July 29, 2024

FOR MORE INFORMATION:

Jordan Metsa, Communications Director

218-735-3061, Jordan.Metsa@state.mn.us

City of Cook devastated by recent flood, receives up to $2.5 million in economic recovery funding

At today's Iron Range Resources & Rehabilitation (IRRR) Board meeting, up to $2.5 million in economic recovery funding was reviewed. The newly established City of Cook Economic Recovery Fund is designed to provide financial relief to business owners whose buildings and operations were directly impacted by the devastating flood that occurred on June 18. 

In downtown Cook, floodwaters rose as high as five feet in some areas, significantly disrupting the lives of residents and businesses. The flooding caused extensive damage to community infrastructure, businesses and homes in Cook and several other communities within the agency’s service area. This natural disaster ranks as the second-largest in St. Louis County in the past 30 years.

“Over the past several weeks, our staff has been directly engaged with the city of Cook to better understand short- and long-term needs of businesses,” said Commissioner Ida Rukavina. “After hearing from city officials and business owners, we developed two funding programs that involve both grants and loans. Our agency’s mission centers around supporting communities and businesses. The new program will deploy financial relief as these small business owners begin to rebuild and reopen.”

On July 16, IRRR hosted an outreach session for businesses at the Cook Community Center. Agency staff met in person with 10 businesses to listen to their recovery needs, including their financial and logistical challenges. Agency staff has also been in communication with other areas impacted by the flood including Biwabik, Giants Ridge and Hibbing.

To be eligible for the City of Cook Economic Recovery Fund, a business must intend to reopen in the city of Cook, demonstrate need for financial support and utilize available insurance.

City of Cook Economic Recovery Fund

Quick Start Economic Recovery Grants: $300,000  | Cook Economic Redevelopment Loans: $2,200,000

Total Agency Investment: $2,500,000

• Quick Start Economic Recovery Grants: Available immediately to business owners who were operating in the city of Cook at the time of the flood, whose business is located in the commercial business area, and who intend to reopen. Each business may be awarded one grant up to $25,000. Eligible uses of grant funding include replacement of lost inventory, replacement of machinery/equipment/furniture, supplies, building rehabilitation, architectural/engineering services related to building repair or building new, full or selective demolition, utility bills, operational and other expenses.
• Cook Economic Redevelopment Loans: Available to business owners who were operating in the city of Cook at the time of the flood, whose business is located in the commercial business area, and who will reopen by rebuilding in the same or new location or by rehabilitating the building on the existing site. Will have the potential for forgiveness and provide long term financial support to business owners impacted by the flood. The loan funding will be distributed by IRRR to the city of Cook who will in turn work with an alternative lender to administer the funding to the business and service the loan. Any loan repayments will be recaptured by the city and used for future economic development projects. Loan forgiveness will be contingent upon business remaining open for five years. 

The City of Cook Economic Recovery Fund reviewed at today’s board meeting supports the agency’s fiscal year 2025 spending plan which funds projects in business, community and workforce development in the Taconite Assistance Area.