REGIONAL— The Iron Range Resources and Rehabilitation Board (IRRR), on Tuesday, awarded just over $7.1 million in grants and other funding affecting communities across the Taconite Tax Relief Area. Funded projects included $461,900 for outdoor recreation in Tower, which was the largest single line item under the trails portion of the grants approved this week.
The city of Ely will receive $130,755 for planning and design of a new section of ATV trail and $150,000 for street improvements. Other northern St. Louis County communities awarded funding this week included Crane Lake, Breitung Township, and the city of Babbitt, while the Ash Lake area will benefit from broadband funds awarded to Paul Bunyan Communications for a fiber project in that community, located north of Orr.
IRRR officials stressed that it is using its funds, in part, to help communities leverage other sources of state, federal, and local dollars. In the end, the community project funding approved Tuesday is expected to leverage a total of $83 million in total investment.
At the same time, the IRRR board approved a 2023 fiscal year spending plan that totals $52 million and includes continued financial support dedicated to business development as well as public works infrastructure and broadband. The budget focuses on leveraging capital, improving the quality of life, and retaining and creating jobs.
Specifically, the 2023 budget includes $21.3 million for public works infrastructure and business and industry, which amounts to 40 percent of the budget. The agency is poised to fill funding gaps for one-time federal dollars that are currently available.
The budget also is expected to advance economic development with $22.5 million in resources flowing through the community and workforce development programs and supporting the Giants Ridge recreation area.
The 2023 IRRR budget puts more funding toward several existing grant programs, including the residential redevelopment program, which will see funding increase from $275,000 last year to $750,000 this year. Downtown building rehabilitation and the business energy retrofit programs will see an additional $250,000 apiece this year. Meanwhile, both the EDA partnership and Downtown Streetscapes programs were zeroed out. The agency is also eliminating funding for its film incentive program as well as its partnership with the Natural Resources Research Institute.
Community projects
Specific local community development projects approved on Tuesday, include:
•  $461,900 to help the city of Tower leverage $600,000 in funding from the Legislative-Citizens Commission on Minnesota Resources, or LCCMR, for construction of a trail connection and trailhead near the city’s harbor just north of the Hwy. 169 bridge. As part of the project, the city will extend its Main St. to the East Two River, providing access and parking for the trailhead and planned kayak and canoe launch site. The project will include construction of a restroom and other amenities near the trailhead as well as development of a site plan for the harbor to support future construction of connecting trails in the area.
•  $130,755 for the city of Ely to plan, design, and construct a portion of the Bear Run ATV trail, which will connect the Mud Creek and Wolf Lake roads to the Taconite trail just west of Ely. The trail is expected to provide a boost to resorts in the area, as interest in ATV riding continues to grow. The project will be funded by an additional $150,000 from the state’s dedicated ATV account.
• $250,000 to Crane Lake Township for reconstruction of Bayside Drive from Handberg Road to the existing DNR boat access point on Crane Lake. The township will be designating Bayside Drive as a township road and the planned reconstruction will be to county and township standards. The improved road standards will improve safety ahead the planned construction of a $2.7 million Voyageurs National Park visitors center next to the boat landing.
• $200,000 to Breitung Township as part of a $1.01 million project to replace water and sewer infrastructure for several areas, including First Ave., Stuntz Bay Rd., Poplar St., Main Street, Church St., and Spring Rd. The DNR, CDBG, and the township will contribute the remaining funds to the project.
• $250,000 to the city of Babbitt for phase II construction of a new wastewater treatment plant. The facility, portions of which are nearly 70 years old, has reached the end of its useful life, and it is not economically or technologically viable to renovate. The MPCA indicated that a new low-level mercury limit will be added to the next Babbitt plant operation permit. As such, the existing wastewater treatment facility will need to be replaced to meet the new permit limits. The project also includes lining or replacement of old sewer collection system piping. The IRRR funding is just a small portion of the $10.35 million project. The city has also received other state and federal grants as well as a $3.7 million loan from the state’s Public Facilities Authority.
• $150,000 to the city of Ely for utility work and reconstruction of Pattison Street and E 9th and 10th Avenues as well as a road and utility extension for a new roadway on Sibley Court Dr. The city is contributing $1.154 million toward the project.
• $165,000 to the Lake Vermilion Fire Brigade to construct a helipad and a new docking system for the brigade’s emergency response. The brigade is contributing $40,000 in donated funds to the $205,000 project.
•  $101,000 to Paul Bunyan Communications to serve up to 75 currently unserved residences in the Ash Lake area with broadband. St. Louis County is providing $101,250 toward the project, while Paul Bunyan is contributing $67,750.
While the projects ultimately received unanimous support from the IRRR board, a $1.5 million line item for development-related infrastructure for a new 132-room hotel adjacent to the Iron Trail Motors Event Center in Virginia drew questions from Sen. Tom Bakk. “Are we subsidizing the construction of a hotel that will compete with existing ones?” he asked.
IRRR’s Chris Ismil responded, noting that the funding will only go toward public infrastructure to support the project. “There are no bricks and mortar involved,” he said. The hotel project is expected to bring an estimated $30.67 million investment to Virginia.