IRRR Board Meeting Recap - Dec. 14

department of iron range resources and rehabilitation

Dec. 14, 2021

Businesses, communities, outdoor recreation, education and mining operations in northeastern Minnesota receive over $34 million in economic development funding

Project Map

At today's Iron Range Resources & Rehabilitation Board meeting, approximately $3.5 million in loans, $4.1 million in community grants, $18 million in K-12 school collaboration funds, $1.4 million in higher education funds, and $7.2 million in mining fund rebates were approved to advance projects in northeastern Minnesota. Total combined project investment is approximately $157.7 million. The projects are expected to increase the regional tax base, create permanent and construction jobs, provide essential services, improve education and expand outdoor recreation and mining. The loans are anticipated to impact 19.5 jobs and create 32 construction jobs. The infrastructure projects are projected to impact 54 jobs and create 306 construction jobs.

Bank Participation Loan: $1,000,000

Agency Investment $1,000,000 | Total Investment $8,865,200 | Leverage: 7.9 : 1

  • Scranton Iron, Inc. dba Hibbing Salvage & Supply, Inc., Hibbing: $1,000,000 to construct a new 19,000- square-foot scrap metal processing facility.

Direct Loan: $2,500,000

Agency Investment $2,500,000 Direct Loan & $379,375 Community Development Grants | Total Investment $6,349,139 | Leverage: 1.2 : 1

  • Chisholm-Hibbing Airport Authority, Hibbing: $2,500,000 to construct a 21,912-square-foot multi-use hangar that will house a locally owned company, Premium Air, LLC, to provide on-demand charter service, and the hangar will also provide daily rental space for larger aircraft that visit the area.

Development Infrastructure Grants: $1,603,000

Agency Investment $1,603,000 | Total Investment $18,511,028 | Leverage: 10.5 : 1

  • City of Aitkin: $323,000 to construct infrastructure for the construction of a new 35-unit market-rate apartment complex with underground parking to help address the need for workforce housing.
  • City of Cohasset: $80,000 to extend the watermain to serve residential homes and Forestry Dealership's new 15,000-square-foot building expansion.
  • Cook County/Grand Marias EDA: $450,000 to construct infrastructure for the development in Tofte of two mixed-use buildings that include a total of 14 workforce housing apartments and six commercial/retail space.
  • Cook County/Grand Marias EDA: $500,000 to construct infrastructure for the development in Tofte of a mixed-use building that includes six workforce housing apartments with garage spaces and four commercial/retail spaces.
  • City of Hibbing: $250,000 to construct infrastructure for the development of a new city-owned campground on Carey Lake with 29 RV and tenting sites with water and electrical service at each site.

Broadband Infrastructure Grant: $742,850

Agency Investment $742,850 | Total Investment $5,786,493 | Leverage: 6.8 : 1

  • Crow Wing County: $742,850 to expand CTC Communications fiber optic broadband network to serve 500 unserved and underserved households in rural Crow Wing County.

Community Infrastructure Grants: $1,730,000

Agency Investment $1,730,000 | Total Investment $26,007,311 | Leverage: 14 : 1

  • Breitung Township: $40,000 to reconstruct a street and new storm sewer infrastructure that provides direct access to a residential neighborhood.
  • Chisholm-Hibbing Airport Authority: $250,000 to reconstruct the primary runway safety area (RSA) which provides an FAA-compliant graded area in case an aircraft overruns, undershoots or veers off the runway.
  • City of Ely: $250,000 to make phase I improvements to the city’s wastewater treatment facility.
  • City of Eveleth: $250,000 to upgrade the water, sewer and storm sewer infrastructure for two streets.
  • City of Hibbing: $150,000 to replace a lift station that serves about 130 homes and 370 residents.
  • City of Hoyt Lakes: $100,000 to construct a new emergency services facility access and improve storm sewer drainage at a campground.
  • Lone Pine Township: $190,000 to assess the community septic’s feasibility of supporting 15 miles of new sewer line which could mitigate negative environmental impacts.
  • City of Nashwauk: $250,000 to complete the phase II construction of a lift station and equalization basin that will accommodate the expansion of the city’s wastewater treatment facility.
  • Tower-Breitung Wastewater Board: $250,000 to replace 22 force-main manholes that will help reduce excessive inflow and infiltration of storm water.

Iron Range School Collaboration Account: $18,000,000

Agency Investment $18,000,000 | Total Investment $65,685,121 | Leverage: 2.6 : 1

  • Nashwauk-Keewatin Independent School District No. 319: $18,000,000 for the payment of bonds to support the construction of a new K-12 school in Nashwauk. Nashwauk-Keewatin and Grand Rapids school districts have signed resolutions with their commitment to identify new ways to foster greater cooperation between the districts, explore benefits of district consolidation and improve budget efficiencies.

 Iron Range Higher Education Account: $1,440,000

Agency Investment $1,440,000 | Total Investment $2,471,800 | Leverage: .7 : 1

  • VisionNE College Merger: $765,000 to assist with the merger of five community colleges including Hibbing, Itasca, Mesabi Range, Rainy River and Vermilion.
  • BELL Engineering Student Housing: $675,000 to renovate and convert the current Hillcrest property in Chisholm into student housing to meet the residential needs of the BELL Program. 

Regional Trails Grant: $29,000

Agency Investment $29,000 | Total Investment $58,185 | Leverage: 1 : 1

  • Crow Wing County: $29,000 to construct viable emergency vehicle access roads and detailed emergency response mapping for a new 10-mile trail segment located within Cuyuna Country State Recreation Area.

Taconite Economic Development Fund (TEDF) Rebates: $7,273,127

Agency TEDF Rebates $7,273,127 | Total Investment $21,041,000 | Leverage: 1.9 : 1

  • Minorca: $650,958 for a ball mill replacement.
  • Northshore Mining Company: $1,223,159 for 167 pellet yard reclaim conveyor.
  • United Taconite: $1,260,702 for mill lines 1, 2 and 3 finisher upgrades and for concentrate bin flow improvements.
  • USS Keetac: $1.016,301 for tailings basin decant replacement, a vehicle lift, and mine extension.
  • USS Minntac: $3,122,007 for Lines 5 and 6 pre-classification, mine extension, new track scale, and indurating Line 6 grate.

Iron Range Resources & Rehabilitation is funded 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.