Foreign trade zone to be part of Ranier

French and Jameson additions, Three Points North, Brennan’s Beach, and other nearby unincorporated areas, as well as the FTZ are now part of Ranier. A counter petition by International Falls to annex the FTZ and land where a road to it could be built was rejected.

Administrative Law Judge Richard C. Luis from the state Office of Administrative Hearings made his ruling Thursday. His ruling followed a July 6-9 hearing, at which time testimony and public discussion was taken.

All of the area sought for annexation was not approved. Lands to the south of French Addition and south of the FTZ, separated by wetlands from the more residential areas, were not approved for annexation. According to the ruling, only a few residences were included in this area, which also includes the “Moonlight Rock” landfill. This area will remain unincorporated.

“The first thing we have to do is just put it together,” Ranier Mayor Ed Oerichbauer said about the new city. “We started this basically for water and tax benefits, and that’s what we’re going to put in.”

“Let bygones be bygones, we’re moving on,” Oerichbauer said regarding residents on both sides of the issue. “You can’t please everybody. Everybody’s going to have their own opinions and rightfully so. I don’t think it’s wrong for people to be in opposition, I think that’s totally legitimate. Time will heal all wounds.”

Oerichbauer reflected that the process from start to finish became more than was expected.

“When you start out trying to help get some people water, things have the potential to mushroom into something you never ever anticipated, and that’s what happened here,” he said. “We didn’t expect this at all.”

“I guess the biggest emotion was just relief that it was finally over. This has been going on for a long, long time now,” Oerichbauer said. “Now we can move on with what we had intended to do a year and a half ago.”

The process officially began in June 2009, when Ranier and Koochiching County signed a joint orderly annexation petition for Ranier to annex nearby unincorporated areas. Ranier officials cited a petition from Jameson residents requesting annexation and an ailing water line as reasons to seek annexation.

Since then, Ranier has been awarded a $1.24 million loan and a $296,000 grant from the USDA Rural Development to replace old piping and install loops in the city’s drinking water system.

International Falls is opposed to Ranier’s plan to include in its annexation about 500 acres of a foreign trade zone and the property around it where an access road could be built. Falls officials in September 2009 petitioned to annex the FTZ property and the land around it into the Falls city limits.

“The city of International Falls, for the good of the community, wants the FTZ, jointly owned by International Falls and the county, to be developed just like the riverfront has been developed,” wrote Joe Boyle, former Falls city attorney who represented the Falls in the case, in a statement this week.

“The city is very disappointed because we know that the city has the ability, financial resources, and expertise to develop the foreign trade zone just as over $20 million in developments have occurred on the riverfront immediately west of the proposed annexation area,” he continued.

The judge countered the city’s economic development claim by saying it still jointly manages the development of the land through the Koochiching Economic Development Authority, which has board members from each government. The city and county jointly own the FTZ, which is managed by the KEDA.

Luis wrote in his order, “Economic development projects often have regional benefits, and by necessity often require local governments to collaborate.” He then referred to Falls Administrator Rod Otterness’ description of previous economic development projects in which local governments cooperated. “In the same way, local governments can work together to encourage and foster economic development in the FTZ area without any alleged implications resulting from city boundaries.”

“There are no winners in these disputes,” said Commissioner Wade Pavleck, who with Commissioner Brian McBride represents the area involved in the annexation issues.

“There is always the real possibility of an appeal. They have 30 days to do that. Just have to see,” Pavleck said. “I hope this would be the end of it.”

Any of the parties may appeal to the Koochiching County District Court within 30 days of the Oct. 7 ruling, according to the judge’s order and Minnesota statute.

Pavleck said Luis’ ruling is very thorough and almost needs to be read fully to understand all the findings.

“The court’s order speaks for itself,” he said.

“Over the past two years the city has had the county in almost continuous litigation on various issues, involving MnDOT (the Minnesota Department of Transportation) and Ranier,” he said. “The city lost four consecutive decisions — the state dispute resolution board, two full blown trials and they appealed once.

“I strongly support the right of anyone to take their grievances to court, including the city, but I view past proceedings as a huge waste of time, resources and money.”

Pavleck said other communities don’t experience the same kind of friction that seems the case between International Falls and Koochiching County.

“Around Minnesota, you just don’t see this.”

However, Pavleck said county officials will continue to work with city officials on projects. He noted the recent change in status to Keenan Drive, which will allow the county to resurface a road for which the city had struggled to find the resources.

McBride said he wasn’t surprised by how the judge ruled, and also said he hoped an appeal isn’t launched.

“Let’s put this behind us and move on,” he said, adding that the governments must work together on many other issues important to the community.

McBride said the judge noted the evidence showed no hidden agendas or conspiracies. He also noted that annexation has divided other communities when people take sides.

According to county Auditor/Treasurer Bob Peterson, there will be no change in voting locations based on this annexation decision for the upcoming election due to the short time until the election. Voters in the annexed areas can vote at their traditional county precincts in the Nov. 2 general election. Voters in the annexed area will not see the names of Ranier council and Ranier mayor candidates on their ballots.

In addition, tallies on the amount of money each government spent on the annexation process won’t be available until after the appeal period.