April 5, 2022

FOR MORE INFORMATION:

Sheryl Kochevar, Communications Director

218-735-3021, Sheryl.Kochevar@state.mn.us

Businesses, communities and outdoor recreation in northeastern Minnesota receive over $15.6 million in economic development funding

Approximately $12.2 million in loans and over $3.3 million in grants were approved at today's Iron Range Resources & Rehabilitation Board meeting. Total combined project investment is approximately $57.4 million. The projects are expected to increase the regional tax base, create permanent and construction jobs, provide essential services, and expand outdoor recreation. The loans and grants combined are anticipated to impact 866 jobs. The infrastructure grants are projected to create 202 construction jobs.

Business Development: $12,740,592

Agency Investment: $12,240,592 Loans & $500,000 Infrastructure Grant | Total Project Investment $30,490,685 | Leverage: 1.4 : 1

• Chisholm-Hibbing Airport Authority (CHAA), Hibbing: $10,000,000 Loan & $500,000 Infrastructure Grant to construct a 60,000-square-foot addition to the existing operations at the airport campus of Detroit Diesel Remanufacturing, LLC (DDR). The added space will be used to support the remanufacturing of parts to help support the DDR parent company, Daimler Truck North America’s electric vehicle (EV) business. DDR will remanufacture EV batteries, qualify, repair and upgrade microchips, remanufacture power inverters and manufacture other HV products. Total project investment is approximately $17.5 million and includes the creation of up to 18 new jobs. DDR will lease the new space from CHAA through a long-term lease agreement. 
  • 1987: DMR was founded in a garage in Hibbing by local resident Hugh Vidovic. The company produced new and remanufactured electronics components for the truck, bus, heavy-duty equipment and light rail industries.
  • 2007: Detroit Diesel Remanufacturing, LLC acquired DMR.
  • 2013: Detroit Diesel Remanufacturing, LLC signed a lease with CHAA for a 30,000-square-foot spec building. Two months later, the building was expanded by another 30,000 square feet. The project was supported by Iron Range Resources & Rehabilitation.

“The electrification of medium- and heavy-duty commercial vehicles is just beginning in earnest, but the future support to keep them running stretches far into the supply chain and manufacturing operations. The highly specialized electrical engineering and technical expertise of our staff will be key to the electric future for our company, and we’re very proud to expand our presence in Hibbing to support that future.” - Wally Buegler, Detroit Diesel Remanufacturing Plant Manager.

“Chisholm/Hibbing Airport Authority is a major economic development hub for northeastern Minnesota, and the expansion of Detroit Diesel Remanufacturing’s footprint and operations demonstrates what we can offer new and expanding businesses. The entire 58 acres is Shovel-Ready certified, which allows us to put development projects on a fast track. We are so pleased to add this expansion to our already bustling business community at the airport campus.”- Barrett Ziemer, Chisholm-Hibbing Airport Authority Executive Director.

“DMR and now Detroit Diesel has long been a model of exceptional and pioneering manufacturing on the Iron Range. Mr. Vidovic built the operation from the ground up by producing electronic components. Now 35 years later, the company is evolving into groundbreaking manufacturing and remanufacturing for electric vehicles. The project underscores the impact that northeastern Minnesota has on the entire nation – whether that be in the steel, clean energy or electric battery industries.” - Mark Phillips, Iron Range Resources & Rehabilitation Commissioner.

• ASV Holdings, Inc., Grand Rapids: $1,000,000 to expand the existing facility and construct a 60,000-square-foot high-bay warehouse that accommodates assembly layout modifications and additional equipment. The expansion will meet a significant ramp-up in production of compact track loaders and accommodate new product launches. The total project investment is approximately $9.4 million and includes the creation of hundreds of jobs over the next five years. ASV was recently acquired by Yanmar Group, and the expanded facility allows for a strong increase of compact equipment production in Grand Rapids. ASV has been operating in northeastern Minnesota for nearly 40 years.  
  • 1983: ASV was founded in a small garage in Marcel, Minnesota. It grew and became an industry leader in compact equipment production, sales and parts distribution.
  • 1995: ASV moved to a new, larger facility in Grand Rapids to accommodate its growth and success.
  • 2019: ASV was acquired by Yanmar Group, and ASV’s independent dealer network throughout North America, Australia and New Zealand joined Yanmar’s global construction equipment operations.

“The merger of ASV and Yanmar provides significant opportunities in the North American market for both brands. Substantial growth is expected in the Yanmar and ASV lines of compact equipment, which necessitates the investment in increased operational capacity in North America. We are proud of our Minnesota roots and are very pleased to expand our facility and capabilities in Grand Rapids.” - ASV President Tate Johnson.

“Iron Range Resources & Rehabilitation has enjoyed a long relationship with ASV. The company is a major part of northeastern Minnesota’s economy and provides a significant number of good paying jobs. It is very exciting to be a part of ASV’s growth and innovation as it meets national and global market demands right here from Grand Rapids.” - Commissioner Mark Phillips.

• Highland Holdings, LLC. dba. MNSTAR Group, Bovey: $230,592 to purchase three pieces of equipment and allow MNSTAR to offer a full line of automated wire cutting/assembly equipment. The equipment will meet customer needs, improve efficiency and increase company margins.
• Reynolds Manufacturing, Inc. & Reynolds Enterprises, LLC, Grand Rapids: $1,010,000 to purchase the assets and real estate of Northland Machine. The new ownership will retain existing staff and capture demand for precision machined parts.

Development Infrastructure Grants: $1,538,894

Agency Investment $1,538,894 | Total Project Investment $19,502,567 | Leverage: 11.7 : 1

• City of Grand Rapids: $350,000 to construct infrastructure for the expansion of ASV’s production facility that includes the addition of a 60,000-square-foot high-bay warehouse.*
• City of LaPrairie: $312,000 to construct infrastructure for a new recreational vehicle park and campground located on the Prairie and Mississippi Rivers that includes 49 new campsites. The new infrastructure will also enable future residential housing development.
• City of Silver Bay: $700,000 to construct infrastructure for the development of a planned housing and resort development that includes new residential housing, town home and tiny house rentals, commercial storage and an event and wellness center.
• City of Virginia: $176,894 to reconstruct an intersection at the entrance of P&H Road that will correct a serious safety risk and enable better access for small and oversized vehicles accessing Komatsu and ArcelorMittal.

*ASV received a $1 million business loan and a $350,000 Development Infrastructure grant. The total project investment for ASV of $9,409,500 is represented only in the business loan calculations; it is not reflected in the Development Infrastructure grant total project investment.

Community Infrastructure Grants: $1,064,795

Agency Investment $1,064,795 | Total Project Investment $6,760,363 | Leverage: 5.3 : 1

• City of Ely: $250,000 to relocate and replace the water line for Ely school district’s campus reconstruction project and resolve a lead issue.
• City of Keewatin: $180,734 to construct a new sewer line from Keewatin to Nashwauk that enables flows to be routed to a regional expanded wastewater facility.
• City of Marble: $325,000 to construct a new 75,000-gallon elevated water tank, remove an existing tank, and install a city-wide metering system.
• City of Orr: $74,859 to rehabilitate a lift station and replace a force main to reduce inflow and infiltration issues.
• City of Silver Bay: $214,202 to extend public infrastructure to Bayview Park through the installation of a water main, hydrants, curb stops, sanitary sewer main and sanitary lift station.
• Goodland Township: $20,000 to replace the HVAC system in the township’s community center that is utilized for government business, community gatherings, election polling and voting, and emergency disaster relief shelter.

Regional Trails Grant: $281,115

Agency Investment $281,115 | Total Project Investment $602,232 | Leverage: 1.1 : 1

• Blackberry Township: $29,737 to construct a walking and hiking trail through a wooded and underutilized area in the township park.
• City of Eveleth: $21,378 to redesign and construct a pedestrian trail on the southeast side of Fayal Pond. The project is the first phase to repair the trail surrounding the pond and community park.
• Iron Range Tourism Bureau (IRTB): $100,000 to fund the Northern St. Louis County Trails Task Force Small Trail Projects grant program. The program is administered by IRTB and provides grants to cover costs related to trails and trail facility/amenity projects in the region.
• Itasca County: $80,000 to construct a non-motorized bituminous trail located within the city of S. Lake to establish a safe route for pedestrians and provide a connection to businesses and community services. The project is the second phase of a pedestrian/ATV trail developed in 2016 and is a collaboration with the Leech Lake Band of Ojibwe.
• Northern ATV Joint Powers Board: $50,000 to develop a master plan for ATV trail connectivity and expansion in St. Louis, Koochiching and Lake counties.

Iron Range Resources & Rehabilitation funds its loans and grants 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 support businesses, communities and workforce development projects that make northeastern Minnesota a desirable place to live, work and play.

Other funding partners for the approved projects include private businesses, cities and their economic development authorities, counties, joint powers boards, Blandin Foundation, Community Development Block Grant Program, Ely Independent School District 696, Environmental Protection Agency’s State & Tribal Assistance Grant, Federal Recreational Trails Program, Minnesota Department of Employment & Economic Development (DEED), DEED Minnesota Investment Fund, Minnesota Department of Transportation, Minnesota Public Facilities Authority, Point Source Implementation Grant, and United States Economic Development Authority.