 |
|
|
IEDC 2008 Work Plan In 2005 the Itasca Economic Development Advisory Council shared the belief that developing a vision for a healthy Itasca area community could lead to a better future. Working with other non profit organizations and governmental entities in the Itasca area, the following vision statement was created: Vision for a healthy Itasca area community Helping create quality lives People in the Itasca Area enjoy an exceptional quality of life because:
Itasca Economic Development Corporation’s Mission: Helping create quality jobs
IEDC’s Guiding Principles:
IEDC’s Target Goals:
IEDC’s Work Areas:
Major Strategy Descriptions The IEDC 2008 Work Plan is a compilation of proactive strategies and activities designed to accomplish the two major economic goals of the Itasca Area Community Report. It is essentially the communities’ collective planning document to help create quality jobs and high employment. There are eight major strategies in the work plan. The first five involve working directly with businesses, because they create the jobs! The remaining three strategies are extremely important in helping provide the necessary human, infrastructure and social capital resources to help businesses that will, in turn, create quality jobs. Major Projects - These projects have the most direct impact on creation or loss of a large number of quality jobs. These may not be the largest employers, but they are an active “project” that could use some assistance from IEDC. Existing Businesses - It is well known that active businesses in the area are the greatest source of expansion of jobs. It is imperative that IEDC and the community assist them in growing their business and workforce. Business Start-ups - About 25% of the workforce in the Itasca area is composed of self-employed people. This is compared to 17% in Minnesota and about 10% in the United States. We have to be responsive to helping entrepreneurs get their businesses started in the right way toward a successful enterprise. Recruitment/Site Selection - Recruitment doesn’t mean traveling outside Itasca County to seek potential businesses who may want to consider our area for their business. Instead, when an entity from outside the area wants to locate in the Itasca Area we want to be extremely proactive in meeting their needs and then assisting them in locating in our area to start or expand their business. Workforce - No business can exist without a trained and reliable workforce. It is one of the essential demands that all companies require. Infrastructure - Proper infrastructure in the Itasca County area is required for manufacturing, high tech or commercial business expansion in our area. Itasca Technology Exchange - IEDC owns 74% and Iron Range Resources owns 26% of this technology growth incubation company. We have to anticipate the technology needs of current businesses as well as those who may want to grow their higher tech companies in our area. This is a means of achieving both diversity and high paying jobs. Alignment - The last major strategy helps to pull all private sector, government, economic development, non-profit and public entities together to work toward increasing employment while increasing the average wage in our area… simply combining efforts in “Helping Create Quality Jobs!”
Major Projects Minnesota Steel: The $1.6 billion mine-to-metal project will produce steel slabs to be shipped to steel makers and rolled into steel for products such as automobiles and appliances. The company has been purchased by Essar, a steel, energy, power, communication, shipping, logistics and construction company headquartered in India and all necessary permits have been issued. The plant would be built west of Nashwauk and be the state’s largest industrial project and be the only one of its kind in the nation. Minnesota Steel estimates employment of up to 700 full-time workers and creation of an estimated 2,100 spin-off jobs in addition to the creation of an estimated 2,000 construction jobs. Ainsworth Lumber: In September 2006 Ainsworth announced that it was suspending OSB production at Grand Rapids for an indefinite period. The Grand Rapids OSB (oriented strand board) plant was acquired from Potlatch Corporation in September 2004. In addition to Minnesota locations in Grand Rapids, Cook and Bemidji, Ainsworth has Canadian operations in British Columbia, Alberta and Ontario. The closure resulted in the layoff of approximately 150 employees and a significant loss of logging-related jobs. Minnesota Power: Minnesota Power‘s $200 million environmental upgrade of Cohasset’s Clay Boswell 3 Generating Unit is underway. The project’s goal is to reduce mercury emissions by up to 90% and cut nitrogen oxide and sulfur dioxide emissions by more than 80% from Unit 3. The new installations will address new requirements developed under Environmental Protection Agency rules dealing with interstate air quality, mercury reduction and regional haze. The project is estimated to create 500 peak construction jobs by the end of 2008. The larger Unit 4 will be upgraded after unit 3 is completed and is planned to begin in 2010 and completed in 2014. Mesaba Energy: Excelsior Energy is an independent energy development company which proposes to build, own, and operate an integrated gasification combined cycle (IGCC) power-generation facility in Itasca County referred to as the Mesaba Energy Project. The first unit is proposed to be built on a site north of Taconite at a cost of approximately $ 2 billion. The Mesaba Energy Project will create over 1,000 full time, direct construction jobs during its 42-month construction phase and employ approximately 100 full time people and indirectly create over 100 permanent jobs in Itasca County from on-going operations. Minnesota Diversified Industries (MDI): In early 2006, MDI experienced significant layoff in Grand Rapids and Hibbing due to the US Postal Service cut back in orders for the year. 80 to 90% of the reusable corrugated plastic containers manufactured in Grand Rapids and Hibbing are produced for the US Postal Service and the Company has been unable to diversify its customer base. At the end of 2006 MDI employed 218 people in Grand Rapids and as of October 2007 there are between 50 and 60. UPM Blandin Thunderhawk: The mill is proposing to add a new world class paper machine line, No.7, and shut down machine No. 5 which came on-line in 1975. The cost was estimated at $654 million in 2005 dollars. After more than three years, the Blandin expansion project received all required permits with the exception of waste water treatment. The most significant impact of the project is the retention of 250 jobs since Paper Machine No. 5 will be eventually shut down in a no-build alternative. The base case includes 27 new jobs or a swing of 277 direct jobs plus 449 indirect or induced jobs for a total loss of 726 jobs without the project. The project would increase the mill’s annual wood consumption by a projected 197,000 cords per year. Construction jobs were estimated at 823 FTE’s.
Existing Businesses Retain/Expand Businesses: IEDC is a host site for an SBA Small Business Development Center (SBDC) whose regional office is located at the U of M – Duluth Center for Economic Development. The SBDC provides confidential counseling and training to individuals interested in retaining, expanding or starting a business. In 2006 SBDC counselors provided over 1,000 counseling hours for 257 clients and $9.3 million in client loans were approved. These clients retained 746 jobs and created 76 new jobs. Grow Itasca: IEDC works in collaboration with the Grand Rapids Chamber of Commerce to assist owners and managers of approximately 45 businesses that are either the largest employers or have the greatest potential to gain/lose jobs. Grow Itasca committee members call on these businesses throughout the year and make return visits as often as requested or deemed appropriate. The committee tracks year end employee counts for each of the businesses. Mining: With the impending Minnesota Steel project, mine support businesses are sure to follow and should be approached from two different aspects: 1) help existing businesses in the area get their share of contract work and 2) welcome outside contractors to the area. The long range aspect eventually will be value-added manufacturers located near Minnesota Steel which could provide needed steel product. Forestry: The primary forest products industry is vital to Minnesota’s economy, as well as to the health and management of both public and private forests. The industry provides jobs and economic activity that benefit communities statewide – especially rural communities in northern Minnesota. Commercial timber harvest is also critical to realizing many wildlife habitat and other recreational benefits on public and private forests and helps prevent the loss of private forest land to other uses by providing revenue to landowners. Retail/Tourism: Retail and tourism related jobs provide benefit for people who are either students, semi-retired, part-time workers, second job seekers, or entry level candidates. Many people who chose to work or start a business in the Itasca area were tourists first. They liked the area and wanted to live here. Bio Industry: There are a growing number of businesses in the Itasca area that are using forestry products and bi-products in alternative manners. IEDC has assisted several of these innovative businesses and will continue to provide support as the business help to diversify the local economy. Healthcare: Since 2004 approximately $94 million has been invested in healthcare facilities in Itasca County. The three major Itasca County healthcare facilities have indicated a future high demand for healthcare professions. Itasca County’s population aged 65 and older is expected to outpace the state and nation over the next 10 to 20 years and the demand for healthcare services is expected to increase accordingly. By 2025 27% of Itasca County’s population is projected to be 65 or older. Arts: The availability of fine arts in a community is a major attraction for existing and new businesses and is a strong asset for economic development. The Itasca area is fortunate to be a cultural hub for the fine arts and strong support for this economic driver is important.
Business Start-Ups Feasibility: SBDC counselors assist clients on the feasibility of starting, expanding or relocating their business. Counselors provide analysis for clients to help them make their business decisions. Implementation & Loan Packaging: SBDC counselors assist clients who need assistance in putting together the documents necessary to complete a loan package. Counselors save precious time for local bankers by helping clients with business plans, financial projections, and many other loan documents. Buy/Sell: Clients looking to buy or sell businesses receive assistance from SBDC counselors on business valuation, loan package requirements, and potential sources of capital. Entrepreneurship Action Team: A new IEDC Action Team was formed in August, 2007 with a goal of encouraging the entrepreneurial spirit in the Itasca area. An important component of a healthy community is one in which entrepreneurial thinking and behavior is encouraged, supported, and actively developed. In Itasca County there is no coordinated, deliberate approach and no community wide awareness of its place in creating a healthy community. In particular, entrepreneurship education is limited. Team members explored some existing ideas and models of entrepreneurship learning. Next steps will include developing a vision and mission, brainstorming strategies to achieve the vision and mission, determining resources and developing action plans. Northeast Entrepreneur Fund’s (NEF) Greenstone Group: The Greenstone Group is a collaborative effort of about 30 different organizations in the region. This service provider network will share resources and refer to one another depending on client needs. The Greenstone Group will consist of an Advisory board, one full-time Director with additional coaching and support staff. The NEF will take the lead role in maintaining the service provider network, creating coaching and mentoring programs, and building entrepreneur programs at local colleges.
Recruitment/Site Location Bio Energy: As the areas of renewable fuels and alternative energy have grown, IEDC has received several inquiries about potential projects. IEDC staff will provide demographic, market, zoning, and financing information in support of potential projects. Airport Road Building: In June 2007 IEDC closed on the purchase of the 16,000 s.f. Airport Road building which was owned by Jon Miner. Funding for the building purchase came from the Itasca Building Development Fund. This building was used in the original funding request to the Blandin Foundation in 2005 along with pro forma financial projects as a spec building renovation model. Building improvement proposals were requested from five area construction firms for renovation of the facility and RFP’s were sent out for site work as well. The building can provide a light manufacturing incubator facility or can be sold or leased to businesses which have the potential to advance the creation of quality jobs in the Itasca area. Separation Kinetics: Separation Kinetics is a Minnesota-based startup company developing filtration technologies for the ethanol production industry. MN Pro/Northland Connection: IEDC works with the Minnesota Department of Employment and Economic Development’s “MNPRO” and Northspan’s “Northland Connection” websites to list comprehensive information on commercial and industrial properties available in the Itasca area. Businesses interested in relocating, expanding or a new start up can research property information on these websites prior to contacting or making a visit to the community. Proactive Business Recruitment: Develop strategies to seek out potential businesses that may locate in the Itasca area. Developing a more powerful website with ramped-up search engine capabilities would be an effective tool. Also, a ‘Sister City’ relationship might be beneficial in attracting new business interests. All recruitment strategies must be accompanied by a system to mobilize the right team of key stakeholders to court any company looking to locate in Itasca County. A format should be developed to present a well-orchestrated visit and resulting proposal to address the needs of the prospective business.
Workforce Applied Learning Initiative: The Applied Learning Initiative is a renewal of secondary career and technical education focusing on high demand regional workforce needs. It is a k-14 model that brings K-12, Higher Education and Business/Industry to the table in insuring a strong, vital workforce for years to come. ICC Two Year engineering Program – Best in the World: The two year engineering program at Itasca Community College through the innovation of its faculty, and with significant support from the Blandin Foundation and National Science Foundation, has reached a level of national recognition for success. At this juncture, the next level of excellence will be achieved through a significant quality improvement initiative. The proposed project, which includes activities funded by the National Science Foundation and the Minnesota Center of Excellence in Manufacturing and Engineering, will meet the objectives through the implementation of the following activities: 1) teacher improvement initiative 2) learning creativity through the arts 3) faculty of color initiative 4)expand borders to K-12 students and teachers in Upper-Midwest region 5) scholarships 6) learn engineering through practicing with regional professionals 7) improvements to learning community environment. At the heart of the new skills and attributes are the ability to think creatively, the ability to work in a diverse team, and extensive practice in actual engineering. Workforce Exchange for Learning and Development (WELD): WELD is a network of learning and development for the emerging and existing workforce. WELD is a one-stop shop for learning and development that maximizes the access and skills for employers and the current workforce. Invest Early: With support from the Blandin Foundation, Invest Early is a comprehensive early childhood collaborative in Itasca County that serves young children and their families with risk factors that may impede school success. Children qualify for Invest Early educational and family support services based on a combination of risk factors and income. Blandin Foundation funded approximately $1.5 million for each of the first two years and a grant was recently approved for $1.7 million for each of the next two years. It is expected that the Blandin Foundation will contribute for at least ten years. In its second year, 333 children, ages 0-5, and their families participated in Invest Early. Career Pathways: The Career Pathways program has two dimensions: 1) CEO’s in the Schools Program is designed to encourage 8th graders to complete a rigorous course of study through interactive presentations made by business leaders, 2) Emerging Global Leaders Program is a process of engaging business volunteers through interactive communication with 9th grade students about the important of soft skills and interviewing techniques. MN Job Bank: The Minnesota Job Bank provides a unified connecting point to link area employers with qualified works and assists job seekers find the right job. Increasing usage of the www.minnesotaworks.net site is a goal. Project Read: Project Read is a Chamber led initiative which focuses on early literacy to increase the number of students who can read up to grade level standards in Itasca area schools. Alumni Retention and Attraction: With the prospect of an aging community and the ongoing “brain drain” that all rural Minnesota communities are facing, IEDC is working on initiatives to attract and retain young people to the Itasca area. This is a very important element in our workforce development efforts. Financial Literacy Action Team: The newly formed action team is dedicated to promoting financial literacy in the community by promoting education of young adults to give them skills they will need to be financially successful during their life. ICC Four Year Engineering School: Currently between 150-170 students are enrolled in ICC's engineering program. The goal is to have 300 engineering students enrolled within five years. On campus housing is available for 108 students. A local four year engineering degree program would provide a greater opportunity for local students and be a significant asset in growing the local economy.
Infrastructure EDAs, Community Development, Government, JOBZ: IEDC participates, advises and/or partners with local governmental unit planning and development projects. IEDC assists governmental units to promote economic growth by identifying financial and technical resources for projects that are widely shared by the community. Financial Partners: Financial capital is a necessary form of infrastructure for local economic development. IEDC identifies financial and technical resources that will help new and existing businesses obtain funding to be successful in the Itasca area. IEDC works with a variety of financial partners to assist with investment in area projects and financing for area entrepreneurs. Partners include Iron Range Resources, Minnesota Community Capital Fund, Great River Energy/Lake Country Power, Minnesota Business Finance Corporation, Minnesota Power, Northeast Entrepreneur Fund, Northland Foundation, RAIN Source Capital and NorthStar Fund, US Small Business Administration, Northspan Group and Minnesota DEED. Industrial Park Sites: Work with local communities to identify and develop additional industrial parks with shared ready sites. Itasca Building Development Fund (IBDF): Through a Blandin Foundation Program Related Investment IEDC has established the Itasca Building Development Fund which makes funds available for qualified manufacturing and technology based businesses that are unable to acquire all needed funds for a facility. Roads, Rail, Utilities: IEDC assists governmental units in moving infrastructure projects forward to promote economic development through seeking financial assistance such as grant funds or providing locating technical resources available. Highway 169 Cross Range Expressway: The completion of the U.S. Highway 169 “Cross Range Expressway” as a four-lane highway in eastern Itasca County between Taconite and Pengilly is a priority. Several major industrial economic development projects are advancing on the Iron Range and additional projects are being proposed. Completion of the four-lane roadway is a key component in preparing Itasca County and its communities for the realization of the major industrial projects. Workforce Housing Development: IEDC will help communities obtain necessary infrastructure in order to be ready for the anticipated increased demand for workforce housing through its Itasca County Community Readiness initiative being facilitated by ARDC. Broadband & Cell Service: IEDC promotes fiber to the home/business and expansion of cell service throughout the Itasca area through continued advocacy for local leadership and action teams. Grand Rapids Itasca County Airport Terminal Building: Utilization of the airport terminal building to help the Grand Rapids/Itasca area become successful in attracting business and welcoming visitors is an economic development priority. Locating the FBO on site will provide a positive first impression to business investors visiting our area for the first time. Waste Water Management District: IEDC will help to endorse a county wide wastewater management district in which communities can join as their needs require. Blandin & 70 mile ATV Trail: IEDC promotes and facilitates meetings of the Blandin ATV Trail and state 70 mile ATV trail projects in Itasca and Aitkin Counties.
Itasca Technology Exchange Multi-Site Development: Looking to the future, ITE, in collaboration with IEDC, has crafted a multi-site strategy for the development of Class A Technology park site locations in multiple communities across the Itasca County area. Preliminary plans are underway for a series of projects including the Cohasset technology & Innovation Center in Cohasset and the , Eagle ridge Technology park in Coleraine. Potential other sites include the Grand Rapids Technology Center (29th Street location) and the IEDC Airport Road building. Key among these sites is leveraging the available high speed, high bandwidth network connectivity valued by current businesses at ITE’s existing technology center facility and data center. North Central Technology Laboratory: ITE staff is working on the North Central technology Laboratory (NCTL) project. The vision for the NCTL program is to create a building that sponsors innovation and collaboration between public and private sector partners in the areas of applied research, training, and pilot-scaled applications. Its purpose is to improve the competitive position of the region’s natural resource products industry by facilitating growth. Collaborators include UPM Blandin, Itasca Community College, University of Minnesota, Itasca Technology Exchange, Itasca County and the City of Grand Rapids. The NCTL facility would house a multi-tenant research center, pilot-scale lab facility, and industry training center. The proposed location of NCLT is in the pasture located on the ICC campus. Solidifying commitments for the partners to carry this initiative from development and planning stages to operations and securing the project funding are underway. New Business Incubation: Itasca Technology Exchange (ITE) connects early-stage and expanding technology companies with the high-speed, high-bandwidth network connectivity, data center services, office facilities, capital investment and business services necessary to help grow technology business. ITE’s mission is to diversify the area economy through the development of technology-based business. ITE’s original technology facility has maintained 80-90% occupancy since 2005. Many of ITE’s current portfolio ventures are continuing to develop with growth plans that will require expanded facilities with similar network and infrastructure requirements in the near future. Bio Based & Renewable Energy Technologies: Bio-based and renewable energy technologies are emerging technologies being developed for the production of products and energy from biomass.
Alignment IEDC Advisory Council: The IEDC Advisory Council held their first meeting in January 2004. The Advisory Council is deemed a committee of IEDC organizations. The Council may consist of up to 60 members with membership fairly representing the geographic areas of IEDC. The purpose of Council membership is to provide the opportunity to take a leadership role in supporting the mission of IEDC. Council members are expected to actively and constructively contribute to the work of IEDC. The Council provides input to the board of directors regarding the annual budget, work plan and public positions related to the mission and take a leadership role in obtaining support for IEDC’s mission of helping create quality jobs. Publications: Since 1999 IEDC has published Annual and Mid-Year Perspectives which track specific areas of Itasca County’s economy and compares it with like activity of previous years to provide perspective on economic trends. IEDC has published an Annual Report since 2003 which details the key activities and results of the Action Teams and outlines the highlights of IEDC’s key accomplishments and work activities. Private Partners: Beginning in 2003 IEDC received private and public partner financial investments for operations to support the mission and goals of the organization. Private sector investment and involvement in the work of IEDC ensures sustained progress and investments are matched by the Blandin Foundation. Partner investments in 2003 totaled $ 26,250 from six contributors and have reached a total of $ 96,075 from 32 contributors as of October 2007. Forums: Beginning in September 2002 IEDC began hosting public forums to highlight specific industries or topics related to economic development for the purpose of creating a common vision for the future of the Itasca region. As of October 2007 a total of 21 forums have been hosted by IEDC exclusively or in partnership with other organizations. A direct result of the forums was the formation of action teams to address issues highlighted during the forums. Economic Development forums are held as key issues emerge and plans are underway for hosting four more forums within the next four months. Advertising/Promotions/Marketing/Coop Marketing/Video Production: The Itasca area is made aware of services provided by IEDC through media communications including radio, television, Internet, billboard, brochures, newspapers, SBDC outreach programs and published reports. Non Profit, Trade, Education and Governmental Organizations: IEDC collaborates and partners with area non-profits, local trades, education and governmental organizations on economic development initiatives. Community Report: In 2004 the IEDC Advisory council shared the belief that developing a vision for a healthy Itasca area community could lead to a better future. Through extensive outreach within the Itasca area a vision statement was developed which outlines the quality of life that people in the Itasca area hope to attain. In 2005 a group of non-profit organizations developed a community report as a way to help citizens, communities and public officials track progress toward achieving the desired outcomes of the vision and mobilize and engage the community around issues of concern. The Community Report will be published annually. Community Outreach: SBDC counselors will travel to Itasca area communities to promote SBDC services and provide training on subjects important to business owners and entrepreneurs. IEDC will also visit with mayors and other key leaders in each community to hear their concerns and issues regarding economic development. Range Readiness Initiative: RRI is an ad hoc group developed by Iron Range Resources to coordinate and address common, but critical, issues related to the siting and development of multiple, large-scale regional development projects across the Iron Range. IEDC is a member of the RRI strategy team of regional and local professionals that will develop, communicate and facilitate a coordinated regional response to the benefits and challenges of the large scale projects. Itasca Area BrandPrint: IEDC partnered with the Chamber, Visit Grand Rapids, City of Grand Rapids, Grand Rapids EDA and the Blandin Foundation on a community BrandPrint initiative. The partners agree that having a brand is about creating a distinct personality and utilizing the brand to improve the community’s sustainability and desirability. Itasca Community Readiness: Local and regional planning initiatives are taking place in Itasca County and the Iron Range to help community readiness for the major projects on the horizon. IEDC is working with the Itasca Housing Coalition, ARDC, area communities and other groups to help prepare for the potential influx of people the major projects would attract. The Itasca Community Readiness initiative is designed to help communities work through the stages of construction to full operation of the proposed projects.
Click here to download a printer friendly version of the 2008 IEDC Work Plan.
|
