Focus is on economic development

The KEDA, established by the Minnesota Legislature in 2000, is made up of two International Falls city council members, two Koochiching County commissioners, two members of the public — one from the Falls and one from outside the Falls, and the two state lawmakers representing the area.

It is chaired by Allen Rasmussen, who said the focus has changed over the years.

However, he said, managing and operating the cold weather testing facility has been a consistent focus and the funds it generates is now intended to make the KEDA self sufficient.

Funding for the KEDA previously was provided by the city and county, which each contributed $50,000, along with money from the Iron Range Resources and Rehabilitation.

The city has this year not provided money and is using its share to fund establishment of a new position, director of marketing and community development.

The county has given its share of money to the Koochiching Community Development Association, chaired by Ed Oerichbauer, which provides money to community projects countywide.

The KEDA has been involved in projects along with the county’s development agency, including the gasification project and the peat project. It also manages a foreign trade zone jointly owned by the city and county.

Economic development takes time, connections and relationships, Rasmussen noted.

He acknowledged that there have been disagreements on how to move forward on projects by KEDA members, but said that’s not unusual statewide in economic development organizations that have a dominant city involved.

“That kind of stress or angst between the (city and county) members is common, but we’re so remote, we can’t afford not to work together. We’ve got to get past the conflicts.”

And, he said, it’s likely that disagreements on the KEDA Board will occur in the future.

“We just need to keep reminding ourselves that we’re in it together,” he said. “And what benefits one most of the time will benefit the other,” he said.

Paul Nevanen, director of KEDA, noted that the KEDA also administrates the Small Business Development Center and Koochco activities. Koochco, a quasi public-private organization, was established in 1986. KEDA, he said, has attempted to consolidate resources to be effective and offer “one-stop shopping” directory of resources.

Koochiching Development Authority

The KDA, chaired by Mike Hanson, is made up of the five county commissioners. It was established in 1987 through action by the Minnesota Legislature and allows for activity involved in business creation and retention not allowed by a county board.

The KDA’s efforts are focused countywide, according to Hanson.

The KEDA does not entertain requests by individuals for economic development assistance, but instead focuses its efforts on larger projects as well as providing funding to the local airport and development grants based on population to every organized municipality in the county.

The KDA has provided funding to assist the Littlefork Ambulance Service, the Island View sewer project and, for several years the Backus Community Center.

Larger projects led by the KDA include development of a horticultural peat harvesting operation west of Big Falls and the Renewable Energy Clean Air Project gasification facility.

Money for the KDA’s activities is provided by Iron Range Resources and Rehabilitation generated by taxes from taconite production in northern Minnesota. Hanson said the KDA budget varies each year because of the variance in taconite production.

Hanson said no personal property tax dollars fund the KDA.

Asked about the future of the KDA, Hanson said he’d like to see discussion “with a select group of folks, city councils and their representatives about what we can do better, how to administrate in a more effective way. And I think we are on the road to be able to do that.”

International Falls Economic Development Authority

The city’s EDA, established nearly four years ago, is made up of the city council and is led by Tim “Chopper” McBride, who serves as president.

The EDA allows the city to do things that councils, townships or counties don’t do or can’t do because of legislative constraints, McBride said.

Through an EDA, the Legislature has allowed “progressive thinking and moving ahead on economic development. It gives us the latitude and ability, not to circumvent or push the envelope, but be progressive in our use of money legally in an economic development facet.”

He said the difficulties in moving forward experienced by the KEDA are not experienced by the EDA.

McBride points to projects, including the “inventive” Voyageurs National Park headquarters, which he acknowledged carried some “negative vibes” for some members of the community. However, he said it kept jobs in International Falls from being moved to another community adjacent to the park’s boundaries and “doesn’t come out of taxpayer’s pockets one bit. In 18 years it will put $1 million plus dollars into the taxpayers of International Falls’ pocket.”

The EDA owns the headquarters facility and property. It sold bonds to finance the project and leased the space to the federal government. The bonds will be repaid with lease payments.

McBride also pointed to development being pursued along County Highway 155, including a potential warehouse project.

“This looks extremely promising,” he said. “We’ve been working on this four years and a took a hiatus, which was unfortunate, but the city EDA talked about this at every meeting and kept it alive and then it came time and we really pushed for it.”

A state grant of more than $600,000 was recently awarded to help move the project forward.

And he noted the EDA recently secured wetland mitigation credits, of which it will provide to help the Good Samaritan Society — International Falls relocate. Some of those credits may also used on County Highway 155 developments and other projects.

McBride noted that the EDA is also involved in the airport, dog pound, and small interest loans.

“The whole goal is to start things so developers see a progressive attitude and willingness of the city to move things forward,” he said. “We believe in site readiness. We’re strong on it. Unfortunately some people are not.”

The EDA will also work with culture and arts, including organizing open-air concerts at the Irvin N. Anderson Amphitheater located adjacent to the VNP headquarters.

“If we don’t have something to offer corporations, people and their families, they may not want to come here, and we have to have the work force they need,” he aid.