Northeast MN businesses, communities, outdoor recreation and education receive over $7.4 million in economic development funding – Hometown Focus

At the Iron Range Resources & Rehabilitation Board meeting on Wednesday, August 9, approximately $3.1 million in loans, $3 million in infrastructure grants, $700,000 in trails grants and $630,000 in higher education grants were approved to advance projects in northeastern Minnesota. Agency total investment for all projects combined is approximately $7.4 million. Total project investment is approximately $87 million.

The projects are expected to increase the regional tax base, retain and create new jobs, provide essential services, increase the housing inventory, expand outdoor recreation and enhance higher education. The loans are anticipated to impact 178 jobs. The infrastructure projects are projected to impact 22 jobs and create 169 construction jobs. L&M SUPPLY, INC., GRAND RAPIDS: Direct Loan: $2,500,000. Agency Investment: $2,500,000. Total Investment: $55,427,035.

$2,500,000 to construct a 200,000-square-foot greenfield, stateof the-art distribution center. The new distribution center will replace one that is operating in nearby LaPrairie but is not large enough to accommodate the company’s current operations and anticipated future growth. The project involves the addition of advanced computer-aided forklifts, conveyor systems for moving product within the distribution center, a sortation system to increase efficiency and a new warehouse management system to increase accuracy, visibility and systematic knowledge of inventory at all states of processing. Thirty-five to 50 new jobs are projected, and 83 jobs will be retained.

The first L&M Supply store opened in Grand Rapids in 1959. It was a 30-foot x 60-foot wooden building. Today, L&M has one corporate office/distribution center and 12 retail store locations in northern Minnesota, Wisconsin and Michigan. It is led by the third generation of family owners who reside in the Grand Rapids area. L&M stores offer outdoor power equipment sales and service, and products related to fishing, marine, hunting, firearms, workwear, fashion clothing, footwear, automotive, farm, pet and home improvement.

“The Grand Rapids area has been the home base for L&M for the past 64 years and we are proud to continue our company growth in our hometown. Our mission has always been to serve our customers’ needs, and this new distribution center will ensure that we can fulfill that mission for years to come.” – Shawn Matteson, L&M Fleet Supply co-owner

“The Grand Rapids Economic Development Authority and the city of Grand Rapids appreciate Iron Range Resources and Rehabilitation’s support of this hugely significant project for our area. We are proud of the hometown success story that L&M Supply is, and we are honored to be a part of this collaborative effort to help secure their growth, investment and employment in Grand Rapids.” – Rob Mattei, City of Grand Rapids director of community development

“L&M Supply stores have been a retail tradition in northeastern Minnesota dating back to the 1960s. Our agency is extremely pleased that a dynamic company like L&M is making such a substantial economic investment in the region. The project will create jobs for the construction trades as the distribution center is built out over the next year and jobs for local residents when it is up and operating.” – Ida Rukavina, commissioner of Iron Range Resources & Rehabilitation

CAST CORPORATION, HIBBING:

Participation Loan: $600,000. Agency Investment $600,000. Total Investment $1,200,000.

$600,000 to make facility improvements related to a 5,4000-square-foot foundry expansion that includes a loading dock, remodel of an existing 3,050-square-foot heated storage building and addition of a new 3,200-square-foot cold storage building.

“Our agency has enjoyed a long relationship with Cast Corporation. We congratulate the company, its employees and owners on their exciting new expansion. Cast is an excellent example of how the region’s economic landscape has strengthened and diversified through manufacturing.” – Ida Rukavina, Commissioner of Iron Range Resources & Rehabilitation

Development Infrastructure Grants:

$1,151,362. Agency Investment $1,151,362. Total Investment $7,061,845. • City of Buhl: $151,362 to construct infrastructure, site work and roadways for a new housing development. The Damian II Addition will provide 10 single-family home lots. The city recently sold the last available lot in the Stubler Addition creating a need for the development of new residential lots. • City of Chisholm: $500,000 to construct infrastructure, site work and roadways for a new 11,000-square-foot building that will house a new child care facility, clinic and county services. The child care center will be licensed for 90 full-time children ages six weeks to 12 years. • City of Silver Bay: $500,000 to excavate and construct infrastructure and site work for a new housing development near Bayview Park. The Boathouse Bay project includes 53 housing units and a resort to be built out over the next five years.

Community Infrastructure Grants:

$1,865,364. Agency Investment
$1,865,364. Total Investment $19,344,892.
• Bois Forte Band of Chippewa: $386,500
to construct infrastructure and site work
for a new 13,800-square-foot public
works facility. The Vermilion Public Works
Facility will provide space for equipment
and vehicles used in the public works and
housing departments. There will be office
space, a conference room and a food
shelf area that provides services to band
members residing in Vermilion and to
surrounding communities.
• City of Grand Marais: $250,000 to
construct infrastructure and new road
surfaces for Fifth Avenue West, a major
connector between Highway 61 and the
Gunflint Trail. The avenue serves public
service centers related to health care,
water, fire suppression, recycling and the
court system. Residential housing and
private businesses are also served by the
avenue.
• City of Hibbing: $500,000 to construct
infrastructure related to 1.6 miles of water main, add a water valve and replace a
hydrant. The new water main will replace
antiquated and malfunctioning cast iron
pipes which were installed from 1923 to
1925. The project will provide Hibbing
Public Utilities the opportunity to replace
33 lead service lines.
• City of Keewatin: $350,578 to improve
the O’Brien Reservoir recreation area
with demolition of an existing dilapidated
restroom facility, construction of a 24-foot
by 30-foot four-stall handicap accessible
restroom facility, septic system installation and parking lot improvements. The
project will also replace the curbs, sidewalks and overhead street lights on North
First Street.
• City of Orr: $243,411 to replace Orr Regional Airport’s outdated fueling system.
The existing fueling system and supporting software does not meet current
standards and will soon be obsolete. The
airport has seven hangars with a waiting
list. It is utilized by Minnesota Department
of Natural Resources as a base for fire
suppression and wildlife surveillance.
• City of Virginia: $134,875 to upgrade the
elevator and men’s handicap accessible
restroom at Arrowhead Economic Opportunity Agency’s (AEOA) headquarters in
Virginia. AEOA provides essential services
in several area counties related to energy

assistance, seniors, nutrition, early childhood and adult education, homelessness, housing, weatherization, employment and training, food access, transportation, youth services and business assistance.

Regional Trails Grants:

$700,000. Agency Investment $700,000. Total Investment $3,982,430.

• Itasca Driftskippers Snowmobile Club:
$50,000 to purchase a new 2023 Piston
Bully snowmobile trail groomer that will
improve uptime, reduce maintenance
costs, improve safety and improve trail

conditions in the Grand Rapids area.
• Lutsen Trailbreakers Snowmobile
Club: $100,000 to replace a highly
used snowmobile trail bridge that was
destroyed in a flood during the spring
of 2022. The bridge crosses the Poplar
River and is on the Lutsen Access Trail,
which provides access from remote
area trails to downtown Lutsen where
riders can access food, fuel, emergency services and lodging. The trail and
bridge are also used by bikers and
hikers.
• North Superior Ski and Run Club (NSSRC): $50,000 to purchase a new snow
cat groomer to groom the Pincushion
Nordic ski trails in Grand Marais for
classic and skate techniques.
• St. Louis and Lake Counties Regional
Railroad Authority: $500,000 to complete

construction of a five-mile gap
segment of Mesabi Trail from McKinley
to Biwabik, connecting the Virginia area
to the Giants Ridge and Embarrass
area. A portion of the new segment includes a floating trail over the wetland.

Iron Range Higher Education Account: $630,000. Agency Investment $630,000.

• Minnesota North College: $400,000
to support the Iron Range Engineering
BELL program which collaborates with
private industry and allows students
to earn a Bachelor of Science degree
in engineering from Minnesota State
University Mankato. Since 2009, the
program has graduated 290 students

and has received worldwide recognition
for its innovative engineering education
approach.
• Minnesota North College: $230,000:
to support the operations of the five
foundations that serve the college’s students and campuses of Hibbing, Itasca,
Mesabi Range, Rainy River and Vermilion. The grant will help purchase donor
and scholarship management software,
staff professional development.

Iron Range Resources & Rehabilitation is funded through taxes paid by Minnesota’s mining industry. The projects approved at the August 9 board meeting support the agency’s FY24 spending plan which helps the agency funds 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.