Nov. 12, 2024

FOR MORE INFORMATION:

Jordan Metsa, Communications Director

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

Over $65 million invested into business, community and workforce development in the Taconite Assistance Area

At today's Iron Range Resources & Rehabilitation Board meeting, an estimated $65.8 million in projects were reviewed that are expected to grow existing businesses, modernize public works and infrastructure, and expand broadband, child care, healthcare, housing, outdoor recreation and mining. Funding was made available to enhance the engineering, nursing and welding programs on local college campuses; to research the feasibility of Minnesota’s green iron industry; and, to mitigate damage on the East Range caused by the June 2024 flooding.

Business Development Loans: $1,633,500

Agency Investment: $1,633,500 | Total Project Investment: $4,977,000

• Lonely Loon d/b/a Superior Creamery, Grand Marais: $205,000 to purchase the building it is currently leasing. Superior Creamery is an ice cream shop and café.
• Reynolds Manufacturing Inc. d/b/a Northland Machine Inc., Grand Rapids: $442,000 to add a new Mazak machining station and other fabricating equipment to meet the needs of orders from two large regional manufacturers. Northland Machine is a manufacturer of products comprised of materials such as plastic, steel, stainless steel, castings, forgings, aluminum, brass, bronze and exotic alloys.
• Trison Solutions LLC, Hibbing: $850,000 to add a modern surface mount electronic production line to supplement the current aging line. Trison will refinance their current loan and line of credit to a local bank. Trison Solutions is a full-service Electronics Manufacturing Services (EMS) contract manufacturer.
• Virginia Plastics LLC, Mountain Iron: $136,500 to purchase three new extruders to replace failing and inefficient pieces of equipment. Virginia Plastics LLC is a polyethylene film manufacturer that makes plastic bags, tubing and sheeting that are used in many industries including mining, chemical, automotive, industrial and consumer.

Broadband Infrastructure Grants: $617,000

Agency Investment: $617,000 | Total Project Investment: $6,832,226

• Paul Bunyan Communications: $400,000 to construct fiber optics for 420 unserved and underserved households in Field, Alango and Sturgeon Townships in rural Saint Louis County.
• Paul Bunyan Communications: $217,000 to construct fiber optics for 96 unserved and underserved households in the city of Mountain Iron and Great Scott Township areas in rural Saint Louis County. 

Child Care Development Grant: $400,000

Agency Investment: $400,000 | Total Project Investment: $4,121,990

• City of Coleraine: $400,000 to construct the infrastructure for a new 9,500-square-foot child care learning facility that will be licensed for 96 full-time equivalent children including infants, toddlers, preschoolers and school-age. The center will help address the regional needs of business and industry located in Coleraine, Grand Rapids, Cohasset and LaPrairie as they work to attract and retain workforce.

Public Works Grants: $4,560,000

Agency Investment: $4,560,000 | Total Project Investment: $38,635,083

• City of Aitkin: $400,000 to construct a new municipal water tower.
• City of Aurora: $500,000 to construct a new water treatment facility in Aurora, which is phase III of the new East Range water system that will eventually serve the communities of Aurora, Town of White, Biwabik and Hoyt Lakes.
• City of Aurora: $200,000 to upgrade sewer lines and construct new storm sewer for a mix of residential and commercial properties.
• City of Calumet: $300,000 to upgrade the interior and exterior of city hall including a new roof, electrical wiring and LED lighting, ADA cement steps/ramp, ADA chair lift or elevator, ventilation and duct work, new insulation and room expansion for additional event and storage space.
• City of Crosby: $400,000 to replace aging water lines in alleys.
• City of Ely: $500,000 to upgrade city-wide street infrastructure in a residential neighborhood.
• City of Eveleth: $100,000 to replace a watermain line that serves 35 residential properties, one business and Eveleth/Virginia Municipal Airport.
• City of Eveleth: $500,000 to upgrade the HVAC at the Eveleth Community Recreation and Office Building.
• City of Grand Rapids: $180,000 to upgrade the infrastructure to support the redevelopment of two vacant commercial buildings in downtown that will be converted into a restaurant and a bar with apartments.
• City of Grand Rapids: $130,000 to construct, relocate and upgrade utilities to support the redevelopment of a vacant downtown building that will be converted to an elevated casual dining restaurant.
• City of Hibbing: $600,000 to upgrade city hall including window and lintel replacement and stone and brick repair.
• Hibbing Public Utilities Commission: $500,000 to construct and upgrade 10,800 linear feet of watermain, 56 gate valve replacements and 19 new fire hydrants.
• City of Hoyt Lakes: $250,000 to upgrade Hoyt Lakes Arena with new entry doors, vertical wheelchair lifts, bleachers and site concrete and parking lot improvements.

Regional Trails Grant: $1,000,000

Agency Investment: $1,000,000 | Total Project Investment: $2,728,240

• City of Chisholm: $1,000,000 to construct Phase III of Redhead Mountain Bike Park, including the design and construction of a pump track, skills course, bathrooms and other related trailhead amenities. 

Taconite Economic Development Fund (TEDF) Rebates: $8,784,583

TEDF Rebates: $8,784,583 | Total Project Investment: $19,488,000

• Hibbing Taconite Mining Company: $1,601,608 for tailings storage facility buttressing.
• Minorca Mine: $698,171 for a tailings basin decant structure and booster pump project.
• Northshore Mining Company: $845,852 for a limestone mill, filter and softener replacement and west pellet plant elevator modernization .
• US Steel - Keetac: $1,291,822 for DR grade pellets (high intensity grinding mill and engineering).
• US Steel - Minntac: $3,164,996 for crusher dust collector replacements, and lines 7 and 8 pre-classification.
• United Taconite Mining Company: $1,182,134 for crusher feed and screen upgrade and tailings pipeline upgrades. 

Flood-Impacted Lands: $6,180,000

Agency Investment: $6,180,000

• Flood Mitigation for Embarrass Diversion Channel: $6,180,000 to support ongoing repairs to the areas located within the Giants Ridge Recreation Area that were damaged by the flood that occurred on June 18, 2024. Repairs include, but not limited to, engineering, slope stabilization, long-term design, mitigation, restoration, land maintenance and construction.

Natural Resources Research Institute (NRRI): $2,000,000

Agency Investment: $2,000,000

• University of Minnesota Duluth’s NRRI and the Minnesota Industrial Transformation Initiative (MITI) – Phase 1 – Feasibility Study: $2,000,000 for feasibility studies, techno-economic analysis, project scope determination and due diligence associated with a proposed green iron plant.

Iron Range Higher Education Account: $1,382,719

Agency Investment: $1,382,719

• Iron Range Engineering (IRE): $400,000 to support the IRE BELL program which collaborates with private industry and allows students to earn a Bachelor of Science degree in engineering from Minnesota State University Mankato.
• Engineering Program, Minnesota North College Itasca Campus: $260,000 to redesign and rebuild the Itasca engineering program to align with transfer to IRE.
• Welding Program, Minnesota North College Eveleth Campus: $526,091 to upgrade the safety and lab space by purchasing new modern equipment that features advancing technologies and supports industry standards. Mobile trailers will be purchased that enable mobile training being provided across the region.
• Nursing Simulation Laboratory, Minnesota North College Itasca Campus: $196,628 to create a high-quality nursing simulation laboratory on the Itasca campus for Associate’s Degree-Registered Nurse students. New equipment will be purchased including a mobile medication station, birthing simulator, pediatric simulator and other furniture, fixtures and technology.

Mineral Article Legislation/2024 Tax Omnibus Bill Projects: $39,230,000

Agency Investment: $39,230,000

In the 2024 Minnesota legislative session, the Mineral Article Legislation/2024 Tax Omnibus Bill was enacted, requiring IRRR to issue revenue bonds to finance up to 81 identified projects (Laws for Minnesota 2024, Chapter 127, Article 69, Sections 15-16). Projects exceeding $1 million require review by the IRRR Board.

• City of Chisholm: $2,720,000 $1,520,000 must be used for the renovation of the Chisholm Ice Arena facility and parking, and the remaining amount must be used for the public works facility.
• Commissioner of IRRR: $5,200,000 for the design, engineering and construction related to improvements to the Legend golf course and related to a new waterline/infrastructure for the irrigation system at The Legend golf course at Giants Ridge Recreation Area.
• Cook County: $2,250,000 $250,000 must be spent to preserve affordable housing units for seniors in the city of Grand Marais and $2,000,000 must be used to construct, furnish and equip a solid waste transfer station in the county.
• City of Eveleth: $3,640,000 to design, engineer and construct public utilities in its business park and construct the Hat Trick Avenue slip ramp.
• City of Gilbert: $1,000,000 for the Gilbert Community Center.
• Hibbing Public Utilities: $3,000,000 for water infrastructure projects.
• Lone Pine Township: $3,000,000 to design, engineer and begin construction for its sewage treatment plan in partnership with the city of Nashwauk.
• Mesabi Fit Coalition: $3,600,000 for the renovation, reconstruction and expansion of the former Mesabi Family YMCA in the city of Mountain Iron.
• Minnesota Discovery Center: $2,420,000 $200,000 may, at the discretion of the director of the Minnesota Discovery Center, be used for operating expenses, and $2,220,000 must be used to design, construct, renovate, furnish and repair facilities, including HVAC upgrades, demolition and compliance with the Americans with Disabilities Act, at the Minnesota Discovery Center in the city of Chisholm, and for historical research funding.
• Northland Learning Center: $1,000,000 for construction costs.
• St. Louis County: $2,100,000 for the development of the Canyon Integrated Solid Waste Management Campus.
• City of Silver Bay: $3,000,000 to design, engineer, construct and reconstruct publicly owned infrastructure including sewers, water systems, utility extensions, street construction, wastewater treatment, stormwater management systems, sidewalks and compliance with the Americans with Disabilities Act.
• City of Tower: $3,000,000 for water management infrastructure projects.
• City of Virginia: $3,300,000 grant to be used by Essentia Health-Virginia for (i) modernization, renovation, and expansion of the hospital's emergency room complex to 12 emergency rooms; (ii) construction of an emergency behavioral health suite for adults and children within the hospital; and (iii) security and safety upgrades to the hospital. The grant must be transferred by the city to the hospital within 30 days of receipt.

Other Projects Reviewed: 

• Broadband Grant Decrease: A previously reviewed grant in the amount of $1,312,093 was decreased by $162,093 at the request of the Grantee, CTC Communications. The project consists of expanding fiber optic to unserved and underserved households in Clinton Township and adjacent areas. The number of households was decreased from 482 to 350.
• Business Development Loan: A previously reviewed business loan scope was amended at the request of the Borrower, HWY35. The project consists of a cannabis cultivation and manufacturing facility in Grand Rapids. The amendment allows the Borrower to lease space at the project facility to tenants that obtain cannabis licenses, and for the employees to be counted toward job creation goals.

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 2025 spending plan which funds projects in business, community and workforce development in the Taconite Assistance Area.