EVELETH— The Department of Iron Range Resources and Rehabilitation offered up a holiday bag full of gifts to more than two dozen area cities, economic development authorities, and mining companies at their Dec. 19 board meeting.
Locally, the cities of Cook and Ely, and the township of Embarrass, were among the communities to receive community infrastructure grants during this funding cycle. The developers of Ely’s State Theater also received a $300,000 bridge loan to cover expenses as they work to complete an application for historic preservation tax credits.
The $3.633 million handed out to area communities for local infrastructure is expected to help leverage about $41.5 million in total investment from local, state, federal, and private sources.
The funding approved included $63,400 for the city of Cook to assist in paying for the construction of an ADA compliant ramp, sidewalks, bathrooms, and parking lot upgrades for the city’s new community center. The IRRR funds will be supplemented by $86,081 in CDBG funding as well as a $50,000 investment by the city.
The board also approved $200,000 to the city of Ely for water, and sanitary and storm sewer upgrades along James Street. The work will be completed in conjunction with the planned reconstruction of the road by St. Louis County in 2020. The IRRR funds will comprise just a small portion of the $3.794 million reconstruction project. The city will contribute $944,500, CDBG will add $250,000, and St. Louis County will contribute $2.4 million.
Ely will also receive a $190,000 grant for the second phase of a mountain biking project located at Hidden Valley Ski Area. The project includes construction of approximately nine miles of single track trail for summer and winter riding. The second phase of the project is projected to cost $380,601, with additional funding coming from the federal recreational trail program.
Among other area grants, Embarrass Township will receive $45,000 toward a $92,500 upgrade to a wayside rest bathroom facility at the intersection of Hwy. 135 and County Rd. 21.
In addition, Crane Lake Township will receive a $100,000 grant to go towards completion of a 5.6-mile wooded trail from Crane Lake to the Vermilion Falls picnic area. Additional federal and state funds will contribute to the $700,000 project.
The IRRR also approved a $450,000 grant to fund design and construction of additional miles of the Mesabi Trail. The funding will be supplemented with $700,000 from the Legislative Citizens Commission on Minnesota Resources, or LCCMR, and $750,000 from the state’s Legacy Fund. The additional funding is dedicated for completion of the Palo Tia Rd.segment in Embarrass and to connect Lake Vermilion State Park to the Eagles Nest Town Hall.
State Theater
Meanwhile, the IRRR okayed a $300,000 bridge loan to Ely’s State Theater but not without a few questions. Sen. Tom Bakk and others questioned whether the construction work undertaken on the project met prevailing wage rates, a requirement that typically comes with IRRR-funded projects. Tanner Ott, representing the developers, told board members that prevailing wages were not always paid, although some portions of the project would have met that requirement. IRRR Commissioner Mark Phillips said the agency had been approached by the city of Ely for the assistance and that he viewed it as community development given that it would be providing an entertainment venue for the city.
Bakk said he would be more concerned if the funding entailed a grant rather than a bridge loan, but he suggested that the agency send a letter to area communities recommending that they not submit requests for funding for projects after they are built, as was the case with the State Theater, unless they’ve already ensured that the project included prevailing wages.
Sen. David Tomassoni asked about the prospects for repayment. Ott said he’s been assured by consultants he’s worked with that the project will qualify for historic preservation tax credits, which will allow his company to repay the bridge loan. “Do you have that in writing?” asked Tomassoni. Ott said the State Historical Preservation Office doesn’t guarantee the credits until it has reviewed the entire application, but he’s confident the credits will be authorized.