International Falls Economic Development Authority has been awarded a $657,400 grant for construction of the first phase of a multi-modal facility adjacent to the largest rail port in North America.
Nexus Distribution, which provides repackaging services that enable companies to meet United States regulatory requirements, is planning a warehouse and processing facility on 80-85 acres off County Highway 155 east of the city. Boise Inc. is expected to sell the property to the EDA after an appraisal is completed.
About 50 jobs are expected to be created in five years. Total project cost is estimated at $957,400.
The grant was among 14 projects in Minnesota approved for $25.5 million in funding under the Transportation Economic Development Program.
Communities that apply for TED funding must document job growth or retention and the ability to complete the projects, including showing they have additional sources of funding and can meet environmental requirements and other planning standards.
City officials Monday said they were excited by the grant, which Falls Mayor Shawn Mason said will help create a domino effect of economic development.
Mason credited several people for making the grant a reality, including Gov. Mark Dayton, Department of Employment and Economic Development Commissioner Mark Phillips, Minnesota Department of Transportation Commissioner Tom Sorel, Rep. Tom Anzelc, Sen. Tom Saxhaug and the vision of the city council. She also noted that she tapped the transportation expertise of former Congressman Jim Oberstar in seeking the grant.
Mason explained that grant will help the city capitalize on its location in the center of North America as rail containers carry products manufactured in Asia to the United States via Vancouver, British Columbia, and on to Chicago.
She said it will help make manufacturers more efficient in meeting U.S. codes in their labeling, packaging and warehousing activities. Much of that activity is now done in Chicago, where it is more costly and faces transportation congestion, she said.
A private developer, who has not been named publicly, will work with the city to establish the first warehouse project at the site, she said. The city then plans to sell the warehouse to the developer for a specific project.
A July 2 celebration and groundbreaking is being planned, she added.
Mason said Monday that the developer had first approached Koochiching Economic Development Authority Director Paul Nevanen about the project taking place in the foreign trade zone jointly owned by the city and Koochiching County.
Because the FTZ is not yet ready for development, she said Nevanen referenced the County Highway 155 property.
“This is a team effort,” she said, adding that city Administrator Rod Otterness wrote the grant application and Attorney Steve Shermoen assisted. “This is an example of how we can work together.”
Nevanen called the grant and warehouse plan “terribly exciting. This is a significant event in that this is what we’ve been waiting for to trigger additional investment and opportunity there.”
Nevanen said the location is great for the project, noting it’s adjacent to the Minnesota Dakota and Western Railway corridor that will eventually connect to the FTZ, and that the right partners are in place.
“It’s intermodel — the truck and rail is there, it’s zoned properly, it’s big enough and it lends to that kind of activity,” Nevanen said. “This is a huge step forward.”
Lori Lyman, Boise Inc. public affairs manager, said the company supports the city’s efforts and is in the process of gaining an appraisal of the land identified for the project.
“Economic development in Koochiching County is important to the health of the International Falls paper mill,” said Lyman. “A vital community helps attract and retain the qualified employees necessary to improve our competitive performance.”
Meanwhile, Falls councilors and EDA members credited Mason for her effort to obtain the grant.
“Economic development takes aggressiveness, heart and soul, and get mad if you want, but this wouldn’t have happened without you,” said Tim “Chopper” McBride, EDA president and councilor, to Mason.
McBride said the idea of a warehouse project was talked about five years ago by city officials.
“This is a dream that has finally come true,” he said, adding that the earlier idea fell through because of “lingering and posturing. Economic development needs aggressiveness and proactive thinking.”
Councilor Cynthia Jaksa also credited Mason’s networking abilities, with McBride adding “who else would just call up the governor?”
Shermoen credited the leadership of the council in obtaining the grant.
“The community is moving in the right direction,” he said. “I commend you all.”
Meanwhile, Nevanen noted that the grant process was competitive. Funding was also awarded for projects in Windom, Mille Lacs County, Rice County, Mankato, Delano, Ramsey County, Eden Prairie, Maplewood, St. Louis Park, Rochester, Benton County, Jackson and Minnetonka.
TED, now in its second year, is part of a joint effort by DEED and MnDOT to improve transportation infrastructure, create jobs and encourage economic development in the state.
"TED is an innovative program that recognizes improved highways are a catalyst for economic development and jobs," said Phillips. "Communities around the state are seeing opportunities for growth thanks to this collaboration between DEED and MnDOT."
"At MnDOT, we recognize very well the direct link between transportation and the viability of local and regional economies," said Sorel. "These projects will allow area businesses to grow and prosper, and that benefits not just the local economy, but all Minnesotans."
MnDOT provided $20 million for this year's grants, with DEED covering the remaining funding, primarily through bonding approved by the 2012 Legislature.
