The Koochiching Economic Development Authority board Thursday discussed the future of the foreign trade zone and how to move forward with the site.
KEDA Director Paul Nevanen asked the board for direction on how to advance with the undeveloped site.
“We’ve spent a lot of energy and focus on this piece of property,” he said. “With any industrial site, it is very competitive out there...the current thinking is if you’re not shovel ready or in the position to tell someone how quickly the parcel can be developed, you’re really not in the same playing field (as other sites).”
Nevanen said because of the site’s location next to the nation’s busiest rail port, and near highways and other attractive aspects of the area, efforts have previously pushed for development of the land.
The FTZ is jointly owned by the city of International Falls and Koochiching County and managed by KEDA.
Discussions about the site have remained pretty quiet by the board in the past several months. Nevanen said recent efforts include the sale of about 10 acres of the site to Canadian National Railway, which the company used to add rail siding.
“Are we forced to market it as it is?” Nevanen told the board Thursday. “It is zoned properly, the utilities are at the edge of the property, and we certainly have support for a variety of types of development.”
Nevanen mentioned a September 2011 updated proposal of rock removal from Dennis Wagner of Wagner Construction Inc., but an FTZ subcommittee decided not to move on it, he said.
The group agreed funding remains the main issue, but didn’t want to see the site placed on a back burner.
“Outside funding is a challenge,” Nevanen said. “But with the economy coming back and in terms of long-term job creation and investment, I think this location still has promise.”
The board agreed that the hiring of a new county engineer, after current Engineer Doug Grindall retires next month, may bring a new perspective on the site.
“Doug has done a lot in terms of the FTZ,” Nevanen said. “Hopefully whoever is hired will have some ideas.”
In other business Thursday, Wade Pavleck, who represents the county board on the KEDA board, said he was able to discuss last week the Island View sewer project with members of the Minnesota Senate.
“Our project is the only one that is shovel ready,” he said of other projects that were discussed.
The project concerns the Island View portion of the larger Voyageurs National Park Clean Water Project, a joint effort with St. Louis County to install sewer service to communities adjacent to the park.
Pavleck said the previous focus — the environmental side of the project — has shifted to the economic development options that it could present.
A handout included in the KEDA packet stated, “The interconnected waters of (Voyageurs National) Park provide an unparalleled opportunity to explore the north woods lake country. Unfortunately, those waters are being negatively affected by human impact such as waste water from existing developments throughout the region. This water quality degradation threatens the long-term health of the ecosystem and the economic health of the tourist industry upon which the local economy is based.”
Pavleck said he felt the project was favored by lawmakers and was hopeful any state dollars through a bonding bill would contribute to the estimated $15 million price tag.
Also Thursday, a motion from the February KEDA meeting to draft legislation to allow Ranier City Council membership on the board was rescinded for further discussion.
Last month, Bob Anderson, International Falls mayor who represents the city on the KEDA board, said he felt a presence from a Ranier elected official was necessary on the board.
“Seems to me we need to bring this whole area together,” Anderson said during the February meeting. “A representative from that municipality would be helpful...It would only compliment where we’re going as an organization.”
However, Pavleck said he was originally involved in creating the KEDA Board and establishing what was fair in terms of who would serve on it.
Pavleck said the decision was made to have two International Falls city councilors, two county commissioners, two county residents and one state legislator on the board to ensure that “everybody was represented and nobody had the upper hand,” he said.
“If we change it, we lose credibility,” Pavleck said. “Leave it the way it is for now. If we’re going to change it, we have to have some broader discussions.”
To better include people from the greater area of Koochiching County, the board agreed to set a tentative meeting schedule that includes evening meetings in Ranier, Littlefork, Northome, Big Falls and other areas in the county.

