The Koochiching Economic Development Authority Board discussed again Wednesday a proposal and alternatives related to blasting and crushing rock in a foreign trade zone.
In April, attorney Steve Shermoen presented the KEDA Board with a proposal to either purchase or long-term lease Lots 3 and 4 in the FTZ from the KEDA, which manages the property. The FTZ, situated near Ranier, is jointly owned by International Falls and Koochiching County.
The clients propose to search for a permanent tenant for the tax-incentivized zone. Further, the clients would prepare the site to become “build-ready,” including blasting and crushing rock to level the terrain in the rail-adjacent lands. The clients would retain rights to the removed rock.
Kalan Wagner was recently identified as a “lead person in the new company” that is being represented by Shermoen and which made the site-clearing and leasing proposal.
A subcommittee of the KEDA Board was formed to consider the project. The subcommittee has met several times in the following months and has presented more information at the past three KEDA Board meetings.
Discussion at KEDA Board meetings has centered around whether the proposal would best serve the county and city, or if it would be better for the governments to request proposals and open bidding on the site clearing. The benefit to the governments, some have said, would be road aggregate generated from the crushed rock. Because gravel is in short supply, Koochiching County Engineer Doug Grindall has said it would financially benefit the governments to stockpile the rock and use it for county and city projects.
“The public should try to keep that gravel, rock for themselves,” Grindall recommended. “There’s always going to be a need for rock, aggregate in the future.”
KEDA Board member Wade Pavleck has been most vocal about the financial benefits that could be gained by the county and city if the rock was retained by the governments.
“We’re talking significant dollars here,” Pavleck reiterated Wednesday. “At a minimum we’re talking a net profit of three-quarters of a million dollars for the taxpayers of Koochiching County.”
Wednesday, Grindall and Pavleck discussed the progress made on the proposal with the KEDA Board and they agreed to ask that the topic be put on an upcoming county board meeting agenda. They discussed asking the county board to make a proposal that could be presented to the International Falls City Council.
FTZ proposal subcommittee members in June made a presentation to the Koochiching County Board. The International Falls City Council removed a similar item from a recent meeting agenda.
Tim “Chopper” McBride mentioned ongoing, competing annexation petitions for the foreign trade zone from Ranier and International Falls and said the timing may be off for the city to commit funds to the contested property. The city would be unable to spend its economic development dollars outside the city limits, he said. The county is joined in Ranier’s annexation petition and last week, an administrative law judge from the state Office of Administrative Hearings held a hearing on the matter. A decision, the judge said, will likely take until an October deadline.
Speaking for himself and not the official county position, Grindall said, “I have in mind taking a portion of that $3.5 million from the turnback (of Highway 332), that’s where the dollars would come from.”
“That’s an ouch for me, too,” McBride replied. “It’s for transportation, that’s what it’s for, but it’s still an ouch.”
While several board members said they wanted expedience and for the project to move forward, they remained unwilling to make a decision.
“I think the decision from this board is where do you want to go from here?” Pavleck asked rhetorically.
At the end of the meeting, Dennis Wagner, owner of Wagner Construction and father of Kalan, addressed the board. Wagner questioned when a decision would be made, noting another opportunity out of town with a fast-approaching deadline where he said he could spend the $3.5 million he had earmarked for the FTZ project.
Other business
The board approved Kallie Briggs as the alternate board member for an at-large board position held by Allen Rasmussen. Briggs became the only eligible candidate of the four received applications after the board decided that the position needed to be filled by someone who resides within the International Falls city limits.
Rasmussen and board members Wade Pavleck, Mike Hanson and Gail Rognerud voted in favor of the motion made by Pavleck. Tim “Chopper” McBride made the lone vote in opposition, citing “differences.”
At the end of the meeting, Rognerud read a letter from outgoing alternate board member Penny Strongman thanking members for the opportunity to serve on the board. McBride was named as the new treasurer for the board since Strongman had served in that capacity.
In his director’s report, KEDA Director Paul Nevanen discussed interest in biomass in this area by both a company which may consider siting a biomass facility in northern Minnesota and BioBusiness Alliance, a state organization examining the status of wood fiber supply. BioBusiness Alliance will meet with a local biomass working group next week. The working group is also supplying the interested company with requested information on Koochiching County biomass.
Nevanen also provided an update on a Minnesota FTZ marketing grant, a trial date for September related to the Can-Am Fisheries operation, a Northern Networks Trade Conference scheduled for Sept. 15-16, and a booth being scheduled for the Koochiching County Fair to provide the public information about the Northome Industrial Park.
