Framing up new housing projects across the region

Supporting new housing development within the region has become one of the Minnesota Department of Iron Range Resources and Rehabilitation’s priorities.

Today, the state of Minnesota economic development agency crosses a new threshold in helping stimulate new housing development.

Ten housing development projects and programs from Grand Rapids to Grand Marais are up for recommendation by the eight-member board at an Iron Range Resources and Rehabilitation Advisory Board meeting this morning in St. Paul.

A total of more than $3.5 million in agency grants would support development of 225 new housing units, 26 rehabilitated units and create 67 new housing lots across the agency’s 13,000 square-mile service area.

“Housing surveys, regional leaders, communities and businesses in the agency’s service area have indicated that there is a lack of housing and variety available for existing and new residents,” Ida Rukavina, Iron Range Resources and Rehabilitation commissioner said. “I am thrilled at the response by local communities who brought forth a variety of housing projects that involve both the creation of new units and the rehabilitation of existing units.”

Last year, the agency created a $5 million housing grant program to help boost housing development across the region.

If all of Tuesday’s proposed projects are built, the total construction investment of the projects would be about $53.6 million, according to Iron Range Resources and Rehabilitation.

“Because housing is connected to the economic health of a region, these new projects can have a significant impact to local businesses and their ability to attract and retain workers,” Rukavina said. “The projects being reviewed at the upcoming board meeting clearly show that all types of housing are needed from single family homes, apartments, rental units, workforce housing, market rate, and senior housing.”

Housing grants are:

- A $280,000 grant to the city of Bovey toward a $1.7 million re-purpose of the former Connor-Jasper Middle School into a new 20-unit market rate apartment building.

- A $500,000 grant to the city of Chisholm in support of a $1.7 million project to create infrastructure for up to 25 new single-family market rate housing lots.

- An $850,000 grant to the city of Ely toward an $8.8 million construction of a new three-story, 37-unit market rate workforce apartment building.

- A $600,000 grant to the city of Grand Rapids for the $28.9 million construction of a four-story, 132-unit market rate workforce apartment building.

- A $225,000 grant to the Cook County Housing and Redevelopment Authority toward a $646,250 development of 20, two-story workforce town homes in Grand Marais.

- A $100,000 grant to the Cook County Housing and Redevelopment Authority for a $1.2 million new housing development of up to 22 homes in Tofte.

- A $630,000 grant to the Cook County Housing and Redevelopment Authority toward an $8.1 million construction of a new three-story, 36-unit workforce apartment building.

- A $130,000 grant to St. Louis County Habitat for Humanity for $962,500 in construction of five new homes and rehabilitating one home. Two new homes would be built in both Buhl and Virginia and one in Hibbing. A home in Tower would be rehabilitated.

- A $250,000 grant to the Arrowhead Economic Opportunity Agency to help pilot a $1.2 million housing rehabilitation program that would rehabilitate tax forfeit properties which may otherwise be demolished.

- A $10,250 grant to the city of Aurora to support a $40,500 Neighborhood Revitalization Program.

Five existing Iron Range businesses along with two industrial parks under development are also up for support.

More than $1.3 million in loans are also recommended to help five area businesses purchase new equipment and upgrade facilities.

- Advanced Machine Guarding Solutions in Hibbing would receive a $437,500 loan to support a $1.25 million project to acquire an automated powder coating system and robotic welding equipment. Twelve to 20 new jobs could be created over a two-year period.

- Ellefson Off Highway Inc. in Iron, would receive a $209,000 loan to help with a $418,000 purchase of a 2006 forklift to assist with operations. Three new jobs are planned.

- Hibbing Fabricators in Hibbing would buy a new piece of Punch LASER cutting equipment with a $425,000 loan toward the $850,000 purchase. No new jobs are as yet identified

- Pro Blast Technology in Keewatin would receive a $175,000 loan for a $350,000 project to conduct roof repairs and buy a 2024 forklift.

- Radotich Inc. in Hibbing would receive a $100,000 loan to assist with the $287,500 purchase of a 2008, 165-ton all terrain crane. Zero new jobs are planned.

Several development and community infrastructure, broadband, and trails projects are also on today’s agenda.

- The city of Aurora would receive a $500,000 grant toward phase two development of an East Range water system.

- The city of Chisholm would receive a $1 million grant for upgrades at the Chet Tomassoni Arena and Curling Club.

- Itasca County would receive a $100,000 grant for construction of a new $272,565 dump station at Bass Lake Park and Campground.

- The city of Tower would receive a $370,345 grant toward $806,195 in water, sewer utilities, storm water, road reconstruction and airport technology upgrades.

- The city of Hibbing would receive a $250,000 grant to support the Hibbing Economic Development Authority revolving loan fund.

- The city of Mountain Iron would receive a $400,000 grant for $1.2 million in new road, utility extensions and electric upgrades on Enterprise Drive Northeast.

- Cook County and the Grand Marais Joint Economic Development Authority would receive a $400,000 grant toward development of an $18.1 million mixed-use commercial space.

- Cook County and the Grand Marais Joint Economic Development Authority would receive a $400,000 grant for infrastructure and site work for a $5.5 million mixed-used commercial space.

- The city of Eveleth would receive a $450,000 grant to help develop the new Jack Pine Industrial Park on 143 acres along both sides of the Progress Parkway extension and south of the new Rock Ridge Laurentian Elementary School.

- The city of Hibbing would receive a $300,000 grant to help develop a 9.13 industrial park parcel on the north side of East 13th Street. The city has already invested $70,000 in the site.

Other projects presented to the board are:

- A $261,184 grant to the Bois Forte Band of Chippewa for a $522,369 broadband infrastructure project to serve 442 homes within reservation boundaries.

- An $82,000 grant to the city of Mountain Iron for a $164,000 development of an outdoor learning classroom adjacent to Merritt Elementary School.

- A $25,000 grant to the Northeast Regional ATV Trail Joint Powers Board for master planning, route planing, environmental permitting and construction cost analysis to connect the city of Two Harbors to existing ATV and snowmobile trails.

- A $50,000 grant to PathBlazers Snowmobile Club toward a $303,000 purchase of a 2024 Pisten Bully snowmobile trail groomer.

Iron Range Resources and Rehabilitation offers low-interest loans to businesses and grants to communities, non-profits and tribal governments within its service area.

Agency programs and operations are funded by a portion of the Taconite Production Tax paid by Iron Range mining companies.