IRRRB approves $2.5 million for Cook recovery

COOK- Business owners in Cook devastated by the June flood will be getting much-needed financial relief, as the Iron Range Resources and Rehabilitation Board (IRRRB) approved a $2.5 million financial aid package designed to support recovery efforts in the flood-ravaged business district during a special meeting on Monday.
More than nine inches of rain fell in Cook over 24 hours during the storm, causing the Little Fork River to overflow its banks and inundate the River St. business district and surrounding neighborhoods, causing extensive damage. Situated in a floodplain, Cook is accustomed to minor flooding from the river, but a flood of this magnitude hadn’t occurred in over 50 years. Local, state, and federal officials are exploring ways to mitigate future flooding.
IRRR Commissioner Ida Rukavina pledged to make agency funds available during visits to Cook with Gov. Tim Walz and U.S. Sen. Amy Klobuchar, and the agency engaged in outreach efforts to affected business owners to formulate a plan that would meet their recovery needs.
To create the assistance package, the IRRR tapped a heretofore little-used pot of money called the Highway 1 Corridor Fund, established 18 years ago through the leadership of former Sen. Tom Bakk of Cook to address future economic development in Cook, Tower, and Ely.
Cook Mayor Harold Johnston told the Timberjay on Tuesday that he was extremely grateful for the IRRR’s efforts to help the city.
“I’m very pleased,” he said. “I didn’t realize (the fund) existed. I’m very thankful to Tom Bakk for what he did 18 years ago. That money has been squirreled away and hidden for that period of time – nobody has touched it.”
Funding plan
The IRRR package includes two primary components: Quick Start Economic Recovery Grants and Cook Economic Redevelopment Loans. Both are intended to help businesses get back on their feet and support long-term economic recovery.
To address immediate needs, grants of up to $25,000 per business will be available to those who plan to reopen. The grants can be used to cover expenses for replacing lost inventory, machinery, equipment, furniture, supplies, and building rehabilitation. Grant funds can also be used for architectural and engineering services related to building repair, new construction, demolition, utility bills, and operational expenses.
Initially, the grant maximum was proposed at $15,000, but was increased to $25,000 after multiple IRRRB members raised concerns that the amount was likely too low.
“I’m a little concerned about $15,000,” Sen. Grant Hauschild, DFL-Hermantown, said. “Will it be enough to jump-start the Comet Theater, the cafe, the laundromat, and other places impacted?”
“Fifteen thousand doesn’t go far nowadays,” Sen. Justin Eichorn, R-Grand Rapids, added. “You don’t hear a lot of kumbaya among Democrats and Republicans, but I agree with $25,000. I want to ensure these businesses can get back on their feet and thrive.”
Board member Bobby Champion, DFL-Minneapolis and president of the Minnesota Senate, also advocated for the higher amount.
The $2.2 million available for economic redevelopment loans is the plan’s longer-term solution. The loans, which have the potential for forgiveness if a business remains open for five years, will be available to business owners who were operating in Cook at the time of the flood and plan to rebuild or rehabilitate their properties. Business owners must develop a viable recovery plan, with the loans supplementing state or federal relief programs, and ensure that future construction will be less vulnerable to flooding.
The IRRR funds will be managed by the city of Cook, which will work with an alternative lender to administer and service the loans. Loan repayments will be recaptured by the city for future economic development projects.