Tis the season: Cold weather testing begins next week

“We're working primarily with existing customers, but we do have a new customer this year,” Nevanen told the KEDA Board Wednesday. “We're always trying to accommodate new customers where we can.”

Nevanen said Jaguar Land Rover, the United Kingdom-based company that has a five-year agreement for a second cold box at the Falls' cold weather testing site, anticipates a successful second season in Borderland.

“I think they're impressed with how we're able to accommodate their changing needs,” he said. “We anticipate a lot of activity from those folks.”

In related business, during the organization's audit, it was suggested by Ryan Jarvi, Walker, Giroux & Hahne Ltd., that KEDA allocate some if its wages from the cold weather testing fund.

“You always end up transferring money from the general fund to cover major expenses, wages includes,” Jarvi told board members via telephone.

Jarvi said there are multiple ways to proceed including that Nevanen and other staff “keep track of what they're working on on a daily basis" to determine how much time is spent on cold weather testing.

He also said coming up with a percentage of what to allocate based on time staff spend on cold weather testing operations would be an option, too.

“It'll reflect the amount of money you're making actually doing the testing,” Jarvi said. “It won't effect the bottom line too much, it is just showing it a different way. It'll more accurately depict what kind of money you're making in the cold weather testing fund.”

The board agreed to put the issue on a future meeting's agenda to discuss it further.

Jarvi said the organization was sitting in good financial shape. 

Also expected to make an appearance on next month's meeting agenda is how to move forward with the foreign trade zone.

The undeveloped site, jointly owned by the city of International Falls and Koochiching County and managed by KEDA, has been on the back burner for several months. However, interest in the FTZ is coming to the forefront after Boise Inc.'s May 2 announcement to eliminate 265 jobs at the local paper mill. Former Congressman Jim Oberstar in July, toured the FTZ among other sites, and offered ideas how to make it “more attractive” to potential clients.

Wednesday, Nevanen said he researched what had been done in 2009 when an application for shovel-ready designation to the Minnesota Department of Employment and Economic Development was last considered.

“We essentially compiled most of the information necessary to complete the application, but stopped short due to the issue of rock removal,” he said. "If need be, I could have the application done today."

Nevanen said the board needs to consider what direction to take with removing the rock at the FTZ, which brought the development of the site to a hault.

“Do we want to sit on it? Do we want to move on it? We just need to figure out what to do with the rock at this point,” he said.

Bob Anderson, International Falls mayor and KEDA member, the needs of a potential client must be considered.

“If we need to run natural gas and that natural gas line is a mile away...we need to know we can do that,” he said. “If we need to get water and sewer...we need to know that. We should be listing all these things so we have a good understanding of what it's going to take. As the years go on, we can move on some of those items and move on it.”

Nevanen said estimates have already been secured on what it would cost and take to bring utilities to the site. 

Wade Pavleck, Koochiching County commissioner and board member, said there are a lot of shovel-ready sites that sit idle and he wanted to be sure the FTZ would have interested clients before the board moves too far.

Also Wednesday, board members discussed the ongoing Island View sewer project. The shovel-ready project has had many ups and downs since its beginning, and KEDA members are hopeful state bonding money from the 2014 legislative session will give the project the boost it needs.

Pavleck said local lawmakers have assured him the money will be secured next year.

“There are people up there waiting and hauling their sewage, “ he said. “The businesses up there can't go on like that and we can't afford to lose any more businesses.”

The county has paid for all the engineering to the site, and the goal is to get enough money to run the main lines all the way to Sha Sha Resort.

“We're still hopeful,” Pavleck said of gaining a federal contribution.

Nevanen reported Northome city officials and the current owner of the Northome Healthcare Center have reached a tentative agreement of transferring the facility back to the community.

A shortage of residents, causing the loss of about $1.2 million over the last five years, lad the management of the Northome Healthcare Center to close the facility's doors earlier this year.

Nevanen said officials involved hope to have the transaction complete before the city's next council meeting.

“I've been involved in preliminary discussions with several entities regarding the facility, as well as looking into resources to conduct a general assessment of the building,” Nevanen said.