The Koochiching Economic Development Authority Board Wednesday learned a $200,000 grant from the Minnesota Department of Employment and Economic Development was awarded to county to help with construction of a cold box at the Falls’ cold weather testing site. 

KEDA Director Paul Nevanen expressed his excitement about the Innovative Business Development Public Infrastructure Program grant.

“I thought it was somewhat of a long shot,” Nevanen said of applying for the grant. “I think what they liked was the innovative nature of (the project) fits into the community and the success we’ve had.”

The IBDPI grant program focuses on job creation and retention through the growth of new innovative businesses and organizations. 

The program provides grants to local governmental units on a competitive basis statewide for up to 50 percent of the capital cost of the public infrastructure necessary to expand or retain jobs. 

Previously, the International Falls City Council and Koochiching County Board each agreed to commit up to $350,000 toward the project. Nevanen said the grant will help offset some of the money local government bodies contributed to the project. 

The second cold box at the site will be occupied by Jaguar Land Rover of the United Kingdom to test at the Falls’ facility for 10 years with it repaying the two governments in a 5-year loan repayment period at 2-percent interest. The cold weather testing facility is jointly owned by the city and county and managed by the KEDA.

A bid opening for the structure of the cold box is scheduled for 11 a.m. Tuesday and the board agreed to allow Nevanen to award the job to the lowest bidder.

KEDA Chairman Allen Rasmussen said a KEDA board representative needs to be present at the opening. 

Nevanen said awarding the bid Tuesday will keep the project in its timeline to be completed by Nov. 15. 

Also Wednesday, the board discussed the future of the foreign trade zone.

“We’ve wrestled with this issue about the rock and the FTZ site and it continues to be a challenge of how we get (site ready),” Nevanen said. 

Nevanen said Koochiching County Engineer Doug Grindall suggested possibly incorporating the rock into future county projects that would require some material. 

“That might trigger getting some bidders to look at it,” he said. “We’re continuing to look at it and trying to be creative and balance all these issues.”

Grindall said, “Between the projects (the county) has in mind, there is enough gravel requirements that would use all of that rock out there.”

Wade Pavleck, board member and county commissioner, said working the gravel into future projects “becomes an issue,” because the 2013 budget process is already underway and the board is “unsure of what we’re going to have for road projects.”

“Having said that, I’ve always said that we’re balancing two things here and let’s get this thing ready for development...the stuff in the ground is worth something no matter what and we’ll continue to grow. This is a way we could expedite that process and utilize it.”

In other business Wednesday, the board heard updates from Jenny Herman of the Small Business Development Center.

Herman told the board she has been working with 53 different clients with a total of 180 sessions consisting of 328 hours, including prep time. 

“The majority of the time is spent business planning,” Herman said. 

She added that the center has been bringing in some successful training classes including a social media workshop scheduled for next Thursday. She also said SBDC is gearing up for another season of the Women’s Business Network and hopes the networking luncheons will be successful again this season.