Gov. Tim Walz visited Hibbing and Chisholm on Sept. 27 to highlight state investments on the Iron Range. Gov. Walz first visited Detroit Diesel Remanufacturing, a Hibbing company expanding and investing in the electric vehicle industry. He also visited the construction site of the new Chisholm Public Safety Center, a project funded through the infrastructure package signed into law last session.

“This year we’ve invested millions in the safety and economic vitality of communities like the Range,” said Gov. Walz. “By supporting business expansion projects and funding local public safety departments, we’re creating good-paying, family-sustaining jobs and building strong communities across the state.”

Detroit Diesel Remanufacturing continues to grow and thrive on the Iron Range. They recently constructed a 60,000-square-foot addition to its Range Regional Airport campus in Hibbing. The added space will be used to remanufacture electric vehicle batteries, repair and upgrade microchips, and manufacture other hybrid-electric products. The expansion is expected to create 18 new good-paying jobs. The state supported this project with a $500,000 infrastructure grant and $10 million loan through Iron Range Resources & Rehabilitation.

Gov. Walz also invested $20 million over the next two years in a program that will prepare Minnesotans to enter five of the most critical occupational categories in the state with high-growth jobs and family-sustaining wages: technology, caring professions, education, manufacturing and trades.

This spring, Governor Walz signed the state’s largest-ever infrastructure bill into law, which will create good-paying jobs, invest in the state’s roads and bridges and bring long-term benefits to communities across the state. The infrastructure package included $3 million for a new Chisholm Public Safety Center, which will house Chisholm’s police, fire and ambulance services. The new building is expected to be complete in 2024.

Minnesota-based Rebound Partners purchased the former Sawmill Inn site and an adjacent 15-acre property in Grand Rapids back in January of 2019. The company demolished the vacant hotel and built a new 82-room lodging facility branded as a Best Western Plus, which opened in November 2022.

Iron Range Resources & Rehabilitation supported the project with $100,000 in Commercial Redevelopment grants to the city of Grand Rapids for demolition of the former Sawmill Inn to help clear the site for the new hotel development. Total project investment is approximately $15 million.

Rebound subdivided the Sawmill property into six commercial parcels and utilized one parcel for the Best Western. A retail center opened in November 2022 on another parcel which includes a Starbucks Coffee, a T-Mobile and room for one other tenant. The remaining four parcels are being marketed for additional commercial developments.

“The project began at an extremely difficult time for development, at the onset of the COVID pandemic. Many hotels were shutting down, and supply chains were being interrupted and negatively impacted,” said Scott Koester, Development Director of Rebound Real Estate. “We experienced several delays, but we kept pushing forward. The hotel has now been open ten months and is performing very well. Hockey tournaments and outdoor recreation have contributed to the strong occupancy rates.”

The Hospitality arm of Rebound owns and operates six lodging properties in Northfield and St. Paul, Minnesota as well as Decorah and Des Moines, Iowa. The company specializes in re-branding, renovating and ground-up developments.

Since 1973 the 124-room, former Sawmill Inn was owned by the Wayne Jacobson family of Grand Rapids. For 44 years the hotel was central to the community’s ability to accommodate business travelers, tourists and youth sports teams for events such as hockey tournaments. It had a $3.4 million annual economic impact to the community and employed 60 people. The family closed the hotel in 2018, and the city began work to fill the hospitality and employment void and prevent the property from sitting vacant.

Grand Rapids Director of Community Development Rob Mattei connected with Rebound through a cold call he made. “I ran an internet search for hotel developers and learned of Rebound’s work in Minnesota,” said Mattei. “Rebound leadership and I began discussions about how the Grand Rapids project could fit their business model.”

In 2019, the area surrounding the former Sawmill was officially declared a tax increment financing, or TIF district, which is a public financing method for redevelopment projects. Through the use of TIF, Grand Rapids foregoes future property tax revenue increases within the district for a period of time. This helped close the financing gap for Rebound and met the city’s economic development goals.

According to Koester, his company was drawn to the economic vitality of the rural region, along with the partnership opportunities put forth by the city and state. Rebound also undertook the project because one of its partners is Jennifer Rajala Sawyer, a fourth-generation family member of Itasca County-based Rajala Companies. For over 100 years the Rajala lumber and logging companies have been dedicated to strengthening communities, creating jobs and enhancing rural economic development.

“The TIF and the commercial redevelopment grants helped solidify the project’s success. We were very pleased to expand our company into Grand Rapids and northeastern Minnesota,” said Koester. “Local banks were used for financing, local people were used for the construction, and local people have been hired for the hotel operations and the spinoff commercial development.”

Email Chris Ismil or call him at 218-735-3010 for more information about Commercial Redevelopment grants.

October is Minnesota Manufacturing Month. The manufacturing industry is an integral part of the region’s economy that accounts for direct and indirect jobs, career paths for students and workers and often higher-than-average wages.

There are a large variety of manufacturers in the Iron Range Resources & Rehabilitation service area that have significant economic impacts to the region. They manufacture their products here in northeastern Minnesota, and transport them to state, national and international markets. Below is a sampling of the region’s manufacturers.

• ASV (Grand Rapids): compact track loaders and skid steers.
• Advanced Machine Guarding Solutions (Hibbing): safety steel wire mesh guarding for the automation industry.
• Detroit Diesel Remanufacturing (Hibbing): electric vehicle batteries, power inverters and HV products. (Pictured.)
• Floe International (Hoyt Lakes): its dock and boat lift systems, utility and recreational trailers, and FLOE CRAFT boats.
• Heliene USA (Mountain Iron): photovoltaic solar modules.
• Range Tool (Gilbert): CNC Precision contract machine products.
• Razor Edge Systems (Ely): industrial knife sharpening systems.

“Innovative people and highly skilled workers throughout northeastern Minnesota’s manufacturing industry make products that are used to improve people’s lives across America,” said Commissioner Ida Rukavina, Iron Range Resources & Rehabilitation. “Heavy equipment, metal and plastic parts, electric batteries, solar modules, docks and much more are all part of the region’s manufacturing.”

The manufacturing sector in Northeast Minnesota is home to over 8,734 jobs at 336 business establishments, operating in 16 different manufacturing subsectors. (Source: Minnesota Department of Employment & Economic Development)

Existing, vacated tennis courts in the city of Aurora were renovated into a four-court pickleball venue. The new venue is located at the south entrance to Aurora’s downtown and in close proximity to Pine Grove Park, Mesabi East School Athletic Complex and a newly developed snowmobile and multi-purpose trail. Iron Range Resources & Rehabilitation supported the project with a $15,000 Culture & Tourism grant to the Jim Gillach Memorial Fund. Total project investment was $99,460.

“The new venue greatly enhanced the main street entry and will help increase pedestrian traffic to downtown retailers and businesses,” said Curt Anttila, volunteer with the Jim Gillach Memorial Fund. “Adding a new outdoor recreation amenity to our community increases the appeal of Aurora to existing, residents, potential new residents and tourists.”

Pickleball is the fastest growing sport in America. (June 2021 Sport & Fitness Industry Association Report.) A lightweight solid paddle about twice the size of a ping pong paddle is used to hit a wiffle ball over the net on a court smaller than that in traditional tennis. Pickleball combines features of tennis, ping pong and badminton. Pickleball first became popular with seniors, and has since expanded to adults and youth. Pickleball is taught in school as part of the physical education curriculum throughout the nation, including here in northeastern Minnesota.

Funding for the project was generated entirely through monetary donations and volunteer services. There was no cost to the city of Aurora, and the courts are free to the public. Phase II planning and fundraising is underway which includes landscaping and a sidewalk to the court.

Project partners included Age-Friendly Minnesota, American Legion Post #241, Aurora Electric, city of Aurora, Cleveland Cliffs, East Range Snowmobile Club, Essentia Health, Lakehead Constructors, Mesabi East School District, Mesabi Masonry, Minnesota Power, NewRange Copper Nickel, Red Top Construction and private individuals and businesses throughout the community.

Jim Gillach Memorial Fund is a nonprofit organization founded in 2006 to enhance the community and quality of life in Aurora. The Fund promotes the health and well-being of Aurora’s citizens through increased physical activity. Mr. Gillach was born and raised in Aurora and passed away at age 75 in January 2006. He was a teacher for 32 years at St. Bernard’s Catholic School in St. Paul.

Email Danae Beaudette or call her at 218-735-3022 for Culture & Tourism grant information.

Lutsen Township upgraded a community recreation area with the restoration of existing facilities and addition of new amenities. The area has historical significance to the small township located along Minnesota’s North Shore. The decades-old ballfield was resurfaced with new infield dirt, fencing was added, gates were repaired and electrical was installed to support the concession stand, storage area and flag pole. A gazebo, picnic tables, soccer nets and an engraved historical marker were added. The project also involved brushing of the surrounding area, dead tree removal, landscaping and a refuse station for the existing dog park portion.

Iron Range Resources & Rehabilitation supported the project with a $14,770 Culture & Tourism grant to Lutsen Township. Total project investment was $30,752.

The recreation area is highly visible due to its location adjacent to Highway 61 and Caribou Trail. The new Gitchi Gami State Trail was completed this year, which increases the accessibility to the area by walkers, hikers and other trail users. A town hall is located at the site which hosts a fall festival and other community events.

“There has been a recent increase in young families with children and an increase in area visitors,“ said Sharon Hexum-Platzer, Lutsen Township deputy clerk. “The area needed improvements to better serve our township residents and tourists. It was also important for us to recognize the property’s interesting history with interpretive signage explaining the significant dates, past uses and property donator’s connection to Lutsen.”

The property was originally donated by Pheobe Pecore Nelson and Carl Nelson whose father was the first European immigrant settler and started Lutsen Resort in 1885. They donated the property in the early 1900s for a school house to be built there. The ballfield was originally a potato garden, and for one year during a famine it was very significant for the survival of many local people. Later it was used as a recreation area for the former school and community.

Project partners included Greg Mueller Studio, Isak Hansen True Value, J&B Construction Co., Lutsen Landscaping, McMillan Tree Service, Mike Rose Excavating, Peak Electric Co., Sundew Technical Services, Willow River Woodworks and private individuals throughout the community.

Email Danae Beaudette or call her at 218-735-3022 for Culture & Tourism grant information.

The cities of Chisholm, Hibbing and Virginia were awarded $586,030 in Commercial Redevelopment grants by Iron Range Resources & Rehabilitation. The agency invests approximately $1 million annually into the grant program across its 13,000 square-mile service area. The grants assist with the internal and external demolition of commercial and industrial buildings and clean-up of brownfields to pave the way for new development.

“Our local downtowns are vital to the Iron Range communities and impact both our economy and quality of life. We rely on them as places we do business and where we engage in cultural and social events,” said Commissioner Ida Rukavina, Iron Range Resources & Rehabilitation. “We were very pleased to support these three communities as they work to further revitalize their downtowns.”

Read about the grant awards.