Action Team Report Back Meeting
Itasca Economic Development Corporation
October 11, 2006 – 11:30 – 1:00 p.m.
Blandin Foundation Board Room
Present: Christina Anderson, Kris Ferraro, Peter McDermott, Lucy Flessner, Jim Woehrle, Chris Van Den Heuvel
Today’s meeting was the fourth 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 Airport
Team member Chris Van Den Heuvel reporting
Chris provided a brief airline industry overview. U.S. Airlines had one of their most profitable quarters reported at the end of June 2006. Regionally, Northwest Airlines is still in bankruptcy and expected to emerge from bankruptcy sometime in 2007. Mesaba Airlines is still in bankruptcy and has not renegotiated contracts with their labor groups. The carrier is asking the bankruptcy judge to allow them to impose contracts on their labor groups in October. The labor groups have indicated that they will strike should contracts be imposed.
Through a grant by the Blandin Foundation, a survey has been developed to help determine the economic impact of air service on Itasca County and annual capacity demand by local businesses. Peter McDermott and Chris Van Den Heuvel have been working with David Braslau Associates, Inc. in developing the survey. They are working with local business leaders in the completion of the survey and expect to have the surveys completed by the end of October. The survey will provide a better understanding of the economic impact air service has on the local economy and what the demand for service is from the business traveler. The ultimate goal would be to design/attract a service that fits the demand and is within the price and service parameters businesses are willing to pay and accept. The survey will help determine if air service in Itasca County is a viable option. Surveys are also being sent to smaller businesses that will not be contacted through personal visits.
Blandin Paper:
- Help position the Blandin Paper Mill as a preferred expansion site for UPM
Team member Peter McDermott reporting
The Grand Rapids Public Utilities Commission has developed a cost opinion for wastewater treatment facilities improvements for the Blandin Paper/Thunderhawk project. The cost opinion was developed to enable Blandin Paper Mill to build a business case with the lowest cost alternative for Mill expansion with Paper Machine No. 7. The current system needs to be updated with or without the increase in capacity to accommodate expansion.
Mesaba Energy:
- Revitalize the local economy by providing community support to the Mesaba Energy project in building cleanest coal fueled power plant in the world.
Team member Peter McDermott reporting
The Action Team is focusing on gaining community support for the Mesaba Energy Project. The Greenway Area Business Association, Grand Rapids Area Chamber of Commerce, Western Mesaba Mining Planning Board and Itasca Economic Development Corporation have each gone public with resolutions their organizations passed in support of the project subject to meeting environmental regulations.
Minnesota Steel:
- Revitalize the local economy by providing community support to Minnesota Steel Industries’ use of ore reserves to produce steel near Nashwauk.
Team member Peter McDermott reporting
Itasca County conducted the required public meeting on the land sale for Minnesota Steel which passed with ease. Minnesota Steel also received a commitment of up to $14 million investment from an affiliate of Interlachen Capital Group, a Minneapolis-based investment firm. This investment will provide working capital to complete the steps needed to close financing of the $1.6 billion facility. Team members are focusing on keeping the permitting process on track.
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 divided their focus into five areas and formed committees to work in each of those areas.
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.
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. The toolkit is still being developed.
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. Car loan models, such as Project Jump Start, are being used in other parts of the state. A local coordinator will likely be needed in order to develop a program in the Itasca area.
Businesses encourage their employees to volunteer in the community: This sub-committee developed the message Mentoring is good for business”. The committee used information from the Minnesota Business Partnership which states “young people who have mentors are less likely to use drugs, skip school or be involved in criminal activity”. By encouraging employees to volunteer in the community, the image of the company is enhanced, employee satisfaction is increased, and performance improved. The future workforce can be impacted by helping young people with academics, exposing them to careers and giving them a positive/hopeful vision for their future.
Create community leadership around poverty issues: A third “Move the Mountain Leadership” training was held September 28. The focus of the training was to discuss how to create feedback systems for the education and human service systems that include low-income people. The Blandin Foundation has committed to the creation of a Blandin leadership program for low-income community members.
Youth Retention:
- Attract and retain young adults and families to the Grand Rapids area.
Chairman Christina Anderson reporting
Action Team members created a form email to send out to the Grand Rapids High School class officers of the past thirteen years of graduating students. An email account has been set up at grhsalumni@yahoo.com to compile information. Each team member was assigned the task of sending out the form email to at least one person in their assigned class and request that that person forward the information on to any other alumni they have contact information for. The initial response has been very good with approximately 60 to 70 answered emails. Christina estimates that one-third to one-half of the respondents have expressed interest in hearing of any area job openings. Team members are gathering and sorting the emails into IEDC’s software database.
The Team has put website development on the back burner as quotes for designing the page have been cost prohibitive for the Team. An alternative may be to link to other websites such as IEDC, Chamber or the Herald Review.
Team members have organized a young family outing for October 15th at Nordic Ridge Pumpkin Patch. Postcard invitations were mailed to about 75 families. A “speed dating” singles event is being planned for sometime in November at the Rivers Wine Bar. Members are in the process of gathering names and addresses to mail out a flyer promoting the event.
No reports were given for the Workforce Housing or Lakes Management Action Teams.
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