LED lighting and plumbing fixtures. These new energy efficient elements were part of the larger remodel paid for by the business owner.

“The BER grant paid for about 20 percent of the total renovation. We could not have completed the project without the grant,” said Tanya. “We just received our first heating bill and it was 50 percent less than comparable bill cycles.”

Since BER's inception in 2013, 203 energy efficiency grants have been awarded. To learn more, email Vince Meyer at AEOA or call him at 218-735-6828.

Pictured are before and after shots of the P&D Sewing building. 

The “Hometown Focus” building located on Virginia’s Silver Lake and across from Super One North is under new ownership and undergoing a partial demolition and extensive renovation. 

Northland Capital Management is relocating its headquarters from Hermantown to Virginia and will soon be providing investment management services out of this newly remodeled commercial site. Northland Capital Management is owned and operated by longtime Iron Range residents and business partners, Chris Erickson and Julie Pietrini Johnson. When completed, the building will house their firm as well as the Hometown Focus community newspaper.

This type of redevelopment is essential to the vitality and economy of the Iron Range. The renovation should be completed by August 2018.

Iron Range Resources & Rehabilitation supported this project with a commercial redevelopment grant, which helped pay for the demolition. 

Commercial redevelopment grant money is still available to cities, townships and counties this fiscal year. Email Chris Ismil or call him at 218-735-3010. 

Pictured are a current shot and a future rendering of the "Hometown Focus" building. 

In order to meet the needs of regional employers, Advanced Minnesota and Mesabi Range College have developed a 240-hour Accelerated Welding Institute for individuals looking to obtain a certificate of completion and immediately start a career as an entry-level welder. 

Those who complete the program may qualify for credits in the welding program at Mesabi Range College if they choose to further their education. 

Training costs will be paid by the Northeast Minnesota Office of Job Training and Iron Range Resources & Rehabilitation. 

Employers, reserve seats for your new hires now, as seats will fill up quickly! 

• Location: Mesabi Range College-Eveleth 
• Schedule: Classes can begin as early as Jan. 22, 2018 
• Length: 240 Hours over 8-10 weeks

For more information, contact Gail Anderson at gail.anderson@advancedmn.org or 218-322-2468 or Heath Boe at heath.boe@nemojt.org or 218-735-6174.