The International Falls Economic Development Authority Board took steps Tuesday morning toward the purchase of property planned for a warehouse project off County Highway 155.

The board approved an agreement with Boise Inc. to purchase the 77.2 acres for $165,000, the appraised value.

EDA Board members, whom also serve as Falls city councilors, applauded the action Tuesday morning.

Shawn Mason, city director of economic and community development, called Tuesday “a red-letter day for the city of International Falls.”

Mason and other members of the EDA Board credited the partnership between the city, EDA and Boise Inc. in helping the EDA to secure the property that is expected to create jobs and enhance the tax base.

Tuesday’s meeting was reconvened from Monday to allow attorney Steve Shermoen, via telephone, to review and recommend minor changes to the most recent version of the agreement. The modifications involve that the purchaser shall be the city EDA; that the EDA will reimburse Boise $4,5000 for appraisal expenses and $6,500 for an environmental survey. The EDA will also pay for up to $15,000 closing costs.

Another modification will involve that Boise and the EDA shall mutually agree on a location of a 40-foot wide easement for relocation of a leachate line as a condition of closing.

The next step is for Boise officials to sign the agreement with the modifications.

The purchase of the property is just in time for Thursday’s groundbreaking ceremony at the site celebrating a $657,400 state grant for construction of the first phase of a multi-modal facility adjacent to the largest rail port in North America. Gov. Mark Dayton and Department of Employment and Economic Development Commissioner Mark Phillips are expected to speak at the ceremony, as are several other local officials.

Nexus Distribution, which provides repackaging services that enable companies to meet United States regulatory requirements, is planning a warehouse and processing facility on the Boise-owned property. 

About 50 jobs are expected to be created in five years. Total project cost is estimated at $957,400.

The undisclosed developer, who will work with Nexus on the warehouse project, is also discussing a second project for the site, according to Mason.

With just 23.5 acres of the 77.2 acre site within the city limits, the EDA has initiated discussions with Koochiching County and Ranier officials, who have indicated support, about annexing the remaining acreage into the city’s limits.

Shermoen and EDA Board member Paul Eklund credited Boise Inc. officials with helping the city to move forward with economic development in the community.

Shermoen called the purchase agreement a turning point.

“Hopefully, there will be tremendous changes for the better down the road,” he said.

Mayor Tim “Chopper” McBride noted that the warehouse project has been in the works for about five years and credited Mason for pursuing it.

In related business, Mason said a member of the Minnesota Housing Commission Thursday will tour the Alexander Baker building to review a proposed housing project.

The board also provided input into what kind of members should be included on a newly created EDA Advisory Board.

Letters of interest from members who have experience in business, finance and real estate, as well as an at-large member, will be due by Sept. 21, with a recommendation to the Falls City Council expected Oct. 3.