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Nov. 18, 2020
The city of Grand Rapids was one of 12 northeastern Minnesota communities that received a Taconite Area Community Relief grant from Iron Range Resources & Rehabilitation. Grand Rapids received a $200,000 grant and combined it with investments provided to the Grand Rapids Economic Development Authority (GREDA) from the Blandin Foundation to provide $556,000 in interest free loans to 25 pandemic-distressed businesses. The loans combined impacted 212 jobs.
The businesses received zero-interest loans up to $30,000 with a five-year term beginning after a six-month deferment period. The loans were for operating capital to assist with expenses including debt service payments, accounts payable, operating expenses, accruals and inventory.
“The city and GREDA were pleased to give businesses the boost they needed to resume or restructure their operations following the shelter-in-place order in March,” said Rob Mattei, city of Grand Rapids director of community development and GREDA executive director. “As the economy and local consumer activity began to resume in April, it did so at a suppressed level. The loans are helping businesses endure the struggles and impacts of the COVID-19 pandemic.”
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GREDA administered the loans through its Emergency Working Capital Loan (EWCL) Program. EWCL was first formed in April with $500,000 drawn from existing investments. Thirty-four pandemic-distressed businesses received loans that impacted 223 workers, and the fund was depleted. The Taconite Area Community Relief grant from Iron Range Resources & Rehabilitation provided the funding needed to recapitalize EWCL and launch a second phase of business assistance.
Lake Country Furniture was one of the businesses that received a loan in the second phase. Owners David and Kathleen Chesness have been business owners in Grand Rapids for 27 years and have two retail furniture locations and 11 employees.
“The loan from the city came at a critical time,” said Kathleen. “It helped us better manage the disruption in the national and global furniture supply chains. The loan helped keep our showrooms stocked and proceed with business to help make up for the sales revenue lost during the spring closure.”
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Northern Lakes Dental also received a loan, and according to manager Joe Cargill, for the dental practice the funding also came at a crucial time.
“Due to the mandated shutdown and extremely high costs of opening back up, as well as the additional PPE required to safely treat patients and protect staff, the loan was extremely helpful,” said Cargill. “Given the lag time in health care between treating a patient and getting reimbursed by the insurance company, the additional money was integral in keeping our company's financials in a healthy position during the transitional period immediately after reopening in May.”
The Taconite Area Community Relief Grant was established in July by a unanimous vote of the agency’s Board. Twelve applications were received, and all were funded at various levels with financial participation from each community.
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“The COVID Relief program enabled Grand Rapids to utilize the resources locally as they best saw fit,” said Commissioner Mark Phillips of Iron Range Resources & Rehabilitation. “Grand Rapids retains the loan repayments for future economic development purposes. The program embodies our agency’s ongoing mission of investing into northeastern Minnesota communities and businesses.”
Click here to learn more about Iron Range Resources & Rehabilitation COVID Relief programs.
Pictured at top right: Grand Rapids was named one of the Top 50 Cities to Live in the US according to 24/7 Wall Street. Aerial photo courtesy of Weisguy Images.
Additional photos feature Lake Country Furniture.
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Grants totaling $38,192 were awarded to projects that foster the development and long-term sustainability of recreational trails and facilities in Northern St. Louis County. The total project investment is $79,897.
Six projects were completed:
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Crane Lake Convention & Visitors Bureau: $2,300 to develop a new four-season multi-use trail map.
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City of Chisholm: $6,000 to pave a multi-use connector trail located near the city’s baseball fields and Museum of Mining.
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Range Trail Committee: $1,000 to re-route a snowmobile trail in the Quad Cities area.
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Iron Range Off Road Cyclists: $4,845 to create and install two new signs along Highway 169 to advertise the Redhead Mountain Bike Park. (Pictured above.)
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Iron Range Off Road Cyclists: $5,000 to upgrade and groom Laurentian Divide trails at Lookout Mountain near Virginia. (Pictured below right.)
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Ely Igloo Snowmobile Club: $7,810 to re-route August Lake area snowmobile trail.
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Two projects are in progress:
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Howard Waggoner Trails Club: $4,917 to install signage and a boardwalk on the Ancient Cedar Forest Hiking Trail in Tower.
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Ranger ATV Snowmobile Club: $6,320 for decking and supplies to construct Round Creek Bridge.
Each grant required a 1:1 match that could include cash, in-kind labor, donated materials, donated professional planning and environmental services, and donated land related to the project. Additional projects were awarded funding and are scheduled to begin work in the coming months.
The new trails grant program was funded at $50,000 by Iron Range Resources & Rehabilitation and is administered by Northern St. Louis County Trails Task Force and Iron Range Tourism Bureau. Eligible applicants include cities, townships, counties, nonprofits and tribal units of government within St. Louis County and the Iron Range Resources & Rehabilitation service area. For more information email Beth Pierce or call her at 218-749-8161.
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The city of Ely is developing a pocket park on a vacant lot previously occupied by Pamida. The project entails upgrading lighting, seating, landscaping, ADA sidewalks, a small stage for music events, a playground climbing feature and public WiFi. The lot is owned by the Ott Family, who is partnering with the city to develop the new public community space on Ely’s main street. Iron Range Resources & Rehabilitation supported the project with a $50,000 Downtown Streetscapes grant. Total project investment is $146,000. Other funding partners included Alley A Realty/The Ott Family, Incredible Ely and Ely Utilities Commission. Completion is scheduled for June 2021.
“The Downtown Streetscapes grant is part of our agency’s commitment to the livelihood and stability of our rural communities,” said Commissioner Mark Phillips. “Business corridors and main streets with attractive public spaces and amenities can play a significant role in attracting private sector investment, new residents and patrons.”
The pocket park is part of a larger downtown beautification initiative that began in 2016 to complement ongoing storefront and building investments being made by Ely’s business owners. The streetscape improvements have included LED decorative lighting, banners, hanging baskets and planters for flowers, new trash receptacles, sidewalk renovations, bike racks, information kiosks and benches.
Iron Range Resources & Rehabilitation’s grants are funded through taxes paid by Minnesota’s mining industry. For Downtown Streetscapes grant information email Whitney Ridlon or call her at 218-735-3004.
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The city of Virginia and Virginia Economic Development Authority (VEDA) earlier this year launched its Downtown Grant Redevelopment Program which is anticipated to renovate up to 12 commercial properties that are currently substandard and/or blighted and located in the city-designated Redevelopment District.
La Cocina & Cantina and Ahrens Thompson Realty & Insurance last week received grants to improve their businesses located on Chestnut Street. La Cocina received a $27,998 grant for new roofing, and Ahrens Thompson received $39,816 for energy efficiency upgrades and interior remodeling.
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Iron Range Resources & Rehabilitation supported the redevelopment initiative with a $250,000 EDA Partnership Pilot grant, and the city of Virginia contributed $300,000 with the sale of a tax abatement bond. Other project partners include VEDA, Virginia Community Foundation and ReVive Virginia, a nonprofit organization formed to focus on downtown preservation and revitalization. With the funding, VEDA is offering grants in the form of forgivable loans of up to $49,000 to downtown business owners who reinvest in the physical assets of their business property. Favorable loan resources have also been secured to provide additional affordable financing to leverage grant funding.
Canelake’s, Popper’s Bar and Commercial Refrigeration were the first businesses to receive redevelopment grants earlier this year.
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“The goal is to enhance and grow commercial, mixed-use development in our historic downtown,” said City Administrator Britt See-Benes. “Market values increase when dilapidated properties are redeveloped. That type of positive change in our Redevelopment District can have city-wide benefits to our residents and businesses. These five businesses are setting an excellent example of how updated storefronts and buildings can revitalize downtowns.”
For VEDA redevelopment grants, email City Administrator Britt See-Benes or call her at (218) 748-7500. For Iron Range Resources & Rehabilitation EDA Partnership Pilot information email Whitney Ridlon or call her at 218-735-3004.
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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.
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