TOWER— Prospects for the opening of a new home manufacturing plant here appear to have hit troubled waters, and that could mean the city of Aurora ultimately lands the Norway-based builder.
The company, Tinde-Hytter and its U.S. affiliate Tinde USA, LLC., are in “committed” talks with development officials in Aurora to locate the manufacturing operation in a new 32,000 sq.-ft. building currently under construction in the new Aurora industrial park. That’s according to Orlyn Kringstad, a principal in Tinde USA.
The Department of Iron Range Resources and Rehabilitation is funding construction of the new facility on “spec” in the hopes of attracting a manufacturer to the community, which has been hit hard by the lingering effects of the closure of LTV Mining, Mesabi Nugget, and other higher-paying employers. The Tower Economic Development Authority has been in periodic discussions with the IRRR for the past 18 months about bringing the Tinde manufacturing plant to Tower but have been waiting for the completion of a pro forma from Tinde USA in order to advance that proposal. Both TEDA and Tinde USA have identified a possible location for a start-up manufacturing operation that could house as many as three production lines.
The facility in Aurora currently under construction would be twice the size of the facility in Tower and would have the potential to house twice as many production lines. At full capacity, the facility could produce more than 200 houses per year.
Tinde USA principal Orlyn Kringstad said he has found interest in the Tinde lineup of housing options from across the region. He’s been meeting with officials in Aurora, Biwabik, in Floodwood, and in the Brainerd-Baxter area who are considering the Tinde units, which range from about 700-1,400 square feet, for housing projects in those communities.
Aurora Mayor Doug Gregor told the Timberjay this week that the IRRR provided $15 million for the industrial park project, including a $9 million grant for site development and a $6 million non-recourse loan for the building project, which is expected to be completed in August. The new industrial park, which will be owned by the city’s economic development authority, is located at Aurora’s west entrance, near the intersection of Hwy. 135 and County Rd. 100.
Gregor said he first met Kringstad when Kringstad served as mayor of Tower and has stayed in regular touch with him ever since. “I knew about his business dealings in Norway and I attended the ribbon-cutting [for the MarJo development] in Tower,” he said.
Gregor said Kringstad was aware of the new industrial building going up in Aurora but said he had been focused on locating Tinde in Tower.
That changed recently over a disagreement between some members of the TEDA board and Kringstad over the direction of development at the harbor. Kringstad had been continuing to work on a hotel plan that the TEDA board greenlit in 2023, but the TEDA board has since entertained a new proposal for a mix of several twinhomes and about 6,000 sq. ft. of commercial space with 12-14 condo apartments located above.
Kringstad and TEDA never reached the point of a development agreement so the two parties had no binding commitment to work together, although that had been the informal understanding until recently.
Kringstad had asked to speak at one point during TEDA’s Jan. 9 meeting, but when board president Joe Morin told him no, Kringstad abruptly left the meeting. He opened discussions with Aurora on the Tinde plant within days after that. In a Jan. 29 email, Kringstad cited his perception that the city has not provided sufficient support for his efforts.
The city, however, has offered considerable support for his efforts to bring the Tinde-Hytter plant to Tower, as well as advance the Tinde housing development along the riverfront. The housing development is being advanced by the owners of Your Boat Club and TEDA has lent funding and sold 5.02 acres at a steep discount to the owners as part of a development agreement to advance their project. In addition, the city is in the application process for Iron Range Resources and Rehabilitation funding to provide sewer and water infrastructure for the initial six units being built near the Marjo Motel. Kringstad has been serving as project manager of that development but has no ownership stake in the project. Kringstad is an owner and partner of Tinde USA, LLC, which proposes to open the manufacturing operation in conjunction with Tinde-Hytter, headquartered in Vinstra, Norway.
TEDA president Joe Morin questioned the suggestion that the city has shown insufficient support for bringing the Tinde plant to Tower. “I’m personally unaware of a single instance where the city, TEDA, or anyone even vaguely knowledgeable or involved with the Tinde production plant concept has not been in support of establishing such a facility in Tower,” said Morin. “It seems like it would be a good fit for Tower, but only Tinde can conclude what arrangement might best help ensure its sustainable success.”
While Kringstad is in serious talks with Aurora, Gregor said there is no written agreement in place at this point and that any arrangement for Tinde USA to lease the space in the new building would be a matter of negotiations between Kringstad, his partners, and the IRRR, which is financing the industrial park construction. “Even though, as the EDA, we are technically the owners, the IRRR is spearheading the process,” he said.