Oct. 20, 2022

FOR MORE INFORMATION:

Sheryl Kochevar, Communications Director

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

Businesses, communities, broadband and outdoor recreation in northeastern Minnesota receive over $3 million in economic development funding

Approximately $3.3 million in grants and loans was approved at today's Iron Range Resources & Rehabilitation Board meeting. Total combined project investment is approximately $15 million. The projects are expected to increase the regional tax base, support business expansion, retain permanent and create construction jobs, improve broadband, provide essential services and expand outdoor recreation. The loans and grants combined are anticipated to impact 35 jobs and create 66 construction jobs.

Bank Participation Loan: $1,300,000

Agency Investment $1,300,000 | Total Investment $2,600,000 | Leverage: 1 : 1

• Cast 7, LLC, Hibbing: $1,300,000 to purchase new equipment that will streamline, automate production, increase capacity and minimize product handling in the casting process. The increased production capacity will help Cast 7 meet existing and future demands in the global grate market.

Development Infrastructure Grants: $395,825

Agency Investment $395,825 | Total Investment $3,078,230 | Leverage: 6.8 : 1 

• City of Ely: $48,825 to construct water and sewer infrastructure and relocate utilities for Razor Edge Systems to expand its manufacturing into an adjacent property it recently purchased.
• City of Grand Rapids: $47,000 to update Itasca Family YMCA’s fire suppression system and HVAC control system.
• City of Hibbing: $300,000 to construct water, sewer, gas and electrical infrastructure for Lees Industrial Building, which was recently relocated from Bennett Park area to Hibbing Industrial Park.

Broadband Infrastructure Grants: $128,500

Agency Investment $128,500 | Total Project Investment $4,282,269 | Leverage: 32.3 : 1

• City of Hibbing, Mediacom Communications: $128,500 to expand Mediacom fiber optic to serve up to 573 unserved households in the Hibbing and adjacent areas.

Community Infrastructure Grants: $1,333,863

Agency Investment $1,333,863 | Total Project Investment $4,635,069 | Leverage: 2.5 : 1

• City of Babbitt: $250,000 to extend infrastructure to Birch Lake Recreation Area campground and RV park. The original infrastructure installation encountered unforeseen geological conditions and requires more costly installation methods.
• City of Bigfork: $51,877 to upgrade a sewer line and repair a lift station to prevent disruption of essential services.
• Bois Forte Band of Chippewa: $350,000 to replace a failing concrete dam with a new rock arch dam on Nett River. He dam supports water level control in Nett Lake, which is the tribe’s premier wild rice source.
• Clinton Township: $69,000 to upgrade the security, handicap accessibility and energy efficiency to the emergency services facility and community center.
• Crane Lake Water & Sanitary District: $250,000 to upgrade the wastewater treatment plant with a flow equalization step and other improvements.
• Eveleth Virginia Airport Authority: $60,361 to upgrade exterior lighting and improve accessibility and security at the airport terminal area including the terminal building, hangar and maintenance garage.
• City of Hibbing: $150,000 to line existing residential sewer lines to extend the life of infrastructure.
• City of Virginia: $65,125 to reconstruct Progress Park Drive and repair damage caused by heavy equipment traffic during the construction of the new Rock Ridge Academy School. The improvement will assist traffic flow for the school and two nearby existing businesses.
• City of Virginia: $87,500 to improve the computer systems that operate and monitor 17 sanitary sewer lift stations throughout the city and allow for greater efficiency, reporting ability, monitoring capability and reduced operation costs.

Regional Trails Grant: $176,900

Agency Investment $176,900 | Total Project Investment $401,425 | Leverage: 1.3 : 1

• City of Bovey: $50,000 to construct one new multi-use trail connection along Highway 169 which will be used by snowmobilers and to reconstruct one existing trail connecting Bovey with Mesabi Trail and Coleraine. The reconstructed trail will be used for walking and biking.
• City of Hoyt Lakes: $50,000 to purchase trail maintenance equipment for Ranger Snowmobile & ATV Club volunteers to maintain trails across the Aurora, Biwabik and Hoyt Lakes area.
• Itasca County: $55,500 to construct phase II of a snowmobile and ATV trail segment connecting the city of Nashwauk to Alborn-Pengilly trail.
• Northern Lights Nordic Ski Club: $21,400 to purchase trail maintenance equipment for Ski Club volunteers to maintain and groom cross country ski trails in Itasca County.

Iron Range Resources & Rehabilitation is funded through taxes paid by Minnesota’s mining industry. The projects approved at today’s board meeting tie into the agency's strategies of leveraging capital, improving the quality of life and retaining and creating well-paying jobs.