Action Team Report Back Meeting

Itasca Economic Development Corporation
August 9, 2006 – 11:30 – 1:00 p.m.
Blandin Foundation Board Room  

Present: Jim Woehrle, Scott Thompson, Peter McDermott, Teri Heikkila, John Ward, Tarry Edington, Kris Ferraro, Dave Latvala

Today’s meeting was the third Action Team Report Back meeting for 2006. Reports were given as follows:

Air Service:

• Establish an economically viable scheduled air service at the Grand Rapids/Itasca County Airporth

Team member Peter McDermott reporting

Chris Van Den Heuvel is working with Team members to determine the economic impact of air service in Itasca County and on developing a business model for smaller aircraft.

Blandin Paper:

• Help position the Blandin Paper Mill as a preferred expansion site for UPM

Team member Peter McDermott reporting

Air and wastewater permits are in process. Until industry developments proceed in Europe and China, Blandin Paper Mill’s expansion plans are on hold.

Workforce Housing

• Address issues of affordable workforce housing for the median income and below group for the purpose of providing quality of life, security and workforce development opportunities

Team member Tarry Edington reporting

Team initiatives include:

• Use of Land Trust ownership – possibly through Northern Communities Land Trust
• Use of financial and development services of Midwest Minnesota Community Development Corporation
• Use of Department of Corrections Housing Work Crew
• Community readiness for development through advance planning
• Use of loan guarantee or direct loan for GAP financing of construction loans for manufactured housing.

Action Team members are very much aware that if any of the potential industrial development projects such as Minnesota Steel or Mesaba Energy become realities, the demand for workforce housing will be at very high demand and the importance of community planning will be paramount.

Lakes Management

• Promote collaboration among private and public entities for improved lake management as an essential strategy for economic prosperity

Chairman Scott Thompson reporting

Team members participated in North Central Lakes Project Education, Conservation Easement, and Alternative Shoreland Standards committees. The presentation titled “Economics of Water Quality” produced by the Team was shown at the Spider Lake Association, the Rotary Club, and Pokegama Lake Association. Public outreach meetings are being held in south central areas of the County to provide input on forming a Sanitary District for rural south central Itasca County. Action Team members are active on the South Central Itasca County wastewater initiative team.

Minnesota Steel

• Revitalize the local economy by providing community support to Minnesota Steel Industries’ use of ore reserves to produce steel near Nashwauk

Chairman Dave Latvala reporting

In mid July Minnesota Steel management announced an exclusive $600 million agreement with HYL Technologies and Danieli to be contractors for the Direct Reduced Iron (DRI) and Steelmaking facilities. Project financing, Environmental Impact Statement (EIS) and permitting are all advancing with anticipated closing by year end.

Mesaba Energy

• Revitalize local economy by providing community support to Mesaba Energy project in building cleanest coal fueled power plant in the world

Team member Peter McDermott reporting

Team members participated in planning the community open house on the Mesaba Energy project at the Bovey City Hall held July 26 th. Team members also attended the Citizens Against the Mesaba Project (CAMP) public meeting held at the Grand Rapids Public Library on July 25 th to help increase understanding of the project.

Poverty Reduction

• Implement a plan to reduce poverty in the Itasca economic region that shows a public/private partnership

Chairman Jim Woehrle reporting

The Poverty Reduction Action Team has formed five separate committees to focus on different aspects of poverty reduction.

1. Business mentorship of a person on public assistance: A few local businesses have expressed interest in mentoring a person on public assistance. The sub-committee members will be interviewing candidates with the hope a placing a few individuals in this volunteer training experience in the near future.
2. Toolkit for small businesses to create high value employees: The sub-committee has met to determine what will go into the toolkit and has identified businesses to approach to do case studies of the implementation of the toolkit.
3. Transportation for people to work: Members are working on a program to make reliable cars available to low-wage workers with affordable financing. Community cooperation and participation is needed to make this program available to these workers.
4. Businesses encourage their employees to volunteer in the community: Sub-committee members are looking at different avenues to encourage employers to mentor kids in the community.
5. Create community leadership around poverty issues: A third “Move the Mountain Leadership” training is scheduled for September 28. The Blandin Foundation is planning to implement a community leadership program for low income community members.

Youth Retention

• Attract and retain young adults and families to the Grand Rapids area.

The Youth Retention Action Team held a potluck barbeque at Gunn Park on July 27 th for young couples and families as a “get acquainted” event.