Board to provide $25,000 for projects

Ed Oerichbauer, chairman of the association, provided the KEDA Board with a list of projects the organization has funded in 2011. Among those grants are $5,000 to Icebox Radio Theater for website design and advertising; $2,500 for the purchase of computers and software for the Littlefork Medical Center; and $4,972 to purchase a new dock for Ranier.

The discussion on funding to the KCDA brought to light that International Falls provided funding for 2011 to the KEDA, while the county provided funding directly to the association. Some members wondered whether the enabling legislation that created the KEDA called for equal funding from the city and county. KEDA officials said they would research the issue.

Also Monday, Doug Grindall, county engineer, updated the board on progress of blasting and crushing of rock at the foreign trade zone.

“Bids at the foreign trade zone came in too high because blasting areas are too shallow,” he said earlier of bid proposals.

Grindall explained that alternatives are being explored and a time frame is being considered.

“We are talking about a substantial amount of rock,” he said. “I did contact a couple of local contractors for their input.”

Grindall stressed that he believes it’s important that bidders are interested in the FTZ project before bids are again sought.

“We’ll continue to work on it, we just want to make sure we get some bidders,” he said.

Debbie Bowman of Bowman Construction said she was discouraged by investing in the FTZ.

“If you look at all the websites regarding foreign trade zones, there are very few that are successful,” she said. “A huge percentage of them are vacant.”

KEDA Board Director Paul Nevanen responded that activity within FTZs is at its highest since 2004.

Bowman also questioned how the group planned to use rock that would be crushed in the FTZ. She said she believed that the rock was to be used only within the FTZ and not to be sold to any outside entities.

“I didn’t think rock was supposed to be available to be in direct competition with other providers in the community,” she said. “Offering rock to outside contractors robs all of us.”

“We don’t offer this stuff to outside developers, we offer it to everyone,” said board member Wade Pavleck. “We can’t afford to make that huge investment without getting our costs recuperated. It’s open to all contractors and hopefully that gives local contractors an advantage I hope they do get.”

During the public comment period, Bowman also expressed disappointment in how she was treated by KEDA staff when she discussed her business, Northern Minnesota Natural Stone.

“We approached KEDA as a new, young business for some information about possible funding sources and programming that may be available along the way,” she said. “We called that office three times before we got any information.”

Bowman said she felt a follow-up phone call should have been made by someone in the KEDA office.

“We were really kind of discouraged by that,” she noted. “If the follow through for a small business like ours was that poor, what happens to the people outside the community? How many missed opportunities were there?”

Nevanen said he appreciates the feedback and agreed follow-ups are important.

“We did respond, but were trying to get a feel of what you were requesting,” he said. “We take this very seriously.”