March 29, 2023

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 $4 million in economic development funding

The Iron Range Resources & Rehabilitation Board met today in St. Paul. It was the first meeting of the eight newly elected and appointed members. Rep. Spencer Igo was elected as the chair, and Sen. Justin Eichorn was elected as the vice chair.

Approximately $1.5 million in loans, $2.4 million in infrastructure grants, and $191,000 in trails grants was approved at today’s meeting to advance projects in northeastern Minnesota. Agency total investment for all projects combined is approximately $4.1 million. Total project investment is approximately $39.2 million. The projects are expected to increase the regional tax base, impact new and existing jobs, create construction jobs, provide essential services, and expand outdoor recreation. The loans are anticipated to impact 49 jobs. The infrastructure projects are projected to create 11 permanent jobs and 209 construction jobs.

Participation Loans: $1,531,700

Agency Investment $1,531,700 | Total Investment $6,290,623 | Leverage: 3.1 : 1

• Virginia Plastics, LLC, Virginia: $31,700 to purchase a new bag machine which will enable Virginia Plastics to accept larger orders, obtain larger accounts and poise itself for potential expansion. Virginia Plastics is a polyethylene film manufacturer that makes plastic bags, tubing and sheeting that are used in industries including mining, chemical, automotive, industrial and consumer. The products are used in packaging applications for high value parts and applications where standard plastic products are not suited.
• Fraboni’s Wholesale Distributors, Inc., Hibbing: $1,500,000 to finance the stock purchase of Fraboni’s Wholesale Distributors, which will transfer company ownership to new owners who wish to expand the sales territories and increase market share while maintaining the headquarters in Hibbing. Fraboni’s is a sausage and meat manufacturing company that was founded in Hibbing in 1968. 

Development Infrastructure Grants: $1,020,000

Agency Investment $1,020,000 | Total Investment $7,034,618 | Leverage: 5.9 : 1 

• City of Cook: $20,000 to construct infrastructure for power service upgrades and taxi-lane expansion for new hangar development at Cook Municipal Airport.
• City of Ely: $400,000 to construct infrastructure for fire protection, the expansions and development of five businesses, and potential future planned housing.
• City of Grand Rapids: $300,000 to construct infrastructure for the conversion of the former Murphy Elementary School into a 38-000-square-foot early childhood and child care facility with 221 child care slots, including 10 new slots.
• City of Grand Rapids: $300,000 to construct infrastructure for the development of 23 new residential home lots at the former Forest Lake Elementary School. 

Community Infrastructure Grants: $1,350,000

Agency Investment $1,350,000 | Total Investment $25,503,950 | Leverage: 17.9 : 1

• City of Crosby: $150,000 to construct a new roundabout and lane reconfiguration where recent new business development has occurred. The roundabout will increase the safety of the intersection, its access and pedestrians while maintaining traffic flow.
• City of Grand Rapids: $500,000 to rehabilitate and upgrade the Itasca Recreation Association (IRA) Civic Center with ADA, mechanical and structural improvements.
• City of McKinley: $250,000 to construct a new water filtration system that improves water quality for residents.
• City of Mountain Iron: $150,000 to upgrade infrastructure for storm water drainage on several streets that will alleviate flooding and inflow and infiltration issues. The project will also upgrade infrastructure at the West Two Rivers Campground.
• City of Orr: $50,000 to rehabilitate a lift station to improve service to residents and replace a force main to reduce inflow and infiltration issues to the wastewater treatment plant. The project will replace the pumps and convert the dry well to a wet well.
• City of Virginia: $250,000 to construct new infrastructure for city-wide street reconstruction that includes new sidewalks, storm sewer and water and sewer service lines. 

Regional Trails Grants: $190,700

Agency Investment $190,700 | Total Investment $402,600 | Leverage: 1.1 : 1

• Breitung Township: $40,000 for the engineering, construction and environmental expenses to reconstruct and improve the 1.4-mile paved McKinley Park Trail located between Soudan Underground State Park and McKinley Park Campground on Lake Vermilion.
• City of Crosby: $43,200 to construct a mountain bike trail and instruction area on the grounds of the Cuyuna Range Elementary School. The multi-purpose trail will be used to teach students mountain bike riding skills and safety through a physical education class. It will be open to the community for biking, hiking and snowshoeing.
• PathBlazers Snowmobile Club: $45,000 to purchase a groomer that will be used to maintain 68 miles of DNR grant-in-aid trails in the Chisholm, Hibbing and Side Lake areas.
• Northern Traxx ATV Club: $50,000 to purchase a new dozer that will be used to maintain numerous miles of off-highway trails in the Chisholm, Hibbing and Side Lake areas.
• North Superior Ski and Run Club: $12,500 to repair and rebuild several segments of the Pincushion trail system including the replacement of culverts. The project will purchase a new flail mower for summer trail maintenance.

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 FY23 spending plan which focuses on leveraging capital, improving the quality of life and retaining and creating well-paying jobs. The agency supports businesses, communities and workforce development projects that make northeastern Minnesota a desirable place to live, work and play.