Economic response in Borderland will be crucial in the coming months and the Koochiching Economic Development Authority will need to do what it does best – create economic opportunities – as it reacts to the loss of 265 jobs from the community.
That was the message delivered by the KEDA Board Wednesday, when it met for the first time since the May 2 Boise Inc. announcement that the company would shut down two paper machines and the coater machine at its International Falls paper mill, which will ultimately terminate 265 positions.
“We’re certainly counting on this organization being the lead organization in this Boise response,” International Falls Mayor Bob Anderson said of KEDA.
With that in mind, as Anderson looked over the organization’s finances, he said it appeared the KEDA was declining in its asset base and wondered if enough income was being generated to keep it stable.
“We’ve had a successful cold weather testing season and that is helping to fund this organization,” KEDA Director Paul Nevanen said. “At some point, yes, we will need to look at some alternatives.”
Nevanen said other revenue sources, including money from the Small Business Administration, has increased in recent years because of the productivity of Jenny Herman, director of the Small Business Development Center.
Anderson added that because the unemployment rate will increase in the county by the time Boise layoffs take effect Oct. 1, funding from the Federal Aviation Administration may become available if Koochiching meets distressed county guidelines.
“We’ll have Paul work with Susan Baratano (airport commission secretary) and Congressman (Rick) Nolan’s staff to understand if the county can become eligible for FAA designation,” Anderson said.
Koochiching County Commissioner Rob Ecklund said he and Commissioner Wade Pavleck, along with Anderson and Falls City Councilor Pete Kalar, are serving on a committee to develop a plan of response to the Boise announcement.
“We have met twice and have a pretty good plan moving forward,” Ecklund said.
Anderson added the importance of collaboration with the city and county, as well as other surrounding communities, in the response effort.
“This impact is certainly going to be widespread,” he said. “It is not just going to be International Falls.”
Studies of the economic impact are also in the works to provide facts of just how the community and surrounding areas will be affected, said Anderson.
In other business, Nevanen said Barry Barney, former principal of Koochiching Freshwater Fisheries, still plans to open the former fisheries building on 22nd Street in International Falls next month.
“They’ve been adding equipment and personnel, but weather conditions have held them up,” Nevanen said.
Barney is expected to open the building under a new company, Northern Waters Fish Company, a wholesale fish market approach.
Nevanen reported that Barney has entered into a joint venture with First Nations Fisheries.
“This is a landmark joint venture,” Nevanen said.
