Zakobe acquired three new pieces of equipment to further its competitive advantage in the national tool and die market. Through a bank participation loan with Iron Range Resources & Rehabilitation, the Bovey-based family-owned and operated company secured a high speed small hole driller, a heat treat oven and a wire electrical discharge machine or “wire EDM.”

With the new equipment Zakobe can manufacture its metal and steel products with lower prices, superior quality and a faster turnaround. Custom, mass quantity orders that once took up to five weeks to produce now require only three weeks to ship to clients.

The products made at Zakobe are used every day in homes and businesses. The small, metal clasp which holds in the battery on a TV remote control or the metal eye hook on a fishing lure could have been tooled and shaped at Zakobe. The company designs and produces all of its tooling and products in-house, using a variety of metals and other materials such as nickel, aluminum, brass, PVC, bronze, copper, stainless steel and fiber board. The new equipment opened up the ability to produce prototype parts such as specialized gears and gauges that require top and bottom machining applications. The new equipment can cut nine-inch-thick soft or hard metal alloys such as copper, steel, graphite and aluminum.

“Owning a business in the agency’s service area gave us access to a much lower interest rate than we could have acquired otherwise,” said Wade Karnes, Zakobe owner and founder. “The low interest rate enabled us to purchase modern equipment and jump on board with technological advances to compete nationally and globally.”

Wade & Teresa Karnes founded Zakobe in 2005, operating out of Wade’s father’s garage. Fourteen years later it is a thriving tool and die business that specializes in metal stamping, manufacturing and machining metal fabricated parts for a wide array of industries including fishing, cycling, farm equipment, battery, medical, military, electronics, radiator and computer hardware. Zakobe has 10 full-time and part-time employees and operates out of a 6,500 square-foot facility. Its products are distributed to companies throughout the United States and are then shipped worldwide.

“The loan process with our local bank and the agency was completely hassle-free,” said Karnes. “The bank and agency took care of the financing details while I remained focused on operating the business, training employees on the new equipment, and managing pathways into new markets.”

Note: Iron Range Resources & Rehabilitation provided Zakobe a bank participation loan in 2017 which helped purchase its current building.

Pictured above right are Zakobe's new high speed small hole driller and wire electrial discharge machine or "wire EDM." Pictured above left are Zakobe's products.

Situated along Lake Superior, Two Harbors is experiencing significant economic development activity. The expansion of Castle Danger Brewery and taproom, a new performing arts center under construction, and the upcoming development of Split Rock Wilds mountain bike trail are all strengthening the city’s economy and quality of life. The brewery alone attracts thousands of local and visiting patrons to the taproom each year.

To complement the economic growth, Two Harbors is rehabilitating its commercial and residential building inventory in targeted areas of the city. Through its Application Fund program, Iron Range Resources & Rehabilitation helped pay for a professional grant writer to apply for state level funding to assist with building rehabilitation. Preparing an effective grant proposal, identifying funding sources, and navigating the application process can be costly and requires technical expertise to which small communities often do not have access.

Scott Zahorik of Arrowhead Economic Opportunity Agency (AEOA) successfully secured a $777,975 grant from Minnesota Department of Employment and Economic Development (DEED)’s Small City Development Program (SCDP) to help pay for rehabilitation of 18 single family owner-occupied homes and six commercial buildings.

“The $3,000 in financial support from Iron Range Resources & Rehabilitation resulted in an influx of three quarters of a million dollars to northeastern Minnesota,” said Zahorik. “Two Harbors can improve its building and housing inventory and make the city more attractive for existing and new residents.”

Two Harbors identified housing rehabilitation as a top priority in its comprehensive plan. Other funding sources for the project include the city of Two Harbors, Lake County Housing & Redevelopment Authority, Minnesota Department of Commerce, Minnesota Housing, AEOA and private owners. Combined they are contributing an additional $260,600.

“Healthy housing is imperative to economic and community development,” said Two Harbors Mayor Chris Swanson. “Our city has the oldest housing stock in Lake County, with almost half of the homes built prior to 1940. The grant that Scott successfully obtained and the solid support of Iron Range Resources & Rehabilitation will make a substantial impact to our neighborhoods and community.”

Grant writing assistance is part of Iron Range Resources & Rehabilitation’s commitment to fostering economic growth. Two Harbors is a model example of how the agency’s Application Fund grant can improve our region’s communities. For more information email Whitney Ridlon or call her at 218-735-3004.

Pictured above is the Vanilla Bean Restaurant, a previous commercial rehabilitation project in Two Harbors. 

Ten scholarships were awarded to area child care center workers to help pay for their schooling to become a credentialed Child Development Associate (CDA). The workers are currently employed at Apple Tree Learning Center (Virginia), Drop in Daycare (Virginia), Iron Range Tykes (Mountain Iron) and Bois Forte Head Start (Tower).

CDA credentials are internationally recognized and based on a core set of competency standards in the areas of emotional, physical, intellectual and social development of children, along with health, safety and family interaction. The scholarship recipients will complete their schooling over the next nine months while still employed at area centers.

Each scholarship is valued at approximately $2,000 and helps pay for 120 hours of online training, books, student coaching, assistance in portfolio development and the $425 CDA application fee. Each worker who completes their CDA will have 10 semester credits waived if they choose to pursue an Early Childhood A.A.S. Degree from Mesabi Range College. The 10 semester credits are valued at $182.62 per credit, a total college tuition savings of over $1,800.

“CDA is the most widely recognized credential in early childhood education,” said Dawn Kemppainen-Olson, Education Instructor at Mesabi Range College. “Earning a CDA is a key component of professional advancement in early childhood education careers.”

In addition to the scholarships, Mesabi Range College is launching a high school outreach program to students in Cook County. During the 2019-2020 academic year up to twenty high school students and community members will be provided financial support for career exploration, college-level coursework in early childhood education, and the option to earn the CDA.

According to Kemppainen-Olson, the scholarship and high school programs will strengthen the region’s child care workforce by upskilling workers currently employed at area centers, as well as creating future early childhood teachers.

Iron Range Resources & Rehabilitation supported this program with a Workforce Development grant through taxes paid by Minnesota’s mining industry. For more information email Danae Beaudette or call her at 218-735-3022.

Iron Range Resources & Rehabilitation invests resources to foster vibrant growth and economic prosperity in northeastern Minnesota through a selection of grant programs. Several programs will accept applications for the fiscal year 2020 funding cycle beginning July 1:

• Commercial Redevelopment - Assists with demolishing dilapidated commercial or industrial buildings and cleaning up brownfields.
• Community Infrastructure - Assists with community infrastructure projects.
• Development Infrastructure - Assists with development related infrastructure projects. 
• Development Partnerships - Assists with research, education and development-based initiatives that support long-term economic growth.
• Mineland Reclamation - Assists with highly visible development and restoration of post mining land.
• Regional Trails - Assists with planning, engineering and construction of various outdoor trails such as biking, hiking, walking, ATV, skiing and snowmobile.
• Residential Redevelopment - Assists with the demolition of dilapidated residential structures and blight.
• Iron Range School Collaboration: (1) Bricks & Mortar and (2) Innovative Academic Programming - Assists with regional multi-district collaborative initiatives that create greater availability and access to high quality education for students and training for educators.
• Workforce Development - Assists with education and training initiatives that address regional workforce needs and gaps emerging in industries and schools.

We encourage eligible applicants in our service area to apply for one or more grants. Learn more by clicking here. FY20 grant guidelines will be posted on our website beginning July 1. Access the grant application portal (FLUXX) by clicking here.