The Ranger - Oct. 16

department of iron range resources and rehabilitation

The Ranger 

Oct. 16, 2019

City of Grand Rapids uses Commercial Redevelopment grant to pave the way for a thriving downtown brewery

Rapids Brewery Company

Rapids Brewery opened for business this summer in a core downtown building that was once home to the Rialto Theater and abandoned in the 1980s. The 5,400-square-foot theater building was completely renovated. Two adjacent unoccupied and deteriorating commercial buildings were demolished to make way for the construction of a new 1,000-square-foot addition to the former Rialto. The remodeled and new space combined house the brewery, taproom, restaurant and outdoor patio.

The brewery owners are a group of local private investors organized under a Minnesota business, Rapids Brewing Company, LLC. General Manager and LLC partner Bill Martinetto is a Grand Rapids native and oversees the operations. He is a former accounting manager at an area mining company. Head Brewer Darin Jensen is also a Rapids native and worked for 23 years at Alaskan Brewing Company in Juneau, Alaska before returning home in 2018. Martinetto and Jensen have been central to the development and startup of the brewery, as well as perfecting the ale and larger recipes which have been very well received among their patrons. The brewery hired Executive Chef Eric Halverson to lead the food operations. Halverson has ten years of experience in fine dining, puts a unique twist on every day menu items, and partners with local growers and producers in filling out the menu offerings.

Barrels

The brewery has a seven-barrel system, and the restaurant’s kitchen is wood-fired and serves handmade pizzas, appetizers, salads, pasta and desserts. There is live music on Saturday nights, and the patio has seating for 50 with an open fire pit.

“Along with the seven-barrel system, we also have a pilot one-barrel that allows for some experimental brewing. We include seasonal local fruits and botanicals when they’re available,” said Jensen. “Nearly all of our base malt is purchased from Maltwerks in Detroit Lakes, and we pride ourselves on buying a lot of Minnesota-made and local ingredients for both our beers and our food.”

Wood-Fired Oven

The project was made possible with a Commercial Redevelopment grant from Iron Range Resources & Rehabilitation to the city of Grand Rapids to help pay for internal and external demolition. Rapids Brewing Company, LLC also utilized a Business Energy Retrofit grant to further assist with the renovation and make the building more energy efficient.

“This project helped redevelop a high visibility site in our downtown, which has been a long standing goal,” said Rob Mattei, Grand Rapids Director of Community Development. “The buildings had been in a state of decline for over two decades, and now it is a thriving gathering space with great food and great craft beer.”

Rapids Brewery

The total project investment was $3.6 million. Rapids Brewery currently employs 17 people and is open daily 11 a.m. to 10 p.m. Other funding partners included Northland Foundation, Grand Rapids Economic Development Authority, Minnesota Department of Employment and Economic Development, Northeast Entrepreneur Fund, Arrowhead Regional Development Commission, and United States Small Business Administration.

“Property reuse and redevelopment is absolutely essential to a healthy, prosperous economy and community,” said Mark Phillips, Iron Range Resources & Rehabilitation commissioner. “Our agency’s investment into this project helped revitalize a downtown area in Grand Rapids, supported a new business and created jobs.”

Email Chris Ismil or call him at 218-735-3010 for more grant information.


Developments in Silver Bay win Opportunity Zones Challenge

Opportunity Zones Challenge Winners

The United States Congress established a new community development program in the Tax Cut and Jobs Act of 2017 to encourage long-term investments in low-income and urban communities nationwide. Nine census tracts (called “Opportunity Zones”) within the Iron Range Resources & Rehabilitation service area were officially designated by former Minnesota Governor Mark Dayton. View map and view “OZ101” video.

To spur development activity across the state, the Minnesota Opportunity Zone (OZ) Challenge kicked off earlier this year. Round one of the challenge included entries from 16 projects totaling over $300 million in development. To vie for prizes of cash grants, each project made its case to a panel of judges explaining why equity investors will benefit from financing their project.

Two winning entries were Silver Bay projects in the category for cities with populations under 5,000. Both projects are connected to The Adventure Park on the North Shore, an aerial forest ropes climbing course that opened in May 2019. It is the only course of its kind in Minnesota and was developed on commercially-zoned land that is a gateway entry point into Silver Bay.

Climbing Day

The park is adjacent to the site for the future Adventure Village, which will be built on a lot that was formerly home to a SPUR gas station. Iron Range Resources & Rehabilitation provided a Commercial Redevelopment grant to the city of Silver Bay to demolish the gas station. Minnesota Department of Employment and Economic Development gave a grant to the city to clean up pollution, and the business Adventure Investors Minnesota (AIM) then purchased an adjacent parcel owned by the city and MNDOT to develop the ropes course.

Entry #1 - Adventure Investors Minnesota:  AIM is owned by real estate investors Alice Tibbetts and Phil Huston who live in Silver Bay and Duluth. AIM is seeking OZ investors to support an expansion of the Adventure Park that includes electric bike rentals, a family-friendly mountain bike pump track and trail, platform tents along a creek for primitive camping, and climbing on a natural rock formation named Eleanor.

Entry #2 - Adventure Village: OZ funding is being sought by Tibbetts and Huston and their partners to add a new 4,600-square-foot food hall adjacent to the ropes course. (Rendering pictured below.) Food halls are an emerging trend popping up across the nation, and they house multiple food and retail vendors under one roof. Adventure Village will be modeled after Keg & Case in Saint Paul, which was recently named the nation’s top food hall. The building will be utilized year-round and feature food, retail, visitor information, and recreational rentals. 

Adventure Park Food Hall Rendering

The businesses won a $7,500 cash grant prize in the OZ Challenge for their entries to expand the Adventure Park, which is featured in a new promotional video.

“The Adventure Park is an excellent example of economic partnership among the city of Silver Bay, our agency and private sector business,” said Mark Phillips, Iron Range Resources & Rehabilitation commissioner. “Phil, Alice and their partners developed an excellent recreation business that created jobs, improved the entry to Silver Bay and is growing tourism revenue in the region. Our agency congratulates them on their success as they continue development and buildout of the Adventure Park. They are strengthening the communities and quality of life in northeastern Minnesota.”

Iron Range Resources & Rehabilitation has ten additional sites for development in its service area that to date are seeking “Opportunity Zone” funding:

  • Aitkin: Housing Redevelopment, Bunker Hill Site, Former Shopko Building, Airpark Industrial Development Site.
  • Ely: Business Park.
  • Grand Marais: Cedar Grove Business Park, Village North Housing Redevelopment.
  • Hibbing: Industrial Park.
  • Nashwauk: Industrial Park.
  • Silver Bay: Business Park.

The agency provided a Development Partnership grant to Northspan Group to launch Minnesota Opportunity Collaborative, which brings together developers, investors, businesses, and community development entities to host a statewide Opportunity Zones online project directory. To learn more email Whitney Ridlon or call her at 218-735-3004.


Northland Capital Management opens headquarters in Virginia

Northland Capital Management Building

The city of Virginia utilized a Commercial Redevelopment grant to support the partial demolition of a building formerly owned by the Hometown Focus community newspaper. The demolition paved the way for Hermantown-based Northland Capital Management to open a second office, add another advisor, and relocate its headquarters from Hermantown to Virginia. Northland Capital Management provides investment management services, with Chris Erickson, Julie Pietrini Johnson, and now Gabe Amundson serving as investment advisors. The renovated building will house their firm as well as the Hometown Focus community newspaper. Chris and Julie also utilized a Business Energy Retrofit and a Downtown Building Rehabilitation grant to further assist with the renovation, making the building more energy efficient and code compliant.

The building was transformed into a modern two-tenant office complex, enhanced the development along Virginia’s peripheral downtown corridor, and increased the city’s tax base. This type of redevelopment is essential to the vitality and economy of the Iron Range.

“Chris and Julie created economic revitalization through property reuse in an Iron Range community,” said Mark Phillips, Iron Range Resources and Rehabilitation commissioner. “Our agency proudly supported this project, and we are so pleased to have Northland Capital headquartered in Virginia.”


Ely adds mountain biking to its tourism industry

Hidden Valley Ribbon Cutting

A new mountain bike skills trail loop opened last month at Ely’s Hidden Valley Recreation Area where riders can practice and hone their bike handling techniques. The loop is slightly over one-half mile in length and exposes riders to features commonly found on single track mountain bike trails such as climbing and descending berm turns, small to medium rollers and jumps, rock gardens, and ramp and rock drops.

The skills loop is Phase 1 of Ely’s mountain bike initiative. Phase 2 includes a 9.1-mile purpose built trail system in Hidden Valley that may be used year-round for mountain and fat tire biking. The new system will consist of six loops ranging from beginner to advanced.

“Mountain biking is one more activity we can offer to tourists,” said Harold Langowski, Ely city clerk. “A large portion of Ely tourism has historically been people heading into the Boundary Waters. The city and surrounding area is now progressing towards becoming a mountain biking destination as well due to its unique topography, geology, and rugged and natural beauty.” 

Hidden Valley Skills Park

Already a recreation hub in Ely, Hidden Valley is located on the city’s east end and has existing infrastructure in place such as a heated chalet, 25(+) kilometers of groomed cross country and hiking trails, a parking area and restroom facilities.

Iron Range Resources & Rehabilitation provided a Regional Trails grant to the city of Ely which helped pay for the skills loop construction. Other project partners included the city of Ely, Ely Nordic Ski Club, Ely Bike Club, Minnesota DNR, St. Louis County, and United States Forest Service. For grant information email Jim Plummer or call him at 218-274-7006.


The Ranger is a publication of Iron Range Resources & Rehabilitation. Our mission is to invest resources to foster vibrant growth and economic prosperity in northeastern Minnesota.