More wetland credits needed for FTZ

Dave Serrano, Arro of the North, has been developing a concept plan for the FTZ site to use for marketing purposes.

“If we were to have all of the buildable area available, that would impact about an acre and a half of wetland,” he explained. “We have the opportunity to revise the (wetland credit) applications to include the increase. We don’t have to buy the credits until a shovel goes in the ground, but we do need to have an existing wetland bank established.”

Wade Pavleck, Koochiching County commissioner and board member, asked Serrano if he was aware that the county board already authorized credits from Duinnick Lake, near Big Falls, owned by Koochiching County.

Serrano said that because of the increase in acreage, the application needs to be revised.

Speaking on behalf of the county, Pavleck explained that the county doesn’t have a policy on how to distribute credits. He continued that the county board is willing to use Duinnick Lake for the application process, but cannot commit to anything until a policy on distribution is set.

“We are willing to keep it moving forward,” Pavleck said of the application process.

Serrano noted that a wetland acre costs about $12,000. “We’re looking at about $18,000,” he said of the cost for 1.5 acres.

In related business, county Engineer Doug Grindall told the board that the Highway Department’s budget allowed for about $750,000 for blasting and crushing at the FTZ site.

“We saw a value to the taxpayers,” Grindall said of the county’s interest in the crushed rock.

Bids for the project, however, came in about 40 percent higher than anticipated, Grindall said.

“Talking to the low bidder, the reason for that is there are some areas with very shallow cuts,” Grindall said. “Therefore, my recommendation to the county board was to take and reject the bids.”

The information ignited a difference of opinion between Pavleck and Tim “Chopper” McBride, Falls city councilor and board member.

The FTZ is owned by International Falls and Koochiching County and managed by KEDA.

“What happened here, is rather than this being a normal blasting operation, it came up that they would have to do this shallow blasting,” Pavleck said. “That caused a lot of complications and raised the price. Nobody is comfortable with higher costs and when Doug recommended we reject it, we certainly did.”

Pavleck said the county board was reluctant to spend more money with tough economic times in the foreseeable future.

“As far as the foreign trade zone goes, we’re willing to look at any option that benefits the taxpayers,” he said.

McBride said it was a timing issue for him. “How long are we going to wait for this process?” he asked.

“To be successful, you have to try,” McBride said. “If the county is reluctant, I understand, we’re in the same boat, but I am of the belief that I’d like to get this developed as soon as we can. It (FTZ) has value.”

Pavleck questioned what McBride was proposing and McBride answered that he was willing to listen to proposals.

McBride said the city’s goal is for the FTZ to be a success and city officials see it as an opportunity with value to taxpayers.

While Pavleck said the county is not ruling anything out, he said he knows the county board wants the taxpayers to be protected.

“The gamble to me is doing nothing,” said McBride who also added that the taxpayers are a priority of the city. “Economic development creates jobs.”

Grindall said based on Tuesday’s budget discussions at the county board meeting, the $750,000 may be better used elsewhere. “As long as it’s used for highway purposes.”

In other FTZ updates, Dennis Wagner, of Wagner Construction Inc., submitted a revised proposal for site development.

The group took no formal action on the proposal and said it would be reviewed by the board’s attorney.

Administrative position

On a 4-1 vote, the board agreed to hire Lindsay Frank to fill administrative position vacated by Dixie Kalstad.

Pavleck, who was against the motion, expressed concern about hiring someone on a full-time basis in tough economic times.

“It is certainly not a reflection of the candidate,” Pavleck clarified his stance on the issue.

Pavleck also questioned if enough work was generated for a full-time assistant. “Do we need a full-time position for a two-person office?”

Nevanen responded, “yes, there is a need.” Nevanen also explained that the full-time wage was already part of the budget.

It was noted that Frank was selected among 27 people who responded to the job posting.

SBDC report

Jenny Dougherty of the Small Business Development Center told the board that six of her clients have started their own business in the last year.

“One of them purchased an existing business, but the rest have started their own,” she said. “It is nice to see businesses expand an be successful.”

Best Prep Minnesota

Falls High School student Ashley Birnie provided the board with feedback of her experience at the Best Prep Minnesota Business Venture program. The board gave $500 toward the program in May.

Birnie attended the week-long residential program to learn about business, financial literacy, entrepreneurship and career direction.

“Before I went to this camp, I knew nothing about business,” the high school senior said. “It (the program) was very difficult, but a great learning experience.”

Board members commended Birnie on her speaking skills and said they were confident she would be successful after high school.