The Koochiching Economic Development Authority Board is still considering a proposal made in April regarding site readiness of the foreign trade zone.
The KEDA Board Wednesday heard from Carl Bowman of Bowman Construction, who said he believes the proposal would violate the foreign trade zone regulation regarding competition with local businesses.
“One thing I want to tell you is you better look into your FTZ zoning permit. It clearly tells you in there that you can’t compete with any local businesses. Whatever color you want to paint that thing, that’s competing with my business. So the feds aren’t even going to let you guys do something like what you’re thinking about doing,” Bowman said.
KEDA Director Paul Nevanen clarified that the wording, which Bowman read to the board, referred to customs-related activity and not to the site clearing process. The type of proposed activity would not require the blessing of the U.S. Department of Commerce, he said.
Board member Tim “Chopper” McBride told Bowman that they would check into the legality of the process. Nevanen said they would try to make a decision that makes sense for everyone involved, but noted that for the FTZ site to be developed, the rock would need to be removed.
Bowman cautioned the board to look at pricing the rock, and using the blasted rock in other areas of the site.
“Either way, our goal is that this is going to get done. This is full speed ahead,” McBride said. “Full speed ahead, watching,” he clarified, noting this was not like the Titanic, after board member Wade Pavleck said he would keep pricing in mind when making decisions.
A committee assigned to investigate and discuss the proposal met once before the KEDA meeting Wednesday. Another meeting was scheduled for Thursday.
Pavleck said that he believes that any proposal would have to go to the Koochiching County Board and the International Falls City Council since the FTZ and its rock are jointly owned by the city and county.
Whether this unsolicited proposal for site clearing work could be approved without seeking other bids was also discussed, with no conclusion reached.
Other business
In his director’s report, Nevanen explained that a recent Minnesota Foreign Trade Zone breakfast meeting with Twin Cities-area business people did not produce the attendance the group had anticipated.
He said that moving forward, the group would conduct site visits to companies that may be able to use the FTZ duty benefits in order to more directly target those potential FTZ customers.
Nevanen reported that a meeting of a local biomass working group had been scheduled. The group members will act as contacts for businesses interested in biomass projects in Koochiching County.
The cold-weather testing season was extended by two weeks, which will finish the longest-ever, 28-week season at the CWT facility. A proposal for upgrades and repairs to the facility was discussed by the group.
In a continuation of its goal-review process, the board looked at the final two benchmarks, relating to working within the county to develop appropriate relationships.
Nevanen presented the board with a packet explaining various local, regional and statewide economic development resources for businesses, including many financial assistance programs.
The board also discussed the unlikely possibility of a venture capital fund, providing ongoing support to the Small Business Development Center and the Koochiching Community Development Association, and working more closely with local media to share important information about KEDA activities and local business.
