IRRR Board Meeting

Added: 2026-05-28

[00:08:46]That means it's time to start.

[00:08:51]>> We will call the today May 27th, 2026 I shift Alarm meeting to order. Um Sarah, would you please take the role?

[00:09:00]>> Senator Champion.

[00:09:03]>> Senator Barnesworth >> here.

[00:09:06]>> Senator Fox >> here.

[00:09:09]Senator Heman >> here.

[00:09:12]>> Representative Davis >> here.

[00:09:16]>> Representative I representative Straa >> present.

[00:09:22]>> Representative Warwas >> here.

[00:09:24]>> So we have six present to excuse.

[00:09:28]>> Thank you. Um approval of the February 12th, 2026 minutes. We have a motion fac by all those in favor of moving the February minutes signify by saying I. I.

[00:09:45]>> Those opposed we have >> Oh, we have to do roll of Yeah. All right. Chair, >> please we take the role.

[00:09:52]>> Senator Champion.

[00:09:54]>> Senator Barford.

[00:09:56]>> Yes.

[00:09:57]>> Senator Ros.

[00:09:58]>> Yes. Senator Nitman.

[00:10:00]>> Yes.

[00:10:02]>> Representative Davis.

[00:10:04]>> I.

[00:10:06]>> Representative.

[00:10:08]>> Yes.

[00:10:10]>> Representative Scraba.

[00:10:12]>> Hi.

[00:10:13]>> Representative War.

[00:10:14]>> I have sixes to excuse.

[00:10:18]>> All right. Thank you, Sarah. And next we will move on to the commissioner's comments.

[00:10:24]>> Thank you, Chair Barnes. Good morning, everybody. Thank you for coming to today's meeting of the ILRV. As we near the close of fiscal year 2026, I want to thank the board, our agency staff, and our regional partners for their continued collaboration and commitment to the region. This year has brought significant challenges to portions of our mining and manufacturing sectors, creating ripple effects for our communities that are already navigating rising costs and ongoing need to maintain critical infrastructure and essential services. These realities reinforce just how important the work of this board remains for supporting communities, strengthening the regional economy, and creating new opportunities across the techn.

[00:11:10]Before we move on, I would again like to acknowledge the ongoing workforce impacts being felt across the region. In April, Minnesota Twist Drill and Chisum and Triumph Twist Drill and Pibin permanently closed affecting approximately 75 employees. Those closures came as mining employees across the region continue navigating uncertainty. While some workers have found new employment, others remain out of work, have had to relocate or take jobs farther away from home. Adding to those challenges, the unemployment benefits for most laid-off miners are expected to run out by mid June, creating additional hardship for workers and their families and all of our communities. In light of those continued impacts, I want to recognize the work of this board, the Minnesota legislature, Senate President Bobby Joe Champion, who also serves on our board. Um, who all of you working together helped secure unemployment benefit extensions for mining workers, including those additional 45ide employees that were laid off earlier this year. Those efforts have provided important support and stability during an especially difficult time. I think that I can speak for all of us when I say we appreciate those efforts. So, thank you very much. Um, now I would like to share a personnel update with the board. Uh, we are pleased to announce that Kevin Steel recently joined the team as a community development representative. Kevin.

[00:12:35]Uh Kevin will work closely with our communities and businesses to support development opportunities, administer agency grant programs, and help advance community economic and workforce development initiatives across the region. Kevin, welcome to the team. I also want to take a quick moment to recognize someone in attendance today, Dr. Michael Ry, as he prepares for his retirement from Minnesota North College.

[00:13:02]Dr. Vich has been a great partner to our agency. He's played a very important role in strengthening higher education, workforce development, and industry partnerships across northeastern Minnesota. We greatly appreciate his leadership, collaboration, and long-standing commitment to the region.

[00:13:18]Um, we also in addition to that congratulate Dr. Jesseline Sabin as she prepares to step into that leadership role and continue the strong partnership and important work that Dr. Ry helped build over the years. So, Dr. Right.

[00:13:32]Thank you for for your [ __ ] >> We wish you all the best in retirement.

[00:13:43]Um so now I'll just turn over today's agenda and the investments that are coming to you um to the board today.

[00:13:49]Today we will be reviewing approximately $10.7 million in proposed investments and projects that will support public infrastructure improvements, housing development, workforce and higher education initiatives, business development and site readiness efforts related to potential future mining operations in the service area.

[00:14:09]Additionally, additionally, we will present the AY's proposed fiscal year 2027 budget with a focus on making thoughtful strategic investments and working collaboratively to maximize resources and position the region for future success. As mining idols persist and uncertainty surrounding future production tax distributions to local governments and the agency in the years ahead, there's an increasing need to make strategic investments that encourage collaboration and maximize limited resources. One example that we will be seeing in today's um meeting is the proposed Iron Range schools and community development account project in Chisum. Rather than pursuing separate transportation facility projects, local partners came together to develop a shared solution that addresses the needs of both the school district and the city of Prism, creating efficiencies and a more coordinated long-term solution.

[00:15:04]We've seen similar success through other regional partnerships throughout the agency service area. As the agency continues our work, we will prioritize investments and partnerships that encourage collaboration, support existing businesses while helping recruit new employees, new industries, and emerging sectors that diversify our regional economy, and create and retain jobs. By working together, we will continue building strong, resilient communities and create new opportunities for the next generation. Finally, I would just also like to welcome Dr. Michael Zakula who's here today to provide an update to the current board members um on the Martha Mini Brookina loan forgiveness program. This program was established by my late father, Representative Tom Rrookina. Um he named it in honor of my grandmother Martha Mini Brookavina. And um since this program has been around for a while, we thought it would be beneficial to hear um an update from Dr. Zakula. So thank you for joining us today. And that concludes my comments. Mr. Questions?

[00:16:05]>> Thank you, Commissioner. Are there any questions for the commission? Right.

[00:16:10]Then we will move on to presentation by Dr. Soula.

[00:16:15]Every >> Well, good morning.

[00:16:35]Uh first of all, I just would like to express my sincere appreciation for the opportunity opportunity to be here today and provide you with an updated on the Rookina loan forgiveness program. The triple RB has wisely and generously supported this excellent program since 2009. And I'm hoping to pro provide you with some information pertaining to the genes genesis of this remarkable program along with its present status and what the future looks like. Before I get started, I I'd like to give you a little background on the fact that I'm one of you. Uh although now I I've been relocated down to the cities. I was born and raised in Bu went to Hibbing Junior College and and uh spent some time in dental school at the U and time in the army as a dentist and orthodontic residency in Atlanta, Georgia. But I came back to the Iron Range because my wife and I wanted our grandkids, our our children to grow up with their grandparents in Bule and we were successful in that. So I've been hipping for 35 years. So besides being busy with a practice and family, I was extremely involved in organized dentistry. And in 2002, there was a study club of the dentist on the iron range. And we got together and in that meeting we found two interesting facts.

[00:17:54]One, within the next 10 years, so by 2012, 50% of the dentists on the iron range would be retired. And this would create a very significant impact on the ability for our patients to find someone to take care of them. The second fact was that of the dentists who are practicing on the Iron Range, 100% were natives of the range or their spouse. So our study group became extremely concerned about what's going to happen in these 12 year or 10 years. We could have just buried our head in the sand, but no, we've cared about our home and the people on the range. So we put together a plan to try work with our area legislators to try to find a way to incentivize young dentists to come back to the Iron Range. Well, we kept hitting our head against the wall, hitting our head against the wall till 2000 spring of 2007.

[00:18:45]And at that point, um, one of the legislators mothers went to nursing home, was unable to get anyone to come in and take care of her dental needs.

[00:18:54]and we were able to provide them with a dentist and at that point in time our legislators finally realized that this person is going to affect not only all the constituents on the range but also they and their families. So that hit hitting close to home with the help of uh legislators Rakavina, Thomas, Bach and Phil, a defined plan for loan forgiveness program was put forward and the spec specifics you see are up on the screen. Basically it's a program to help entice young graduate dentists to come up to the Iron Range. They get $30,000 a year, $30,000 a year for four years and they have to remain practicing general dentistry on the Iron Range for at least four day four days a week. This was extremely successful, but we had one last um we we uh had one last hurdle before we could put this into effect and that was who was going to manage it. the ITV ILRB didn't want to. The study club didn't want to because they're concerned about financial uh risk and taxes. And so what ended up happening at that point in time, I was on the on the uh Minnesota Dental Foundation board. And I said, let's just be have the foundation take care of it.

[00:20:20]And that didn't work very well because uh there was extreme concern pertaining to the some of the legislators. Uh your dad in particular is they didn't want to see the money managed by an entity in the cities. So it uh it ended up requiring a personal guarantee. I promised that as long as there were monies from this found this fund down in the cities, I would remain on the foundation board and make certain that they were put to use exactly as as they were intended. So that's what uh transpired. Uh that pushed put the got us over the hurdle. We got the program up and going and in 2009 then the we issued the first three or welcomed the three first first three dentists back to the range and at that point the program was formally named the Marini Rakavina won't be in this program because it was a representative of Ruckina's mom and uh it it everyone felt good about it. Um the the program uh is the requirements are really fairly minimal. Uh we have to be very cautious though because with the debt that the dental students have now we don't want come someone coming here for two or three years or four years taking in money and then leaving. So we've been working very hard to entice and make certain that we get a long-term commitment from these these dentists. So um so next slide Ben please.

[00:21:55]So the crisis that we're we're facing now is that there's a a a great tendency for the graduate dentists in the state to to congregate down around the Twin Cities. And there you can see on this on the slide uh around the Twin Cities. The blue in color those are younger dentists. The green dots are older. And you can see the the older uh dentists are or more in outstate Minnesota.

[00:22:19]The reason that this is a concern is that we need people to come and replace the people up on the range that are retiring. There are a lot of baby boomers that are are retiring and there's a great opportunity, but why aren't those young dentists coming up? A lot of it is due to debt and the instate tuition now for four years for Minnesota resident is $336,000 for four years. If we are out of state uh candidates in dental school, the debt is about 500 or their tuition is 53,000.

[00:22:55]Average debt in the across the country for dental graduates is approximately 300,000. However, most of the students that I've talked to at down at the university, her debt is over 400,000. So this is why the the attract attraction of having some money to be able to go and start your practice where you would like to has helped us bring some of the dentist up here. Next slide please.

[00:23:20]So out of the concern for uh uh communities that that are down to their last dentist. Uh last year I did with the help of the Minnesota Dental Association. I did a survey and found out that within the last three years there are 31 communities within the state of Minnesota that had lost their last dentist. You think, well, so what?

[00:23:41]Well, it's not that you just walk down the street or another block. Most of these the next closest dentist can be anywhere from 10 to 50 miles away from uh besides the 31 that closed there are presently 41 communities within the state that are down to the last dental dental practice. 11 of those are on the hire. So that is why this program is so important to try to make certain because once you lose a practice it's very hard to get someone to come back and open again. Next slide please.

[00:24:14]Now we are blessed with a a first class dental school uh where we get 106 graduates a year. 70 70 of them are are Minnesota residents. The remaining 36 are outstate and uh that's that's our our hope. Those are the people who are going to replenish the dentists that that are retired. But back in 2014, I found out that of the incoming freshman class, there were zero uh freshman students that had were coming from a rural background. Well, you can imagine if if the majority of the class comes from Maple Grove and Nina, uh the chances of them returning to the iron range or rural Minnesota anywhere are almost zero. So I ended up volunteering to get on the on the admissions committee and that's been my mantra to try to encourage any any rural candidate is is in my case a step above the rest but uh so this last year we had 26 out of 106 uh freshmen had rural background which is great but what happens is we don't get all 26 of those graduates coming out when they they finish 50%.

[00:25:26]So, we're down to 13 of those. Um, 50% either go to a to the military or go to a a residency program. So, now we're down to 13. Of the 13, the the percent the chance the likelihood of those uh going to a small town is above 33%. So, we're we're down to about three or four graduate students each year that are available to replenish the stock of all of rural Minnesota.

[00:25:58]Next slide, please.

[00:26:00]The good news is that we've been with this program since 2009. We've been able to um successfully entice 10 dentists to come here. Of those 10, nine are practicing. the only one that isn't practicing had to re retire due to a medical condition. So, our our attention to detail and try to get them to come and make sure that they have a long-term commitment has been very good. Of the 10 dentists that came, nine of them said they would not have come to northern Minnesota had not been for this program.

[00:26:33]And fortunately, we've also been able to we not only helped lure some of our own back, but there's a dentist in Hibbing.

[00:26:40]He came back and he married one of his classmates and they came so and they were from southern Minnesota. So we arrange definitely benefited from that.

[00:26:51]Uh next slide.

[00:26:54]So as board members you're I'm sure your fiduciary responsibility is to know what what do these programs do that you you've supported? Well, uh, the total economic effect of this program, each dentist every year, their practice generates within $5 million in the immediate area.

[00:27:20]And so if we take the 5 million per dentist per year, there are present the dentist, the 10 dentists or nine that are practicing totally have 92 years of service to the iron range. So that's 92* 5 that's $460 million that economic impact that this has helped keep in our area and the initial IT RB investment from 2009 present has been 1 about 1.35 million so you divide that out and it's a return on the investment is 341 to1 pretty darn good return on investment but that's just today most of these dental practices It should go on for at least 30 years. If you factor it all to that, the return on the investment will be close to a,000 to one. Next slide, please.

[00:28:12]So, besides the economic impact, it's also provides we've had two state-of-the-art dental facil facil facilities built. We they employ over a hundred people with uh great jobs, well-paying jobs. But the most important thing this this enhances the quality of life of the people we deliver and dentists in in rural Minnesota are in short supply. So this program has been extremely successful in keeping and attracting more dentists. Next slide please.

[00:28:48]So, I want to thank you for your investment pass and I wish that I hope that uh we can look forward to our uh request being favorably determined. And any questions at all? Anyone would like to ask? Thank you. Uh yes. Um I'm just wondering uh did you get any push back for the work abuse making dentists work four days a week?

[00:29:17]You know, it's we thought that that that was a a real unique request, but just to show you how you have to pay attention to detail, we we had to stipulate 4 days a week because one figured, well, 4 * 8 is 32. They were going to do the 32 hours and 3 days so they could have this as a satellite clinic and work somewhere else. And when there were five years was up, they were going to leave. So that was why. But no, we didn't get any back.

[00:29:46]Thank you.

[00:29:47]>> I I guide canoe trips. I guide a lot of those. I know their culture. It's pretty interesting.

[00:29:52]>> It's just such a stressful profession.

[00:29:54]You have to get on that.

[00:29:58]>> Thank you, Senator Morris.

[00:29:59]>> Yeah. I just want to thank you for the presentation and for the vision and for the hard work that you put in.

[00:30:04]>> Uh I mean, and for your years of service and hibbing, I mean, these fine shoppers right here were work done in your clinic once upon a time. So, I'm grateful for that.

[00:30:13]>> Thank you very much.

[00:30:16]again. Okay.

[00:30:20]>> No hands up.

[00:30:22]>> Okay.

[00:30:23]>> Um, yeah, thank you for that presentation. I I do want to comment.

[00:30:26]So, you'd mentioned they're of the 106 or 102, whatever it was.

[00:30:30]>> 106.

[00:30:31]>> 106. 70 are from Minnesota, 30, some are from outside of Minnesota. And that's something that I've taken uh specific interest in u being on the higher education committee in the Senate because it is my position that and I'm just going to be blunt the taxpayers of Minnesota give the University of Minnesota $1.5 billion dollars every two years. Minnesota kids should get to the front of the line. If there's qualified Minnesota kids that can fill those other 36 positions, it's my position that it should be, you know, 36 kids from greater Minnesota because they're going to come back or from somewhere in Minnesota. I'd be interested. I know we can't I >> I've asked this too deeply.

[00:31:09]>> I've asked the same question on our on our admissions committee and I I fight extremely hard for anyone from if they're if they're equal. I I want them there. But you're the the reason that I I asked how come just 70 why can't we have 72 75 100 and uh to make it to balance the budget the differential between the instate and outstate tuition. They need that much to to make it work financially. That's what I've been told. So, >> and that's what they've told me. But I'm guessing that for that extra 36 students, the tuition they get wouldn't equal one and a half billion dollars that they get from the state of Minnesota. So, um, but that's a discussion for another day and I'd love to have further discussion with you about that.

[00:31:51]>> And the commissioner has my contact information. I'd be glad to answer any questions you have and either text or call or send me an email. I'll be more than happy to to help us. So, >> thank you. Thank you very much. Thanks.

[00:32:04]All right, Mr. Son will be >> You guys can push that table with us.

[00:32:20]>> It's like the boots when you go to barely.

[00:32:27]>> All right, whenever you're ready.

[00:32:28]>> Okay, Mr. Chair, members of the board, our first loan project today is with Borderlakes Brewing LLC in Elie. Uh Borderlakes Brewing plans to open a brewery and tap room in the historic train depot in uh total cost of this project is right around $2 million. Um the agency loan will be for $259,862.

[00:32:51]We will participate with the entrepreneur fund on this. Um, these funds will be used to purchase equipment for craft craft beer production, panning, and distribution. The agency will also also support the project with a $300,000 downtown redevelopment grant. Um, other funders in the project, uh, entrepreneur fund will have the matching 259862.

[00:33:16]Uh, the city of Elely will contribute, uh, $50,000.

[00:33:22]Um, and there will also be a Minnesota Department of Employee and Economic Development grant of $200,000 and owner equity of a million.

[00:33:32]Uh, the project is planned to uh plan new six full-time jobs, 12 part-time, wage up from $16 an hour to $35 an hour.

[00:33:44]Uh, we'll have a shared first position uh blanket on all business assets. So, it's a personal guarantee of Jeff and Mary Sodestrom and Kenneth Rift. And I do have David Miller here from the company. Um, if there are any questions, >> thank you. Are there any questions or comments?

[00:34:03]>> And um I from El so I'm familiar with the project that and I believe we have money in building too. Correct.

[00:34:15]>> Yes. And but this is the business part.

[00:34:18]This is the parts that go in the building. Correct. And uh um just going down the the list. The first one's a loan. The next one's a grant.

[00:34:31]Is the next one a loan? Obviously, >> the 25,000 from the city of >> No, the entrepreneur fund.

[00:34:38]>> That is a loan.

[00:34:39]>> And then the 25 is a >> is is a loan also.

[00:34:42]>> Is a loan. But the other one is a forgivable grant. Yeah. Right. Again, I said it on that board, too. So, so, okay. I I just wanted to get the numbers down on that. Um, and you know, hopefully the community can handle another one. I mean, I'm mildly optimistic about where we're where kind of like what happens in on the board here when the cannabis first came around. Everybody wanted it and it's like, hey, there's a potential limit here at some point, but I think this is tempered. I think we'll be okay. I don't see any issues. Um, I know it's mining money. I just want to make sure that everyone understands this is mining money that's going into this project. And I'm hoping someday soon that we're going to have a lot more with the other mining that you're trying to do on the range. So, I look forward to seeing how this works out, how this project works out.

[00:35:44]Any further comments? Should anybody on the line?

[00:35:52]Okay. Um, so I have a few thoughts. I was hoping that at least one of the principal owners would be here. Um because to take off on Representative Straa's comments, this is mining money and um I just would like to know the position. I mean there's a proposed mine in Elely that this agency has I think taken a supportive position of or at least the board members have. And what I would hate to see is an organization that's taking mining money and then advocating against economic development. So is there anybody in the company that can ask that can answer the position of the owners on mine? Mr. Chair David Miller.

[00:36:45]>> Good morning.

[00:36:47]>> Whenever you're ready.

[00:36:47]>> Yeah, sure. Um I would say we we are agnostic of diversity of the economy in the really our principal focus for purpose of this investment. So we don't we don't have a stake in the mining fight as it relates to this investment at all. Our hope is that this brings the community uh at large larger region um nonprofits and other clientele into our or our operation and um particular we're devoted uh family and community to make this um a successful operation.

[00:37:29]Okay. Well, represent though being co-chair of northeastern Minnesota's for wilderness is that agnostic.

[00:37:39]>> Um I think for purposes of this investment Yeah.

[00:37:43]>> Yes. That's that's >> not what the question was. The question is overall how do we look at our communities? You know, that's that's what I believe you were trying to ask.

[00:37:55]>> I'm not going to put words in your mouth, but >> yeah. I mean our our what I'm very disappointed in is if we provide mining money for this business and then I'm driving down downtown ely and I see an anti-mining sign and that wouldn't look this business that would be very disappointing >> that that I can assure you that will not happen would never happen so the individuals involved in this are deeply committed to the success of VA league however whatever form that takes and it it is not um uh Uh well let me say it differently that that you've mentioned nor eastern motans for wilderness one of the programs of northeastern motans for wilderness is boundary waters of the neck which is a uh economic human development arm devoted exclusively to the success of as a um iron range community and we hope to u migrate that to other iron range communities um and wilderness edge communities and take the successful model we've built um in supporting the community and and spread that as far as we can and live it in elite as well. So our our our goal is to be um well in fact as we think about our interior design, we have mining, logging, the history of the region very much front of front of mind in terms of our um thinking about how to uh pay homage to the the history of the community and um its the reasons for its success uh historically.

[00:39:31]>> Okay. I I'm not questioning that part.

[00:39:34]That's you know I mean everyone wants success. That's why we're I'm going to support you. I mean I want success. I mean the city of Ely has three different you know roles in this and they are trusting that this is what they want.

[00:39:49]The only question I have is like you know you mentioned this Wilderness Connect I believe or something connect.

[00:39:55]>> Yeah. And are they financially do they financially give to businesses?

[00:40:00]>> Yes. And they're not on the list here.

[00:40:02]They didn't give anything to this business.

[00:40:04]>> No. No, not to this business.

[00:40:06]>> Okay. No.

[00:40:07]>> All right.

[00:40:09]Thank you. Um, yeah. So, I think, um, I'm going to take you at your word on this. this is I mean we're an economic development agency and this is creating jobs and um so I will I will say with reservations I will be voting yes and just trusting um that there will not be anti-mining um I mean of course we have free speech in this country and you know as individuals people can but I'll just trust that the business that we're supporting with mining money is not going to be actively opposed to >> yeah if I may you have my solemn that will not be the Thank you.

[00:40:49]>> Rob, sorry. It s I I too I It's free speech. You can do what you want. I mean, that's awesome. But, you know, again, temper the I I I want the community to to flourish. It needs business. It's a $2 million investment. That's a big deal. Um and I and I support that. You know, I just the thing I'm cautious about is uh what is the ultimate goal? You know, I my ultimate goal for northeastern Minnesota is to grow and and not bring money in, but to use the natural resources that we have at our at our bounty. We we have everything we need. We take trees and make paper. We take rocks and make mineral metal. That's what we do. And we do a darn good job of it. I mean, everyone comes up here saying, "Pristine, beautiful." Yeah, they're still mining, you know. So, I think we can keep doing that. I think we need to send that message loud and clear. I We're going to go on a tour this next month. We're going to go to Michigan and look at a copper nickel mine, the Eagle Mine, and see how they do. And And they're not breaking any rules, laws, anything. And they're doing it in a water reset. So, I I look forward to learning more about not not true, but learning more about how mining in northeastern Minnesota can go hand in hand like it has already. So, I I I thank you for uh coming forward and trying to trying to help the community.

[00:42:27]Again, $2 million investment is made.

[00:42:30]It's a big deal. So, thank you, Repa.

[00:42:33]Any other comments?

[00:42:36]All right. Uh Sarah, please take the role.

[00:42:40]>> Senator Tavian, sorry. Is there a motion?

[00:42:44]>> Oh, uh Rep. Scra moves uh what are we?

[00:42:49]Resolution 26-020.

[00:42:51]See, I forget we do these meetings so inly I forget how to do my job. So, so Rep. Stra made the motion. Please take the role.

[00:42:59]>> Senator Champion.

[00:43:01]>> Senator Barnes.

[00:43:03]>> Yes.

[00:43:04]>> Senator Hostile.

[00:43:05]>> Yes. Senator Mason, >> no.

[00:43:11]>> Representative Davis, >> I >> representative.

[00:43:18]>> Representative Stra.

[00:43:19]>> Hi.

[00:43:20]>> Representative War.

[00:43:22]>> Hi.

[00:43:23]>> We have five yeses, one no excused.

[00:43:28]>> Thank you.

[00:43:30]and sound again for resolution 26-01.

[00:43:37]>> Mr. Chair, members of the board, our next uh project consists of two bank participation loans with Park State Bank uh for Moonlight Brewing and Twin Link Properties Incorporated.

[00:43:48]Moonlight Moonlight Brewing Company plans to create a brewing facility and tap room and event venue on an 18 acre property located on the north side of Chidum on McNiban Road. Uh the agency's first loan is for $108,158 to Quinn Lake Properties to make improvements on the property. Uh the second loan is for $46,290 to Moonlight Brewing LLC to purchase equipment for uh craft brewing production, canning, and distribution.

[00:44:19]Uh total project investment on this project is just under $500,000.

[00:44:24]Um other other funders coming in, Park State Bank will have also two loans totaling 234,448.

[00:44:35]Um the project was also awarded a business energy retrofit grant of $25,000 and there's also owner equity and inventory of $61,31.

[00:44:46]Uh, this project is set to create six full-time jobs, 15 part-time. Um, and collateral is a shared first position commercial real estate mortgage and assign leases and rents on the property.

[00:44:59]Um, we also have a blanket UCC on all assets of Moonlight Brewing.

[00:45:05]Um, and personal guarantees guarantors of of um of all the owners.

[00:45:12]Jeff Kakowski, Helen Kowalsski, Richard Jaclyn, uh John Monain, Brian Eckles, and Michael Sulan. Um and I also do have Jeff Jeff Powski here if there are any other questions.

[00:45:28]Thank you. Are there questions or comments from the board?

[00:45:36]>> Um I'm going to if Mr. Pakowski could come forward. I'm going to ask the same question about mining. Mrs. mining money. Um just wondering um your comfort level of taking mining money and your support in general for the mining industry.

[00:45:52]>> We support the mining industry 100%. In fact, one of you Richard is a mining employee. He's currently employed at Hip Tech. He was also at US for a number of years before. So we're very much in support of going mainstream as a facility.

[00:46:09]>> And I suspected that seeing the Pakowskis on here and knowing a number of Kakowskis and Gizm that work at Tachinite plants, I assumed that that was sort of a family business. Yes. Um so again this is economic development.

[00:46:24]This is uh right 15 uh new jobs plan. Again, Chisum is a community that has slowly been shrinking and we'd like to turn that around just like in Hely and u so offer that that sort of an opportunity. So unless there are other comments or questions, um Representative moves resolution 26-021.

[00:46:54]Sarah, please take the role.

[00:46:56]>> Senator Champion.

[00:46:59]>> Senator Barnard.

[00:47:00]>> Yes.

[00:47:01]>> Senator, >> yes.

[00:47:04]>> Senator Manson, >> yes.

[00:47:08]>> Representative Davis, >> I >> representative.

[00:47:15]Representative Scraba.

[00:47:16]>> Hi.

[00:47:17]>> Representative Warw. Hi.

[00:47:20]Yes. Yeah, there's two.

[00:47:23]>> Thank you, Sarah. And we know that representative I wasn't here because nobody reminded me that I'm supposed to use the gall when these things pass. So this is going to come from all of them pass. So with that motion 26-21 passes and Mr. Calio next there is whenever you're ready.

[00:47:59]Mr. Chair, members of the board, today we have a FY 26 Department amendment for the amount of remilling $876,300.

[00:48:12]$500,000 of that would be for commercial redevelopment.

[00:48:17]993,000 would be for housing projects and 2,383,300 would be for public works projects.

[00:48:27]Um, if the budget amendment is approved, uh, Whitney Ridland will expand on the housing projects and Chris is will expand on the public works projects and answer any questions on those.

[00:48:42]Is there any questions on the budget amendment? All right. Are there any questions or comments?

[00:48:53]Um, do we move the the resolution first or wait till after? Would the >> Mr. Chair, we would move the resolution to just move the money. Okay. And then each program would be approved >> separately after.

[00:49:08]>> Okay. All right. So, with that, uh, Senator Hoschild moves resolution 26-022.

[00:49:15]Also, please take the vote.

[00:49:18]>> Senator Champion.

[00:49:21]Senator Barnsworth.

[00:49:22]>> Yes.

[00:49:23]>> Senator Hostra.

[00:49:25]>> Yes.

[00:49:26]>> Senator Heman.

[00:49:27]>> Yes.

[00:49:29]>> Representative Davis.

[00:49:31]>> Hi.

[00:49:32]>> Representative Idol.

[00:49:35]Representative.

[00:49:37]>> Hi.

[00:49:38]>> Representative Warness.

[00:49:40]>> Hi.

[00:49:41]>> That six yeses.

[00:49:43]>> All right. With that our social meeting 26-022 pass.

[00:49:50]next line and I suppose the little last thing in between you go to traffic when I see how fast you're ready.

[00:50:12]>> Mr. Chair, members of the board, we have 18 public works projects for your review and recommendation. Agency investment 2,498,374.

[00:50:24]Total project investment $14,560,56.

[00:50:29]First project for consideration, Arrowhead Township. Brand amount $35,000. Project consists of placing the failing septic system into Towns Hall.

[00:50:38]The existing system is under sized for its current use and at the end of its lifespan creating an urgent public health and infrastructure need. The town hall functions as a multi-purpose community gathering space precinct and local government major club.

[00:50:54]Carpinger Township Grand 23,000. The project consists of town hall improvements including place of all doors and windows with high energy efficient units to improve building performance and lower energy costs and support year-round use. The upgrades will preserve the building and strengthen its role as a community space for public meetings emergency response coordination community programs. City of Cook grant amount $150,000.

[00:51:21]Project consists of wastewater treatment facility improvements and sanitary sewer line replacement. Wastewater treatment facility improvements includes structure rehabilitation, piping, pond, and earthwork improvements. Rip wrap installation along the east dish, the secondary pond, and other work leave to meet capacity and permit requirements.

[00:51:39]Sedenary sewer line placement will occur on several city streets and alleys in the community.

[00:51:45]City of Gilbert Grandal $1 million.

[00:51:48]Project consists of citywide infrastructure improvements including new sanitary sewer mains, manual services, water man replacement valves, hydrant upgrades and necessary utility connections. The project includes full street restoration type utility construction including pavement removal and replacement of concrete curves and gutters, sidewalks, driveways or road control and traffic control site restoration.

[00:52:12]City Grand Rapids $53,000.

[00:52:16]The project consists of infrastructure replacement at Garden Port Chateau. The 24 resident assisted living facility in West Grand Rapids. The facility's three wells are failing and it said the system is outdated. The project will connect the facility municipal sewer and water service which was unavailable at the time they opened in 2006.

[00:52:38]City of L Prairie the animal $25,000 project consists of city hall improvements following flood damage including new flooring doors and paint additional upgrades include 88 component bathrooms and kitchen improvements.

[00:52:52]Next grant city of Nashwalk grant amount 150,000.

[00:52:57]The project consists of city hall improvements including replacement of boiler system and reconstruction of an accessibility ramp. Replacing the aging boiler to reduce the risk of service disruptions particularly during winter months. Reconstruction accessibility ramp will improve access to two entries and enhance usability for residents with mobility challenging seniors and others who rely on barrierfree access. The upgrades will improve critical public infrastructure and help ensure continued operation of the municipal facility which provides space for administrative service, public meetings, elections and public city coordination.

[00:53:35]Citywalk $195,000.

[00:53:38]The project consists of non-historic modifications and rehabilitation of the south elevation to restore the historic fire holes arched entrance. Additional work includes repairing and refinishing original wood floors and metal ceilings, repairing historic doors to sister hatch, and installing security hardware.

[00:53:56]The improvements will support city operations and allow the historic fire hall to serve as a flexible multi-use community space.

[00:54:04]City of Two Harbors Grandma $170,000 project consistent warming replacement relocation will provide direct compliance service to affected properties.

[00:54:16]New water infrastructure in the alleyway will eliminate cross property service conflicts and ensure long-term reliability. The project includes upgrades to 15th Street water main segment to support upcoming detour traffic and plan con and plan construction of a highway 61 corridor city of Virginia random 167,000.

[00:54:39]The project consists of infrastructure of street upgrades to support the expansion of hockey. Improvements along center street south and the adjacent rightway include storm water infrastructure, urban gutter installation and roadway upgrades to support safe access and long-term redevelopment of the site at 706 6th Avenue North. The site experienced structural failing support following the roof collapse in March of 2023 and lacks adequate storm water and roadway infrastructure to support redevelopment on site. The improvements will bring the site standards.

[00:55:16]City of Virginia grant amount $145,000.

[00:55:19]The project consists of infrastructure, site work, and construction of a new building for Bike and Coca-Cola Bottling Company, which is relocated to 9th Avenue North. The company will construct the 11,900 foot commercial industrial distribution facility on a 3.8 acre site. Improvements include transportation access, ADA compliant pedestrian facilities, imp commercial traffic circulation. The project includes installation of new water sewers utilities and a comprehensive sol management system with a wet sedimentation basin designed to support current future development.

[00:55:54]Cook County Grand Mar economic development authority grant amount 125,000. The project consists of remoding and upgrading water and sanitary sewer service across a recently acquired parcel with direct access to East Second Street. Work includes excavation, installation of new water and sewer utility, storm water connections, and site restoration. The improvements will support expansion of SISU Lawyer, a locallyowned and operated wellness business on the shore of the exterior.

[00:56:28]Sister work.

[00:56:30]My finish is they take lessons.

[00:56:35]>> I'm watching plans to construct a new modern bath house facility featuring a large event sauna with lake views, a steam room and walk-in cold lounge, hot and warm rooftop pools, a relaxation lounge, shower and locker amenities, and additional outdoor gathering areas.

[00:56:55]Since opening in 2021, the business has grown into a premier destination for Northa and cold launch experiences. I will not do any commercials for them.

[00:57:07]>> Next grant region volunteer fire department grant amount 78,500. The project consists of firewall improvements and helipac construction.

[00:57:16]Fire improvements include HVAC upgrades, foundation improvements, new flooring and backup generator installation. The new hard surface helipad will provide a safe permanent landing zone for the fire department and property improving coordination with regional air medical providers reducing response times and enhancing emergency response safety since 1960 in various region volunteer fire department has provided fire protection rescue services and emergency medical response across 144 square mile area. The project will improve facility reliability and address safety risks in emergency medical township ran about 41,000. The project consists of town hall improvements 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. The town hall supports government operations, elections, community programs, private events serving residents of Mary.

[00:58:18]Eveith Virginia Airport Authority grant amount of 25,874.

[00:58:23]The project consists of airport infrastructure improvements, including apron and taxi lane repairs to eliminate a recurring low spot that collects water and creates hazardous ice conditions.

[00:58:35]The project also includes fuel system upgrades to modernize payment technology and improve operational security. The public airport averages about 48 operations per day and supports business travel, emergency response, and recreational aviation.

[00:58:51]Greenwood Township grant 47,000.

[00:58:54]The project consists of town hall and fire hall improvements including replacement of town hall windows, HVAC upgrades, and installation of a new water storage tank at the fire hall.

[00:59:04]The new water storage tank will improve fire protection and emergency medical service support, enhancing response efficiency and reducing safety risk for firefighters. The tunnel improvements will strengthen the administration of public services, providing accessible, flexible space for community programs, training, and public meetings.

[00:59:25]Sandy Township grant amount $20,000. The project consists of tunnel improvements including foundation repair, installation of high efficiency HVAC system, and construction of a new 12 by 17 ft office space. The upgrades will extend the life of the facility, improve safety, and support continued public use for elections, government operations, and community events.

[00:59:48]Town of Basset project consists of town hall and firehall improvements. Town Hall upgrades include a new BD accessible entrance, replacement doors, and updated window trim.

[01:00:00]Fire hall improvements include roof upgrades and new paint. The town hall services a central civic facility for government operations, elections, community programs, and private events.

[01:00:09]Fire home improvements will support long-term regional fire protection, rescue services, and emergency medical response.

[01:00:18]Those are the 18 projects, and I entertain any questions at this time.

[01:00:22]>> Great. a course represent.

[01:00:25]>> I I don't have a question. I think maybe more of a comment. Um I I really like seeing the sources of the income from the different sources um like community development block grant fun you know you see those uh program that's phenomenal when you match this with our money and other money. It it's just good to see it working for me. um and and the like the Blandon Foundation, different foundations that put in one of the the new ones that I just saw and I'm mildly happy please to see is the New Range Copper Nick. I mean, they're making investments in these communities and they're still not online, but they're working to get online and and I think that's that's if I do want to call in the historical societies uh uh cliffs foundation. We also made some uh different ones. But I I I I think it's and and also to see the um private the amount of private dollars that are in this mix that like the one in Cook County especially working on that housing up there. Okconam has been phenomenal helping themselves as much as they can um with the help and and I'm I'm glad to see some of the town hall and fire hall investments. That is a direct cut in people's property taxes because it didn't come from here. It's coming from the people that lived there. So this to me is a it's only $75,000 but you know who's paying that 75 if we're not is tax and it takes a while to feel it but it's I I really liked what you guys have done here. Um I'm glad to see Thank you. Thank you. Scram. Any other comments Senator uh child? Yeah, I just wanted to comment all of these are great of course so I'm not trying to you know pick preferences here but I have toured the tower fireall and it's a pretty amazing building. They've got the old jail cells and it's just it's going to be a really cool cool space once it's renovated and I've even heard you know maybe the city would use it more formally and they're proceeding. So I think that would be a really cool facility for that found um particularly given you know where they're currently at is is pretty old. So so yeah opportunity. Yeah. Yeah. So anyway, just appreciate this investment. Thank you.

[01:03:03]Comments for questions.

[01:03:07]Uh so I just want to point out, excuse me, second just to make a correction on project description for town passage.

[01:03:15]This actually had a fire hall improvements. The town hall needs a fire. There's no need to renew. So just add that. was supposed to fire by giving out funds and they used it all for a staging area on the north side of the fire. That's what we put in there.

[01:03:37]It was used as a CH.

[01:03:49]>> Um, >> chair, do we need to strike that language or is it fine from Cassio as is? Um, >> chair, if I may interrupt, um, I believe that what we could do is just provide an updated project description to attach to the um, the resolution after the board meeting. Um, if that's reflected in the motion.

[01:04:11]>> All right. All right. Or uh, we do that since representative IO isn't here to point this out um, as he generally does.

[01:04:21]Uh, I will playing the role of IO today.

[01:04:24]Um the agency is investing two and a half million but it's unleashing 14.5 million dollars in investments. Um and that's a big deal especially when we look at our region we have the layoffs.

[01:04:35]I mean that's putting a lot of people in the trades to work. This is I mean this is creating jobs and keep keeping people working. So I think that's worth pointing out. And without any questions or comments, I think since we have a project in Grand Rapids, we'll have Senator Heindman moves.

[01:04:54]Uh, resolution number 26-023 with the changes that Miss Schultz recommended that I can't remember how to repeat. So, she'll be >> moved.

[01:05:08]>> All right. Uh, Sarah, please take the role. Senator Chavia, >> Senator Fineberg, >> yes.

[01:05:16]>> Senator Host, >> yes.

[01:05:18]>> Senator Heitson, >> yes.

[01:05:22]>> Representative Davis, >> I >> representative.

[01:05:28]>> Representative Scra.

[01:05:29]>> I >> representative West.

[01:05:32]>> Yes. At six chances, we exude. And with that, resolution 26-023 passes.

[01:05:41]Up next, housing projects resolution 26-024.

[01:05:45]Miss Woodlong, whenever you're ready.

[01:05:51]>> Good morning, Chair Farnsworth, and members of the board. Today, before you, we have three housing projects and programs to present. Housing grants assist projects or programs that result in the creation of new housing units or the rehabilitation of existing housing units. The program supports housing solutions that align with local priorities and regional employers needs.

[01:06:14]Today before you are two projects and one program with a total agency investment of $993,000 and total project investment of just under $6 million. These projects will result in the creation of eight new housing units, four rehabilitated housing units, and eight new lots for future housing development.

[01:06:37]The first project is to the is to the city of Tacinise, and the grant amount is $143,000.

[01:06:45]This project consists of sanitary sewer and water line extension to serve eight lots for new single family market rate housing. The development is part of the tuner edition. One house is currently under construction with space for seven additional houses on the remaining lots.

[01:07:01]The second project is to the city of Grand Rapids for $350,000.

[01:07:07]This project consists of demolishing the ISB 318 admin building and constructing utility infrastructure to support eight new single family community land trust homes through the Ataska County HR.

[01:07:22]The third project is the funding of a program. This is to Arrowhead Economic Opportunity Agency in the amount of 500,000. This project is the continuation of the tax forfeit housing rehab program which acquires, rehabilitates, and sells tax forfeit homes to firsttime home buyers or those in need of moderately priced workforce housing. The pilot program began in 2024 as a partnership with St. Louis County.

[01:07:49]The pro this project phase two includes the rehab of three homes in St. Louis County and the expansion of one in in Itasca County. Aeoa will collaborate with the counties and municipalities to identify and acquire the four properties that may otherwise be slated for demolition. By rehabilitating tax forfeit homes, demolition is invoided avoided which preserves landfill capacity and returns abandoned properties to productive taxable status. The program will help revitalize communities and preserve neighborhood character. Proceeds from the home sales will fund future tax forfeit housing acquisition and rehab in the region. Uh I'd be happy to answer any questions and project reps for all three projects are also here today. Thank you, Mlan. Any questions or comments easy? I do have a couple of questions if nobody else does. Um, what is a community land trust?

[01:08:52]>> Uh, the community land trust.

[01:08:57]The community land trust is a program that is used across the state and the country where the land stays in trust and the home is sold to the homeowner.

[01:09:07]Um then when resales occur it it keeps housing more affordably priced for perpetuity. The homeowner takes out a mortgage on the home um and not the land. The land stays in trust. the homeowner receives equity made on that within within a limitation and the home is resold to someone within the the the income guidelines set and I'm sure the H or the city would be willing to expand on that if needed.

[01:09:37]>> No, that makes sense. Um and then the other question I really like the AOA program where they take the tax forfeit properties that probably would be torn down. And these are the ones when I'm in the community that have pigeons flying out of the windows swooping me. And so fixing those up um I think is good.

[01:09:56]Remind me the counties donate these right. They don't or do they do they does AOA purchase them from the counties >> there.

[01:10:04]Chair Frenzworth. Um, after the Tyler case, there's, you know, it was kind of held up and things were worked out. The the the program does pay a fee for the properties to be transferred. Um, but this that's part of the program costs.

[01:10:19]The cities aren't coming up with that.

[01:10:22]Um, the program's paying for that and then they facilitate the transfer of the properties from the county to the city to AUA.

[01:10:31]If there are no other comments or questions, Representative Davis moves resolution 26-024.

[01:10:40]Uh Sarah, please take the role.

[01:10:42]>> Senator Champion, >> I.

[01:10:47]>> Senator Barnsburg, >> yes.

[01:10:49]>> Senator Hostra, >> yes.

[01:10:51]>> Senator Heman, >> yes.

[01:10:55]Representative Davis.

[01:10:57]>> Well, since I moved this, I better vote yes. I >> Representative, Representative >> Hi, >> Representative Warw.

[01:11:09]>> That's seven yeses, one excuse.

[01:11:12]>> Resolution 624 passes.

[01:11:16]Next, regional trails resolution 26-025.

[01:11:21]Miss, you're ready.

[01:11:30]Good morning. Thank you. Uh, Mr. Chair, member, and Commissioner Mavina, I'm presenting the fiscal year 2024 grant scope amendments for regional trails.

[01:11:41]Um, regional trails grants assist with the design, engineering, and construction of various types of trails.

[01:11:47]The original agency investment was $500,000 for this grant. Total project investment was $2,997,430.

[01:12:01]In August of 2023, Iron Range Resources and Rehabilitation approved a $500,000 grant for the project to support completing construction of a 5mile gap segment of Msabi Trail from McKinley to Bwave connecting the Virginia area to the Giants Ridge and Ambaris area.

[01:12:19]The reason for the grand scope change, St. Louis and Lake County's regional railroad authority completed the construction of the five mile gap segment of the Msabi trail from Makuming to Baywab. There is a remaining grant balance of $73,867.

[01:12:36]The railroad authority is seeking approval from ILR to use the remaining grant ballots to complete construction of another project involving an approximate 7m long by 10 ft wide paved bike trail between Walston Road County Road 26 and Tower.

[01:12:53]And just as simple as that. Uh thank you. That completes my presentation. And we have Sarah Coached online from St. Louis and Lake Countyy's Regional Railroad Authority to answer any questions.

[01:13:04]>> Thank you. Any questions or comments?

[01:13:08]Rex SC, >> thank you.

[01:13:11]Trails. Good.

[01:13:15]Take the extra money. Fix the trail.

[01:13:17]Build more trails. Gets people outside.

[01:13:20]Um I sit on LCCMR. I sit on Legacy. I sit on Capital Investments. I see trail throughout the state, all over the state. Every, you know, everything is expensive. and uh but it gets people outside and that to me is worth investing in. So it's a good good project. I personally I you know the maybe not this one but the agency's investment in the trails a million this year.

[01:13:52]>> Yes, it could be. It could be more. I'd be happy but I'm happy with the but thank you. Thank you representatives.

[01:14:00]other comments and I just will add I don't remember the number and I know Jeff Anderson probably has it on the top of his head we were trying to talk I'm not paying attention but the impact of trails in northern Minnesota what's the what's the impact Jeff remember yeah so a lot like this is a big deal for our region a $55 million impact for all the small restaurants and and all that um so yeah this is a good program that that helps drive our economy. So, uh, with no other questions or comments, Representative Sharava moves on resolution 26-025.

[01:14:44]>> Uh, Sarah, please take the role.

[01:14:45]>> Senator Champion, >> I.

[01:14:49]>> Senator Farnburg, >> yes.

[01:14:51]>> Senator, Iman, >> yes.

[01:14:56]Representative Davis >> I >> representative I >> representative >> I >> representative >> seven yeses that resolution 26-025 passes.

[01:15:14]Moving on to the Iron Schools and community development resolution 26-26.

[01:15:19]Miss Ribblon whenever you are ready.

[01:15:28]Armssworth, members of the board, the Iron Range School and Community Development Account provides dispersements to assist school districts with the payment of bonds that were issued for qualified school projects or for any other school dispersement as approved by the commissioner of ITR after consultation with the ILR board.

[01:15:46]ILR is recommending $3,654,760 to the Chisum School District for infrastructure site development and building construction for a new shared city public works facility in school bus garage complex. The background of the project is uh the Chisum School District voters approved a $32 million bond referendum on November 8th, 2022 to combine school district facilities into a single preK through 12 campus. ILr was legislatively directed to support the project with an $8 million contribution and educational facility revenue bond funding. However, the current bus garage is in disrepair and cannot accommodate the current fleet. The buses currently travel to the city's public works garage for fueling. And in exploring bus garage replacement options, the school district received estimates of 2.5 million to demolish and rebuild the garage on the existing site.

[01:16:46]At the same time, the city of Chisum is working to relocate its severely blighted public works facility from a lakeside site to the industrial park near the school campus. the minerals article legislation um legislatively directed ILR to support that project with a $1.2 million grant with a total project cost of 4.4 million. So why we're here today is the entities are collaborating. Uh ILR learned of the city and school projects through separate discussions and ongoing work on both projects and subsequently the city and the school district officials held joint meetings to explore how a shared site could reduce costs and improve efficiencies. The meetings resulted in the following consensus between the city and the district.

[01:17:35]Construction of a new bus garage on the city's public works site would reduce costs for the bus garage from 2.5 to 1.3 million, resulting in a 1.2 million savings as a result of shared infrastructure, site work, mobilization.

[01:17:51]Instead of demolishing the existing school bus garage, the district will preserve the building, use it for storage in the near term at an estimated cost of 550,000.

[01:18:02]This building could have potential long-term use as career and technical education space. Operational cost savings will result from shared snow removal, lawn care, bulk procurement, staffing and equipment, and other shared um shared opportunities. Um, Chisum School Superintendent Lisa Perkovich and interim city administrator of Chisum Deon Seagler are available here for any questions as well as I.

[01:18:34]>> Thank you.

[01:18:36]>> All right. Thank you.

[01:18:38]Any questions or comments from the board? Representative Straa.

[01:18:41]>> You know, when we toured this site, I think didn't Yeah. Uh we were in the city garage and that Beldum thing that that that you know it's kind of old and the employees were in there and they were all I think Gary did you guys put that together that and it was really like reading this report was like hey this is what you know they're collaborating they're actually finding out that it's better to be working together instead of having two separate places. So I'm I'm very first reading this. Thank you for all your good work, keeping everyone's praise.

[01:19:20]Commission accepted. Thank you. Thank you, Representative. Other questions or comments? I do have a question for the super.

[01:19:31]Um, and before I ask my question, I just want to say I like the idea of sharing services, um, you know, with the city saving money. Um, and knowing that we're about to vote on this and this really hinges on this vote, my very serious question is who is your favorite classmate class of >> I believe um, Chair Farnsworth that it may have been the individual who sat in front of me in Mr. Herb's biology class.

[01:20:00]Not too bad.

[01:20:01]>> Yeah, >> I think we're ready to vote.

[01:20:07]>> Was this the employee feeling the boss?

[01:20:10]>> No, just I'm sensing some undermining here.

[01:20:18]>> Bias in the grand.

[01:20:22]>> All right. With that, Representative Warw moves on number 26-0 uh 26.

[01:20:30]Sarah is safe for all.

[01:20:32]>> Senator Champion.

[01:20:34]>> Hi.

[01:20:35]>> Senator, >> an enthusiastic yes.

[01:20:39]>> Senator, >> yes.

[01:20:41]>> Senator Hayson, >> yes.

[01:20:44]>> Representative Davis.

[01:20:46]>> Well, I'd like the chair to know, Chair Farnsworth, I don't agree with quidd proquo, but I will be voting yes.

[01:20:55]>> Representative I representative I Representative War 7.

[01:21:05]>> With that, resolution 26-026 passes. Thank you, Superintendent.

[01:21:11]>> All right, Mr. Resolution 26-027.

[01:21:16]Absolut.

[01:21:18]>> Uh, Chair Barnworth, members of the board, the Iron Range Higher Education Committee advises the commissioner on providing higher education programs to the service area. Programs are funded by 5 cents of the TCM production tax that are placed in the Iron Range higher education account. Upon approval by the Iron Range Higher Ed committee and recommendation of the ITR board, the commissioner approves expenditures from the account.

[01:21:46]The Iron Range Higher Education Committee met on May 15, 2026 to receive updates from Minnesota North College and consider proposed investments. The Iron Range Higher Education Committee approved the recom approved for recommendation the following expenditures from the Iron Range Higher Education account. Project one is to support Iron Range Engineering in the amount of 650,000.

[01:22:11]Iron Range Engineering is a higher education program that in collaboration with private industry allows students to earn a bachelor of science degree in engineering from Minnesota State University Mano right here on the Iron Range. Iron Range Engineering to date has graduated 360 students, 50 this year and students have completed projects for or on behalf of 45 regional businesses.

[01:22:40]This request is support the development and delivery of the Iron Range engineering program 350,000 for fiscal year 26 and 300,000 for fiscal year 27.

[01:22:53]The second project um proposed and recommended by the higher education committee is the engineering program on the Itasa campus in the grant amount of 230,000.

[01:23:07]This grant will continue to redesign and rebuild the Itasa engineering program to align with transfer to Iron Range Engineering 4-year degree. Uh of course, Mike Ryich, president of Minnesota College North, is available for any questions. as am I.

[01:23:23]>> Yep.

[01:23:24]>> Thank you, Mr. Any questions or comments?

[01:23:32]>> Representative Scra, how long is um Michael questions?

[01:23:41]>> 34 days.

[01:23:44]>> Congratulations.

[01:23:47]All right. Um thank you. Yeah, this is I'm uh the program as Senator Thomas H would have said. Oh, yes.

[01:23:58]Um with that, uh Senator Hoschild moves resolution 26-027.

[01:24:06]Senator, please take the vote.

[01:24:07]>> Senator Chen, I senator, >> yes.

[01:24:13]>> Senator Host, >> yes.

[01:24:15]>> Senator Ken, >> yes.

[01:24:19]Representative Davis >> I >> representative I >> representative >> I >> representative >> hi >> and seven yeses >> with that resolution 26-027 passes now for resolution 26-029 you're right Jere Barnes, members of the board, uh, Hillx Mine State Park was legislatively closed in 2024 with the intent to return the site to active mining. The land contains an estimated 5.3 billion in unextracted minerals, including 196 million in school trust minerals. Since deauthorization, the Department of Natural Resources, the Minnesota Office of School Trust Lands, ther R have been decommissioning the site. To date, significant investigative and preservation work has been completed, including an investigation of the historic district, development of a historic mitigation plan, disposition of locally important artifacts, and investigations of environmental and regulated materials. The street a three state agencies have collectively invested more than $800,000 in the effort, combining funds for necessary study consultants and contributing staff time. The project's next phase involves significant outlays to complete an archaeological investigation, conduct further environmental investigations, remediate regulated materials, demolish 39 structures, and perform site cleanup as prescribed by the Minnesota Pollution Control Agency. The remaining work is estimated to cost $4 million. If approved, this $2 million grant will be awarded to the DNR as project lead. The surface stock piles and tailings basin at the former park site are leased and a developer has applied to the DNR and NPCA for permits to conduct scram mining. If the permits are approved, scram mining could begin soon afterwards. Resuming mining at the site would benefit local communities by the collection and distribution of production taxes. It would also benefit K12 public education statewide by depositing state mineral release rental and royalty payments into the permanent school trust fund. With that, I'd be happy to answer any questions the board may have about the project.

[01:26:38]Representative Stra of the remaining work to be estimated at 4 million, where's the other 2 million come? Sure. Uh the exact funding source is to be determined, but the DNR and office of school trust lands are working to shore up that funding.

[01:26:58]And and I do feel I could make a statement about school trust uh comp this year. It'll be on the ballot to use the dollars more.

[01:27:12]Um just this helps. Northern Minnesota feeds that and this is going to be the big boom for response.

[01:27:25]I think yeah, Representative Scraba said it correctly. Representative Morris.

[01:27:30]>> Yeah, just to state that I mean as a as a career minor myself, seeing this opportunity begin to come back online and seeing the um the responsible nature of the the conversations, the plan coming together to make sure that we're able to recommission this space to be able to make it useful and to contribute uh to the school trust account and and to be able to ship more ore out of Minnesota to the country. To me, that's huge. So for me this is one of the most exciting things in today's pack in any other questions or comments.

[01:28:04]Um so I'll just add that we are have been working um and representative I wars have been working with the DNR to identify funds to to continue to do this work to get it ready because it is again we have minor laid off. this is an opportunity to put people back um bring in taxes bring in you know local tax for communities. So this is a good project.

[01:28:26]So uh with that um we'll go back to Senator then moves resolution 26-028.

[01:28:37]Sarah, please take the role.

[01:28:39]>> Senator Champion I.

[01:28:42]>> Senator Fruits.

[01:28:43]>> Yes. Senator House.

[01:28:47]Senator Heman.

[01:28:49]>> Yes.

[01:28:51]>> Representative Davis.

[01:28:53]>> Hi.

[01:28:55]>> Representative Idol.

[01:28:58]>> Representatives.

[01:28:59]>> Hi.

[01:29:01]>> Representative Warworth.

[01:29:02]>> Hi.

[01:29:03]>> That's seven yeses, one excused.

[01:29:07]>> With that resolution 26-028 is passed.

[01:29:12]And now on to resolution 26-029.

[01:29:16]was Mr. Chair moved.

[01:29:41]Today we have the FY27 budget. I'm going to do it at kind of a high level. Not going to read everything word for word. Um the total budget asking is this 76 million 956,874 and I'll be going through this with your budget narrative.

[01:30:05]It should leave you packages.

[01:30:19]You ready?

[01:30:20]>> Yeah.

[01:30:22]>> Okay. Mr. Chair, members of the board, I'm going to start on uh page five of the narrative on projects.

[01:30:31]The projects are similar to last year.

[01:30:34]the $9 million for the development projects, the $9 million for public roads, and a million dollar for the broadband.

[01:30:47]And I'm going to jump to the programs budget in page six.

[01:30:56]>> The total programs budget is 25.125 million. Uh community development it's 12.96 million which includes commercial development 1.5 million residential redevelopment 200,000 development partnerships 2 million business energy retrofit 1.5 million downtown building rehabilitation 500,000 Minnesota dental foundation 260,000 the housing development is 6 million and downtown redevelopment is 1 million.

[01:31:34]Workforce development 700,000 same as last year. Minor reclamation 1.15 million same as last year. Culture and tourism 900,000 last year was 850.

[01:31:50]Minnesota Discovery Center is 2.385 million. Last year was 2.7 million.

[01:31:58]Commissioner program is 500,000 same as last year grant writing assistance 30,000 same as last year regional trails is 1 million same as last year and then there's a line for TEF special projects are 5.5 million and the detail for that is in appendix B of the budget narrative we jump on to page nine just spend the past year money for division three which is Carolton and county this year it's $491,799 half that goes to Carlton County and half goes to Cuchi Ching County then the Coochie Chin County is also split one third to the economic development.

[01:32:54]Next we go on to page 10 of the budget narrative which is the giant street budget.

[01:33:04]Uh the whole investment for 27 in giant street is the expense budget is 20,869,545.

[01:33:14]Then what's left is page 11 which is the operating budget.

[01:33:20]11 million470,537 and that would be the highle FY27 budget.

[01:33:33]Is there any questions on this budget?

[01:33:35]Is there any more detail we want to expanded on?

[01:33:38]>> Any questions or uh Senator House?

[01:33:43]>> Thank you, Mr. Chair, and thanks uh Mr. Calio for the budget overview. I just thought I would highlight a few things.

[01:33:49]I mean, there's a lot in here that I feel like we could highlight, but I think in particular, um, the dispersements that we're doing to our schools, um, the additional funding that we were able to get through the TEDP program, um, is going to just provide substantial relief for our school that are really facing, I think, some unique challenges on Iron Range. Um, so there's the list of of school impacts. Um, we know some of our schools have been moving 4 day school weeks, making difficult staffing decisions. So, just to be able to get this money sort of directly to the schools very quickly, I think will make a big difference. Um, I'd be remiss not to mention that at the legislature this past session, Representative Igo, myself, and then of course the rest of the Iron Range delegation passed a seasonal recreation property tax aid program that's going to also help us get additional money for many of our range schools and Northeast schools that have a disproportionate amount of cabins and second homes. Uh, this is a change from 25 years ago that was made that has disproportionately impacted our schools all across northeastern Minnesota. So, with this um some of that funding coming down the pike, I think, you know, our schools are going to see some pretty good relief that'll help them not have to make so many difficult decisions. Um we also have some projects that we were able to make through two uh TE uh DP. Um, I don't want to list them all that that wouldn't be uh advantageous for our time, but I will um call out a specific initiative that Representative Scraa and I were adamant about, which was the relief for the wildfires that we have seen in the Brimson area and on the Northshore uh most recently a couple of weeks ago. Thank you to the commissioner. Thanks to the agency for really stepping up in this moment. We're going to be able to provide $350,000 for economic relief for the families impacted by the wildfires. Um, I know that it has been a very difficult year for the folks in Brimson as well as just most recently a few weeks ago on the Northshore. So, I believe it was about 35 homes or families impacted in Brimston and about another eight or so on the Northshore. And this program that we're able to do through a partnership with AEOA and EDA in Lake County is going to go a long way in providing relief for for those impacted folks uh in our region. We know, you know, we have great outdoors, we have great environment here in northern Minnesota, but with that comes challenges with flooding that we've seen in Cook, uh, and the wildfires in our region. So, us having each other's back and stepping up in these difficult moments is really important, and I'm just grateful that we were able to work bipartisanly to to advance that project. And I'd also be remiss not to mention that Representative Zelelesnik in the southern half of my district, who's not a board member, was also involved in those conversations with the the agency as well. So just grateful all around for the relief we're able to provide and the other projects on the list that are going to go a long way toward economic development. So thank you Mr. Chair.

[01:36:36]>> Thank you Senator Hasha. Another comments question.

[01:36:44]So I just want to add something repres um budgets are meant to be follow but they also are can be changed you know for whatever what we decide but I think this is a good budget I you know we've spent enough time on looking at it and uh I think it gives the commissioner a pretty good road mapap and where we're going and what we're going to do. So, thank you vote.

[01:37:17]>> Thank you, Representative Scraa. Um, and I just want to add a little bit on to what Senator Hashall said about the assistance for schools. I mean, we know our schools are kind of in a pickle right now. um cutting, you know, I have friends from the Gibbons School District that have been laid off and uh I'm glad to be able to help um you know, maybe allow less layoffs this year and then when there's retirements next year if they have cuts, they don't actually have to lay anybody off, but it'll just be through attrition. And I just want to point out, I know that our schools um try to work together um you know, thinking about um collaboration that they have on athletics or or on um you know, some academics. I I don't know all of the collaboration agreements. I know that Hibbing and Chisum have agreements on uh hockey and I you know, when you're on the spot, you can't remember. Um soccer is a big one. I know Hitman has an agreement with um Northwoods for hockey and these are important and I have heard discussions in the community about well maybe we should just get rid of these collaborative agreements and I think that's the wrong directions. I mean, we're the Iron Range. Um, it's sort of us versus the world, and if we're going to start bickering with each other and not working together, then that's the wrong way to go. And so, I think this sends a signal from the agency that we want to support our schools and we want our schools and we want our communities to support each other and uh hopefully there won't be any more talk about ending these co-op agreements anymore and our schools will realize, hey, we're in this together and um do what's best for the kids. So, I'm proud of this budget. I'm proud of being able to help our schools. And um with that, if there are no other comments or questions, I don't want Senator Champion to feel left out. And so we'll have Senator Champion move resolution 26-029.

[01:39:14]Um Sarah, >> that's my motion.

[01:39:20]>> Senator Chaff I.

[01:39:24]>> Senator Farnsworth.

[01:39:25]>> Yes. Senator Astro.

[01:39:27]>> Hi.

[01:39:28]>> Senator Heington.

[01:39:29]>> Yes.

[01:39:31]>> Representative Davis.

[01:39:33]>> I.

[01:39:34]>> Representative Iel.

[01:39:37]>> Representative Scraa.

[01:39:38]>> Hi.

[01:39:39]>> Representative Warbas.

[01:39:41]>> Hi.

[01:39:42]>> Seven. Yeses. One is six.

[01:39:44]>> With that resolution 26-029 is at. Is there other business to come before the board?

[01:39:55]Oops. Uh before we adjourn, I would like to wish well. Thank you for his retirement. We have you for 30 some more days. It's been a privilege to work with you and I know that uh you're still going to be around and I expect that we're still going to see you in the community being active, but um best wishes in your sort of retirement, whatever that looks like.

[01:40:17]And there's nothing else. Oh, Representative Orals. I do I'm going to I'm going to soap box a little bit and not for the people in this room so much but maybe for the people at home and just just going on the record and talking about the value of what we do here like representative talked about how this is a good budget and provides a good road map today we expanded uh with that amendment a lot of projects there's a lot of really good things happening on the Iron Range uh but these things don't happen once again as a career minor these things don't happen without mining money um you know we have some facilities that are shut down but we have a lot of other uh facilities that are that are operating and providing these funds ongoing and I just think it's really important that uh people start to get in a frame of mind in the region uh this is the well this is the the sweet water of the well everybody comes to the well everybody comes to the RB and says this is how we're going to get our project across the finish line we're trying to do economic development and and backfill and refill and grow this region But the base of this region uh you know for over a century has been sustained by mining and logging and that's that's really where it's at. And I spent a lot of time uh this past year. I got to spend some time traveling. I get spent traveling across the state. I got to go on a foodie tour. I might have brought that up before a bus tour and recognize uh other economic drivers in the state of Minnesota. And I mean I think if you ask people um up here like what is the main economic driver in Minnesota? They would say mining. It's mining you know and it is a massive economic driver but it's it's very small compared to agriculture.

[01:42:01]And I got to see agriculture doing its thing in providing outsized job opportunities for the rest of the state of Minnesota. And we all support agriculture and everybody understands that farming is critical to Minnesota's culture and its history and its and its uh future. And mining is much the same.

[01:42:21]But I think it's really easy for us to uh you know, we don't see what goes on behind closed doors. Most of the public doesn't see what happens in our mine pits and our processing plants. I was on the shop floor of Intac yesterday for for eight hours working my other job and uh and working with the people out there and the public doesn't get to see uh that economic driver the way that we get to see agriculture we drive by. And so I just want to highlight the value of that and this all this goodness the the the sweet water of this well doesn't exist without supporting those companies and supporting the extraction of those minerals responsibly. Um, and I just feel that uh I just want to get it back out there again. We have so much opportunity uh easily another 100 years of iron mining uh other kinds of mining, critical minerals mining that we want to do, but we have to have the political will to do that. And we need the people of Minnesota to understand for their benefit and to the school trust lands question um you know 90% of trust lands monies that we have in those accounts come from mining and of that about 90% come from US steel like vintac where I've worked and in in talking to representative I go um he's made it clear that if we were able to uh get our precious metals mines up and running the school trust lands monies that we'd be taking in from that could easily triple what we can do. Now, imagine going from $65 per child off the interest in that fund to if this U ballot question passes this at all, which I'm excited about. If that happens, we're going to get about $94 per capita every student in Minnesota when we're mining those uh precious metals. uh you know the twin models mine uh new range u talent mine I'm name dropping a few but I don't need to do that I guess but when these things come online and and we're we're uh getting more monies into that school trust fund we could easily triple that and with schools and all the struggles that they're going through to have those unencumbered funds would be massive for the entire state of Minnesota so to everyone in the state to anyone that wants to listen I just want to tell you mining supports all of Minnesota not just what we do here. So just a little reminder there plug for lining. I'm done. Thank you representative Norris. I don't think we can stop that. So maybe a jerk.