May 27, 2026

FOR MORE INFORMATION:

Jordan Metsa, Communications Director

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

More than $10.7 million invested in business, community and education across the Taconite Assistance Area

At today's Iron Range Resources & Rehabilitation (IRRR) Board meeting in Eveleth, more than $10.7 million in projects were reviewed that grow new businesses, modernize infrastructure and public facilities, increase the housing inventory, support communities and pre-K-12 schools, expand higher education and advance future mining operations.

Business Development: $714,300

• Border Lakes Brewing LLC (BLB): $259,862 to purchase equipment for craft beer production, canning and distribution in Ely. BLB aims to create a brewery and taproom located in Ely’s historic train depot where they will produce high-quality craft beer and manufacture canned beer and filled kegs for local distribution.
• City of Ely Downtown Redevelopment Grant: $300,000 to redevelop the historic train depot site and support construction of a new adjacent building to house BLB’s brewing/manufacturing equipment.
• MoonLyte Brewing Company LLC and Twin Lake Properties Inc.: $154,448 to purchase equipment for craft beer production, canning and distribution in the local area and to make improvements to their property. The company aims to create a brewing facility, taproom and event venue located on an 18-acre property in Chisholm where they will produce high quality craft beer and manufacture canned beer and filled kegs for local distribution.

Public Works Grants: $2,498,374

• Arrowhead Township: $35,000 to replace the failing septic system at the town hall.
• Carpenter Township: $23,000 to make improvements to the town hall, including replacement of all doors and windows with energy-efficient units.
• City of Cook: $150,000 to improve the wastewater treatment facility and replace the sanitary sewer lines on several city streets and alleys. Wastewater treatment facility improvements include structure rehabilitation, piping, pond and earthwork improvements, riprap installation along the east ditch of the secondary pond and other work needed to meet capacity and permit requirements.
• City of Gilbert: $1,000,000 improve citywide infrastructure, including new sanitary sewer mains, manholes, services, water main replacement, valves, hydrant upgrades and necessary utility connections. The project includes full street restoration tied to utility construction, including pavement removal and replacement, concrete curbs and gutters, sidewalks, driveways, erosion control, traffic control and site restoration.
• City of Grand Rapids: $53,000 to replace infrastructure at Garden Court Chateau, a 24-resident assisted living facility in west Grand Rapids. The project will connect the facility to municipal sewer and water service, which was unavailable when it opened in 2006.
• City of LaPrairie: $25,000 to improve city hall following flood damage, including new flooring, doors and paint. Additional upgrades include ADA-compliant bathrooms and kitchen improvements.
• City of Nashwauk: $150,000 to improve city hall, including replacement of a failing boiler system and reconstruction of an accessibility ramp.
• City of Tower: $195,000 to make non-historic modifications and rehabilitate the south elevation to restore the historic fire hall’s original arched entrance. Additional work includes repairing and refinishing original wood floors and metal ceilings, repairing historic doors and the cistern hatch, and installing security hardware.
• City of Two Harbors: $170,000 to replace and relocate the water main to provide direct, code-compliant service to affected properties. The project includes upgrades to the 15th Street water main segment to support upcoming detour traffic and planned construction near the Highway 61 corridor.
• City of Virginia: $167,000 to upgrade infrastructure and streets to support the expansion of Pohaki. Improvements along Seventh Street South and the adjacent right-of-way include stormwater infrastructure, curb and gutter installation and roadway upgrades to support safe access and long-term redevelopment of the site on Sixth Avenue North.
• City of Virginia: $145,000 for infrastructure, site work and construction of a new building for Viking Coca-Cola Bottling Company, which is relocating to Ninth Avenue North. The company will construct an 11,900-square-foot commercial and industrial distribution facility on a 3.8-acre site.
• Cook County/Grand Marais Joint Economic Development Authority: $125,000 to reroute and upgrade water and sanitary sewer service across a recently acquired parcel with direct access to East Second Street. The improvements will support expansion of Sisu + Löyly, a locally owned and operated wellness business on the shore of Lake Superior.
• Embarrass Region Volunteer Fire Department (ERVFD): $78,500 to improve the fire hall and construct a helipad. Fire hall improvements include HVAC upgrades, foundation improvements, new flooring and backup generator installation.
• Embarrass Township: $41,000 to improve the town hall, including replacement of the failing roof, electrical upgrades in the main building and maintenance garage, sewer line replacement, entry door replacement, a clerk’s office addition and site safety improvements.
• Eveleth Virginia Airport Authority: $25,874 to improve airport infrastructure, including apron and taxi lane repairs to eliminate a recurring low spot that collects water and creates hazardous ice conditions. The project also includes fuel system upgrades to modernize payment technology and improve operational security.
• Greenwood Township: $47,000 to improve the town hall and fire hall, including replacement of town hall windows, HVAC upgrades and installation of a new water storage tank for the fire hall.
• Sandy Township: $20,000 to improve the town hall, including foundation repair, installation of a high efficiency HVAC system and construction of a new 12-by-17-foot office space.
• Town of Bassett: $48,000 to improve the town hall, including a new ADA-accessible entrance, replacement doors, updated window trim, roof upgrades and new paint.

Housing Grants: $993,000

• City of Taconite: $143,000 to construct a sanitary sewer and waterline extension to serve eight lots for new single-family market rate housing. The development is part of the Tudor addition.
• City of Grand Rapids: $350,000 to demolish the Independent School District No. 318 administration building and construct utility infrastructure to support eight new single-family Community Land Trust homes through the Itasca County Housing & Redevelopment Authority.
• Arrowhead Economic Opportunity Agency (AEOA): $500,000 to continue the tax-forfeited housing rehabilitation initiative (known as the Second Chance Homes program), which acquires, rehabilitates and sells tax-forfeit homes to first time home buyers or those in need of moderately priced workforce housing. The project includes rehabilitation of three homes in St. Louis County and one in Itasca County.

Iron Range Schools & Community Development Account: $3,654,760

• Chisholm Independent School District No. 695: $3,654,760 for infrastructure, site development and building construction for a new shared city public works facility and school bus garage.

Iron Range Higher Education Account: $880,000

• Minnesota North College - Iron Range Engineering (IRE) Program: $650,000 to support the IRE program which collaborates with private industry and allows students to earn a Bachelor of Science degree in engineering from Minnesota State University Mankato.
• Minnesota North College - Engineering, Itasca Campus: $230,000 to continue the redesign and rebuild of the Itasca engineering program to align with transfer to IRE.

Site Readiness - Former Hill Annex State Park Site: $2,000,000

• Minnesota Department of Natural Resources (DNR), Project Lead: $2,000,000 to help cover decommissioning costs to prepare the site for a potential future scram mining operation. Hill Annex Mine State Park permanently closed in 2024 with the intent to return the site to active mining. The surface stockpiles and tailings basins at the former park site are under lease, and a developer has applied for permits to conduct scram mining. If permits are approved, scram mining could begin soon afterward. Resumption of mining at the site would benefit the local communities through the collection and distribution of production taxes. It would also benefit K-12 public education throughout the state through the deposit of state mineral lease rental and royalty payments into the Permanent School Trust Fund. 

Other Projects Reviewed

• FY24 Regional Trails Grant Scope Amendment: A previously reviewed grant to St. Louis and Lake Counties Regional Railroad Authority in the amount of $500,000 involved the construction of a five-mile gap segment of Mesabi Trail from McKinley to Biwabik. The project was completed, and there is a remaining grant balance of $73,867. The Railroad Authority was approved to use the remaining grant balance to complete construction of another project involving an approximate seven-mile-long by 10-feet-wide paved bike trail between Wahlsten Road (County Road 26) and Tower.

Fiscal Year 2027 Budget

The FY27 IRRR budget was approved. The $77 million investment strategy exemplifies IRRR’s unwavering commitment to fostering a more prosperous living and working environment in the Taconite Assistance Area. Strategic priorities and funding include:

• Improve conditions for economic growth with $31 million of resources in community and workforce development. Funds include a $6 million program to promote the preservation, rehabilitation and investment in regional housing stock and neighborhoods with a focus on construction of new homes and/or apartment buildings.
• Support public works infrastructure, broadband and business and industry with spending of $19 million. Infrastructure funding assists communities in modernizing, redeveloping and replacing foundational assets in order to attract business investments and expansion.
• Invest funds in natural and recreational assets, Giants Ridge and regional trails to generate diversification and economic impact while contributing to the quality of life in the region.
• Produce a fiscally sound spending plan that includes reserve funds for unforeseen future needs.