The International Falls City Council Monday agreed to accept an appraisal in the amount of $165,000 for undeveloped land east of the city to continue the next phase of a warehouse and processing facility project.

The 77.2 acres of land that sits off County Highway 155 is owned by Boise Inc., and Shawn Mason, director of economic and community development for International Falls, announced Monday that the company agreed to sell the land to the city. 

“This is very exciting news,” Mason said of the potential sale. 

Monday’s action allows attorneys for the city and Boise to meet and establish a purchase agreement. 

In May, the International Falls Economic Development Authority was awarded a $657,400 grant for construction of the first phase of a multi-modal facility adjacent to the largest rail port in North America.

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 sale is imperative to our overall vision for the corridor off CSAH 155,” Mason told The Journal Tuesday. “We knew we wanted it to be industrial in nature.”

Mason continued that Boise officials, especially Falls mill manager Burt Brown, and Lori Lyman, Boise public affairs manager, have been “very progressive and very gracious and stood ready to help.”

“We are excited about this new relationship with Boise,” Mason said.

Mason said she is hopeful that the project will help create a domino effect of economic development. She noted the warehouse project could trigger development elsewhere along the corridor as well as in the foreign trade zone. 

“I’m very excited for our community’s future,” she said. 

An Aug. 31 noon groundbreaking is being planned at the property and Mason said Gov. Mark Dayton and Department of Employment and Economic Development Commissioner Mark Phillips will be among those expected to attend the event. 

In other action Monday, the council agreed to authorize Mayor Tim “Chopper” McBride to sign a letter to the U.S. Department of Transportation in support of requesting SkyWest Airlines to provide the commercial air service to the Falls International Airport.

Councilor Gail Rognerud, who represents the city on the airport commission, said if SkyWest was chosen as the Essential Air Service provider, jet service would be maintained in the area. 

The Journal reported last week that the SkyWest bid would provide CRJ-200 jet aircraft with 50 seats, a flight attendant and bathroom. The company proposes serving the Falls with two flights daily each way Monday through Friday and one flight each way on Saturday and Sunday with stops in Brainerd on weekdays to Minneapolis-St. Paul. A definite schedule has not been spelled out by SkyWest Airlines as to times and days of the week only that they would fly to International Falls 12 times per week.

SkyWest also would have code-sharing, ticketing and baggage agreements with Delta Airlines, which currently serves the Falls.

“This is a very big success story for the airport commission,” McBride said. “This is good news.”

Other carriers that submitted proposals were Great Lakes Airlines and Sovereign Airlines.  

Also Monday, the council agreed to allow Mason to seek a major sponsor for the 2013 Pulling for Peace effort. Mason expressed to the council that a sponsor will allow the city to take the tug-of-war event between the U.S. and Canada “to the next level.”

Councilor Cynthia Jaksa said securing a sponsor would hopefully allow the city to attract “major stars to be on our celebrity team.”

The council also agreed to allow Mason to contact the Minnesota Secretary of State’s office along with White House staff to secure a proclamation for 2013 to name July 2 Peaceful Borders Day.

“We started working on the proclamation for the July (2012) event and we were advised we’d be much more successful if we started virtually one year in advance,” Mason said. “This is very important and could be much bigger than what is on the surface. This event is really a neat thing to have between two countries.”

In June, Canada’s Prime Minister Steven Harper officially declared July 2 Peaceful Borders Day in Canada.