Dec. 6, 2023

FOR MORE INFORMATION:

Sheryl Kochevar, Communications Director

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

Businesses, communities, outdoor recreation, education and mining operations in northeastern Minnesota receive over $33 million in economic development funding

At today's Iron Range Resources & Rehabilitation Board meeting, a $15 million expenditure was recommended for the city of Aurora Industrial Site. Other recommendations included $4 million in infrastructure grants, $56,000 in trails grants, $5.4 million in K-12 school collaboration funds, $8.6 million in mining fund rebates and $500,000 in Giants Ridge Recreation Area Tax expenditures. Agency total investment for all projects combined is approximately $33.6 million. Total project investment is approximately $73.2 million. The projects are expected to increase the regional tax base, retain jobs and create construction jobs, provide essential services, improve education and expand outdoor recreation.

Business Development – Aurora Industrial Site: $15,000,000

Agency Investment: $6,000,000 Loan & $9,000,000 Infrastructure Grant | Total Project Investment $15,000,000

• Aurora Economic Development Authority: $6,000,000 Loan to construct a 30,000-square-foot spec building to be leased to future manufacturing tenant(s). The city of Aurora plans to develop an industrial site northeast of the intersection of Minnesota State Highway 135 and County Road 100. The city will retain ownership of the industrial property, other than the spec building which is anticipated to be owned by the future Aurora Economic Development Authority. The project is estimated to create 98 construction jobs.

• City of Aurora: $9,000,000 Infrastructure Grant for infrastructure and utilities to serve approximately 80 acres of land for future development.

“Aurora is excited about the prospect of finally having an industrial site to attract and accommodate much needed potential new employment and associated economic activity. Since LTV’s closure years ago, there has been a reduction in the commercial sector of the community. As an older city, Aurora also suffers from having one of the lowest per capita income levels in the region. Any expanded tax base and increased population within the community would help offset rising property tax levies that have disproportionately affected our fixed income households. We are confident that our neighboring cities, with which we so closely cooperate, will share in celebrating the prospect that such an industrial site holds for economic and population growth throughout our entire East Range region.” – Mayor Douglas Gregor, Aurora.

“One of Iron Range Resources & Rehabilitation’s primary goals is to help diversify the economy and assist communities and businesses across the entire service area. The new site in Aurora creates much needed additional industrial space in the region and brings great potential and possibilities to the East Iron Range for attracting manufacturing businesses seeking to relocate or expand their operations. The agency has invested in other industrial sites and spec buildings such as the Detroit Diesel Remanufacturing facility owned by Chisholm-Hibbing Airport Authority. Our goal is to create well-paying jobs and economic growth in the region. This new industrial site moves us further in that direction.” – Commissioner Ida Rukavina, Iron Range Resources & Rehabilitation.

Broadband Infrastructure Grant: $1,312,093

Agency Investment $1,312,093 | Total Investment $5,248,373

CTC Communications – Clinton Township: $1,312,093 to expand fiber optic to connect up to 482 unserved and underserved households in Clinton Township and adjacent areas. Construction is planned for the summer of 2025.

Development Infrastructure Grants: $650,000

Agency Investment $650,000 | Total Investment $8,726,227

• Chisholm-Hibbing Airport Authority: $150,000 to rehabilitate a taxi lane and upgrade a hangar that serves several of the business tenants located at the airport including Midwest Aircraft Refinishing and Life Link III.
• City of Virginia: $500,000 to upgrade aged and failing infrastructure, install loading docks and relocate utilities for the continued redevelopment of Uptown Virginia Mall, which is owned by RockStep Capital. RockStep is redeveloping the interior small shop space and common area within the mall to reconfigure build-out space for a new anchor store and additional smaller retail operators. 

Community Infrastructure Grants: $2,089,000

Agency Investment $2,089,000 | Total Investment $16,818,584

• City of Aitkin: $250,000 to construct infrastructure, site work and a new community field house as part of a larger regional park development serving Aitkin and the surrounding townships.
• City of Biwabik: $250,000 to construct water and sewer storm water and reconstruct roads including pavement, concrete curb and gutter, water and sewer valves and stormwater structures on First Avenue North. The project will correct severe deficiencies in the sanitary sewer, water and storm sewer systems, as well as deteriorating streets and alleys.
• Breitung Township: $75,000 to construct new sewer line and storm sewer and reconstruct roads to improve the sanitary and storm sewer system on First Avenue and Church Street. The upgrades will help reduce high inflow and infiltration issues.
• City of Buhl: $250,000 to construct new water main and reconstruct roads within a new industrial park containing platted commercial lots. The new watermain will be extended to allow for 12 immediate lots and enable future development of 11 additional lots.
• City of Calumet: $325,000 to construct new water, sewer utilities and roads along Gary Street (County Road 84) from US Highway 169 to Second Avenue. The utilities provide essential services to the community by maintaining clean drinking water and waste discharge.
• City of Chisholm: $400,000 to replace all public utility lines and services including water, sanitary sewer, storm sewer, sidewalks and reconstruct roads within the right-of-way of Fifth Street South from Second Avenue Southwest to First Avenue Southeast. The project serves approximately 50 private properties.
• City of Ironton: $149,000 to construct a new water treatment facility, replacing a facility that is over 70 years old and that is not economically or technologically viable to renovate.
• City of Mountain Iron: $100,000 to replace water line on Mineral Avenue which provides water to most residents in the community.
• City of Tower: $290,000 to repair and rehabilitate the exterior masonry and interior finishes of the historic Tower Fire Hall. A new HVAC system will be installed, and electrical will be upgraded. 

Regional Trails Grants: $56,075

Agency Investment $56,075 | Total Investment $112,150

• Babbitt ATV/Snowmobile Club: $15,000 to purchase a groomer that will be used to maintain 57 miles of snowmobile trails in the Babbitt area to ensure user safety and enjoyment. The trail system connects snowmobile travel throughout Ely, Tower, Virginia, Aurora and the North Shore.
• City of Hoyt Lakes: $41,075 to purchase and renovate a vacant building that will be leased to the Ranger Snowmobile and ATV Club. The Club will utilize the building for a clubhouse and maintenance facility to serve 120 miles of trails throughout Aurora, Biwabik and Hoyt Lakes. 

Iron Range School Collaboration Account: $5,400,000

Agency Investment $5,400,000

• Nashwauk-Keewatin Independent School District No. 319: $5,400,000 to cover the increased costs related to the construction of a new K-12 school in Nashwauk, a project that was previously approved by the agency. The increase costs are a result of unanticipated construction inflation and the demolition of the existing schools. 

Taconite Economic Development Fund (TEDF) Rebates: $8,620,416

TEDF Rebates $8,620,416 | Total Investment $21,397,000

• Hibbing Taconite Mining Company: $1,549,876 for tailings basin buttressing.
• Minorca: $695,929 for fines crushing clean up system.
• Northshore Mining Company: $898,413 for pellet plant dust collection upgrade.
• US Steel - Keetac: $1,076,262 for work to meet DR grade pellet specifications.
• US Steel - Minntac: $3,173,541 for Step 1 and 2 pellet conveyor replacement and Lines 11 and 22 pre-classification.
• United Taconite Mining Company: $1,226,395 for furnace Line 2 burner replacement and tailings management facility expansion.

Giants Ridge Recreation Tax (GRRA) Account: $500,000

• Giants Ridge Recreation Area: $500,000 to support the design and construction of the new Recreation Center at Giants Ridge. The GRRA tax funds will be used to help offset the cost for the 9,700-square-foot facility that will be located directly across from the main ski area entrance. Facility amenities will include a swimming pool, hot tub, change rooms, outdoor sauna experience, lobby area, parking lot, lighting and landscaping.

Iron Range Resources & Rehabilitation is funded through taxes paid by Minnesota’s mining industry. The projects reviewed at today’s board meeting support the agency’s fiscal year 2024 spending plan which helps to fund projects in business, community and workforce development that retain and create jobs, address customer priorities, leverage investment and improve the quality of life for all residents.