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July 12, 2023
Christopher Bergum and Michael Mouton utilized a bank participation loan from Iron Range Resources & Rehabilitation to help finance the stock purchase of Fraboni’s Wholesale Distributors, Inc. and its two related entities, L.M.W., Inc. and L.G. Fraboni, Inc.
Bergum and Mouton will keep Fraboni’s headquartered in Hibbing, retain its 30 employees and expand the company’s sales territory to increase market share.
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Fraboni’s is an iconic sausage and meat product manufacturer based in north Hibbing. It was founded in 1968 by Leo and Irene Fraboni. Brothers Mark and Wayne Thune both began working for Leo while in high school and over time advanced within the company. After Leo’s death, the brothers entered a partnership with Irene who they eventually bought out. The Thunes grew Fraboni’s into a full-line food service distributor serving northeastern Minnesota.
“The company distributes its meat and other food products throughout a 100-mile radius surrounding the Hibbing area. We are aiming to grow the sales beyond that vicinity and distribute our products into new anchor businesses,” said Bergum. “The loan from Iron Range Resources & Rehabilitation helped bring the deal together and positioned us for growth.”
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Fraboni products are currently sold at local grocery outlets in the region and are also available for purchase on the Fraboni website. Their most popular products are porkettas, polish sausage, bratwurst, steak, chicken kiev, pasties and seasonings. Their newest products include maple breakfast sausage, maple blueberry wild rice breakfast sausage, beer bratwurst with wild rice and cheese, and wild rice blueberry bratwurst. Fraboni’s sells custom packaged gift boxes that can be direct shipped and also processes deer and wild game.
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“Mark and Wayne Thune will remain with the company for several months to assist with the ownership transition,” said Bergum. “They have developed one of northeastern Minnesota’s strongest food manufacturers, and we look forward to carrying on and growing the business.”
Learn more about Fraboni Sausage Company.
Iron Range Resources & Rehabilitation supported this project with bank participation loans totaling $1.5 million. Total project investment was $6.2 million. The agency’s business loans are funded through taxes paid by Minnesota’s mining industry. Email Scott Sundvall or call him at 218-735-3015 for business assistance information.
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A new 58-acre recreational vehicle (RV) park opened in Tower in May with 25 campsites. An additional 24 campsites are under construction and will open later this summer, bringing the total to 49. Iron Range Resources & Rehabilitation provided a $250,000 Development Infrastructure grant to the city of Tower that helped pay for infrastructure and site work. Total project investment was an estimated $1.5 million.
Vermilion RV Park (VRVP) is privately owned and operated by Justin and Jessica Renner. They purchased the property in 2020. It is located at 10 Marina Drive next to Your Boat Club, which provides RV owners an option for boat slip rental and access to Lake Vermilion. The park is within Tower city limits and has quick access to the downtown’s full range of goods and services offered such as groceries, gas, auto repair, hardware and lumber, gifts, restaurants, bars, beauty salon and banking.
Each RV site has water, sewer and electrical hookups. The sites may be rented by the season, May 15 thru Oct. 15 for $4,000. The Renners anticipate a high repeat customer rate, and winter storage is available to tenants who return the following year. A shower house will soon be added.
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When fully built out, VRVP is anticipated to increase Tower’s seasonal population by approximately by 150 people. The Renners estimate their customer base will be 70% out-of-area RV owners and 30% northeastern Minnesota residents who do not live on a lake and are RV owners.
America’s RV industry has an overall annual economic impact to the U.S. economy of $140 billion, supporting nearly 680,000 jobs, and paying more than $48 billion in wages. In Minnesota specifically, the annual economic impact is three billion, with $940 million of that related to RV campgrounds and travel. In 2022, 65 million Americans planned to go RVing, which impacts the entire outdoor recreation economy because camping, hiking, boating and fishing are often connected to an RV. (Source: RV Industry Association’s “RVs Move America Economic Impact Study,” June 2022)
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“Jessica and I have made so many great memories fishing and boating on Lake Vermilion,” said Justin. “We want to help others do the same and provide our guests with their home away from home while recreating and vacationing here. We believe the RV campground will have a very positive impact to the region’s offerings and economy in the years ahead.”
Site work, infrastructure and landscaping were completed by Jola & Sopp Excavating, Inc. of Eveleth.
Learn more about Vermilion RV Park.
Email Chris Ismil or call him at 218-735-3010 for Development Infrastructure grant information.
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A six-loop mountain bike trail system was officially completed last month at Ely’s Hidden Valley Recreation Area. The trail system consists of 9.1 miles. It is single track and purpose built for mountain biking in the spring, summer and fall and fat tire biking in the winter. Iron Range Resources & Rehabilitation supported the project with $240,000 in Regional Trails grants to the city of Ely. Total project investment is estimated at $480,000.
Construction began in 2020, and the loops have opened to the public as they’ve been completed. The first loop completed in 2020 was a progressive skills park for riders to practice and hone their bike handling techniques. The skills loop exposes riders to features commonly found on single track mountain bike trails such as climbing and descending berm turns, small to medium rollers and jumps, rock gardens, and ramp and rock drops. The sixth and final loop was completed last month. Community members and area mountain bike enthusiasts gathered for an official ribbon cutting ceremony on June 23.
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“The trails have had rave reviews from local residents and tourists. People are drawn to the trails due to the unique topography, geology, and rugged and natural beauty,” said Harold Langowski, Ely city clerk. “Ely tourism has largely centered around people heading into the Boundary Waters for fishing and paddling. The city is now becoming known as a mountain biking destination as well.”
Already a recreation hub in Ely, Hidden Valley is located on the city’s east end and has existing infrastructure in place such as a heated chalet, over 25 kilometers of groomed cross country and hiking trails, a parking area and restroom facilities.
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The city partnered with Ely Nordic Ski Club to provide maintenance of the trail system. And Ely School is now home to a new mountain bike club team. Team BOREALIS is for 6th through 12th grade students from the communities of Ely, Babbitt, Tower, Embarrass and Pike/Sandy/Britt. It is sanctioned by the Minnesota Interscholastic Cycling League, a division of the National Interscholastic Cycling Association.
“The new trail system is having positive impacts on many aspects of the Ely community,” said Langowski. “Tourism, youth athletics and quality of life for local residents have all benefited from this project.”
Other trail project partners included the city of Ely, Ely Nordic Ski Club, private donations through local fundraisers and the Federal Recreational Trail Program. The trail design and construction work were completed by Pathfinder Trail Building and DirtCandy. Email Jim Plummer or call him at 218-274-7006 for Regional Trails grant information.
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The city of LaPrairie added new welcome signage at four of its entry points. The signs call attention to the boundaries of the small, predominantly residential suburban community located on the edge of Grand Rapids. Anishinaabe interpretation is included on the signs, linking the community to its Native American history. Iron Range Resources & Rehabilitation supported the project with a $24,277 Downtown Streetscapes grant. Total project investment was $48,555.
“As a small community with a small budget, the signage project would not have been completed without the help from Iron Range Resources & Rehabilitation,” said Lisa Mrnak, LaPrairie city clerk-treasurer. “The new signs improved community aesthetics and differentiate LaPrairie from neighboring towns. We’ve received very positive feedback from residents and from businesses located within the city limits, indicating their appreciation and how the signs aid their customers.”
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La Prairie was incorporated as a village in 1890 and developed as a logging community located where the Mississippi and Prairie Rivers converge. Today LaPrairie has over 600 residents, a commercial district with several businesses and a 50-acre campground. There is a community park with a picnic area, pavilion, baseball field, hockey rink, tennis courts, basketball court and playground. A State Highway Rest Area is situated along the west side of the Prairie River.
Other project partners included Blandin Foundation and First National Bank of Coleraine.
Beginning last year, the Downtown Streetscapes grant merged with the Culture & Tourism grant and has a fiscal year budget of $600,000. Email Danae Beaudette or call her at 218-735-3022 for Culture & Tourism grant information. Iron Range Resources & Rehabilitation’s grants are funded through taxes paid by Minnesota’s mining industry.
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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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