Vermillion Gold to continue exploring in Virginia Horn

October 29, 2020

By Lee Bloomquist

for BusinessNorth 


    Vermillion Gold Inc., a Minneapolis-based minerals exploration company, is looking for gold within the Iron Range’s Virginia Horn.

    The Virginia Horn is part of the Biwabik Iron Formation near Virginia and Gilbert that’s shaped like a horn.

    “The Virginia Horn has always been interesting,” said Kate Lehmann, Vermillion Gold president and chief financial officer. “We’ve done some drilling there off and on and there’s also been some legacy drilling that’s been done there. There’s some promising signs of gold.” 

    Vermillion Gold has been exploring for gold in the same area since 2007.

    In a plan filed Oct. 16 with the Minnesota Department of Natural Resources (DNR), Vermillion Gold plans to continue its exploration for metallic minerals on state leased land and private land in Sections 14, 15, 16 and 22 in an area between Virginia and Gilbert on both sides of Highway 135.

    According to the DNR, Vermillion Gold would collect soil samples on uplands on-foot and using hand tools where motorized vehicles are not supported and accessible. Geological features would also be mapped. Wetland would not be sampled.

    Vermillion Gold would access leased lands via current public and forest roads along with other existing access routes. No new trails or site clearance are proposed.

    “What we’re looking for are signs of gold that are present in the surface soil and in glacial till,” Lehmann said. “It’s a lot of detective work.” 

    Vermillion Gold hopes to begin exploration at the site later this month, she said. 

    With DNR approval, exploration would occur intermittently through Oct. 31, 2021.

    According to Vermillion Gold, the Virginia Horn is underexplored and an excellent target for the discovery and development of an economic gold deposit.

    In 2009-2010, Vermillion Gold completed nine drills holes in the Virginia Horn with reported wide zones of gold mineralization.

    “It continues to be interesting,” Lehmann said of the Virginia Horn. “And the higher gold prices continue to make it interesting.”

Itasca County updated on election, dramatic rise in COVID cases

October 22, 2020

By Sally Sedgwick


    At its Oct. 13 meeting, the Itasca County Board heard about the status of the election, the increase in county COVID cases and the effort to provide internet access to residents without service.

    Auditor/Treasurer Jeff Walker provided an update to the board on the election process and issues. A total of 8,400 mail-in ballots were sent out Oct. 5 and 6. In addition, 6,600 early voting ballots have been distributed with approximately 4,000 received back. Walker suggested that 50 percent of total ballots may be cast prior to election day, Nov. 3. He described security for ballots, how they are processed when they come into the county and how the county ensures that voters are eligible. He described issues in ballot printing and how they will be handled. He also pointed out that the “R” on the outer envelope does not refer to Republican, but means “registered.”

    Manager of Public Health Kelly Chandler said that 236 new cases of COVID-19 in the county, about 40 percent of the total 588 cases, had been recorded in the last two weeks in addition to one death. Ten are currently hospitalized with the youngest 2 months old. As of Oct 8, 17,729 have been tested in the county with a positivity rate of 2.9 percent. Cases have occurred throughout the county but clusters of cases have been from social settings and work sites. Chandler emphasized staying 6 ft. apart, wearing a mask and not gathering in groups.

    Public Health has started a dashboard on the county website with graphical breakdown of statistics. See Coronavirus Information on the home page or go directly to: .

    Two representatives of Kootasca Community Action working with the Itasca Economic Development Corporation presented a request to use $85,000 of CARES Act funding to address the lack of internet access within the county. That amount would provide access to about 170-255 families or about 1,000 residents, although the need is still greater. Commissioners expressed a preference to direct the money primarily to students who need it for distance learning with any extra toward other needs like family services and public health. 

    In other business, the board:

    • Approved commissioner warrants of $1,322,290.41. 

    • Welcomed new employees Hollie Hornstra (Auditor/Treasurer Department) and Chris Rima-Carlson (Recorder’s Department).

    • Reappointed the county assessor through Dec. 31, 2024.

    • Approved the 1019-2021 bargaining agreement for AFSCME Local 639A (Deputy Sheriff/Road Deputy Unit).

    • Approved the sale of two parcels of tax forfeit land to the city of Keewatin which plans to correct blight conditions.

    • Awarded a contract to One Way Communications for modifications to the Suomi/Marcell tower for T-Mobile upgrades. T-Mobile will fund the work. 

    • Authorized hiring a Park Maintenance Worker.

    • Awarded a contract for $26,145.42 for automatic fixtures for bathrooms at the Fairground to Northern Air Plumbing and Heating with funding through the CARES Act.

    • Appointed Terry Snyder to join Grand Village Board Chair Leo Trunt on the hiring committee for Grand Village Executive Director.

    • Extended for 180 days the requirement to bring requests for hiring to the board, but dropped the requirement for board approval of major purchases.

    • Agreed to send a letter of support for Prairie River Minerals in obtaining an air quality permit to the Minnesota Pollution Control Agency during its comment period. The company is planning a demonstration iron ore scram mining and processing facility near Coleraine.

    The next regular meeting of the Itasca County Board will be on Tuesday, Oct. 27 at 2:30 p.m. at the courthouse.

Bigfork Valley looks at surge in COVID cases in region, November meeting rescheduled to Nov. 12

October 15, 2020

By Sally Sedgwick


    At its Oct. 6 board meeting, the Bigfork Valley Hospital board addressed the increased numbers of COVID positive cases in the region and election issues.

    CEO Aaron Saude said that incident command and networking meetings both within the hospital and regionally were more frequent with the increased numbers of positive COVID cases in the area. With in-place agreements, the Bigfork hospital may be caring for non-critical patients diverted from Duluth hospitals. Long term care residents are now being tested more frequently, every 3-7 days, and will continue until there are no positives for 14 days. 

    When asked if contingencies for cold weather had been readied since COVID testing is presently conducted outside, Saude said that was being discussed in order to make sure staff is safe and patients comfortable.


    The hospital financials showed a $4,740 income for August, with $2.65 million year-to-date income including grants. Operating loss was $119,082 for August. Full time equivalent employment was 166.0 vs. 170.5 a year ago. 

    The hospital was notified that district ballots had been misprinted with the open position of Itasca County unorganized Townships listed as Itasca County At-Large. Only votes originating in the unorganized townships will be tabulated for this position. Due to the election, the November regular and canvassing meeting was rescheduled to Thursday, Nov. 12 at 10 a.m. For instructions on how to attend the meeting as a member of the public, call 218-743-1772.

    In other business, the board:

    • Heard that the staff is working with NOD Specialists, an Arizona specialist group in infection prevention consulting with the hospital on policies.

    • Heard that Fairview Health is cutting jobs and closing clinics in anticipation of a $250 million loss this year.

    • Heard that the hospital has received a Preparedness and Response Minnesota Hospital Association grant.

    • Heard that the hospital has received two portable ventilators from the state

    • Heard that the MHA Winter Conference will be virtual this year in mid-January.

    • Authorized peer appreciation awards to five employees: Delaine White, Deb Morell, Marsi Skelly, Patricia Topley and Katie Gilbertson. 

    • Heard that board education will use the National Rural Health Resource Center series, “Visionary Board Leadership and the Transition to Value.”

Cleveland-Cliffs Inc. to acquire ArcelorMittal USA

October 01, 2020

BusinessNorth Report


    Cleveland-Cliffs Inc. has reached a definitive agreement to acquire substantially all of the operations of ArcelorMittal USA, including the seller’s Minorca mine in Virginia and its 62 percent stake in Hibbing Taconite.

    Cliffs will pay approximately $1.4 billion for the acquisition. The transaction is anticipated to be EPS accretive. The acquired operations are debt free although they include a liability for ArcelorMittal’s pension funds.

    Upon closure of the transaction, Cleveland-Cliffs will be the largest flat-rolled steel producer in North America, with combined shipments of approximately 17 million net tons in 2019. Included are steelmaking facilities in Indiana Harbor, Burns Harbor, Cleveland, Coatesville, Steelton and Riverdale.

    The company will also be the largest iron ore pellet producer in North America, with 28 million long tons of annual capacity. When the deal closes, Cliffs will own all of the taconite mines on the Iron Range except for U.S. Steel’s Minntac mine in Mountain Iron and its Keetac mine in Keewatin, which currently is shuttered.

    The acquisition was announced just six months after Cliffs’ shareholders approved the acquisition of AK Steel Holding Corp.

    “Steelmaking is a business where production volume, operational diversification, dilution of fixed costs, and technical expertise matter above all else, and this transaction achieves all of these,” said Lourenco Goncalves, chairman of the board, president and CEO of Cleveland-Cliffs, who will lead the expanded organization. “ArcelorMittal is a world class organization that we have long admired as our customer and our partner, and we know for a fact that they have taken good care of their U.S. assets.”

    ArcelorMittal USA will be acquired by Cleveland-Cliffs on a cash-free and debt-free basis, with a combination of 78.2 million shares of Cleveland-Cliffs common stock, non-voting preferred stock with an approximate aggregate value of $373 million, and $505 million in cash, Cliffs said in its formal announcement. The enterprise value of the transaction is approximately $3.3 billion, which takes into consideration the assumption by Cleveland-Cliffs of pension/OPEB liabilities and working capital.

    In 2018 and 2019, ArcelorMittal USA averaged annual revenues of approximately $10.4 billion and annual adjusted EBITDA of approximately $700 million. The assets acquired include six steelmaking facilities, eight finishing facilities, two iron ore mining and pelletizing operations, and three coal and cokemaking operations.

    Cliffs anticipates approximately $150 million in annual cost savings, although Goncalves said in a morning conference call that it’s premature to announce where savings might be obtained through operational synergies.

    “The acquisition of ArcelorMittal USA amplifies our position in the discerning automotive steel marketplace, and further improves our position in important U.S. markets such as construction, appliances, infrastructure, machinery and equipment,” Goncalves said. “It also adds to our strong legacy raw material profile and growing finishing capabilities. The transaction will enable us to become a more efficient fully-integrated steel system, with the ability to realize all of our operational and financial goals.”

    He stressed that “green will be the norm,” in the company, emphasizing the competitive value of being a clean manufacturer of high-quality steel.

    Cliffs also is in the midst of constructing a hot-briquettes iron (HBI) plant in Toledo which will produce feed stock for electric arc furnace (EAF) steel mills. 

    “Producing pig iron here in the United States will help EAFs be greener, Goncalves said, because they won’t need to buy it from countries having lesser pollution controls.”

Itasca County revives Canisteo Pit dewatering effort, hears about COVID community testing event

September 17, 2020

By Sally Sedgwick


    At its Sept. 8 meeting, the Itasca County Board heard that a COVID-19 community drive-through testing event by Public Health will be held at the Fairgrounds during the week of Sept. 21 (date to be announced). The event is free and will be open to anyone of any age with no insurance information required. The county has recorded 222 cases and 13 deaths as of Sept. 8, according to Emergency Management Coordinator Anna Anttila. As of Friday, Sept.11, five long term care facilities in the county have reported exposure to the virus. For pandemic information, call the message line 218-327-6784 Monday through Friday, 8 a.m. to 4:30 p.m.

    Rising water levels in the Canisteo Pit were of concern a decade ago, but Magnetation then began dewatering the pit. Now levels are rising again by 6 to 7 feet per year which will need to be addressed within 2.5 years. The Iron Range Resources and Rehabilitation has designated $442,000 for a study of the pit and Hill Annex, with $2 million being sought in state bonding toward construction. The Department of Natural Resources wants to develop a discharge system to the Prairie River, but there was discussion among board members that the other direction, to Homan Lake and ultimately Swan River, was more logical. The project will require a party like the county to be responsible for maintenance, which may present liabilities far into the future. County Administrator Brett Skyles was directed to set up a special session with the IRRRB, the county board and its legal department. 

    Ross Resources talked about the challenge in truancy prevention with online learning. It was pointed out that online learning this fall is not the same as last spring: students must be online during class time, and there is accountability for lost learning time. About 15 to 20 percent of public school students in the county have chosen this option. The annual countywide Truancy Prevention Services contract with Ross Resources, Ltd. was renewed for an amount not to exceed $383,828.

    At its Sept. 1 work session, a 10 year Surface Lease Agreement with Prairie Minerals was approved for access, safety buffer, water pump and pipeline from West Hill Mine pit. Concerns about dust and noise were addressed by the company: there is a fugitive dust plan, but fine tailings are not being processed or transported. Loading has moved to the demonstration plant with weighing at the Jessie Load Out.

    Also at the work session, three options for jail design at the downtown site were presented by Kline McCarthy Architects and Contegrity Group. The buildings purchased will be razed before construction. The jail is being designed for 174 beds, down from 206. Acting Chair Burl Ives questioned the setback allowed, suggesting that valuable property should be used for more space inside the building. For design purposes, the board was asked whether it intended to screen all visitors to the building or just the court area, and whether this included the staff. 

    Hon. Heidi Chandler, District Court judge, addressed the board about security, especially the corridor length and width in Option 1. She explained that security included the feeling of personal safety from threats and intimidation created for victims walking the corridor, not only the presence of cameras or screening for weapons. She also noted that the judges did not feel as if their concerns were being heard. Commissioner Davin Tinquist said that Chandler’s comments were brought up at the jail meetings and Commissioner leo Trunt expressed his opinion that a deputy should be present in the corridor. The board approved moving forward with the concept in Option 1. 

    In other business, the board:

    • Approved commissioner warrants of $1,284,760.94. 

    • Accepted a Toward Zero Deaths grant for $18,525 from the Minnesota Department of Public Safety

    • Authorized County engineer to hire Bolton & Menk at a not to exceed cost of $236,513 plus $8,800 in additional fees for engineering design services for road rehabilitation and associated structures on a 3.6 mile segment of CSAH 3 and a roundabout at the intersection of CSAH 3 and 7th Ave. The latter cost will be shared with the city of Grand Rapids.

    • Voided and replaced the existing Unorganized Township Road and Bridge and Unorganized Township policies with a new Unorganized Township Road Policy describing changes in project funding and including Liberty Township.

    • Approved utility easements for Lake Country Power and Wilderness Valley Telephone Company.

    • Approved a grant for the reconstruction of the main runway on the airport for $4,146,662.71 from the FAA, which covers 100 percent of the cost.

    • Awarded structural modification work on the Nashwauk cell tower to One way Wireless Communications for $71,286. This will allow Verizon to join AT&T and T-Mobile as a tenant on the tower.

    The next regular meeting of the Itasca County Board will be on Tuesday, Sept. 22 at 2:30 p.m.

Nashwauk-Keewatin levy question on Nov. 3 ballot

September 10, 2020

By Sally Sedgwick


    Nashwauk-Keewatin will ask voters for a school operating levy on the November ballot. 

    The school has done its part, said Craig Menozzi, former interim superintendent of the district. It has made cuts in its budget – over $640,000 in the last three years. Teacher, paraprofessional and special education staff positions have been reduced. School supplies budgets and programs such as elementary music have been cut. The superintendent and high school principal positions have been combined. 

    But it’s not enough. The district is facing its third year of deficit spending. This is a particularly challenging year with COVID-19, state mandates that are not funded by the state and declining enrollment all being factors. 

    Now the district is looking to the community to help. About 30 percent of Minnesota school funding comes from local taxpayers. Currently the district does not have a voter approved operating levy in place, Menozzi explained. Nashwauk Keewatin currently receives $724 per pupil, the base levy that can be authorized by a school board. That’s about 55 percent of what most schools in the state receive. For more, districts have to go to the voters. In November, Nashwauk Keewatin will ask voters to raise the base amount by $595. At $1,319 per student, that will bring the amount close to the statewide average for its 564 students. 

    The total new levy request would be about $350,000 per year over five years, increased by the rate of inflation each year. 

    The district is not alone. There are over 30 school districts in Minnesota asking for a renewal or increase in operating levy this November. 

    What benefit would this bring to the school district? It will address fiscal integrity and sustainability for the school, said Menozzi. It would also allow the school to maintain and enhance programming (such as elementary music or the high school Career Pathways program), maintain class size, fund instructional supplies and maintain student support and services, he said. 

    The district is being proactive in communicating with its parents and residents, hosting outreach meetings, publishing a fact sheet and, starting in mid September, going live with a website, There will also be a tax calculator to estimate the tax impact for homeowners. Seasonal recreational property is not impacted and agricultural land value for levy purposes is based on the home value plus one acre, according to the district’s fact sheet. For a $100,000 property value the additional levy would be estimated at about $123 annually. 

    For more information, contact Craig Menozzi at or 952-240-5379.

Greenway student start date delayed to Sept. 14

September 03, 2020

By Kathy Lynn / KOZY Radio


    Students of Independent School District 316 will not start the school year until Sept. 14. The $11 million dollar renovation of Vandyke Elementary, Lower Scofield, and the Marble School took about three weeks longer than expected, according to Project Manager Gene Salmi. School board members met for an emergency meeting on Monday and made the decision to postpone student attendance due to the renovation timeline. Delays in getting materials and unanticipated abatement took longer than expected, Salmi said, adding that extra hours would be worked this week and next to get the buildings ready for occupancy. 

    The school board met in regular session last Wednesday, Aug. 26. Superintendent David Pace warned, “We’ve had some delays in air handlers, some delays in tile, and some added things that we’ve had to do as far as asbestos removal that has caused some delays.” Pace said there’s “construction clean” and then there’s “ready for occupancy” clean. 

    When the board met Aug. 26 in the regularly scheduled meeting, a $75,000 grant from the Blandin Foundation was accepted “for emergency assistance to address the inequities in the use of technology for students across District 316.” The district purchased 80 hotspots for families who didn’t have internet or didn’t have reliable internet service. The handbooks for teachers, substitutes, and students also were approved by the board. Changes from last year’s handbooks predominately deal with COVID-19 protocols. 

    Vandyke Principal Sue Hoeft and the board thanked the Greenway Alumni Association for a donation of $3,335.79 for the purchase of Yoga mats. “We were really fortunate that the Greenway Alumni Association was willing to purchase 400 yoga mats for Vandyke for students and staff and the yoga mats will actually be used as part of our COVID plan. We’ll be using the yoga mats in the classroom to social distance and then also in the gym and at music when we’re outside on the library lawn. And, then also when we’re out in our outdoor learning spaces the students will be able to take their yoga mat and have some seating when we’re out in those areas learning, so we are really pleased that they were willing to support us and help provide those for us so that we can get out and about with our learning. Thank you.”

    In other business, the board:

    • Entered into a contract with Children’s Mental Health Services with a not-to-exceed cost of $250,000. 

    • Accepted the resignation of Brittany Steinkraus, Special Education Paraprofessional, Marble Elementary, effective Aug. 14. 

    • Accepted the resignation of Arnold Stanely, Maintenance Worker, effective Sept. 25. 

    • Accepted the resignation of Michele Carrigan, Ojibwe Teacher, at GHS effective end of the 2019-20 school year. 

    • Approve hire of Jennifer Dulong, Girl’s Tennis Head Coach, 8 points, $4,058 effective for the 2020-21 season. 

    • Hired Eric Blair, Girl’s Assistant Head Coach, 4 points, $2,029 effective for the 2020-21 season. 

    • Hired Andrew Sertich, Boy’s Hockey Head Coach, 12 points, $6,088 effective for the 2020-21 season. 

    • Approved a lane change for Madalyn Magner, Counselor, MA 30 to MA 45, effective September 1, 2020. 


    If you and your child determined in-school learning is right for you, you are asked to contact the district. According to the district web page, all parents should have received a notification through Parentlink with an attached survey to let us know your child’s plan to do in school or to distance learn. It is important that we receive this information so ISD 316 can schedule courses, meals, and transportation. The link can be found here

Crews prepare Grand Rapids elementaries for fall opening

August 27, 2020

SRNF Report


    At last week’s ISD 318 School Board meeting, Sean Lewis of consulting firm ICS delivered a status report on the two new elementary buildings ahead of the scheduled Sept. 8 opening of the facilities. Lewis said the project was on time and within the project’s budget constraints. 

    Lewis said that East Rapids Elementary School construction crews were working their way through a punch list of last minute items such as waxing floors, polishing, positioning furniture, and final cleaning. The facility is in very good position with only a few details to be wrapped up, he said.

    At the West Rapids Elementary School, Lewis said work was about one week behind activities at the East Elementary School. Lewis has said in the past that staggering the timing of the two facilities was incorporated by design to take advantage of construction crews that could pivot from one facility to the next. 

    He reported the West facility was also in the punch list phase and that flooring would be wrapped up by week’s end. Once installation of flooring was complete, waxing would begin. Lewis named the same punch list items as the East school when citing last-minute details that would be addressed in the coming days. A new soccer field and baseball filed had been constructed in the vicinity. 

    Final paving would also be done that week. Hawkinson Construction would be doing the final paving at all three sites and striping the pavement would follow shortly thereafter.

    At the Cohasset site, Lewis assured the board that the facility would be ready to go on the first day of school. “It will feel kind of messy. It will be difficult. There will be some tension. Let ICS handle the tension part. That’s fine.” Lewis said that space in the portion of the school that is “mission critical” would be done by the first day of school while a contingency plan has been put in place to do the remainder of the work at the facility this fall. 

    Lewis indicated that there were a lot of details to take care of at Cohasset and that a lot of cleaning would have to take place before the building was ready to go, but was optimistic that the facility would be ready for 318 staff sometime the following week.

    In other business, the board:

    • Approved the hiring of eight teachers, and two support staff while accepting the resignations of one ESP and one custodian.

    • Approved the negotiated settlement between the District and the bus driver unit.

    • Approved adding temporary custodial support.

    • Approved a request to post for a third grade teaching position.

    • Approved the transfer of $1,047,337 from the Long Term Facilities Maintenance Fund Balance Account to Fund 6, the Restricted Fund Balance Account for the purpose of correcting an accounting error.

    • Approved the 2020/2021 student handbooks.

Restart blueprint for 2020-21 school year

August 20, 2020

By Kathy Lynn / 

KOZY Radio


    In person, but not business as usual. Independent School District 316 held a special meeting Aug. 12 to present its plan to reopen the district. Superintendent David Pace made the presentation via the school’s Youtube page. The Restart Blueprint plan details not only the plan to return for in-person learning this fall, but also options for hybrid and remote learning should cases in Itasca County rise. A 12-person task force created the plan, which is available on the district’s website. 

    Parents will be the first defense against creating an outbreak of COVID-19 in the school. Superintendent Pace, “We are requesting that parents, at the beginning of the day, communicate with their student. If they are not feeling well, keep them home. Or, if they’ve had a situation where they have been in close contact with somebody that is symptomatic, may not have a test, but if they have been in close contact, please keep them home.”

    According to the district’s website, local data indicates that we will be able to start the year in-person for all learners, but we know that community spread of COVID-19 may require us to move to more restrictive models and we will be ready. We will be modifying passing times and classroom layouts to create physical distance between our students. Students may also be learning or eating in non-traditional spaces to ensure that space between students and classroom cohorts are maintained.

    Students and staff will also be required to wear face coverings in 316 buildings and on school buses.

Technical courses remain on schedule at NHED colleges

August 13, 2020

By Lee Bloomquist


    Northeastern Minnesota students have sent a clear message to Mesabi Range College officials. After a shortened spring semester due to coronavirus concerns, students want to be back on campus.

    “Local students have voiced to us that they would rather be in the community than be online,” Shelly McCauley-Jugovich, Mesabi Range College provost/chief academic officer, said. “They want to stay in our community.”

    As colleges throughout the Northland formulate fall semester learning plans – and backup plans – leaders at Northeast Higher Education District (NHED) campuses have finalized how to best educate students in hands-on career/technical courses. All career/technical courses such as welding, diesel mechanics, electrical controls and maintenance, construction trades, heating and cooling technician, and others, will continue to be offered. With some adjustments.

    Social distancing, reduced class sizes, staggered scheduling, sanitizing and online lecturing will all be utilized. However, students in hands-on technical courses will also be back in campus laboratories, learning trades vocations. 

    “Our plan is to bring our technical faculty and students on-campus and use all the best practices,” McCauley-Jugovich said. “We have to make sure that students meet the requirements of the course and the lab work. We have things like welding simulators on hand, but it is important for students to be able to go out into industry and have the skills.”

    Northeast Higher Education District colleges are Hibbing Community College, Itasca Community College, Mesabi Range College, Rainy River Community College and Vermilion Community College. Of the five colleges, Mesabi Range and Hibbing have a large number of technical course offerings. The fall semester begins Monday, Aug. 24.

    At Mesabi Range, with campuses in Eveleth and Virginia, instructors will use online technologies such as Zoom and Brightspace for some lectures, McCauley-Jugovich said. But other tools, such as additional class sections, scheduling longer school days, rotating instructional days and using larger lecture spaces, are also being implemented, she said.

    About 53% of Mesabi Range College students are enrolled in technical programs. A full slate of technical programs will be offered, McCauley-Jugovich said.

    “We have students coming in and registering,” she said. “We may have a lot of students who may need to get back into school just because they don’t have jobs.” NHED Interim President Michael Raich noted it’s not unusual that demand for technical education increases during economically challenging times. It’s happened often on the Iron Range during mining downturns.

    “People often take advantage of retraining or upskilling at our colleges during downturns in the economy,” Raich said. “It is important that we continue offering our career/technical programming to meet that need while operating in a safe and responsible manner. The health and well-being of our students and employees is first and foremost.” 

    At Hibbing Community College, a campus preparedness plan in which some first-year technical students will attend school half of the week and second-year technical students the other half of the week will be used, according to Aaron Reini, interim provost. Students in electrical maintenance, automotive and diesel mechanics programs will split the week, Reini said. Other career and technical programs such as culinary, dental assistant, heating and cooling, information technology, law enforcement, medical lab technician, nursing and nursing assistant will use a combination of distance and face-to-face learning. 

    Smaller class sizes, additional sections and rearranging classroom and lab spaces to achieve greater social distancing will all be part of the mix, Reini said.

    “If lecture content can be delivered, we are going to try to do that,” said Reini. “In most cases in our technical programs, our plan includes breaking up into cohorts of students. We’re also adding additional sections for courses in a lab setting.”

    About half of the college’s student body are technical students. Last year, fall enrollment was 1,018.

    This fall, some of nursing programs will be distance learning, Reini said. However, nursing students will be able to use the college’s high-tech simulator labs, he said. School officials are also discussing how students will be able to work at area hospitals and health care facilities in clinical settings as they normally would as part of their education, said Reini.

    Liberal arts courses will be taught primarily through distance learning, he said.

    College services such as housing, food service and computer labs will be open, Reini said.

    At Hibbing, enrollment is expected to be down about 12%, a decline of about 122 students from last fall, Reini said. That compares with about a 13% drop across the Minnesota State system, he said.

    McCauley-Jugovich and Reini both credit faculty and staff with adapting to change. 

    “It’s been a collaboration with our faculty,” said Reini. “It’s been a lot of planning. We’ve been meeting daily. I’m very confident that the quality of the education will not be diminished.”

    “We’re really fortunate to have such quality staff across our campus,” said McCauley-Jugovich. “We are still proactively looking at providing a quality environment.”

Long Term Care facilities slowly reopen to visitors, new state mask mandate in place

July 30, 2020

By Sally Sedgwick


    Early in the pandemic long term care facilities closed their doors to visitors. Months later, more has been learned about the vulnerability of the elderly to COVID-19, explained Dr. Stacy Holl of Grand Itasca Clinic and Hospital and medical director of Grand Village. There are a number of reasons for this, including an overall decrease in the immune system, the presence of other medical problems, dependency on caregivers and a decreased ability to maintain good hygiene. 

    But separating the elderly from visitors also led to the unintended consequences of isolation and loneliness, said Kelly Chandler, manager of the Public Health Division in Itasca County.

    Long term care facilities in the county came together in a press briefing last week to share the current status of attempts to provide socialization to residents. Kyle Hedlund, executive director of Grand Village, said that virtual visits had been accepted by families and actually led to more family interactions. Grand Village has provided a partitioned room with a large window and phone connection and now is doing window visits and outdoor visits. Staffing is a limiting factor in the latter as the area needs to be disinfected between uses.

    Melissa Walters, director of operations of River Grand and Majestic Pines management said that staff has needed to navigate almost daily changes – a ripple effect that goes all the way from resident to families. Staff has embraced all these changes, even when they are asked to do things they’ve never done before, she said. The facilities are bringing back communal dining, with one tenant per table, and will be allowing in essential workers. Testing with the National Guard is scheduled the first week of August.

    The Emeralds have experienced COVID at the facility and have worked closely with MDH auditors and the CDC, said Blake Denke, campus administrator. The facility has been COVID-free for five weeks. A “Book Now” button has been added to its Facebook page to reserve a 30 minute outdoor visit with a resident.

    Dani Donner, director of senior services at Bigfork Valley said its 40 bed long term care facility planned to reopen very slowly, with Adult Daystay remaining closed. It completed three rounds of testing of residents and staff with the National Guard in June.

    The Homestead, part of Deer River-Essentia Health, recognizing the important psychological benefits of social interaction, began limited indoor visits under Minnesota Department of Health guidelines on July 25, said Monique Fox, administrator. The facility has increased its capacity and is open to new referrals with a 14 day quarantine. 

    As of July 23, Itasca County had 113 lab confirmed cases with the number of deaths remaining at 12, said Chandler. Over 50 new cases were added during July with over 5,400 tests completed in the county. Public Health is doing contact tracing of close contacts during the infectious period of new cases, defined as being within six feet for over 15 minutes. 

    Effective July 25, a statewide mandate was put in place to wear masks in all public and business indoor spaces, and outdoors where social distancing cannot be maintained. Many area businesses and organizations have masks for purchase at the door or are providing “Itasca Strong” cloth masks to customers. ElderCircle is distributing masks and accepting donations of sewn masks, fabric or elastic at its office at 400 River Road in Grand Rapids.

    The county COVID-19 information line at 218-327-6784 has expanded its hours. It currently is answered live from 8 a.m. to 4:30 p.m. Monday through Friday, and 8 a.m. to noon on Saturdays and Sundays.

Itasca County to buy Grand Rapids Fire Hall

July 23, 2020

By Sally Sedgwick


    In a direct turnabout, the Itasca County board in its July 14 meeting voted to purchase the Grand Rapids Fire Hall for $2,350,000 as part of its jail project. The purchase would be contingent on occupancy June 1, 2021; a cost share with the city of Grand Rapids on utility relocation; and guarantee of First Avenue street vacation. Originally the county had decided to move forward with a downtown location for the jail without the fire hall property.

    The vote came after a 90 minute closed session.

    The decision to purchase the fire hall was reopened at the July 7 work session when the city of Grand Rapids said that in order to maintain safe fire department operations the city would be unable to sell the parking area serving the fire hall or vacate First Avenue for the jail project. The workaround for the county jail without a street vacation would potentially require 7 to 10 more staff due to design limitations. That could add more than $800,000 per year to the operating budget. 

    Commissioner Burl Ives offered an amendment to ensure all costs would not exceed $58.9 million, the cost of a jail and court on a green site, explaining that it would be wise to know that the jail could be built for the funds allotted before acquiring a building the county might never use. The motion failed for lack of a second.

    The board also appointed a building committee including Commissioner Davin Tinquist, Sheriff Vic Williams, Jail Coordinator Lucas Thompson and County Administrator Brett Skyles.

    Tamara Lowney, president of the Itasca Economic Development Corporation, presented options to the board on spending federal CARES Act dollars being released soon to local governments by the state. Opportunities included a business relief grant program, a manufacturer relief grant program, marketing opportunities for the county tourism industry and a community bucks program to encourage in-county spending. Lowney emphasized that there were winners and losers during the ongoing COVID-19 crisis, and support should go to those businesses impacted by the pandemic. She also spoke on the importance of the tourism industry which generates about $75 million annually for the county and which has declined this year about 60 percent. 

    Public Health Nurse Anna Anttila presented a COVID-19 update. As of July 14, there were 80 confirmed cases and 12 deaths in the county. The increase was attributed mainly to July 4 gatherings, with most increases found in the 20s and 30s age groups. She pointed out that hospitals and care facilities have updated visitor policies; be sure to check with the facility before visiting. COVID-19 supplies are an ongoing issue. State plans for school reopening in the fall are expected the last week of July.


    In other business, the board:

    • Approved commissioner warrants of $2,816,671.12.

    • Recognized new county employees Ellen Burnson (Public Health), Tammi Fairchild (Recorder), Andria Hilton (Public Health) and Cari Alleman (Auditor/Treasurer). Recognized promotions for Cindy Shevich (Land Department) and Tarryn Steel (Recorder), and job transfers for Connie Cook (Auditor/Treasurer), Tanya Finken (Auditor/Treasurer), Jason Johnson (Health and Human Services) and Michael Loidolt (Auditor/Treasurer). 

    • Authorized issuance and sale of general obligation revenue refunding bonds for Grand Village Nursing Home for $1,500,000.

    • Approved a contract for worksite wellness trauma services for county staff with Embrace Mental Health.

    • Agreed to be a fiscal host for Generations Health for the 5 year Bridge to Health Survey.

    • Approved application for a $10,000 Blandin Foundation     grant toward Fairgrounds cattle barn roof repairs and other electrical upgrades.

    • Approved $28,811 budget for 5 year forest recertification through the Forest Stewardship Council for Itasca County-managed forests.

    • Authorized environmental cleanup of a tax-forfeit parcel in Nashwauk whose former owners are seeking repurchase.

    The date for the next regular board meeting was rescheduled to Wednesday, Aug. 12 at 2:30 p.m. in the county courthouse board room.

Mineral wealthy Minnesota offers more than ore

July 16, 2020

By Konnie LeMay


    “Every single county in Minnesota has a mine.”

    Heather Arends, mineral potential manager for the Minnesota DNR, knows the state’s mining industry spans far beyond the edges of its massive iron ore extractions and, as she notes, into all 87 counties.

    Minnesota has multiple thriving operations considered “mining,” whether it’s harvesting peat, carving slabs of granite or extracting Kaolin clay. Some materials travel across the ocean to other countries; others, like aggregate gravel and sand needed for unpaved roads or general road upkeep, rarely leave a county.

    “That’s truly a local resource … mostly used within a 30-mile radius,” Arends says of aggregate. She also oversees the DNR’s aggregate mapping program.

    The importance of such localized operations becomes evident when viewed through local costs, especially to taxpayers. 

    “Eighty to 90 percent of a township’s budget is road and ditch maintenance,” said Arends. Urban areas, like the Twin Cities wider metropolis, often must truck in aggregate with an added taxpayer and environmental expense, she added. “The farther you transport, the more it’s going to cost.”

    Aggregate is just one of the state’s rich geologic resources beyond iron ore. In recent years, Minnesota has risen to fourth in the U.S. Geological Survey rankings of states producing the highest value of non-fuel minerals. The state, according to USGS, in 2019 produced $5.3 billion worth of nonfuel mineral commodities mainly represented by iron ore, but also lime, sand and gravel (construction), sand and gravel (industrial) and stone (crushed).

    Of 35 minerals listed by the USGS as “vital to the nation’s security and economic prosperity,” Minnesota has potential resources for at least six and perhaps more. Those six are manganese, used in steelmaking; titanium used in white pigment or alloys (metal made by combining two or more metallic elements); platinum group metals used as catalytic agents for chemical reactions; natural graphite used for lubricants, batteries and fuel cells; vanadium, primarily used for titanium alloys; and cobalt, used in rechargeable batteries and superalloys.

    Uses for these minerals, often mined mainly in foreign countries, make finding U.S. sources critical, according to the federal government. For a mineral such as cobalt, for example, 70 percent of the world’s supply comes from the Congo, but the United States has an estimated 1 million tons of identified cobalt resources, most in Minnesota.

    Minnesota also is among the top three states producing peat and the top five producing sand and gravel for construction or industrial uses, such as silica for hydraulic-fracturing operations.

    Turns out, we’re in a good mineral neighborhood, especially around Lake Superior.

    The potential for mining copper and nickel in the state has, of course, made headlines, and copper in the state’s geological neighbor, Michigan’s Upper Peninsula, has been mined commercially continuously for about 150 years and even earlier, as seen in ancient Indigenous copper mine pits on Isle Royale.

    On Lake Superior’s northeastern shore near Wawa, Ont., you’ll find gold and micro, or industrial diamond mining, both potentials in Minnesota, which is also part of the same greenstone region.

    Platinum and palladium have been discovered in the Duluth Complex, the geological area basically covering the state’s Arrowhead.

    We have these mineral options, according to George Hudak of the Natural Resources Research Institute (NRRI), “because we have this geological diversity, and we have rocks of quite different ages.”

    Hudak directs the Minerals & Metallurgy Strategic Groups at the University of Minnesota Duluth’s NRRI. As Hudak explains it, this region has different ages of rock with various mineral potentials. Minnesota’s rocks have not been “recycled,” as he called it, and are ancient with a variety of mineral potential. In addition, glaciers helped by scrapping away surface, making some minerals more commercially accessible.

    This region has rock 2.5 billion years old, starting on the western border of Minnesota stretching through southwest Ontario, Quebec and the Canadian maritime provinces. “These are the places where people commonly look for gold, related to fault systems,” Hudak said, as well as copper, zinc, lead, silver and ancient intrusions that may contain platinum, palladium and micro-diamonds.

    Some 1.8 billion to 2.5 billion years ago, an ancient ocean now called the Animikie Basin covered the Iron Ranges of Minnesota across the south shore of Lake Superior onto the northeastern shore of Lake Huron. Iron formations, which Hudak said “formed like bathtub scum around the old ocean” were products of the period’s mineral, chemical and biological interactions. 

    In describing this era, Hudak pulls out a fun-fact for the trivia minded: All formation of iron on Minnesota’s Iron Ranges stopped literally in a geological instant. “It’s like we were making iron formation on a Tuesday morning and late Tuesday night, it stops.” The cause? A 10-mile-wide meteor (some say comet) struck the earth near today’s Sudbury, Ont., northeast of Lake Superior. It changed the chemistry of the shallow Animikie Basin and left a crater about 93 miles across, one edge of which became today’s Slate Islands in Lake Superior.

    NRRI and the Minnesota DNR continue to uncover mineral potentials, working to determine, Hudak said, “if they do occur, how do they occur and where do they occur. Viability (of mining) really comes down to whether or not you can do it in an environmentally safe way and economical way.”

    To that end in 2019, the Minnesota DNR partnered with an Australian firm, Corescan, to do hyperspectral core imaging on 16,371 feet of archived mineral cores from six projects housed at the Drill Core Library in Hibbing. That is a relative small sampling of the more than 3 million feet of drilled core samples archived in the library. Another fun fact: 3 million linear feet is the equivalent of 100 Mount Everests stacked on one another. Details of the Corescan analysis are on the DNR website. “It tells us what rocks are there, and certain rocks have a tendency to hold valuable interest,” said Peter Clevenstine, assistant director of the DNR Lands and Minerals.

    All minerals, by their nature, of course, are non-renewable resources, not replaceable within a human lifetime. Extracting them almost always raises issues of ecological and social concern. “Environmental review plays a critical role in whether or not a mineral resource is a mine-able product,” Hudak emphasized.

    Minerals affect all of our lives. Regardless of what’s mined, Arends said, everyone benefits. “Aggregate mine or even a copper mine, it does provide a role in society because we’re using the materials.”

    The Melbourne Museum in Australia puts it another, homey way: “The coffee cup and toothpaste we use in the morning, our cars, our electronic gadgets and the windows we gaze through are all derived from minerals.”

    Those gadgets and technological advances have a particular hunger for minerals, which might make some of Minnesota’s more obscure, smaller mineral deposits increasingly of interest to the world’s mining businesses.

    Titanium, hard as steel but less dense, is used in air and spacecraft while titanium dioxide can be found in most “white” products, from paint to mini-powdered donuts. Palladium is critical to filtering harmful vehicle emissions through the catalytic converter and can be found in dental fillings or crowns. 

    Even small amounts of minerals can generate large profits, Clevenstine points out, noting iron ore is measured in dollars per ton and base metals such as copper or zinc in dollars per pound, but precious metals such as gold, silver, platinum, palladium are measured in dollars per ounce. 

    History brought us gold rushes, but today we might be rushing for something else. Currently two minerals from the platinum group are among the most expensive, according to Money Metals Exchange. Rhodium sells for $7,600 per ounce and palladium for about $2,000 per ounce; both are used in catalytic converters. Gold is running a poor third at $1,761 per ounce. 

    Other mined resources demand higher quantities, such as dimension stone, the granite or limestone deposits sliced in slabs to use for homes, buildings, roads and tombstones. Peat harvesting looks much like farming, where dried peat is “vacuumed” for domestic uses such as raising earthworms, mushrooms, golf course construction, fertilizers or, on the industrial level, as an oil absorbent or for filtration of waterborne contaminants in mine waste streams, municipal storm drainage and septic systems.

    Minnesota DNR’s Lands and Minerals division is responsible for managing 5.6 million acres of surface and a total of 11 million acres of mineral interests on public lands. (The state has retained mineral interests on some lands.) About 20 percent of the iron ore is within state-managed lands, some of which benefit the state’s Permanent School Fund and Permanent University Fund.

    “Our job is to both be managing the minerals for the trusts we represent, but also do the environmental review on permitting to be sure it’s done right,” Clevenstine said. He points to the $1.4 billion School Fund, mainly built from mining on school trust lands, that uses the interest for K-12 education in the state.

    Perhaps that’s why Clevenstine gets so excited about seeing minerals at work around him, from the steel in his car to the “countertops in my kitchen. Mesabi Black, I know, came from Babbitt.” Rose-colored stone mined by Echo Lake is being used for an arboretum in Grand Rapids, he added.

    “It makes me feel good,” he said, emphasizing iron ore remains the state’s main mining economic engine. “I’m a big fan of iron ore and steel because it’s also the most recycled material – by far more than paper, plastic – 65 percent (of current use) is from recycled steel. That’s a good thing for our planet and keeps iron and steel production sustainable in the United States.

    “When the USGS tracks all of our consumption of metals in the United States,” Clevenstine said, “when you do a pie graph, 90 percent is iron and steel. The remaining 10 percent are all of the other metals. And 80 percent of the iron comes from the Iron Range. It is so dominant in our society and important not just to Minnesota, but to the entire United States.”

Loggers fear regional ripple effect from Verso mill idling

July 09, 2020

By Ron Brochu


    The Duluth paper mill owned by Verso Corp. will be idled indefinitely, the corporation announced last month, affecting more than 200 good-paying jobs.

    If the Duluth mill closes, the impact will not be confined to Verso but will trigger other financial trauma in the regional forest products industry, loggers fear. 

    Verso buys steam and electricity from Minnesota Power Co.’s adjacent Hibbard plant. Hibbard burns biofuel in the form of wood waste to generate that energy. Much of that waste (known as “residuals” within the industry) originates from Verso, while other biofuel is provided by other large forest industry plants. If those other manufacturers don’t have a user for residuals including branches and bark, they could face disposal costs that would make their operations unprofitable.

    “There is no logical reason Hibbard would be there without the mill,” said Chris Fleege, city of Duluth director of planning and economic development. “It would definitely affect the logging industry – that’s for sure.”

    Duluth’s paper mill, which has had several owners since its 1987 opening, was built adjacent to Hibbard in West Duluth because of the affordable energy it could obtain from the power plant. Back then, biofuel was gaining popularity, and it was believed that its usage would continue to grow. But much has changed in the energy market, said Peter Wood, a board member of the Associated Contract Loggers and Truckers of Minnesota. 

    “When solar, wind and cheap gas became available, many companies stopped using waste wood,” he said, “so if the paper mill goes away, there’s a high chance that Hibbard will go away as well.” 

    If that happens, forest industry players would need to find a way to dispose of residuals.


    “It could possibly come to the point where they couldn’t get rid of it or they’d have to landfill it, which is very expensive. There are lots of things that could go really go sour here. There’s a ripple effect,” Wood said.

    Meanwhile, Verso did not tell loggers in advance about the possible closure. Many had already signed contracts and made downpayments to harvest public and private lands to provide balsam and spruce to the Duluth paper mill. 

    “Loggers will be penalized” because those contracts can’t be reversed, said Scott Dane, executive director of the Associated Contract Loggers and Truckers of Minnesota. 

    “Existing (logging) permits are the top concern, then future permits, and then how contracts are structured in the future,” Dane said.    

    His third point references the long-time practice of requiring loggers to take all species that grow on each timber stand. If Verso and Hibbard leave the market, loggers would be left harvesting species for which there is no buyer. 


Paper’s decline

    Verso said the decision to shutter its Duluth plant was made to “offset unprecedented market decline due to the COVID-19 pandemic and to reposition the company for future success.” Much of the paper made in the Duluth mill is used for retail advertising flyers, such as newspaper inserts. With so many retailers fully or partially closed by the pandemic, and consumers told to stay at home, stores sharply cut their advertising during the first quarter. Additionally, newspapers across the region and nationwide cut back on the days they publish a print edition, shrinking the distribution chain for advertising inserts.

    According to the industry publication Fastmarkets RISI, North American printing and writing demand fell by 38 percent year-over-year in April, and operating rates are expected to drop well below 70 percent during the second quarter. 

    “It is critical that we maintain a healthy balance sheet and focus on cash flow, while balancing our supply of products and our customers’ demand,” Verso President and CEO Adam St. John said in the company’s announcement. “We expect the idling of these facilities to improve our free cash flow. The sell-through of inventory is expected to offset the cash costs of idling the mills.”

    Regional economic developers are hoping Verso can receive government incentives to keep the mill operating. Options to save the mill include finding a new owner or converting existing equipment to produce brown packing products, said Nancy Norr, director of regional development at Minnesota Power Co. With other area developers, she is working to help the mill obtain legislative support to make that happen. The process began two years ago, when Verso unveiled a plan to convert its Duluth recycling mill to process packaging-grade scrap paper into pulp. That pulp would then be used on Verso’s paper machine to manufacture bag, packing medium, liner and specialty paper grades. Its effort, however, hit a barrier in the legislature regarding the minimum number of employees Verso would have to retain as part of a tax credit deal. Since then, Verso has negotiated with state officials to find a mutually agreeable staffing level.


Trouble nationwide

    Verso said it would idle the Duluth mill by the end of June and its Wisconsin Rapids mill by the end of July, resulting in a combined layoff of approximately 1,000 employees. The papermaker said its future options include restarting the mills, selling them or closing them permanently. 

    Late in April, UPM Blandin of Grand Rapids announced a temporary closure, also citing impacts related to COVID-19. According to the Minneapolis Star Tribune, Sappi in Cloquet has instituted temporary rotating layoffs.

    Beyond the temporary impact of idling paper mills, “The ripple effects are very concerning,” said Mike Birkeland, executive vice president of Minnesota Forest Industries (MFI) and the Minnesota Timber Producers Association (TPA).

    “It creates problems for suppliers – the loggers who provide wood to the mills. They’re going to have to make adjustments,” he said.

    Minnesota’s forest products industry employs 30,000 people and has a $1.8 billion annual payroll. Nationwide, the payroll is $9.1 billion each year.

    “We’re still a region that’s dependent on natural resource-based industries,” he said. “When issues like this arise that are beyond our control, it certainly has impacts.”

    The Verso mill previously was owned by New Page, Pentair, Consolidated Papers and Stora Enso during its 28-year history.

Grand Rapids Speedway to reopen

July 02, 2020

By Sally Sedgwick


    In its June 23 meeting, the Itasca County Board heard that the Grand Rapids Speedway would be reopening in early July. Land Commissioner Kory Cease said that the Speedway Association’s COVID-19 response plan had been approved and the facility would be operating at a capacity of 675 people. 

    Cease asked anyone planning a gathering at county facilities to contact the land department at 218-327-2855, and the department will help them plan a safe event.

    The board also heard a report from Aquatic Invasive Species Program Coordinator Bill Grantges and approved the program’s 2020-2021 budget. Last year the AIS Program did 26,500 watercraft inspections and logged over 2,400 volunteer hours. Their programs reached over 5,500 students. Of note was the purchase of a new cross-polarized light microscope that allows checking for zebra mussel veligers on site. 

    Grantges addressed the question of trying to prevent the “inevitable” when it comes to zebra mussel infestations. “It’s only inevitable if we say it’s inevitable,” he said, point to the fact that, with the exception of North Star Lake, there have been no new infestations in the last six years that are not downstream of an existing infested lake. 

    “I’m optimistic,” he said. Still, boat users should remain vigilant. “It’s everyone’s responsibility to clean their own watercraft…we have to do it together,” he added.

    In other business, the board:

    • Approved commissioner warrants of $1,933,179.94.

    • Approved June Health and Human Services warrants of $1,218,581.31 with the note that out of home placements are trending downward.

    • Recognized county employees with 5, 10, 15, 20 and 25 years of service. Three employees were recognized for 25 years of service: Don Warwas, Brenda Simonson and Maureen Kangas.

    • Approved MOUs regarding medical insurance with nine union local representatives, and updated fringe benefits for eight individuals and elected positions, and the 2019-21 collective bargaining agreement with Local 639-3.

    • Approved cooperative agreements with the Department of Natural Resources and Minnesota Pollution Control Agency. 

    • Approved the Master Subscriber Agreement for court data services.

    • Approved a cooperative agreement with two counties on a highway reflective edgeline project.

    • Awarded a timber bridge replacement contract in Wildwood Township to S & R Reinforcing, Inc. for $280,143.36.

    • Heard a regular update on the pandemic from Kelly Chandler, manager of the Public Health Division. She noted that visitor restrictions at hospitals and long term care facilities are lifting, but visitors should call ahead as requirements are different between facilities. 

    • Heard an update from Shelley McCauley of IMCare on the provider quality satisfaction survey showing a satisfaction rating of 98 percent from medical providers in the network.

    • Heard testimony on both sides of a tax forfeit repurchase request and tabled the issue to the July 14 regular meeting for resolution. Land Commissioner Kory Cease was asked to draft findings of fact from the discussion.

    • Approved a resolution to be sent to the Minnesota Department of Corrections authorizing construction of a jail west of the courthouse at 123 NE 4th St., Grand Rapids to meet the DOC timeline.

    The next regular session of the Itasca County Board will be Tuesday, July 14 at 2:30 p.m. in the County Board Room.

N-K School Board mulls extending online learning option

June 25, 2020

    The ISD 319 School Board opened its regular meeting this month with High School Principal Ranae Seykora addressing the lessons learned from distance learning this past spring. 

    Seykora polled teachers in the District and found that if distance learning is necessary again in the future, teachers are most concerned about the ability to plan and deliver consistently to that planning across the district. Other concerns included staff and student health as well as equal access to technology.

    She noted that a planning team that is being developed amongst Nashwauk and Keewatin teachers, with the goal of planning for three possible scenarios for the coming fall: A full return to school by staff and students alike, continuation of distance learning or a hybrid approach that combines distance learning and in-person learning. 

    Seykora said that a distance learning component will be necessary because when parents were polled, 10 percent indicated they would not be sending their students back to school for face to face learning. “We want to keep them. We want to capture them. We want to be ready to say ‘Stay with us. We can provide online.’ Otherwise we might lose that enrollment,” she said.

    Board Director Bill Hendricks asked Seykora; “So if they stuck to what the survey says and they chose to not send their kid back to school and we did not have distance learning available for them, we would lose the money from the state if they chose to open-enroll with someone that does?” 

    “Exactly and there’s a lot of people offering online right now,” Seykora responded.

    Seykora highlighted other findings of the survey. In the event of continued e-learning, parents wanted to see more accountability, more interaction between students and teachers and more attention to mental health considerations. Parents in the district are divided on whether or not students should be required to wear masks when they return to school, according to survey results.

    Outgoing Superintendent Matt Grose said that the Minnesota Department of Education (MDE) is encouraging districts to make contingency plans for the three possible methods of delivering education in the fall. Grose said that summer school was currently being conducted under the hybrid plan. He said this was giving the district a chance test various methodologies so that wrinkles could be ironed out before fall classes begin.

    During the week of July 27, MDE will announce which educational delivery model will be in the best interest of the health and safety of students, school staff, and school communities. Grose said that he was one of several area superintendents that would like to see that decision delegated to local authorities. 

    “What’s happening in Burnsville might not be the same as what’s happening in Belgrade which may not be the same as what’s happening in Warroad,” said Grose.

    Hendricks expressed concern that the district may have to invest in things like face shields and portable hand-washing stations which potentially might never be used. Grose said that he anticipated some clarity on issues like that from the state in the coming days.

    Returning to the three models, Grose said that he thinks the district should be prepared to pivot from one model to another. “We have to be prepared to educate those children no matter where they end up being and we have to do a really good job of it,” he said.

    Grose concluded his remarks by talking about the financial situation of the pandemic for the district. Grose said that Nashwauk-Keewatin would be receiving about $16,000 from the state. He said that the Governor has discretion as to how the money should be spent. Grose said that Governor Walz wants the money to be spent on technology and summer school. The district also is eligible to receive about $117,000 from the federal government. Grose said that the bottom line is that the federal money offers more flexibility and it can be used to pay for things such as teacher’s time for planning, hand-washing stations, supplies, nurses and more. 

    Grose said that one more source of money that the district must keep an eye on is coming from the private sector under the name of Partnership for a Connected Minnesota. Private firms infused money into Partnership for a Connected Minnesota and that money would flow to local foundations. The Blandin Foundation is the organization that will act as a conduit for getting money to local school districts, including Nashwauk-Keewatin, through clusters. 

    District 319 belongs to the IASC (Itasca Area Schools Collaborative) Cluster. Grose said that IASC will ultimately apply for the money and that the Cluster stands to gain up to $250,000 from a successful application. Nashwauk-Keewatin would receive approximately $24,000 if the full $250,000 is awarded to the cluster.

Jail option vote: It’s Orange (well, modified Orange/Blue) at 3-2

June 18, 2020

By Sally Sedgwick


    At its June 9 meeting, the Itasca County Board voted to proceed with building a new jail downtown extending on the south half of the city block to the west and attaching to the courthouse, with some remodeling of the courthouse. 

    Commissioners Ben DeNucci, Terry Snyder and Leo Trunt supported the motion, Commissioners Burl Ives and Davin Tinquist opposed it. The site will include three buildings on the block but neither City Hall nor Fire Hall. The actual scope is yet to be determined.

    Before the final vote, Commissioner Ives opened discussion on constructing a new jail only on a greensite, cost at this point - $37.5 million. His motion was defeated. Also earlier in the meeting, the commissioners had received two public comments, one from the Itasca County District judges urging the board to look at current and future justice needs and not taking a piecemeal approach that would be neither efficient nor effective. They noted that there is a lack of adequate space in the courthouse. In a second public comment, resident Molly Randall asked that the vote be postponed until the public could be present.

    The vote closes a debate that has extended over two years.

    In April 2018, Itasca County received a sunset letter from the Minnesota Department of Corrections, directing it to correct deficiencies that would require a new jail by Sept. 1, 2021 or lose its authorization to operate.

    A jail task force was assembled and met for 11 months, resulting in two options, building a new jail and courthouse complex adjacent to the existing courthouse to the east, or building a new facility including a jail and courts on a green site. Itasca County District Court judges and the chief judge for the Ninth Judicial District added a lengthy letter urging the county to consider the needs of the court system as well. 

    The board decided to take over the function of a jail committee in late 2019, narrowing a number of proposals down to two: an Orange option which took the east half of the block west of the courthouse and remodeled the courthouse, and a Green option, building on property near the airport. Another Blue option used the south half of the city block to the west, but was not chosen at that time.

    To bring the public into the discussion, commissioners set up 20 town halls around the county as well as meetings with special interest groups to explain the two options. They also offered an initial and revised public survey. Together the surveys had 1,552 responses. A new green site location was preferred by 47 percent while 33 percent preferred an addition to the courthouse. The remainder were classified as “do nothing” or “other.” 

    While voting, the commissioners spoke briefly on their major concerns. In general those voting for the Orange plan wanted to keep adjacencies intact without adding another property. Those voting for the Green option believed the green site would be more cost effective and control budget creep over an older building remodel. 


Other business:

    “Some things that changed probably should stay in place,” said Eric Villeneuve, director of Health and Human Services. During the COVID stay-at-home orders, clients were allowed to do virtual visits and phone signatures. Over 50 waivers are in place and Villeneuve said he hopes high risk clients can continue to operate by phone. The CARES Act distributed $2.1 billion to the state, he said, but no agreement has yet been reached on how to distribute it, including the portion directed to local governments. The peacetime emergency declaration expires on June 12 and a legislative special session is expected. 

     In a COVID-19 update, Kelly Chandler, director of the Public Health Division, said that the Emergency Operations Center is planning for next steps, including “What a mass vaccination clinic could and should look like.” The National Guard is assisting in testing residents and staff at skilled nursing and assisted living facilities by request and just completed first round testing at Bigfork Valley Villa and Communities. There will be two more rounds, spaced seven days apart. In response to a question, there is one county location offering antibody testing, but no positive results yet. Commissioner Trunt asked Chandler to find out when the public can be invited back to board meetings.

    In other business, the board:

    • Approved commissioner warrants of $1,167,655.20.

    • Accepted a CARES Act grant agreement of $69,000 to reimburse certain airport expenses relating to COVID-19. Grant runs for four years.

    • Amended the Fairgrounds raceway lease agreement to reflect new operator Grand Rapids Speedway, Inc.

    • Approved final payment to William J. Schwartz and Sons for the CR340 bridge replacement. 

    • Approved annual state grant toward boat and water safety from the state of $37,105.

    • Approved policy on use of outside counsel where specialized expertise is needed. All use of outside counsel will require County Attorney and County Board approval with a few exceptions.

    • Approved a letter of support for the Johnson Lake Association no wake/slow zone request for the north bay of the lake. The request will be made to the commissioner of the Department of Natural Resources and will require a public hearing and a county ordinance so it can be enforced. 

    • Heard that with state reopening guidance there could be limited use of the Fairgrounds raceway (25 percent capacity with a maximum of 250 people). Land Commissioner Kory Cease is prioritizing what work is necessary at the Fairgrounds for the remainder of the year.

    • Approved moving forward with the 2020 Firewise Grant application with one coordinator, contingent on award of the grant. In discussion, current mitigation efforts are directed toward access to properties for fire equipment.

    • Approved moving forward on filling two existing, budgeted positions in the Sheriff’s Department.

County Board reviews jail option costs, learns of state legislature special session requests

June 11, 2020

By Sally Sedgwick


New editor's note: In a 3 to 2 vote, the Itasca County Board selected a downtown option for the location of the new jail at its Tuesday meeting. Commissioners Ben DeNucci, Terry Snyder and Leo Trunt supported a modified downtown option connected to the courthouse, not including the Fire Hall.  The modified “Orange/Blue” option would extend west from the courthouse along Highway 169N. Earlier a motion to build just a jail on a green site was defeated. The vote followed a lengthy process of an eleven month jail task force discussions, 36 town hall meetings and a county-wide survey. 


    In a sometimes testy discussion during its June 2 work session, county commissioners tried to nail down final numbers and questions to be answered before the decision on the jail option is made at its June 9 regular session. 

    Commissioner Burl Ives listed construction numbers that had been received over the last year for the two jail options and asked whether they were complete and still accurate. Of particular concern were court remodeling and IT costs, and whether remodeling costs included accessibility upgrades. Commissioner Terry Snyder said that the board had not agreed to do any remodeling yet; its charge was to build a jail and the additional features would be à la carte. 

    Ives suggested that the scope for the court needs may even have changed as the court had developed new ways of doing its business with the lockdown.

    Ives spoke about the Fire Hall acquisition required for the orange (downtown) location. The city would be $5 million short in the cost of a new fire hall after being paid for the old building, and that would be added to property taxes of those served by the department. 

    He also pointed out that all of the labor estimates were based on prevailing wage instead of project labor agreement numbers, leading to a contentious discussion. There are only three companies in Minnesota that specialize in building jails, said Ives, although there are a number that might bid on a remodel.

    Commissioner Davin Tinquist pointed out that the board was looking at two different projects on two different locations. Once the project was selected, there was still going to be a discussion to define the scope.

    In the end, “we have to make a decision on what’s best for our taxpayers,” said Ives.

    Commissioner Terry Snyder said that there was interest from local legislators to support a request for an additional 12 month extension on top of the 20 month extension granted by the Department of Corrections to a sunset date for the jail construction. He also hoped for movement on the local sales tax request during the special session starting June 12. In all the 36 meetings and hundreds of conversations with constituents, Snyder pointed out, there were different opinions on what the jail project would look like, but overwhelming support for a local sales tax to pay for it. 

    Administrator Brett Skyles was asked to research what different types financing required a public referendum or a public hearing in the absence of a local sales tax option. 

    The board heard from Land Commissioner Kory Cease that campgrounds are now open, but the county is still looking for a campground host for the Fairgrounds. There are plans to move forward with youth sports and videoconference judging for 4H projects. 

    Kelly Chandler, manager of the Public Health Division updated the board on the pandemic. There are over 60 cases in the county as of June 2, ages 6 to 93. The highest number of cases are in ages 20-29 and 80-89. About 35-40 are now out of isolation. Testing has been extended to those who have participated in recent protests or participated in the clean-up. 

    In other business, the board:

    • Forwarded to the June 9 regular board meeting consent agenda: final payment to William J. Schwartz and Sons for the CR340 bridge replacement, annual state grant toward boat and water safety from the state of $37,105, CARES Act grant agreement of $69,000 to reimburse certain airport expenses relating to COVID-19 and a policy on use of outside counsel where specialized expertise is needed.

    • Congratulated Emergency Management Coordinator Marlyn Halvorson on his retirement on June 3.

    • Discussed moving the budget process earlier than the usual August start date.

    • Heard that in a compromise with residents and the county highway department, dust control has been applied to Highway 45 gravel on portions not near lakes. Highway 45 will have bituminous surfacing next year.

Central Range schools to move forward with collaboration

June 04, 2020

By Beth Bily


    Central Iron Range school districts, including Hibbing, Nashwauk-Keewatin and Chisholm along with Floodwood, have announced plans to move forward with next phase exploration of collaborative opportunities.

    In a Tuesday afternoon press conference, the school districts’ superintendents as well as Range Association of Municipalities and Schools Executive Director Steve Giorgi, said they will be jointly sending out a request for proposals for a consultant to engage the respective school boards and communities in shared services discussions. Officials say the shared resources talks are aimed at enhancing student opportunities. 

    “We’re stronger as a Central Range group than as individual districts,” said Hibbing Superintendent Rich Aldrich. 

    A recent survey among community members indicated strong support within the four districts, with an average of 80 percent favoring collaboration at some level. Officials were quick to point out, however, that the current talks are aimed at collaboration, not consolidation. 

    The school boards have indicated they are “on board” if their community is on board, said Janey Blanchard, Chisholm superintendent. “We’re not talking about consolidation, but collaboration.”

    What “collaboration” among the district looks like will likely take shape during a first phase of exploration, which is set to be completed this fall. Officials outlined possibilities such as classes (either virtual or in person) from one district being made available to students in other districts. Other possible areas of shared services identified in the community surveys were: busing, staff, facilities, sports, community education and administration.

    At Nashwauk-Keewatin, collaboration talks have been a cornerstone of district planning for more than 13 years. Craig Menozzi, representing Nashwauk-Keewatin, noted that a 2,000 student-strong organization was certainly capable of offering more to students than a single 500 student district. 

    Officials also noted that Hibbing Community College and post-secondary options will be part of any collaborative model. At the press conference, it also was stated that Greenway School District had been invited to participate in collaboration talks, but declined.

    Meanwhile, with RAMS acting in the lead, the districts will jointly issue a request for proposal for a project facilitator. Officials expect that firm/person to be selected by the third week in June. The anticipated cost of the facilitator is estimated at $30,000, with half to come from the four districts and the other half from a matching funds IRRRB grant.

County to take weekly look at reopening county facilities, parks and fairgrounds

May 21, 2020

By Sally Sedgwick


    The county board has decided to take a stepped approach on county properties opening to public use under the governor’s executive orders. County Land Commissioner Kory Cease had sought county commissioner input at the May 12 county board meeting.

    Discussion centered around the fairgrounds and county campgrounds; all county public accesses are open. Gunn Park is currently open. Loss of revenues from fairground events that are used to maintain the facilities was discussed as well as the loss of tourism. Commissioner Burl Ives said that he had been active in state-level discussions about the effect of decreased tourism on the local hospitality economy. Commissioner Leo Trunt asked whether any federal grants were available to help with cleaning costs or lost revenues. 

    The decision was made to cancel fairground events through May, including racing, with weekly reviews of state executive orders. A letter will be sent to the Agricultural Association on county procedure. The annual Car Show and Swap Meet sponsored by the Grand Rapids Area Chamber of Commerce is taking reservations, but will make a decision on the event at the end of May.

    Manager of the Public Health Division Kelly Chandler and Marlyn Halvorson, county Emergency Management coordinator gave a weekly COVID-19 briefing. There are over 40 lab test confirmed cases with two deaths. Curbside testing has expanded eligibility to all COVID-19 symptomatic cases, as well as those scheduled for surgery or OBGYN patients. Last week, the Public Health Division learned that people were testing positive without symptoms, so it recommends masking while in public.

    Health and Human Services Fiscal Manager Crissy Crebs is heading up the public infrastructure reimbursement process for the pandemic.

    In other business, the board:

    • Approved commissioner warrants of $750,344.03.

    • Approved a five year agreement with Honeywell Building Solutions for software upgrades for the Enterprise Building Integrator system at an initial year price of $26,320.

    • Authorized Itasca County to sponsor existing snowmobile, ski and ATV trails for 2020-2021. As sponsor, the county can request maintenance cost-sharing between the Department of Natural Resources and clubs.

    • Authorized a change in the June 12 sealed bid timber auction to require bids by percent bid up rather than bid up value.

    • Authorized filling a vacant deputy treasurer position postponed due to the hiring freeze.

    • Heard from county treasurer Jeff Walker that mail-in tax payments appeared to be successful. As of May 12, over $40 million had been collected in property taxes, comparing favorably with $33.6 million at the same time last year.

    The next regular Itasca County Board meeting is scheduled for Tuesday, May 26 at 2:30 p.m.

Construction projects scheduled for Itasca, Vermilion community colleges this summer

May 07, 2020

By Lee Bloomquist


    Construction of the first-ever student center at Itasca Community College – the only one of its kind at a Minnesota community college – is exactly what students wanted.

    Groundbreaking on a $4.9 million McMahon Student Center is planned for mid-June, said Bart Johnson, Itasca Community College (ICC) provost.

    “This will transform the student experience,” said Johnson. “At the same time, it’s a good chunk of money and a good shot in the arm for economic activity in the region when things are being delayed.”

    It’s the first time the 98-year old college in Grand Rapids will have a centralized gathering space for students.

    Construction of the 10,000 square-foot center includes renovation of about 5,000 square-feet of existing space in the college library and media center. Another 5,000 square-feet of a connecting hallway will be demolished and rebuilt with new construction.

    Funding for the project is entirely from donations to the Itasca Community College Foundation.

    “The foundation just completed fundraising in February and has issued us a check,” said Johnson. “The cash is in hand.”

    Nearly 300 businesses, organizations, community members, alumni, faculty and staff, contributed to the project, said Susan Lynch, ICC Foundation/Alumni director.

    “It’s been honestly just phenomenal,” said Lynch. “It’s been overwhelming to me how many people care about education and young people.” 

    ICC students several years ago identified the need for a student center as a top priority. A steering committee was formed followed by silent and public fundraising campaigns.

    “It’s been about three years in the works,” said Johnson. “It’s the first time we’ve ever done a capital campaign at this level. For a rural community college, it’s almost an unbelievable amount of dollars.”

    Local and regional contractors on April 7 participated in pre-bid meetings at the college. With successful bidding, construction begins this summer. The center is expected to be complete in the fall of 2021.

    The project will create a stronger sense of connection among students, allow for additional programming such as fishing and camping to originate from the center, and help better connect students with the community.

    “Most of our students don’t have that kind of gathering space. That’s the most exciting part about it for me,” said Johnson. “In a time of cell phones and social media, students have that interest to gather and come together. It’s also a spot where students can connect with community members and community organizations.”

    Dr. Jack McMahon – a Grand Rapids native, former ICC student, and longtime Twin Cities orthopedic surgeon – along with his wife Mary Margaret McMahon, a Nashwauk native, kicked off fundraising with a $500,000 donation.

    Cargill Foundation contributed $500,000. Blandin Foundation and Itasca Community College Foundation also supported the project.

    “It’s extraordinary for a small college and a rural community to successfully support a project of this size exclusively through fundraising and private donors,” said Michael Raich, Northeast Higher Education District interim president. “ICC and the community of Grand Rapids should be very proud of what they have accomplished. Several generations of ICC students will reap the benefits of this visionary endeavor. It’s a real game changer for the ICC campus.” 

    ICC, said Lynch, will be the only community college in the state to have such a student center.

    “The students asked us for this,” said Lynch. “They’re craving a space where they can interact.” 

    The center will be a major asset in recruiting, said Johnson.

    “It’s important to the college because we serve both local students and students outside the one-hour driving range,” said Johnson. “We have to be an institution that local kids want to go to and that kids from outside the area want to go to. When compared to a four-year institution, it’s very important in being able to attract students.” 

    Construction jobs are also a meaningful result of the project, said Johnson.

    “It’s important to the economy of our region at this time,” he said. “It’s not only great timing for the campus, but a great time for our community and for the region as far as contractors.” 

    At Vermilion Community College in Ely, a leaky roof over the classroom building is causing concern about mold and the potential for damaging three laboratories and a lecture hall that have already been remodeled. A $2.6 million construction project would replace the roof and renovate six general classrooms beneath it. However, the project is dependent on the results of a 2020 Minnesota legislative bonding bill.

    “I’m optimistic as long as the bonding bill happens,” said Shawn Bina, Vermilion Community College provost. “We’re eighth on the MnSCU (Minnesota State Colleges and Universities) list, but the whole calculus changed due to COVID-19 and the state budget.”

    Gov. Tim Walz included the project in his bonding proposal. Replacing the roof is a $1 million project. Renovating the 1971-era classrooms, including updating with modern technology capability, is $1.6 million.

    “This roof has been in need of repairs for 10 years now,” said Bina. “We’ve been patching it every year. But the insulation ranges from damp to saturated in many parts and we don’t want to get mold problems.” 

    With funding, roof construction would be completed by fall, said Bina. Classroom renovations would be completed during the summer of 2021.

     The project is a perfect example of why the state’s bonding program is important for Greater Minnesota, said Raich.

    “This design will transform a large and important part of the VCC campus, which will be very attractive to prospective and current students,” said Raich. “I can’t thank our local legislators enough for always championing regional bonding projects such as this one.” 

    Itasca and Vermilion community colleges are part of the Northeast Higher Education District (NHED). NHED also includes Hibbing Community College, Mesabi Range College and Rainy River Community College.

COVID-19 creates financial strain for hospitals

April 30, 2020

By Sally Sedgwick


    “Hospitals are here 365 days, 24/7; our lights never shut off,” said Kevin Nokels, CEO of St. Luke’s in Duluth. “At a time like this we are privileged to take on this role.” 

    But trying to forecast timelines and resources needed to do this is like standing on the brink of a valley. “We can’t see across the valley – how deep or wide it is,” he said, and it is important that “we are still strong when we get to the other side of the valley and still strong to serve our communities.”

    Staying strong is a serious issue. Since March 16, St. Luke’s has averaged a $4 million loss per week. Hospitals have had to outlay funds to purchase supplies, convert facilities and maintain a skilled workforce. At the same time, a bigger problem financially is the loss of revenue, said Todd Christensen, director of finance at Grand Itasca Clinic and Hospital in Grand Rapids. In order to protect health care workers and patients, and to conserve supplies for COVID-19 patients, elective procedures and patient visits for departments from surgery to physical therapy have been postponed. 

    “We’ve told our main source of revenue to stay at home,” said Jean MacDonell, president and CEO of GICH, “which was the right thing to do.” But as a result, GICH is losing 40 percent of its total operating revenue on a weekly basis. 

    In a letter to its congressional delegation, the Minnesota Hospital Association estimated that statewide, hospitals were losing $31 million in revenue each day, from a 55 percent reduction in revenues to as much as 70 percent for smaller hospitals. In fact, all of its member hospitals are in “a pretty dire financial situation,” according to an MHA spokesperson.

    There are state and federal grants that are beginning to address some of the shortfalls. An initial short term emergency fund of $50 million was distributed by Minnesota in grants to health care organizations from hospitals to nursing homes in early April. An additional $150 million became available in mid-April. In general, the grants apply to expenditures for supplies. 

    Hospitals received money from the CARES Act which also provided stimulus checks to individuals. GICH said that its check will cover one month of lost revenues. Medicare providers have several sources of funds, from advance payment loans from the Centers for Medicare and Medicaid Services to increased reimbursements and relaxed regulations. A bill in Congress co-sponsored by Rep. Pete Stauber (Immediate Relief for Rural Facilities and Providers Act of 2020) will target rural and critical access hospitals – hospitals already under financial stress before the pandemic - and other providers for grants and loans.

    Gearing up to have adequate supplies and facilities when the numbers needed are uncertain has proven to be a challenge. Traditional supply chain ordering just isn’t possible, or deliveries are pushed into the summer. Fortunately, hospitals in the region have been sharing and moving around resources for over 20 years in the Northeast Healthcare Preparedness Coalition, one of eight emergency preparedness regions in Minnesota. 

    But if there aren’t enough supplies in the region, and they aren’t available to order from manufacturers, where can they be found? “In a time when access to these resources is very limited, our community is innovating, transitioning their operations and supporting the needs of those on the front line,” said Adam Shadiow, NHPC regional coordinator. 

    With traditional suppliers out of the picture, his sources have been surprising. Cirrus, an aircraft manufacturer, and Frost River Trading, which does industrial sewing, have partnered and retooled to produce over 30,000 disposable face shields. The companies are also working on powered air purifying respirators (PAPR hoods). Duluth Pack brought workers back to sew hospital gowns with assistance from Story Kromer, a cap maker from Ironwood, Mich. Wintergreen Northernwear of Ely is making masks. A Proctor high school industrial arts teacher is making ventilator splitters (so one ventilator can serve 2 to 4 patients) on a 3D printer at home, and using the project to teach his students online.

    “I’m not aware of an effort like this since WWII,” said Shadiow. “It’s remarkable, to say the least.” Shadiow is open to taking calls from local companies who have innovative solutions at 218-726-0070.

    Purchasing additional supplies and equipment is still a cost: for St. Luke’s that number is about $2.5 million plus planning time and training, with labor adding an estimated $3-4 million. A smaller hospital like GICH still estimates expenditures of $50-100,000 just on additional supplies such as PPE.

    In addition to consumables, hospitals have made changes in facilities as well to make them more relevant to a contagious respiratory illness like COVID-19. St. Luke’s has converted regular hospital rooms to intensive care-ready rooms, going from 25 to 81 ICU level beds. Those modification costs also include additional information technology, wiring, monitors and more. GICH has gone from 3 to 19 ICU level beds. Critical access hospital Bigfork Valley has repurposed its day surgery rooms to create isolation rooms. A small hospital like Bigfork Valley would send patients that need a higher level of care to larger hospitals, possibly accepting less severely affected patients itself. 

    With fewer patients, staffing has been decreased with a variety of furloughs, vacation or leave time, reduction in hours or cross-training as well as layoffs. “We’re confident we can bring everybody back, said MacDonell, “but we don’t know the time frame.”

    That’s a problem. How wide is the valley? When will these resources be needed in northeastern Minnesota? Estimates on the timing of a surge in patients range from mid-June to mid-July, according to the model used.

    Meanwhile, hospitals are continuing to gather supplies, furloughed health care workers are waiting, and rooms sit empty. Fortunately, even as the hospitals are committed to their communities, the reverse has proven true. There has been an outpouring of support, said Nokels, and contributions and donations are still welcome and needed. Donations are generally handled through the hospital or community foundations, with drop off locations for hand-sewn masks, gloves and other supplies. Donating blood is also a way to help in the health care crisis. Local blood donation drive sites can be found on the Memorial Blood Centers website,

    “We’re in a bit of a holding pattern,” said Shadiow. “It’s important for us to maintain the course.”

Fifteen percent of NE MN workers file for unemployment

April 16, 2020

By Lee Bloomquist 


    In the span of a month, more than 20,000 people - about 15 percent of all northeast Minnesota workers - filed unemployment applications with the state.

    From March 15 to April 9, 23,843 persons in the Minnesota Department of Employment and Economic Development (DEED) seven-county Northeast Planning Region filed for unemployment insurance, according to DEED.

    That’s about 15.3 percent of the 156,069 total people employed in the Northeast Planning Region. 

    “Fifteen percent of people applying is a large number,” said Carson Gorecki, DEED Northeast Regional analyst. “One that in the scheme of history in what’s been kept track of, is the highest in that length of time.”

    St. Louis County, the largest county in the region, topped the seven counties with 15,178 applications. Itasca County was second with 3,043 followed by Carlton County with 2,347.

    DEED’s Northeast Planning Region also includes Aitkin County (949 applications); Lake County (843); Cook County (742); and Koochiching County (741). 

    The statistics are a graphic reminder of the toll the nationwide economic downturn is taking on businesses and workers.

    “The thing is, it’s everywhere,” Gorecki said of unemployment filings. “There might be some gradiation in different areas, but it seems like its happening everywhere.”

    Since March 15, 407,362 unemployment applications have been filed in Minnesota, according to DEED.

    Hennepin County leads the state with 98,928 applications from March 15 to April 9.

    In northeast Minnesota, it’s the service industry that’s been especially hard hit.

    Food and beverage serving, cooks and food preparation workers and retail sales, are the highest impacted occupations in northeastern Minnesota. Health care isn’t far behind. 

    In Cook County, where leisure and hospitality business is a major part of the economy, unemployment filings in those sectors has been high, according to Gorecki.

    DEED statistics underscore the impact across the region. 

    Of the March 15 to April 9 total northeast Minnesota applications, 2,692 were filed by food and beverage serving workers, 1,337 by cooks and food preparation workers, and 1,108 from retail sales workers.

    Health care support occupations, health technologists and technicians, management occupations, vehicle and mobile equipment mechanics and installers, top executives, and education training and library occupations, are among other highly-impacted occupations.

    Within the Northeast Region, persons with some college education or a high school education, have been filing for unemployment more than those with more advanced degrees.

    Of those with some college education, 6,689 persons filed for unemployment. Of those with high school educations, 6,096 filed.

    Four-year college degree graduates filed 2,621 filed applications Those with a two-year degree filed 2,289 applications. Those with advanced education filed 670.

    During the March 15 to April 9 time frame, 10,629 women and 8,858 men filed for unemployment in northeast Minnesota. Non-hispanic white workers account for 17,064 of the filings; American Indian or Pacific Islander 560; and Black 325.

    Ages 25-34 within the northeast region filed the most applications with 4,915. Ages 35-44 were next with 3,989 applications. 

    As the economic downturn lingers, it’s uncertain whether unemployment filings will decrease, stabilize or increase.

“All we can really say is that there’s uncertainty,” said Gorecki. “It’s really tough to project anything.”

    The Minnesota Unemployment Insurance Program is a temporary partial wage replacement program for Minnesota workers who are unemployed through no fault of their own.

Solving distance learning issues at Greenway and Bigfork

April 09, 2020

By Sally Sedgwick


    “We’re walking into a different world as far as distance education in a very, very short time,” said Greenway ISD 316 Superintendent David Pace. 

    With just eight days to implement it at the end of March, district teachers needed to not only plan distance learning lessons, but also how to deliver those lessons to families with widely varied resources; from high speed internet to no internet at all.

    And, to complicate matters, the district was committed to successfully maintaining the Career Pathways courses shared between Grand Rapids, Nashwauk-Keewatin and Greenway. Those courses, in fields such as manufacturing and health care included some travel as well as telepresence courses.

    “We’re working through it,” said Pace.

    The important goal was that all students would be able to continue classes; whether through a paper packet with assignments that are followed up with phone calls or internet connection with online coursework. 

    Students at Greenway do have the ability to access the internet with school-issued Chromebooks. Still, there were families which did not have WiFi at home. The District has been working with FirstNet (a public safety network affiliated with ATT) to purchase over 120 Galaxy phones to provide data-only hotspots for these students. 

    “This is going to be an added expense,” explained Pace. “But again, we are doing our best to provide equitable opportunities to our students. We have and will continue to provide paper assignments options … because we know some areas may have no cellular service at all.”

    Greenway, like other districts, is also continuing other programs of a normal school day. The district is providing 175-250 Grab–and–Go breakfasts and lunches daily, either by pick-up or delivery. As other Itasca area schools, childcare for emergency workers is also provided where needed through a link on

    Pace explained that the situation still was changing week by week, with schools still unsure which if any of the spring activities will be offered.

Bigfork School

    Bigfork School also is providing distance learning and has distributed cellular hotspots to three families. Students in grades 7 through 12 are issued iPads for schoolwork at home and under current stay-at-home circumstances, grades K-6 may also check one out. Hard copy materials are available for any student if the technology options are not viable, said Principal Scott Patrow.

    Last week was its first full week, and Principal Scott Patrow was enthusiastic about the result.

    “We are just so impressed with our families and our parents in our school community,” he said. We’ve asked parents and families to step up and take a more active role.”

    Through ISD 318 programs, the school is offering pickup of breakfasts and lunches for students plus two delivery routes, as well as child care for health care workers. There is a form at, click on COVID-19 Response Plan and then Food Services. 

    “We couldn’t be in a better community to work with our families,” said Patrow.

Appeals Court asks MPCA to elaborate on PolyMet’s air pollution permit

March 26, 2020

BusinessNorth Report


    A state Court of Appeals has ordered the Minnesota Pollution Control Agency (MPCA) to supplement the PolyMet air pollution permit with additional information.

    The decision comes as the result of an appeal of the permit by the Minnesota Center for Environmental Advocacy and Fond du Lac Band of Lake Superior Chippewa. The plaintiffs alleged the MPCA failed to adequately consider whether PolyMet intends to operate within the limits of the permit for which it applied, or if, instead, it was seeking a “sham” permit.

    Judges said the MPCA’s findings are insufficient to facilitate judicial review, but they added that the agency does need to offer further information about its findings. 

    “We are disappointed in the court’s decision and are evaluating all legal options. We believe the Minnesota Pollution Control Agency in its permit appropriately accounted for the potential effects of the NorthMet Project. We stand ready to provide the additional information the agency might need to update its decision on the air permit,” PolyMet said in a Monday written response. “We demonstrated through the extensive environmental review and permitting process that we can meet or exceed Minnesota’s strict standards for nonferrous mines. This mine will provide much needed jobs to a region of the state known for its expertise in safe mining. We are continuing to move forward.”

    The appeals court document said PolyMet’s permit application indicated 36,800 tons of ore would be processed daily. But a report the Canadian firm filed with Canadian regulators said the output might reach 59,000 or 118,000 tons each day.

    According to the court decision, “MCEA argued that the Canadian technical report evidenced PolyMet’s intent to build a larger project than that for which it was seeking permits, and that the (Canadian) report makes plain that the PolyMet project is financially feasible only if the current proposal is the first phase of an expanded and/or accelerated project.”

    “The Court of Appeals decision today makes it even more clear: the process that granted permits for the PolyMet mine proposal is broken,” stated Kathryn Hoffman, CEO of the Minnesota Center for Environmental Advocacy. “It’s clear that the permits that were issued to PolyMet did not protect human health and the environment, and it’s time for our agencies to acknowledge and address that.”

NHED merger to create seemless student experience

March 19, 2020

By Sally Sedgwick


    Five community colleges make up the Northeast Higher Education District: Itasca (Grand Rapids), Hibbing, Mesabi Range (Virginia and Eveleth), Vermilion (Ely) and Rainy River (International Falls). At the end of January, the board of trustees of Minnesota State Colleges and Universities authorized the five schools to come together to become a single college with six campuses.

    It’s a decision that has been two years in the making and will take two years more before it is accomplished.

    The five separate colleges have a challenging position within MnSCU. They represent five of the seven smallest colleges within the system. They all recruit in the same area and market unique campuses. They face the annual uncertainties of enrollment for two year colleges that has declined an overall 25 percent over the eight school years starting in fall 2010.

    It’s a situation ICC Provost Bart Johnson calls “coopertition” – competition between cooperating groups – explaining that at times all five campuses are sending representatives to high school recruiting events.

    From the student viewpoint, it is also difficult. A student living in Hibbing and attending Hibbing Community College, for instance, might take a specialized course at Itasca Community College and an online offering from Rainy River Community College, only to receive three separate bills with the courses appearing on three separate transcripts. Registration and financial aid are handled individually by each college.

    Two years ago the district began bringing stakeholders together to create a regional academic plan to assure sustainability for its colleges. That sustainability is important because of the integration of the community colleges and their local business communities. Half to two-thirds of Northeast Higher Education District (NHED) students end up working in the region, said Johnson, learning skill sets targeted to northeast Minnesota industries from mining to natural resources. 

    And businesses depend on relevant talent from college programs. Two year colleges have a role in the long term health of their communities and business. “Having a strong community college system matters in the long haul,” Johnson said.

    The result of the internal discussions was to come together to form one accredited college. In its endorsement, the MnSCU Board of Trustees quoted NHED Interim President Michael Raich, saying; “We will create seamless learning experiences for students across the region; expand academic programming regionally; strengthen regional employer, university and K-12 partnerships, and improve operational efficiencies.” 

    It will also vault the new college into the top third of the current 37 community, technical colleges and state universities of MnSCU, giving it a stronger voice in the system which serves about 350,000 students across the state.

    Raich is optimistic about the process, both for faculty, staff and students. “We’ll be stronger together,” he said. “There’s just a lot of ways we can leverage our strengths that each of us bring to a large college.” 

    For one thing, faculty will be able to concentrate on their field of interest, he said, instead of wearing the many hats that operating in a small college demands. With more students, academic programming will be able to expand, including four year partnerships like the successful Iron Range Engineering curriculum developed through Mesabi Range, ICC and Mankato State. 

    The objective, said Johnson, is to maintain the unique cultures and niche specialties of each campus. For instance, programs like education that are identified with a college campus will continue, but with ways for students to better access those programs across campuses that are separated widely geographically. 

    There are also advantages for non-academic operations. Through the NHED, the colleges have shared functions like human resources and business services. But there are many more functions that could be consolidated, such as the specialists needed to maintain compliance and reporting for higher education. 

    The target date for opening as one college is fall 2022. That leaves less than two years for extensive planning and operational changes, including taking separate associate degrees and all the current technical programs and making them into a single package of offerings, merging five separate databases into one, and going through the process of accreditation with the Higher Learning Commission. 

    Then there is selecting a name for the new college. The name has to meet the MnSCU board guidelines and should reflect both the region and individual communities. 

    To be ready will require diligent effort, said Johnson. To keep the process on schedule, the district is hiring a facilitator. That consultant will not be making decisions, rather making sure the right communications are ongoing to keep to the needed timeline.

    Another goal is to bring as many stakeholders into the planning as possible. There will be periodic meetings of an advisory council including faculty, staff, student and community leader representatives from all five colleges. Recently ICC hosted a community leader breakfast to get input. The public can engage through reaching out to the campus provost or someone they know on campus, said Johnson.

    It’s a bright future, believes Raich, a future that includes vibrant higher education for the people of the region…not only for the short term, but also the long term.

Bigfork Valley Hospital board committee looks at strategic planning tool

March 05, 2020

By Sally Sedgwick


    The Bigfork Hospital board strategic planning committee last week took a close look at the financial modeling tool developed by accounting firm CliftonLarsonAllen that was delivered in early December.

    The hospital hoped that the “what if” analysis would help them plan to stay independent by gauging the effects of different possible future scenarios on hospital financial performance.

    Four scenarios were developed from a baseline using assumptions on rate of increase in expenses and inflation, and each was discussed at the meeting. Only two scenarios represented a significant positive effect on the bottom line, and a suggestion to explore options for those will be brought to the full board.


Retail pharmacy

    A savings of about a half million dollars could be realized if the hospital did not operate a retail pharmacy, according to the model. That number includes savings in the hospital’s Medicare cost report which determines reimbursement for hospital services.

    Retail pharmacies are endangered, especially in rural areas, according to a report on Minnesota Public Radio. For instance, Minnesota’s HealthPartners announced that it would close all 30 retail pharmacy outlets along with its mail order pharmacy this year. Nationally, 58 percent of pharmacies may close in the next two years, believes the National Community Pharmacists Association.

    In Bigfork, there are other considerations. An onsite clinic operated by Scenic Rivers Health Services has a need for a nearby pharmacy to start patients on medications and has a close relationship because of the 340B drug pricing program. The next nearest pharmacy is almost 40 miles away. Although the scenario assumed the pharmacy would be sold, the committee wanted to explore the options of outside leasing or management. 


Nursing Home

    The hospital also could save money if it did not operate a nursing home. Savings would be about $870,000, according to the model. 

    Options would be explored to have a legal separation between the operation of the hospital and the attached nursing home, a model that has been used elsewhere. One issue is that the footprint of the nursing home is large. Regulations limit the amount of physical space in a hospital facility that can be leased, CEO Aaron Saude explained. 

    Having a nursing home is part of the hospital mission to provide a continuum of services as people age, said Saude. “We wouldn’t want to hand over an important community resource like that to just anyone.” 

    The committee suggested that hospital administration be directed to explore options for providing nursing home services.


Other scenarios

    Other scenarios tested in the model included provider development (adding provider services), changing the electronic medical record software and changing the governance model to a 501c3. The latter would create a separate nonprofit operating company to run the hospital while the district held ownership of the hospital facility itself. Those scenarios did not provide a financial advantage under the assumptions used. However, Saude cautioned that the 501c3 option might still be on the table in some cases.

    Bigfork Valley operates as one of the few hospital districts remaining in the state. As a hospital district it can derive income from a levy. The levy has been increased in recent years, standing at $700,000 for 2020. Board Chair George Rounds said that although people value the hospital, they didn’t want the hospital to keep raising taxes. 

    Committee Chair Diane Bakke pointed out that with losses of $775,000 in 2019 and over $1 million the year before, the hospital needed to make changes to stay viable. “We need our hospital here,” she said.

Product diversity key to mill’s future

February 27, 2020

   Recent decades have been challenging for paper manufacturers, something Sappi North America’s new mill director in Cloquet stresses during conversation.

By Ron Brochu


    Recent decades have been challenging for paper manufacturers, something Sappi North America’s new mill director in Cloquet stresses during conversation.

    “We actually are a diversified forest products company,” said Tom Radovich, who is very serious in using those terms to describe the plant. “Our mission is to get involved in markets that are growing in the forest products industry, recognizing that we have some markets that are declining.” 

    His observations are supported by considerable experience. Radovich has been with the Cloquet Mill for 25 years. He began in the Technical Department during 1994, when Potlatch owned the business. After Sappi’s acquisition in 2002, he was named paper operations superintendent, then promoted to operations lead in 2005. His work has included the upgrade of the paper machine 12 coater, leading the pulp mill conversion project for the new dry fiber building and upgrading the former paper machine 4. After his 2017 promotion to paper mill manager, his leadership was instrumental in achieving the mill’s record efficiency performance, Sappi said. 

    Named managing director on Dec. 1, Radovich believes strongly in Sappi’s emphasis on research and development to create new forest products – rather than relying on just paper. 

    Eighteen years ago, the facility manufactured kraft pulp, the main component of its paper products. Now it makes three products, explained Radovich, a Hibbing native who grew up around heavy manufacturing but graduated in the mid-1980s when the mining market was in a deep slump. After purchasing the mill from Potlatch, Sappi soon looked for ways to diversify its output.

    It still manufactures graphic paper, 340,000 tons annually, which is used for high-end advertising in catalogs and brochures.

    “That’s the market that has been declining,” Radovich said. “People are shopping online. They don’t get the big J.C. Penney catalog anymore. We promote paper a little differently now. Some people still like the feel of paper, and the touch. So we still have a pretty healthy market share.”

    Knowing, however, that paper demand is on decline, Sappi converted the mill to manufacture dissolving wood pulp (DWP) in 2013. The new product is a filler used in the food and pharmaceutical industries. It’s also a key ingredient in Rayon, which is used in clothing and other textiles. Each year, the Cloquet plant manufactures 370,000 tons of DWP.

    Three years ago, LusterCote joined the Cloquet product line. 

    “It’s applied to laminate and is used for point of purchase displays. That’s about 10 percent of what we make today,” he said. It is also used to create premium packaging. 

    Sappi reduced mill staffing slightly when it purchased the Cloquet facility, but in the 18 years that followed, employment has consistently remained at 700. Meanwhile, output has approximately doubled. Today, Radovich said, his job is to improve efficiency which helping to explore new products.

    Among his first tasks as mill director was to lobby Gov. Tim Walz about the need to keep funding Minnesota’s bio-incentive program. Walz toured the plant in January and learned about Sappi’s process to use and re-use lignin (an organic material that binds wood fibers) as boiler fuel. The program encourages manufacturers to recycle bio products.

    “He was very impressed with what he saw,” Radovich said about the governor. “He said he’d make funding a priority for us.”

    Meanwhile, Radovich is managing procedures that Sappi has shown will ensure success in the wood products industry.

    “The products that you make have to be consistently high quality, and you constantly have to improve your efficiency,” he said. “At the same time, you have to balance that with exploring new opportunities. If you take a look at what we made in terms of volumes when Sappi acquired the mill versus today, it’s dramatically different in terms of output and how we operate. You’ve got to make that evolution every 10 years or so. The vision of the company is ‘Where to next.’”

Judges weigh in on jail options

February 13, 2020

By Sally Sedgwick


    At its Feb. 6 courthouse meeting, the Itasca County Board of Commissioners paused to assess where the jail outreach effort stood and what changes needed to be made to the survey to engage county residents. 

    A new survey will contain some changes, including a new question on whether approve of selling property (buildings and/or land) to reduce the cost of the jail, cost estimates for the two building options and an “other” category added to questions where comments can be made. The new survey should allow just one completion per computer user.

    The digital jail survey was posted on the county website and gathered 337 responses in just one week, according to staff. Those responses will be retained and looked at separately; there is no need to retake it. Paper surveys are available at outreach meetings, or the survey can be accessed on public computers. 

    The survey is just one part of the decision toolbox, noted Commissioner Davin Tinquist.

    Turnout has been good at the initial meetings, said commissioners Terry Snyder and Burl Ives. Seventeen additional town hall meetings are scheduled around the county between Feb. 10 and April 1, as well as one at the courthouse on Feb. 20, 5-7 p.m. 

    Itasca County District judges Hon. Korey Wahwassuck and Hon. Sarah McBroom addressed the board regarding security and space changes in the judicial area that they felt were essential in either option chosen. 

    In the orange (downtown) option, the third courtroom and support spaces must be remodeled to meet ADA requirements, Wahwassuck said. Jury accommodations, lack of technology, file storage and physical plant issues need to be included in the plan. Also, because of the distance between new and old courtroom space, bailiff staffing needs to be duplicated. 

    Security encompasses a number of things, said McBroom, from the front hallway to the back area and the whole feel of the system. Space configuration can affect public safety. She also asked what was going to happen during the remodel period to keep the courts running.

    During public comments, resident Mike Hughes offered another option: build on the east parking lot, with the ground floor as parking and the Sheriff’s Office and jail on the second and third floor, respectively. Anthony Kotula asked for clarification on jail numbers: Jail Administrator Lucas Thompson pointed out that the population included both inmates in the annex jail plus those housed out with a 2018 average population of 106 and peak of 143.

    John Casper said that his Freedom of Information requests on past security breaches and daily court usage had been denied. LaNea Johnson pointed out that there was no “jail only” option. In response to a question from Molly Randall, commissioners confirmed that the letter requesting sales tax relief for building materials had been submitted to the state legislature on schedule. 

    Mike Bellamy pointed out that commissioners had more information than citizens and would have to make the final decision. “You’re stuck with it,” he said.

Greenway School Board revises budget due to higher revenues

February 06, 2020

By Kathy Lynn, KOZY Radio


    The Greenway School Board began the school year anticipating spending $300,000 more than budgeted. A Safe Schools grant of $36,500, an increase in federal special education funds, a food service grant and an increase in student numbers have essentially wiped out that deficit. Randi Jurgansen, business manager for the school district briefed the board on the revenue changes at last week’s meeting. The board approved the revised 2019-2020 budget.

    Construction at Vandyke Elementary and the Scofield Building will not only leave the buildings empty this summer, but will also dictate the end of the school year for Vandyke students and the fall open house. The district has bonded for $12 million to renovate and upgrade the two buildings. The school board on Wednesday night heard an update from Superintendent David Pace on this summer’s construction. According to Pace, Vandyke students may have to be released up to three days early so teachers have an opportunity to pack up everything in their classrooms. He said movers will take desks and boxes to storage for the summer. No bids have been posted for the construction yet. 

    The PBIS Team presented its statistics to the board. PBIS is Positive Behavioral Interventions and Supports program. The district has been a PBIS school since 2016. Dawn Jenkins, Vandyke social worker, said here the focus is respect, responsibility, and readiness. “Some people misunderstand and believe PBIS means we only reward positive behavior and we kind of ignore the negatives, but we do have a very clear behavior flow chart. If there is misbehavior, there are consequences and kids know what they will be and what is expected of them.” 

    The board approved another half-time music instructor for the district. After approval, board Chair Michael Williams said that it was exciting to see district taking the next step in the music program. The full-time position next year will spend time with both elementary and the middle school students.

    In other business, the board: 

    • Approved payment of December claims in the amount of $1,328,080.41. 

    • Hired Sydney Anderson, .83 FTE Special Education Paraprofessional, Vandyke Elementary, effective Jan. 13.

    • Hired Tiffany Maki, .83 FTE Special Education Paraprofessional, Vandyke, effective Jan. 15.

    • Hired Rhea Mikulich, Girls Softball B-Team Coach, 2019-20 season. 

    • Hired Katie Sertich, Girls Softball Head Coach, 2019-20 season. 

    • Hired Kelly Kukkonen, Girls Softball Middle School Coach, 2019-20 season. 

    • Acknowledged Mike Vekich, Softball Booster coach 2019-20 

    • Hired Delaney Finke, .83 FTE Special Education Paraprofessional, Vandyke Elementary, effective Jan. 21.

    • Hired of Sadie Barrett, .68 FTE, Special Education Paraprofessional, Marble Elementary, effective Feb. 3.

    • Hired of Eric Staricka, Robotics Advisor, 2019- 20 season. 

    • Hired Kelcie Ingle, Middle School Basketball Coach, 2019-20 season.

Walz Administration launches ‘clean car’ initiative

January 30, 2020

By Kitty Mayo


    Is it too cold and snowy here for electric vehicles to take serious hold? Minnesota Gov. Tim Walz doesn’t think so, saying that the market has failed to provide more options to Minnesota customers, including winter-robust models.

    Hinging on motivating automakers to bring a wider variety of electric vehicle models into the Minnesota market, Walz has launched the Clean Car Minnesota initiative.

    In September 2019, Walz directed the Minnesota Pollution Control Agency (MPCA) to formulate in-state clean car standards to be patterned after those long in place in California and adopted by 13 other states. Walz’s directive impacts car manufacturers, independent of legislation that has failed to take hold going back to 2007. It is intended to position the state to reduce transportation-related greenhouse gases and air pollution that has held at steady rates since 2009.

    Currently, only about half of the electric vehicle (EV) models manufactured are for sale in Minnesota, despite arguments that EVs cost a third less to fuel and maintain than gas-fueled vehicles.

     The initiative also will set a lower standard for air pollution limits on car manufacturers.

    “This is one of a few regulatory options available to states to reduce emissions from vehicles, and transportation is the largest contributor of greenhouse gas emissions in Minnesota,” said Frank Kolasch, MPCA’s air quality control manager.

    The rulemaking process set out by state statute requires the MPCA to write a need and reasonableness document to justify adopting the rule, which the department is now in the midst of completing.

    Kolasch says the point of compliance will be on auto manufacturers, and the MPCA is pushing to have all of their documentation in place by the end of 2020 because a mandatory two-year waiting period will ensue.

    “We are on an aggressive path to stay on target to get that two-year waiting period started,” said Kolasch.

    By initiating the Clean Cars Minnesota standards, Minnesota will be following a standard stricter than federally required.

    In addition to the low-emission standard, the MPCA will require large and medium car manufacturers to respond to a quota system of delivering low- and no-emission cars for sale in Minnesota in the form of electric and hybrid vehicles.

    “The core of the quota-credit system is to increase the number of no- and low-emission vehicles being sold in the state, with the end goal of providing more consumer choice. Consumers will be able to experience these vehicles on lots,” Kolasch said.

    Currently, a very limited number and range of electric vehicle models are for sale, compared to other states, a playing field that the initiative intends to level.

    “We want to be clear that car buyers have all the same choices for what vehicle to buy, and we think by creating a greater choice, consumers will consider electric vehicles more often,” Kolasch said.

    A simultaneously emerging challenge is the Trump administration’s act to revoke California’s authority to set their own vehicle emission standards. Kolasch says the MPCA remains undeterred in its efforts.

    “We are standing with other states to oppose the federal action, and are participating in court litigation against it,” said Kolasch.

    Addressing the issue in the evolving rule language, the initiative would not become effective until the waiver is reinstated through the court.

    Jim Goodman, development manager for ZEF Energy Inc., a company dedicated to EV charging installations and sales of smart EV chargers, says that the idea that EVs can’t compete in colder climes is fading fast.

    “As people realize how awesome it is to own an EV, and never have to get into a cold car again, or stand at a gas station, they are going to take off,” Goodman said.

    What’s holding Minnesotans up on adopting EVs at higher rates? Lack of all-wheel-drive and high clearance EV options at local dealers, according to Goodman. But several manufacturers are already making plug-in hybrid SUVs and all-wheel-drives, and two hybrid EV trucks soon will  be on the market.

    “What’s happening in EVs means that in every category they will beat gas vehicles in probably  five years, and they are going to completely take over,” Goodman stated.

    Already a partner in the installation of smart chargers along Minnesota’s North Shore corridor last year, from Two Harbors to Grand Portage, Goodman says that ZEF has contracts for 45 more public EV charger installations throughout greater Minnesota in the coming year.

    About half of those are contracts with the state and funded by the Volkswagen emissions-cheating settlement, and the balance will be financed by a utility company in southern Minnesota.

    “When chargers are out and available to the public, then they will be comfortable buying an electric vehicle. Utilities in the business of selling electricity will have a whole lot of load growth much like a distributive gas station,” Goodman said.

    In a phone interview with Minnesota Power representatives Amy Rutledge and Paul Helstrom, the utility  said they are responding to the palpable excitement they are getting from customers about EVs.

    “The electrification of transportation is dynamic and it really fits in well with our EnergyForward strategy to help customers with their energy choices and sources,” Helstrom said.

    According to Rutledge, MP’s electricity supply was 95 percent coal in 1995. The EnergyForward plan is to be at 50 percent renewable energy by 2021, and currently they are at 30 percent renewables.

    With the advancement of car technology and price points coming down for EVs, MP is positioning to respond to customer demand for cleaner energy solutions.

    “It’s natural for us to look at transportation. It’s really part and parcel to meeting our customer’s expectations as they want more information about EVs and are very engaged in reducing carbon emissions and adding renewables,” Rutledge stated.

    Recent efforts by MP have included what Helstrom calls their “crown jewel,” the solar array powering EV chargers near Endion Station in Duluth. However, he acknowledges that more public chargers are needed to ease “range anxiety” before more consumers will get on board.

    To that end, MP has 21 new sites lined-up for charger installations, partnering with a variety of businesses and entities throughout Northeastern Minnesota.

Child protective placements down; Mesabi Trail opened to snowmobiles between Nashwauk, Keewatin

January 23, 2020

By Sally Sedgwick


    At last week’s County Board meeting, Family and Children’s Services Division Manager Becky Lauer updated the board for 2019 child and adult protection results. Fewer cases than in the last four years were opened for children (497), but more cases for adults (71). Child protection cases included 1,030 children, and 12 percent were placed out of the home. Of those, over half were due to parental drug use which is about average, according to Lauer. Other reasons included neglect, family conflict, physical abuse or domestic violence and abandonment. About half of the families were living in Grand Rapids, Cohasset and Warba; about a third in eastern Itasca County cities and the remainder in Deer River, Talmoon, Northome and Bigfork.

    Commissioner Terry Snyder inquired about the county’s readiness for the March Presidential Primary as some staff who presided over elections have retired. Chief Deputy Auditor/Treasurer Deb Davis reviewed the preparations for the board.

    Board Chair Ben DeNucci referred to a memo sent to staff about county meetings and respectful, orderly conduct that provides for a free flow of discussion. He said the object would be to hold everyone to the same standards so meetings are productive for the people of Itasca County.

    In other business, the board:

    • Approved commissioner warrants in the amount of $2,296,740.11, which included bond payments of over $1 million and Minnesota Counties Intergovernmental Trust insurance premium of approximately $500,000.

    • Approved Health and Human Services warrants of $2,355,030.02. In response to questions from Commissioners Burl Ives and Leo Trunt, Fiscal Manager Christine Krebs explained the high expenses for out of home foster care during some months as being due to higher costs for certain placements. Some placements, such as probation, are ordered by the court so the county does not have flexibility where clients are placed. Also the lower expenses for December was due to invoices from some providers not being processed.

    • Recognized new employees Robbie Hansen, Rachel Kerr and Jackie Flatley (IMCare).

    • Confirmed decisions from the Jan. 7 organizational/work session regarding mail election judges, re-establishing polling place for unorganized townships, PLAs not required on 2020 Transportation Department projects and 2020-2021 Snowmobile Enforcement Grant.

    • Authorized signatures for the 2019 Emergency Management Performance Grant in a matching amount of $29,340.

    • Reallocated the position of Social Worker to Social Worker/Mental Health Coordinator.

    • Amended the 2006 U.S. Steel surface lease to allow snowmobile use on the Mesabi Bike Trail between Nashwauk and Keewatin.

    • Called for an agenda item (Data Requests) which was not represented.

Jail Committee sets public meetings, hears funding options

January 09, 2020

By Sally Sedgwick


    Commissioners at the third meeting of the Itasca County Jail Committee heard about possible ways to fund the jail and bond payments, and how to share information and receive comments from the public. 

    During the meeting, various milestone dates were identified, including the following:

    ● End of January: Board consensus on project alternatives 

    ● Jan. 16: concepts and estimated costing on three alternatives to be provided by consultants to jail committee

    ● Jan. 31: File request for a ballot referendum on sales tax with legislature

    ● Feb. 6, 20: Public informational sessions

    ● Feb. 11: File request for exemption from sales tax on building materials with legislature

    Some commissioners have toured the Pennington and Chisago jails. DeNucci invited commissioners to set up more jail tours.

    Public comments and informational sessions:

    After discussion, two public informational sessions were approved on Thursday, Feb. 6 and Thursday, Feb. 20 from 5 to 7 p.m. The regular jail committee meetings would start at 7 p.m. on those days.

    Methods of collecting public comments were discussed, including using an online survey tool and website comment button.

    Ways to publicize local town halls and informational meetings were discussed, including print (Scenic Range NewsForum, Manney’s Shopper, Herald Review, WATTS News, Hibbing Daily Tribune), radio (KAXE, KMFY, KOZY), and social media. Staff will obtain costs to be approved at the Jan. 14 board meeting.

Funding options:

    County Treasurer Jeff Walker provided information on funding options. Any of the options would be within the county debt limit.

    For funding a Justice Center, general obligation Capital Improvement Bonds would be needed. This would also require amending the county capital improvement plan and holding a public hearing. Generally, according to Walker, these bonds carry the most attractive interest rates and would cover county buildings like the courthouse as well as the jail. This option is subject to a reverse referendum citizen petition which would defer consideration for a year. 

    For funding only a jail and sheriff’s office, the board may use general obligation Jail Bonds or a Law Enforcement Lease revenue bond. In the latter, the building would be owned by the county Housing and Redevelopment Authority and leased by the county. Another form of lease arrangement has a trustee constructing the facility through selling Certificates of Participation and leasing it back to the county.

    It is possible that a project could be separated and funded in more than one way.

    Two avenues are open for paying off the bonds: a levy or a sales tax. Itasca County realized taxable sales in 2017 of about $384 million, which would provide about $2 million a year at a 0.5 percent sales tax rate, enough to pay back a $40-45 million project over 30 years. The request can be made for up to 1 percent, and it was pointed out that until project costs were determined, it would be better to ask for the higher rate and then lower it if possible. 

    County Lobbyist Loren Solberg described the method for requesting a referendum on a sales tax, just changed in the last session. A request by resolution to the state legislature, through the chairs and minority leads of the tax committees of both houses must be made by Jan. 31. The request must include a description of the regional significance of the project(s) it supports. If approved, the question will go to the voters in the November 2020 election.

    Solberg pointed out that approval was not a given. For instance, a tax bill is not required from each session and there was one in the 2019 session.

    After a public comment, the commissioners approved seeking legislation to exempt the project from sales tax on building material. According to Solberg, this could be presented any time after the Feb. 11 legislative session start or added as an amendment to a bill.

 Public input

    The following are highlights of comments:

    • LaNea Johnson: Community input is important. Could documents relating to the jail be made public vs. having to request them? Would like to see a planning study or needs assessment. 

    • John Casper: Will the commissioners commit to a referendum on any financing option presented? The county’s social media platform needs to be upgraded. Doubts that the Department of Corrections date is set in stone. Commissioner Terry Snyder said that he had discussed the possibility with legislators of approaching the DOC commissioner. 

    • Mike Bellomy: The public doesn’t have access to the information the commissioners have; commissioners were elected to make these decisions. 

    • Dan Marshall: Requested more details and sources in the Jail Task Force report. Where is the balance point between overtime in the Sheriff’s Office and hiring more staff? Who will administer and edit submitted comments? Sheriff Vic Williams pointed out that staffing gender and requirements are largely specified by the state.

    The next Jail Committee meeting will be on Thursday, Jan. 16, at 7 p.m. in the courthouse.

Prairie River Minerals announces completion of pilot plant testing

December 26, 2019

    Prairie River Minerals has announced completion of pilot testing of its proposed mining technology, which would be utilized to extract hematite iron units from existing stockpiles.

    The company, led by former state Rep. Tom Anzelc, Ed Shaughnessy, Johann Grobler, Jim Swearingen and Scott Conley recently secured some of the assets of the former Magnetation, which operated scram mining facilities from 2008 to 2016 before becoming insolvent.

    At bankruptcy auction last summer, PRM was the approved bidder on Plant 1 near Keewatin and the Jesse Load Out Facility in Coleraine with a bid of $1.95 million. The company, established just this year, plans to re-purpose and reuse the former Magnetation properties to harvest the previously mined hematite. PRM plans to use a process known as Dense Media Separation to produce products for the steel, cement and aggregate industries. 

    Pilot plant testing was a joint effort among the University of Minnesota Natural Resources Research Institute Coleraine facility with support from the Blandin Foundation and Itasca Economic Development Corp. That testing provided extensive analysis of the “iron ore quality and ore processing technology that will be utilized.”

    Company executives also noted that the methods used to extract iron ore units from legacy stockpiles is “respectful to the environment and has no water discharge.”

    The company has yet to announce start-up timelines.

Board updated on ISD 318 superintendent search

November 21, 2019

    At the Nov. 12 meeting of the ISD 318 school board, Patty Phillips and Bob Oslund from search firm, School Exec Connect, were on hand to deliver a status report on the search for a new superintendent to replace Joni Olson, who resigned this past summer.

    Phillips started the presentation by outlining the steps her organization was taking to create a profile model for the next superintendent. 

    Thirteen focus groups consisting of about 90 individuals had been created and that representatives of her firm met with all thirteen focus groups on Oct. 29 and 30. Some of the focus groups included district administration, building administration, Grand Rapids teachers, Bigfork teachers, support staff, and Indian Education.

    Each of the six school board members also were interviewed by School Exec Connect. The interviews were designed to bring out issues that were similar among board members. Phillips said that areas where there was board consensus included increasing math and reading scores, improving communication and curriculum enhancement.

    There was widespread consensus among the focus groups and board members that the district strives for excellence in all areas of education. A supportive community and a wide array of offerings in academic and extracurricular activities were also considered strengths by the focus groups and board members.

    Phillips said that her group also looked at perceived barriers in the focus group and among board members. She said that the most prevalent barriers were lack of financial resources, communication problems and lack of a shared vision. 

    In summary, Phillips said the characteristics that the board and the focus groups hope to find in the district’s next superintendent include; excellent communication skills, a collaborative leadership style and high visibility in the community.

    Oslund said that his group took all of the information presented by Phillips as well as the results of an online survey administered by the district and attempted to create a profile of the ideal candidate. 514 respondents participated in the online survey. He said the response reflected the views of the board and the focus groups to a large extent, with one exception - large class sizes were a bigger concern for those who took the online survey than the focus groups and board.

    The desired superintendent profile that was developed from input through the online survey as well as board and focus group input. Oslund enumerated over two dozen desirable characteristics that the next superintendent should have that were synthesized from the input. In addition, each characteristic had several attributes. At the conclusion of his presentation, Oslund gave some context to the list of desirable traits saying “Obviously, anyone who has all of those qualities to the highest level… It’s like we always say: You can’t walk on water but it really helps to know where the rocks are.” He concluded his remarks by adding; “You’re not going to find someone who is a 10 in all those areas but someone who is competent in the vast majority of those areas and is not adversely affecting any of them, that’s what you need.” The board voted to accept the report from School Exec Connect.

    Oslund represented School Exec Connect 2017 when the district contracted with the firm to find a replacement for Bruce Thomas when he retired. At that time, Oslund used similar methods to create a profile of the district. In 2017, Oslund said that there was a lack of trust between the community and the district, communication was a problem and facility issues loomed large.

    In other business, the board:

    • Accepted three bus driver resignations, five coaching resignations and voted to fill 6 coaching, one staff position, and two ESP positions.

    • Approved the 2019/2020 and 2020/2021 principal’s contracts.

    • Approved the designation of Sean Martinson as Lead Education Agency representative.

    • Accepted the first reading of Policy 603 on curriculum development.

    • Accepted the first reading of Policy 616 on School District System Accountability.

    • Accepted the first reading of Policy 618 on assessment of student achievement. 

    • Accepted the first reading of Policy 624 on online learning options.

    • Accepted statutory changes to Policy 611 on home schooling.

US Steel to eliminate non-union jobs

November 14, 2019

BusinessNorth Report


    US Steel officials say due to a new operating structure and challenging market conditions, they have eliminated a number of non-union represented positions in the United States, which includes the facilities at Minntac in Mountain Iron and Keetac in Keewatin.

    A spokesperson with the company says the new operating structure was announced on Oct. 8, and leaders looked to find ways to efficiently execute the change.

    The spokesperson says as part of the process, the positions were eliminated, but couldn’t confirm the number of positions eliminated.

    The Minneapolis-Star Tribune, however, reported that the job losses at the two plants could be as high as 40 positions.

U.S. Steel shipments rise

October 17, 2019

    Steel shipments from American steel mills increased 4.4 percent in August compared to July, according to the Washington, D.C.-based American Iron and Steel Institute.

    U.S. steel mills in August shipped 8,472,088 net tons, up from 8,115,103 net tons shipped in July. Shipments in August were also up 0.4 percent from the 8,441,597 net tons shipped in August 2018.

    Year-to-date 2019 steel shipments were 64,810,436 net tons, a 1.8 percent increase versus year-to-date shipments of 63,656,882 net tons for the first eight months of 2018.

    Hot rolled shipments in August were up 10 percent, hot dipped and galvanized sheets and strip, up seven percent, and cold rolled sheets, up three percent.

Bovey makes its case before the state senate bonding committee

September 19, 2019

By Sally Sedgwick


    The Minnesota Senate Capital Investment Committee came to Grand Rapids on Tuesday, Sept. 10 to hear about projects seeking bonding in the next legislative session. Included in the presentations were the city of Bovey water, sewer and road projects; the cities of Nashwauk, Keewatin and Lone Pine Township phase 2 sewer project (connecting Lone Pine Township to the system); the Grand Rapids IRA Civic Center roof project; and Itasca Community College asset preservation.

    Bovey Mayor Robert Stein and Public Works Supervisor Kevin Odden spoke on the serious concerns the city has with sewer and water infrastructure. Capital improvements of $1.1 million are planned for 2,900 feet of water main replacement, 650 feet of sanitary sewer replacement and 3,200 feet of street restoration. The city is asking for $600,000 in state bonding funds, or about 54 percent of the cost. 

    Although the city is active in fixing its own issues with its own money, said Stein, it has only so much tax capacity and ability to pay increased taxes. Median household income in the city is just over $31,000 and there is a 29 percent poverty rate. Elderly in the community are on a fixed income.

    In response to questions from the committee, Odden said water and sewer cost residents a flat $62.50 per month, with the last water rate increase three years ago. Recent sewer rate increases include $5, $1 and $4.50 in recent years. In addition, $3 per month is paid into a capital improvement fund to pay for breaks and blockages in the system, running about $25,000 annually.

IRRRB funds solar plant, Grand Rapids treatment facility

September 12, 2019

By Bill Hanna


    A solar panel manufacturer in Mountain Iron will soon add 15 employees to its current workforce of 91 with the help of an Iron Range Resources & Rehabilitation Board $600,000 loan.

    The IRRRB approved the loan request of Heliene USA Inc. on Monday at the agency’s headquarters in Eveleth.

    Canadian-based Heliene officials say the loan is needed to purchase additional production equipment to meet a growing demand the solar market experienced during the decade, which is forecast to continue at a significant rate.

    The new equipment will break through a bottleneck in the company’s production, officials say.

    The loan is secured with the equipment to be purchased.

    Growth in the U.S. solar marketplace has increased from 1,500 megawatts in 2010 to 13,000 megawatts this year, but domestic production is currently only at 2,000 megawatts, according to company officials.

    Heliene CEO Martin Pochtaruk told board members that the company is financially healthy and has an $11 million working line of credit in place.

    But he also said that 2018 was the first year that Heliene has lost money, citing global trade uncertainties.

    The Iron Range’s initial foray into the solar panel business was a failure. 

    Silicon Energy, which began operations on the Range in 2011, closed its Mountain Iron plant’s doors in June 2017. It was an outcome that seemed almost inevitable from the start.

    Employment numbers never met expectations as the business would stop, start up, then stop again. Meanwhile, the plant’s parking lot was most often near-empty.

    It was a troubling pattern for the company, which also had product flaws adding to its financial woes.

    Silicon officials said forces out of their control were mostly responsible for the shutdown. Silicon couldn’t compete with cheaply-made Chinese solar panels that flooded the market, they said.

    Silicon received an IRRRB $1.5 million equipment loan that is still outstanding, with a repayment deal worked out between the agency and Silicon’s former owner.

    That agreement calls for the former owner to make payments of $100,000 a year until $1.1 million owed is paid off, said Matt Sjoberg, IRRRB’s executive director of development, on Monday. The interest is forgiven as part of the deal.

    Heliene operates in a Renewable Energy Park facility in Mountain Iron, which is owned by the Mountain Iron Economic Development Agency. When Silicon shut down, the company sold the building to Mountain Iron for $1.

    It was built with a $3.6 million IRRRB loan and it had previously been leased to the now defunct Silicon Energy.

    The IRRRB and the state Department of Employment and Economic Development have partnered with Heliene USA by providing a $3.5 million equipment loan. That loan is currently in a forbearance period with the first payment due in November.

    The IRRRB on Monday provided financial help for a youth mental health issue on the Iron Range.

    The board approved a $1 million loan for a new 32-bed treatment center in Grand Rapids to be operated by North Homes Children and Family Services.

    The $6.5 million psychiatric treatment facility will serve children ages 11-18, with education to be provided by the Grand Rapids School District.

    North Homes was recently given state approval for 52 children’s psychiatric beds. Twenty of the beds will be located at the Community Mental Health Center, with the other 32 going into the new facility.

    Services for the children will be 24/7 nursing support along with traditional intensive mental health therapy in a residential setting.

    In addition, the board also approved a $17,000 demolition grant and a $268,000 infrastructure grant for North Homes.

    The loan will help create 65-80 new jobs with wages ranging from $31,000 to $75,000 per year.

    The board OK’d a $760,000, 20-year loan to a Hibbing company that will create 10 to 13 new jobs with annual wages of $30,000 to $69,000.

    Northern Opportunities, LLC/RSF Industries Inc. plans to expand its manufacturing operations.

    “The ability to pivot across industrial segments e.g. mining, manufacturing, medical components, consumer goods, forestry products, aviation and utilities was a key component in our decision to focus on the acquisition of this type of business,” said co-owner Jeff Halter.

    The total project cost is $1.925 million.


    Contributor Bill Hanna, who has been a writer and editor in the newspaper business for more than 40 years, was a reporter and executive editor at the Mesabi Daily News on the Iron Range from 1985 to 2016. He has won more than 50 state and national awards. He currently writes Sunday columns for the MDN Op/Ed section.

Twin Metals, labor share strong partnership

August 29, 2019

    By Bill Hanna


    Twin Metals Minnesota and the building trades sealed a strong partnership last week in advance of the company’s construction phase for the proposed copper/nickel/precious metals underground mine.

    Bathed in sunshine under a canopy of partly cloudy skies, company and labor officials were joined by supportive elected officials for a signing ceremony of a project labor agreement between Twin Metals and the Iron Range Building and Construction Trades Council.

    It commits Twin Metals to hire union workers for the construction phase of the underground mine once permits are granted.

    Dean DeBeltz, TMM’s director of operations and safety and from a fourth-generation mining family, told those gathered for the ceremony just outside the company’s operational headquarters in Ely that a mine plan should be ready to deliver to appropriate agencies for review in the coming months.

    “We are committed to this project and to do it right,” said Twin Metals CEO Kelly Osborne. “We’ve been here (in Ely) for 10 years. Community support is what we’re all about.”

    TMM is working with the federal Bureau of Land Management, U.S. Forest Service, Minnesota Department of Natural Resources and other regulatory agencies to facilitate the process. That process will include rigorous government scrutiny and numerous  chances for public input.

    The $1.2 billion underground mine project is slated to be located nine miles southeast of Ely and 11 miles northeast of Babbitt. Copper, nickel, platinum, palladium, gold and silver of the Maturi deposit, which is part of the Duluth Complex, is to be tapped for processing.

    The project would create 700 direct jobs and another 1,400 in spin-off employment, with a second regional office located in Babbitt.

    The mine, accessed through underground tunnels at the processing site located about one mile from the mine, is expected to produce approximately 20,000 tons of ore per day.

    Labor leaders were enthusiastic about the several million hours of union construction labor needed for the project, which would be similar in scope to construction of the U.S. Bank Stadium in Minneapolis.

    “Our partnership with Twin Metals continues a strong tradition of union labor on the Iron Range,” said Mike Syversrud, president of the Iron Range Building and Construction Trades Council. “We will get this done on schedule, under budget and safely.”

    Osborne lauded Iron Range labor workers.

    “As we prepare to file our mine plan of operations, it’s important that we further solidify our partnership with labor and ensure that the construction phase of our project will be completed by professionals whose specialized skills are essential to the premier quality work we insist on,” the CEO said.

    TMM was praised for its $450 million already put into the project and Ely community.

    Twin Metals has already had “an immense community involvement,” said Nancy Norr, board chairwoman of Jobs for Minnesotans, while kicking off the program.

    “This is a great day,” said Ely Mayor Chuck Novak. “Twin Metals’ contribution to the city has been pretty strong. And they have an open door. They’re all about the safety of people and environmental safety.”

    Republican 8th District U.S. Rep. Pete Stauber was upbeat.

    “This is about our minerals and the future to give people more opportunity,” he said.

    Stauber vehemently rejected arguments of critics of the project, who contend it will damage the environment. Opponents are especially agitated because the mine is proposed at the edge of the Boundary Waters Canoe Area Wilderness.

    “We are blessed to have the Duluth Complex. And we demand safety,” he said. “This is in our backyard. This is not a playground for those who live south of here. Today we look to the future to give people more opportunity.”

    Stauber added that the PLA is another example of the “fight for our way of life. The men and women of labor will make this possible.”

    The first-term lawmaker also praised the Donald Trump administration for putting the project back on track by reinstating the leases. He said with 16 days left in the Barack Obama administration, the former president tried to end the project.

    DFL State Sen. David Tomassoni of Chisholm said, “This is about the middle class. It’s a really, really big deal. Let’s go forward and support the new-age economy,” he said.

    The senator also fired a salvo at opponents of the project, explaining “If you want windmills, you’ve got to mine.” He was referring to a variety of nonferrous metals used in windmills.

    State Rep. Rob Ecklund of International Falls said the PLA ensures the project will get done properly.

    Norr said the project is about mining pioneers on the Range and those of the future.

    Mayor Chuck Novak also referred to his city’s mining history. He said critics often talk about the boom-bust cycle of mining.

    “Well, we had a 100-year boom up here,” Novak said about the many mines that once operated in the city. The mayor added he would like to see another 100-year boom with mining of the rich Duluth Complex.


    Contributor Bill Hanna, who has been a writer and editor in the newspaper business for more than 40 years, was a Reporter and Executive Editor at the Mesabi Daily News on the Iron Range from 1985 to 2016. He has won more than 50 state and national awards. He currently writes Sunday columns for the MDN Op/Ed section.

Coleraine moves forward with stormwater project grant writing

August 22, 2019

    At last week’s Coleraine City Council meeting, Tim Frits from Itasca Soil and Water presented the city council with the next stage in the funding process for the Coleraine Stormwater Retrofit Project.


    Frits suggested an application for a $700,000 Clean Water Fund competitive grant through the Minnesota State Board of Water and Soil Resources. In an interview with District Manager Andy Arens of Itasca Soil and Water, Arens said the City of Coleraine would have about a 20 percent chance of receiving the grant. If received, the grant would require a $175,000 match from Coleraine that could be given in cash or in-kind services including volunteer labor. Councilors voted to begin the grant writing process for the $700K grant. The grant writing will be completed by the Itasca Soil and Water personnel. 

    Arens described the Itasca Soil and Water District as a political subdivision of the State of Minnesota and they are entirely grant-funded with seven employees. Arens said every county in the United States is represented by a similar conservation program and these programs were initiated after the dust bowl of the 1930’s. 

    Councilors agreed to extend the deadline four weeks on the Bovey Lift Station Number 2 portion of the Force Main project. The extension was requested by Project Manager Shane Feltus from TNT Aggregates in order to remove boulders on the right-of-way and also to comply with Change Order Two, which will save $98,233.15 from the total cost of the project. 

    Coleraine Police Chief Lonnie Mjolsness mentioned in his monthly report that the public is welcome to an ‘Outsmart the Scammers’ seminar at the Trout Lake Emergency Center with the target date being Aug. 27 at 10:30 a.m. The presenter will be Financial Advisor Michelle Rodenberg from Edward Jones financial. The TLEC is located at 501 Second Ave. in Bovey.

    A concerned resident commented on the repainted crosswalks and said they look nice but also questioned if there should be a designated crosswalk near Range Bottle Gas where children cross County 61 to access the Mesabi Bike Trail.

    In other business, the council:

    • Voted to pass the new sexual assault investigation policy.

    • Approved the donation of a boat from the Jim Rhodes family.

    • Set the date for the 2020 budget planning work session for August 26 at 2:30 p.m.

    • Approved a liquor license for the Locker Room Bar.

    • Voted to approve the revised contract for count-ordered community service which states that any worker who is dismissed from the worksite will not receive credit for completed hours.

    • Voted to approve a request for a zoning change from farm residential to light industrial/commercial on property along Hwy. 169.

    • Approved payment number 4 for the Force Main Project.

Cliffs celebrates $100 million investment

August 15, 2019

By Ron Brochu


    Minnesota’s Iron Range received a life-extending boost last month when Cleveland-Cliffs began producing DR-grade pellets at its Northshore Mining plant. 

    The company, which invested $100 million to mass produce the upgraded product, celebrated that achievement at its Silver Bay plant on Lake Superior last week.

    To the naked eye, DR-grade pellets look like taconite, but they’re more valuable. The pellets create a new market for iron ore processors, which can be sold to companies that convert it to hot-briquetted iron, then feed it into electric arc furnaces that produce steel. Although most domestic steel once was made in blast furnaces, where taconite is the feedstock, 68 percent of today’s domestic steel is manufactured in electric arc furnaces, which consume scrap steel but need the higher-grade virgin iron to raise steel quality to a higher level.

    “DR-grade pellets will add at least 100 more years of mining in Northeast Minnesota,” Cliffs President, CEO and Board Chair Lourenco Goncalves told guests at the company’s ribbon cutting and celebration.

    With the upgrade, Northshore Steel is capable of producing both traditional taconite and DR-grade pellets using magnetite ore mined in Babbitt. Last year, it produced 5.6 million gross tons of taconite in Silver Bay. Moving forward, about 3.5 million tons of the total will be DR-grade.

    “This will be the only plant in the United States to produce low-silica, high-grade DR pellets,” said State Rep. Bob Ecklund, DFL-International Falls. 

    It’s not the first time Northshore Mining has been a pioneer in the industry. When it opened in 1956, it was the first taconite processing plant in the country. 

    The investment is part of a larger Cliffs plan that will move the overall investment past $1 billion. It is constructing a plant in Toledo, Ohio, that will use DR pellets to produce hot briquetted iron (HBI). That facility is set for completion next year, and Cliffs already has HBI customers.

    Originally, Cliffs had hoped to build its HBI plant near Nashwauk, Goncalves said. To make the plan work, it needed cooperation from the state of Minnesota and Federal Bankruptcy Court, which was seeking a party to restructure the bankrupt Essar Steel Minnesota development. 

    “We needed everyone to push in the same direction,” Goncalves explained during his presentation. But that didn’t happen. 

    “I was surprised when Gov. Dayton pulled the rug from under me,” he said. Meanwhile, the bankruptcy court didn’t select Cliffs’ restructuring bid and instead awarded it to another entity that quickly became insolvent and declared bankruptcy.

    Goncalves didn’t dwell on that dispute Tuesday but suggested Cliffs remains interested in Minnesota.

    “Minnesota is a natural site for an HBI plant,” he said, noting that Cliffs already controls half of the minerals near Nashwauk, site of Essar’s partially completed processing facility.

    He received support from U.S. Rep. Pete Stauber, R-Hermantown. 

    “This is our way of life” in rural Northeastern Minnesota, Stauber said. “We want to make American steel using American workers.”

    Goncalves noted that Cleveland-Cliffs and other U.S.-based iron and steel firms have rebounded since federal officials have placed tariffs on imports, particularly imports from China. Heavy industry in China, he explained, has undercut American competitors by selling at lower prices. That’s because, unlike Cliffs, they pollute heavily, Goncalves said, which reduces their costs. 

    “We have the most environmentally compliant steel industry in the world because we use 100 percent pellets,” he said, as opposed to dusty fines used in many other countries.

Greenway takes a pass on shared facilities talks

August 08, 2019

By Kitty Mayo


    In an exchange of letters last month Nashwauk-Keewatin and Greenway school districts each spelled out their perspective on near-future collaborations.

    Initiated by Nashwauk-Keewatin’s school board, a letter was sent out to Greenway asking them to open discussion on how the two districts might further their relationship, including sharing facilities.

    Nashwauk-Keewatin’s letter states: “Both school districts could double down on efforts to revive, rejuvenate, or replace the facilities we have, but at some point it ceases to make sense for the taxpayers in our communities to invest in facilities that may be structurally adequate and still fall short educationally.”

    However, Greenway’s response was clear that they were declining to enter into any conversation about new facilities or co-located facilities for the time being.

    According to Greenway Superintendent David Pace, the Greenway school board would like to continue to work with Nashwauk-Keewatin in any capacity that involves programming, but currently has its own plan for handling facility needs at this time. 

    “Greenway has made significant investment in the high school cafeteria and multi-purpose room and already closed the northeast building. In addition to making plans for further investments in our buildings, we have to take a look at how our debt has been structured in the past,” Pace stated.

    While Pace says that sharing facilities is not an immediate option, he says Greenway is open to shared curriculum strategies, and other shared opportunities for students from both districts.

    “I think the framework for collaboration has already been made with the STEM (Science Technology, Engineering, and Math) initiative in both districts, and down the road there are other alternatives to working together. We need to let these collaborations build and grow first before we look at facilities,” Pace said.

    Matt Grose, superintendent for Nashwauk-Keewatin, says his district is working on developing a thoughtful approach to what the district’s future will look like, and colors the letter in terms of exploration.

    “We initiated a conversation of a partnership with Greenway seeking openness to exploring that, nobody is proposing anything specific about consolidating or building, and we know we also have a lot in common and connections with Hibbing and Chisholm,” Pace stated.

    Now, more than 50 years into the Nashwauk-Keewatin merger, Grose says the district’s aging buildings will continue to need investment.

    “As a district we are trying to plan for the future knowing we have buildings that will be 100 next year by finding the best sustainable opportunity that also acknowledges our uniqueness,” said Grose.

    Acknowledging appreciation that the door is at least open to ongoing discussion on the level of programming collaboration, Grose says this coming school year is already moving in that direction.

    “The vision is for those kind of experiences in a variety of districts without worrying so much about whose pupil unit they are,” Grose said.

    Currently some students from Nashwauk-Keewatin attend the Health Care Career Pathway program at Greenway using a grant from the Iron Range Resources and Rehabilitation Board, and students from Greenway will be attending Nashwauk-Keewatin for Manufacturing Career Pathway internships.

    “We want more opportunities for educational success and some degree of scale and creativity is needed, we need to grow and rethink the opportunities we are providing because our world has changed and what kids need to experience in an education has changed,” said Grose.

Former health care CEO: delivery is changing rapidl

August 01, 2019

By Sally Sedgwick


    Health care delivery is changing in a world of Amazon, big data and high speed networks. And that change is accelerating.

    That was the message given by John Strange, recently retired CEO of St. Luke’s Health Care System in Duluth to the Bigfork Valley board, leadership and medical staff. The hospital was holding a visioning session in July to kick off its annual strategic planning.

    Strange pointed out that his comments were his own observations. “I’m a dreamer,” he explained; trying to look at what the health care world will look like 3-5 years out. 

    He recalled a conversation when he was asked to name the competition. “Essentia” seemed the obvious answer. “Really?” was the response.

    That was an eye-opening moment. What if your drugs came by drone an hour after you ordered them? And what if that prescription was written by an online doctor? What if that doctor was alerted by your watch that you had fallen? 

    Sound fantastic? 

    Amazon, Google and Apple are all players now in health care. Amazon entered the retail health care market with the purchase of Pillpack and Whole Foods Co-op. It found that 85 percent of Amazon users were willing to buy drugs from the online company. Currently it is developing a privacy-compliant Alexa for patient rooms.

    And, pointed out Strange, Amazon has no problem serving a rural market.

    Those companies are in the business of managing data, and the amount of health care data is exploding. In 1900, medical knowledge was doubling every 150 years. By 1960 it was doubling every 10 years. By 2020, it’s projected to double every 72 days.

    As the forefront of health care delivery is rushing toward a virtual marketplace, though, where is the patient? Is he/she in front of a computer or walking in the clinic doors?

    It turns out to depend largely on the patient’s age. The senior generations have loyalty to one doctor, and that doctor is trusted. Gen Z – born in 1995 and later - on the other hand, sees an online provider as the same as a personal visit.

    A major change came in with the Millennials – those born between 1989 and 1994. Convenience became the most important criteria and outreach clinics were set up. Since 2006 the number of urgent care clinics has increased by 500 percent, and a third of patients are using the clinics as primary care. Up to half of Millennials have no primary doctor, Strange said. 

    It is retail medicine, and it has a name – consumerism. Of five reasons for choosing a clinic – quality of care, brand reputation, doctor/nurse conduct, insurance and convenience – convenience was the most and quality of care was the least important to those surveyed.

    All of this is challenging to a hospital that wants to be the provider of choice – and wants to stay relevant. Each of the five generations between the traditionalists born before 1946 and Gen Z has different comfort levels with technology, different attitudes toward their own health care and different ways they can be reached. With an eye on the future, the present market still has to be served.

    To compound this dilemma for hospitals, socio/political trends have changed. Hospitals are being asked to move toward keeping their populations healthy and out of the hospital. In a survey of 21 million insured patients between 2003 and 2007, one percent used 29 percent of the health care dollar; ten percent used 60 percent of that dollar.

    It’s a change of mindset. “We’re good at trauma,” said Strange. “But not at chronic disease.” But what hospitals get paid for care by government insurers like Medicare may depend on how well a hospital does at keeping patients out of the hospital.

    One way to figure out this new landscape is to work together. There are huge opportunities for players to come together to reduce costs, he said. Wilderness Health, a group of seven regional hospitals including Bigfork Valley, is one way local hospitals are cooperating. One outcome of this is Wilderness Pharmacy, where St. Luke’s pharmacists take weekend and night calls for smaller hospitals.

    It’s a new health care world, but Strange is optimistic about Bigfork. “I always thought Bigfork has something special,” he said. 

Vandals cause damage at Keewatin Elementary

July 25, 2019

    Keewatin Elementary Principal, Anne Olson-Reiners was on hand July 17 to update the Nashwauk-Keewatin School Board on activities at the school, which included a break-in on the first floor the evening previous. 

    Olson-Reiners said the vandals threw pre-school toys on the floor and broke several chairs by throwing them through closet doors in a third grade classroom. The elementary principal said there were seven vandals in all, and that she could positively identify at least three of them from surveillance camera footage.

    Olson-Reiners expressed frustration with the school’s surveillance cameras. She reported that one camera that could have provided footage allowing officials to identify all seven of the vandals was not working. She said there were currently four cameras that were not functional at Keewatin Elementary. 

    Olson-Reiners indicated that all four cameras had broken in the last two years. “It is important that we try to fix something. It doesn’t have to be fancy but we have to try,” she said. 

    There are approximately 12-15 cameras located throughout the school. Olson-Reiners estimated damage caused by the vandalism to be about $600.

    In other business, the board:

    • Approved the School Resource Officer agreement for the coming year.

    • Approved the annual 10 year maintenance plan

    • Appointed Superintendent Matt Grose as the District’s Identified Official With Authority.

Bigfork City Council hears Ash Street project update, rescheduled for 2020

July 22, 2019

By Sally Sedgwick


    The Bigfork City Council met on Thursday, June 11 at 5:30 a.m. at City Hall. Council members David Mann, Drew Francisco and Mayor Bryan Boone were present. The Oath of Office was administered to new Junior Council Member Hannah Johnson, a senior at Bigfork High School.

    There were no public comments. It was noted that annual performance reviews for full time employees were conducted during the closed meeting on Thursday, June 13. 

    A work session was held on Thursday, June 27 with Sarah Carling of Community Economic Development Associates in an outreach program sponsored by the Itasca Economic Development Corporation. The program will include business topics such as a commercial property inventory and rent study, and identification of civic projects. For the latter, the council did a Strength/Weakness/Opportunity/Threat analysis and talked about possible projects. Carling will prepare a first impression report on city appearance and reputation along with a summary of the June 27 meeting.

    Joe Sutherland of Widseth Smith Nolting updated the council on the Ash and Rajala Mill Road construction project. Drawings have been submitted to the Itasca County Transportation Department and the Minnesota Department of Transportation (Duluth) and comments received. Ash Street is being designed as a 10 ton road with an 11-12 inch gravel base and 5 inch asphalt surface. Responding to comments from the county, drainage is being addressed. Widseth Smith Nolting requested a waiver to design the road to 30 mph instead of 40 mph, which will tighten the footprint of construction, and anticipates approval. MnDOT has indicated it will address new standards for pedestrian ramps at the Ash St./Hwy. 38 intersection during a future reconstruction project instead of this current project, and that it will furnish the culvert near the mill for city contractors to install if needed. The company recommended that bids be let in December or January with award in March and start of construction in June 2020 to improve pricing. 

    A short comprehensive plan update is expected this year from the Northern Itasca Joint Planning Board based on council input and the results of the June 27 work session. The full plan will be updated next year in a schedule which will include an internal city meeting, public input sessions and draft comment period. 

    A hearing had been scheduled for a Nuisance Ordinance Violation: furniture, appliances, unlicensed cars, etc. in yards at the Eagle Nest trailer park, but the owner did not appear nor contact the city. A letter will be sent requesting contact and clean up information by next meeting with the possibility of fines if progress is not made.

    A mayoral letter was approved for attorney review and subsequent publishing on the community’s desire to maintain a drug-free environment.

    In other business, the council:

    • Approved June payroll and claims paid and July claims for payment of $89,691.94.

    • Appointed Councilor Paul Gustafson to the Budget Committee along with standing members Mayor Bryan Boone, Clerk Angie Storlie and Public Works Superintendent Joe Zimmer.

    • Received and will act on a letter describing maintenance concerns for the National Scenic Byway Highway 38 kiosk and signage.

    • Approved a use request for a September event on the Bigfork River Walk Trail.

    The next regular city council meeting is scheduled for Thursday, Aug. 8 at 5:30 p.m. at Bigfork City Hall.

    Complete minutes are posted on

Business-led model could improve K-12 outcome

July 05, 2019

By Manja Holter


    Much has been written about the skilled labor shortage that plagues Northern Minnesota. The root of the problem is often placed in the high school arena, which reportedly doesn’t adequately prepare students for the workforce

    An innovative secondary education model aims to address this issue by shifting from the traditional subject-based high school model to a career academy concept, which promises to be more project based, hands-on, student centered and interdisciplinary.

    Coined the academies concept, the idea behind it is essentially as follows:

    Within a high school, small learning communities, called academies, feature a core curriculum of English, math, science, social studies, physical education/health and general/global electives as a requirement for graduation. What’s different is that the content of these core subjects is tailored to the specific field a student would like to go into professionally.

    As high school freshmen, students can explore different career choices and then pick an academy to join for their sophomore, junior and senior years. 

    The concept of small learning communities originated in Nashville, Tenn., and is growing across the nation as an effective model to prepare all students for college and a career.

Now this model is going to be implemented in Northern Minnesota. 

    The school districts of Virginia and Eveleth/Gilbert passed a $181 million dollar referendum in May, which has the construction of a new grades 7-12 collaborative academies based high school at its core.

    Support for the referendum was overwhelmingly high in both districts. Virginia approved the measure by 68 percent and Eveleth-Gilbert by 58 percent.

    This comes as little surprise since the incentives for community members to vote in favor of the project were exceptional. Going forward, taxpayers will only have to foot 20 percent of the total project cost bill. The remaining 80 percent are covered by the state of Minnesota and the Department of Iron Range Resources and Rehabilitation. 

    Local taxpayers will pay $2.7 million annually over the course of the next 20 years, while the state contributes $6 million annually during the same time span.

    The Iron Range Resources and Rehabilitation approved the contribution of $4.9 million annually for 20 years from its School Consolidation and Cooperatively Operated School Fund.

    Considering the uniqueness of this funding package, both districts were presented with a once in a lifetime opportunity to catapult their students into a 21st century learning space.

    Virginia Superintendent Dr. Noel Schmidt said, “We’re putting a state-of-the-art world class school, by any measure, right in our backyard. People from other areas will absolutely take notice and we will get a lot of attention from other school districts from the upper Midwest looking at what’s happening here.” 

    The magnitude of the project is staggering, he explained.

    “We are not just talking about new buildings. We are also talking about educating our high school students with an entirely new system and two separate districts working together. I believe this will head towards consolidation. You have literally every system within these two school districts changing.”

The districts of Eveleth/Gilbert and Virginia were inspired by the success of another Minnesota school district farther southwest. 

    The high school of Alexandria, Minn., implemented the small learning communities in the fall of 2014. Called the Academies of Alexandria, the school graduated its first class of students that went through the new program from 9-12 grade, last spring.

    “We’ve only been fully implemented for one year yet the growth has been fabulous,” said Alexandria Superintendent Julie Critz. “We have a group of community leaders, business owners and CEOs that we call the Champions Committee. I heard one of them say that this has been the most significant change in Alexandria that has enacted our community growth, our job growth and recruiting efforts.”

    Critz said the local hospital and manufacturing firms have reported what a difference the improved high school has made for local businesses to attract physicians and engineers.

    “Our student surveys show that the kids are more engaged as well,” she said. Critz meets with students three times a year for polling and consistently hears that they like the real life learning and the business related experiences and connections they make. 

    According to their testimony, the kids like the application of learning rather than exclusive learning in the classroom. “Our student enrollment has increased, and the number of struggling learners has decreased. While our high performing students continue to excel, we were able to increase the number of students who are accessing college credit learning.”

    Her administration was inspired by schools in Nashville that operate as so called wall-to-wall academies. When visiting those institutions, she was impressed with the deep community involvement and business engagement motto of the approach.

    Critz meets every other month with the Champions Committee. It oversees the entire academy model. Further into the structure, each academy has its own business partnership board. Those boards meet more frequently and are involved with developing career pathways for students, programs of study and curriculum. 

    “Our business partners contribute a lot to the development of the program for each academy. They’re helping us to be more nimble and to adapt our curriculum to what is relevant in the business world,” said Critz.

    The Eveleth-Gilbert/Virginia collaboration has been two years in the making. Eighty-nine community meetings with students, citizens and business leaders were held.

    “The concept of business-school relationships has resonated tremendously within our community,” said Schmidt. “That our kids will be having a better sequence from high school to their post-secondary education has made a lot of sense to folks up here.”

    Schmidt said internal anonymous surveys revealed that 90 percent of the teaching body are in favor of the new academies approach, and he doesn’t anticipate any resistance from his staff.

    Following the analysis of a regional industry and occupational data report, the school districts agreed on the creation of the following three academies: 

    • Business, Management, Administration, Arts, Communications & Information Systems

    • Engineering, Manufacturing, Technology, Agriculture, Food and Natural Resources

    • Health Science Technology and Human Services

    It is apparent for the career academies model to produce the desired outcomes, business involvement is of the essence.

    Now that the referendum in Virginia and Eveleth/Gilbert is passed, the administration of both school districts have three years’ time to forge relationships that will enrich the new curriculum. 

    This is how long it will take for the new high school with its academies to be built.

For now, idled US Steel blast furnaces won’t impact Minntac, Keetac

June 28, 2019

By Bill Hanna 


    U.S. Steel officials say the company’s pellet operations on the Iron Range will not be affected at this time by the idling of two blast furnaces‚ one in Gary, Ind., the other at Great Lakes in Detroit. 

    U.S. Steel owns and operates the Minntac plant in Mountain Iron and Keetac in Keewatin. The company also has 14.7 percent ownership at Hibbing Taconite.

    Minntac produces about 16 million tons of ore pellets annually, while Keetac has a capacity of 6 million tons.

    Minntac and Keetac, which experienced widespread layoffs in 2015 for more than a year, are both currently operating at full production.

    The company released a statement regarding the Iron Range operations. It said, “Based on current market conditions, there are currently no plans to adjust our Minnesota iron ore mining operations.”

    U.S. Steel announced last Tuesday, that the Gary Works blast furnace in Indiana will be temporarily idled because of falling steel prices, orders and revenue. There is no timeline for a restart. Gary Works blast furnaces produce steel for cars, appliances and other products.The company said in a memo “that there would be no immediate impact on employment levels at the mill, but that the company is “mindful of the impact these announcements have on employees and their families.”

    The company also plans to leave a blast furnace near Detroit offline after the completion of a planned maintenance outage that started last week.

    The temporary idlings will reduce the blast furnace production of pig iron by 200,000 to 250,000 tons a month starting in July.

    “If both furnaces remain idled for the remainder of the year, we expect full year flat-rolled shipments to third-party customers to be approximately 11 million tons,” the company said. “We will resume blast furnace production at one or both idled blast furnaces when market conditions improve.” 

    In addition, U.S. Steel plans to idle a blast furnace in Europe with a production capacity of 125,000 tons a month. It will cut production by 3.6 million tons if it remains idled for the year.

    District 3 state Sen. Tom Bakk of Cook, said idling of the Gary Works blast furnace creates “a lot of uncertainty on the Range with the shrinking demand for cars and appliances. No blast furnace, no pellets.”

    The DFL senator said he hopes it’s “not a precursor of a recession.”

    But Bakk said a likely interest rate cut by the Fed next month is another sign of economic instability.

    “We’re in the 10th year of an economic expansion. We’ve seen these cycles before. And the Range is always on the front end of a downturn,” he said.

    BusinessNorth Contributor Bill Hanna, who has been a writer and editor in the newspaper business for more than 40 years, was a Reporter and Executive Editor at the Mesabi Daily News on the Iron Range from 1985 to 2016. He has won more than 50 state and national awards. He currently writes Sunday columns for the MDN Op/Ed section.

Community banks fill the gap in rural communities

June 20, 2019

By Manja Holter


    Large national banks made recent announcements they will close a significant number of branches as well as drive-through lanes in the near future, citing a shift in consumer behavior toward online and mobile banking. Community banks offer those services as well, so will they follow suit?

    Wells Fargo, which pulled the plug on 250 branches last year announced in 2018 it would shut down 800 more branches by 2020. The bank’s billion dollar legal costs in the wake of numerous misconduct allegations might be at the core of this development, but the behemoth is hardly alone.

    JPMorgan Chase closed 9 percent of its branches between 2012 and 2016, while Bank of America shuttered 15 percent, according to research conducted by financial market analyst CLSA.

    The driving force behind these closures is a general decline in transactions conducted in brick-and-mortar bank branches. 

    As national banks are closing rural branches, community banks are picking up the slack. 

    Noah W. Wilcox, president and CEO of Grand Rapids State Bank, offered the following statistic: “One in five counties in the United States are only serviced by a community bank.”

    So, how do community bankers assess their future? Are community bank branches and drive-ups becoming obsolete?

    Brian Nicklason is the president of Itasca County-headquartered Woodland Bank, a family owned business first chartered in 1920. It currently has four branch offices located in Grand Rapids, Cohasset, Deer River and Hill City.

    “We are seeing a significant change in volume related to the internet banking. Our web-based banking is up from last year. We have over 9,000 more visitors per month and our mobile banking is up almost 500 transactions per month,” said Nicklason.

    But even with this development, Nicklason said he is far from considering closing any of his branches. 

    In fact, he makes one key distinction: “The big banks are referred to as transactional banks because they focus on the amount of transactions. Community banks on the other hand are more relationship based.”

    He said the expectation of his customers is to have a physical location. “If you want to open an account or need a loan, it is still nice to talk to a person.” 

    Wilcox views the impact of online and mobile banking on his business rather favorably. “It is another delivery channel for a different segment of our customer base that prefers to interact with us remotely,” he said. “Certain demographics like to do things differently and it is not always the younger generation that wants mobile services. We have a significant customer base between early 40s and 60s that are heavy mobile banking users.”

    While in-store transactions are declining for both banks, drive-up transactions remain strong. 

    “Last Friday we had 120 drive-ups at our Grand Rapids office alone,” said Nicklason. He stated that if expansions are on the horizon, drive-up windows will be part of those plans. “We will always have a drive-up. We believe it is very valuable,” he said. 

    Wilcox echoed this sentiment. “We have not had any decline in our drive-through transactions, in fact, it is pretty steady.” 

    Will we see fewer tellers?

    Nicklason said he was able to tweak branch office hours, according to the data he collected. His bank tracks transactions by the hour, by branch and by session. 

“This allows us to extend our hours and still serve our customers efficiently,” he said.

Nicklason added there is still a customer base that values the personal service. “We have to offer a little bit of everything to everybody.” Personal service means maintaining a physical branch as well as experienced staff. “It is a little more expensive way, but I believe it’s the way it has to be.”

    Wilcox on the other hand, estimates he employs fewer tellers now than he did 10 or 15 years ago. When Grand Rapids State Bank remodeled one of its offices in 2008, the number of teller windows was reduced by half.

    Are vaults and safety deposit boxes a thing of the past?

    Just until a few decades ago banks protected their money with gigantic vaults housed in formidable buildings. “Those shiny vaults have since been replaced by security systems,” said Nicklason. 

    What’s more, the stuff that was stored in the vaults, paper money, is becoming less as well. There is simply less need to have large amounts of cash on hand in each office, since the population is moving away from using it. “We’ve seen our debit card activity increase significantly. People just don’t use cash as much,” said Nicklason.

    Surprisingly, demand for safe deposit boxes is still strong. 

    “We’ve been in the storage business forever,” said Nicklason, likening his bank to a self-storage business. He said all his branches are at maximum capacity. 

    Although safe deposit boxes are not very profitable for banks when taking the liability into account, both Nicklason and Wilcox feel the product is part of customer service. “We still see an element of our customer base that wants this service,” Nicklason said. He said demand for the bigger boxes is on the rise, while the smaller units are falling out of favor. 

    Wilcox said they witnessed no decline in safe deposit box usage. “The majority of our boxes are rented and remain that way,” he said. “There are customers that value the peace of mind of having their cherished items protected in that way and kept safe.”

    Are paper checks going away?

    Generally speaking, banks are discouraging the use of paper checks because their processing is more expensive than check image processing. However, banks make a small percentage when customers order check blanks. And while paper check usage is steadily on the decline, Nicklason is still surprised how much revenue continues to be generated through this channel. 

    Even though debit card use is at an all-time high, Nicklason doesn’t believe there will be a cashless society any time soon, and until then he thinks the paper check will have a niche. 

    “There is a place for paper checks. A segment of our population still likes to pay that way,” agreed Wilcox.

How does FinTech impact community banks?

    Banks in general keep a watchful eye on so-called FinTech start-ups that peel off one profitable service after another.

    FinTech, a portmanteau of financial technology, is the term used to describe any technological innovation and automation regarding the financial sector. 

    Business models include online financial planning services, online lending and borrowing, online retail banking, online fundraising, online money transfers and payments, online investment management and more. 

    Wilcox believes the services can be complementary to the banking industry. 

    “There are as many business models as there are community banks. It all comes down to leadership. If I can bring on a product that helps me serve our customers more efficiently and robustly, then I am all about that,” he said. 

    Nicklason agreed. “As a bank you have to understand the trends that come with the changing world. Even as a small community bank with limited resources you have to invest or get out of the way and let someone else do it. I hope we don’t ever lose the human element of banking but FinTechs are changing everything and community banks will struggle to compete in that arena.”

    Nicklason believes this is one of the reasons why mergers and acquisitions are on the rise in the world of community banks. 

    “We have 4,000 less community banks than we did 15 years ago in this country. In Minnesota alone we lose three to four each quarter. Most of it is not due to closing, like it was during the recession, but due to merging. There are just as many branches but they belong to fewer banks.”

Magnetation assets sold at bankruptcy auction

June 13, 2019

By Beth Bily

    The fate of the assets of some of the former Magnetation operations were decided in Minnesota Bankruptcy Court on Monday.

    Magnetation was a company in rapid growth mode from 2008 to 2015, when plummeting iron ore prices forced the mining firm into bankruptcy. Its assets were acquired by ERP Iron Ore, led by Tom Clarke, in 2017. Not long after, however, those assets were once again in the hands of the bankruptcy court. 

    Several firms submitted bids to the Minnesota Bankruptcy Court – each with a different vision of what should become of the multi-million mining operation equipment and assets of the once-thriving company that reclaimed iron ore from existing tailings basins. Two companies – Prairie River Minerals and MJM Minerals were successful in their bids. The other two – Bison Minerals and Buckeye Minerals were not.

    According to court documents, the following is a breakdown of the bids submitted for court consideration:

    • Prairie River Minerals, LLC - is a locally based company. Stakeholders include former state Rep. Tom Anzelc, Ed Shaughnessy, Johann Grobler, Jim Swearingen and Scott Conley. Prairie River Minerals successfully bid $1.95 million for Plant 1, located near Keewatin, and the Jesse Load Out Facility. Prairie River intends to use a process known as ultra-dense media separation to extract hematite from old mining stockpiles. 

    • MJM Minerals – Submitted a successful bid of $1.7 million for Plant 2, located near Bovey/Taconite. Although little information was available about the company’s plan as of press time, it is believed MJM intends to scrap the plant.

    • Bison Minerals, LLC – With offices in Coleraine, Minn., Bison also planned to use established technology from South African firms to mine the tailings basins along the West Range. Bison submitted two alternative bids for Magnetation’s assets – a $4 million bid for Plants 1, 2 and the Jesse Load Out and a $21 million bid, which also includes Plant 4, located near Grand Rapids. The bid for all assets included an initial payment of $5 million with the $16 million balance to be paid off in a period of 48 months or less. Bison is led by former South African mining executive Hank Venter. 

    Although disqualified as a bidder, company spokesperson, Mike Andrews, said Bison has filed an objection to the court’s disqualification, claiming that the company did meet the court’s financial requirements as of June 7 when proposals were due.

    • Buckeye Minerals, LLC – Buckeye is a newly formed company legally organized in Delaware just last month. Buckeye offered $7 million for Plants 1, 2, and 4 as well as the Jesse Load Out facility. This company’s plan for the assets are unknown but they were also an unsuccessful bidder.

    The assets of Plant 4 in Grand Rapids remain in limbo as of Monday’s auction.  The sale of Plant 4 could prove more problematic than that of the other facilities due to the large number of mechanics liens on the facility. However, court documents filed June 10 suggest that another motion for sale could be filed on or before June 28.

    The outcomes of Monday’s auction will go to a bankruptcy court judge on Friday, June 19 for a final motion. Sales would take 30 days after that date to close.

Grand Rapids City Council rejects street improvement bids, reviews new developments

May 23, 2019

By Sally Sedgwick


    During public comments at last week’s Grand Rapids City Council meeting, Dale Anderson, director of parks and recreation, urged voting for Ryan Flood Memorial Park at once a day from every device. The winner will receive a court upgrade worth $30,000. The voting closes Friday, May 24 at midnight.

    Mayor Dale Adams highlighted the Miner, Wilcox and Ives families for going above and beyond in supporting local initiatives: the Miner family for helping with remodel for the state Eagles convention and the Wilcox and Ives families for supporting the performing arts and Reif Center.

    Officials rejected all bids and authorized rebidding for street improvements in the city. The two bids received were approximately $4 million, about $750,000 more than the engineer’s estimate.

    The council authorized an architect/engineering agreement with ICS Consulting for a monthly retainer of $2,500 through November 2020 to start the process of IRA Civic Center west venue remodeling and safety repairs. The project includes emergency replacement of the west venue truss system, refrigeration and ADA improvements and will include such items as listening workshops, recommendations, an energy audit and report, a facility plan, funding options and public education on the project. A steering committee of stakeholders was also approved.

    The city council discussed and approved two plats within the city: the final plat for Great River Acres and the preliminary plat for Rebound Commercial Addition (formerly the location of the Sawmill Inn). The traffic needs for the Rebound addition, which will include a proposed hotel and mixed commercial uses, was discussed, including the responsibility for installing a street light if necessary. The Minnesota Department of Transportation has done a traffic study indicating no signal will be necessary. 

    In addition, the council approved a contingent purchase agreement for the Riverview School property with the Itasca County Housing and Redevelopment Authority for the Aurora Heights project, an affordable housing development with an apartment building and townhomes owned jointly by the HRA and Northland Counseling Center. The proposed price on the 7.2 acre site was set at $190,000 due to a reduction in buildable area to 4.0 acres and the need for soil corrections. 

    In other business, the city council:

    • Approved a resolution setting May as Arbor Month and Wednesday, May 22 as Arbor Day in the city. 

    • Approved claims of $1,141,096.85 for the period April 16 to May 6.

    • Accepted an agreement with the state for airport maintenance financial assistance from July 1, 2019 to June 30, 2021.

    • Accepted the resignation of Frieda Hall from the Human Rights Commission.

    • Accepted the Grand Rapids Economic Development Authority 2018 annual report.

    • Approved change orders for about $23,000 for the Golf Course Road, Utilities Extension project at Great River Acres.

    • Authorized a timber sale on about 75 acres at the airport to meet FAA regulations. The sale will be administered by the Itasca County Land Department and take place on June 7 at 10 a.m. at the Cohasset Community Center.

    • Authorized soliciting quotes for four new city vehicles through the Minnesota Cooperative Purchasing Venture.

    • Approved payment of $5,537.35 to Cutsforth Inc. for easements on the Grand Rapids – Cohasset Connection Trail.

    • Accepted the low bid of $7,250 from ACCT Incorporated for asbestos abatement for a house scheduled for demolition.

    • Authorized hiring seasonal employees under the Public Works Department and updating the seasonal employee handbook.

    • Heard a report by Barbara Baird, director of finance covering the 2018 audit of the General Fund.

    • Renamed the Legion Baseball Field the “Bob Streetar Field at American Legion Park.” The name change was brought forward by alumni and supported by the Civic Center, Parks & Recreation Advisory Board. A ceremony will be held at the field June 21 during the American Legion Tournament.

    • Approved start of project work on the new elementary school sites before official closing on the properties.

    • Accepted the low bid from Hawkinson Construction for $69,931 for the Block 19 Alley improvements including removal and replacement of base and pavement and relocating private utilities underground. A Supplemental Letter Agreement for SEH Inc. for additional work scope during the project for $5,244.82 was approved.

Walz says he will change unusual policy IRRR used to hire Radinovich

April 27, 2019

By Dan Kraker, Minnesota Public Radio


    Gov. Tim Walz’s administration has announced it will change state hiring policy after a former state DFL legislator was appointed to a six-figure job at the Department of Iron Range Resources and Rehabilitation without going through standard hiring procedures. 

    Joe Radinovich, who ran unsuccessfully for the 8th Congressional District seat last year, was hired in March by the economic development agency based in Eveleth, as a senior manager at a salary of $100,000. 

    The story was first reported last week by The Timberjay newspaper.

    Documents show the Department of Iron Range Resources and Rehabilitation asked for and received special permission from the Minnesota Management and Budget office to post the position for only 24 hours, rather than the required 7-day minimum. 

    In addition, an organizational chart produced five days before the job was posted showed Radinovich already installed in the position. Radinovich had previously worked as the department’s assistant commissioner before resigning to run for Congress. 

    “I am deeply troubled by the hiring process at the [Department of Iron Range Resources and Rehabilitation] that lacked transparency and fairness,” Rep. Sandy Layman, R-Cohasset, said in a statement Thursday. Layman sits on the agency’s governing board and is a former Iron Range Resources and Rehabilitation commissioner. 

    “This kind of political maneuvering undermines public confidence in the agency and reinforces the worst impressions people hold — fairly or not — about the (department).”

    Over the years the agency has come under harsh criticism for giving millions of dollars in loans and grants to businesses that failed to provide the jobs they promised, and for not adequately overseeing the funding it provides.

    In response to The Timberjay’s story, the Walz administration announced it will institute an administration-wide policy requiring, rather than recommending, that all similar managerial positions be posted for at least 21 days. 

    “The governor’s office was not involved in any decision-making related to the expedited hiring process, and did not direct the Department of Iron Range Resources and Rehabilitation or Minnesota Management and Budget to vary from ordinary hiring procedures,” Walz spokesperson Teddy Tschann said in a statement Thursday.

    Tschann added that Walz is “committed to hiring the most qualified candidates and building an administration that reflects the diversity of Minnesota.” 

    The department is charged with diversifying the economy of the Iron Range beyond mining. It issues tens of millions of dollars every year in grants and loans intended to spur economic development in northeastern Minnesota.

    Listen to MPR at 100.5 FM in Duluth, 89.3 in the Ely area, 89.7 in the Grand Marais area, 107.3 in the Grand Rapids area, 88.3 in International Falls and 92.5 in the Hibbing-Virginia area.

33rd Annual Military Ball

April 11, 2019

By Don Basista


    The Deer River Veterans Club held its 33rd Annual Military Ball for Veterans and either their spouse or companion. The club provided the hors d’oeuvres and entertainment which was the Lady and the Tramps Band. 

    U.S. Air Force Veteran, Mike O’Claire, was the Master of Ceremonies. As each branch of the service was called, veterans would come to the center of the dance floor as the band played their branch of the service song, receiving standing applause. Some Veterans wore their old uniforms or a part of their uniform. 

    VFW Post 2720, and American Legion Post 122, Veteran Jim Peterson said “The Military Ball is to recognize our veterans each year with food, friendship, and music, and in the spirit of camaraderie, we intend to do this each coming year.”

Bigfork hospital downsizes nursing home beds, to explore nonprofit structure

March 16, 2019

By Sally Sedgwick 


    At the March 5 meeting of the Bigfork Valley Board of Directors, CEO Aaron Saude discussed options to downsize the Tamarack Lodge portion of the nursing home due to continued low occupancy. 

    Layaway, or closure, of seven beds and conversion of those rooms to private rooms was discussed. Beds in layaway may be reactivated for up to 10 years. The removal of beds will allow better reimbursement through PIP (performance-based) and QIPS (quality-based) incentive grants. It would also allow a one person staff reduction. In response to a question from Heidi Watson, the beds could not be used for respite or for younger patients.

    “It saves us some money and doesn’t impact operations,” Saude said. 

    The board voted to layaway seven beds; after the layaway the nursing home will have 20 beds in Aspen Circle, and 18 private rooms and 1 semiprivate room in Tamarack Lodge.

    Board Chair George Rounds requested volunteers for a working group on exploring a 501 (c) 3 structure. Members will include directors Diane Bakke, Heidi Watson, Marie Lovdahl, Larry Salmela, Joanne Krickhahn and Rounds. Community and staff members may be added. The first meeting takes place this week.

    Saude presented three options for facilitating strategic planning. Krickhahn pointed out that the proposals were not uniform in describing what would be provided and the background of the facilitator. It was decided to develop a proposal form and request submissions again.

    In other business, the board:

    • Approved the financial report showing a loss of ($256,385) for the month ending Jan. 31, 2019.

    • Discussed decreased swing bed statistics and relative cost of care vs. transitional or temporary nursing home care. Swing beds are patients who receive care elsewhere and return to Bigfork Valley to continue recovery. Appropriate care for the patient is currently discussed between the hospital and nursing home.

    • Heard in the financial committee report that Dr. Daniel Baker and Jeff Temple had started as Bigfork Valley employees and Rainy Lake Medical Center had been contacted for possible cooperative services.

    • Was reminded to communicate with constituents.

    • Authorized employee appreciation awards to Leo Kern, Matt Niemala and Bridget Jurgansen.

    • Held a closed meeting on pending litigation.

Historical Society unveils early camps exhibit

March 07, 2019

By Sally Sedgwick


    Big stone fireplaces, towering trees, new friends and canoeing through clear lakes. That was the summer experience of many in their teen years during the mid 1900s. 

    Some of those early camps were in northern Minnesota, and a dozen of them are featured in the new exhibit opened last week at the Itasca County Historical Society, “Early Camps in Itasca County.”

    The exhibits give a flavor of individual camps - boys camps, girls camps, music camps and more – with pictures, items and anecdotes. “Camp food” was offered as visitors browsed the exhibits including American Girl Camp, Bluewater Camp Fire Girls, Camp Allan, Camp Clef, Camp Hiawatha, Camp MarMac, Camp Mekahga, Camp Mishawaka, Camp Ruby, Camp Sherwood, Mayflower Camp and Sugar Lodge Deaf Camp. The exhibit is expected to be up for at least a year.

    The Itasca County Historical Society provides a museum, historical and genealogical research services and more. It is located at the corner of 201 North Pokegama Ave. in Grand Rapids. For information, call 218-326-6431.

Water clarity, city hall top Coleraine agenda

February 05, 2019

    The year’s first Coleraine City Council meeting was called to order by Mayor Pro Tem Ryan Stish and the first order of business was to conduct a swearing-in of our newly elected city officials. Dan Mandich recited the Oath of Office, as presented by City Clerk Briana Anderson, to be the next Mayor of Coleraine. Shortly thereafter, the two council members-elect Joseph Pollard and Thomas Sutherland took the oath.

    Street Commissioner Harry Bertram addressed the cloudy water issue and said they are doing everything possible to help the water clarity. He advised residents to run the tap 15 to 20 minutes and change the filter. Bertram said all of the water tests from St. Paul have come back showing the water is safe. Coleraine city water is tested every day and the city is obligated to alert residents if any problems with water quality should arise.

    Cavour Johnson reported on two projects he is working on and one is the city hall assessment where the overall condition is rated as fair. It will take $368,000 to fully restore the outside of the building. Johnson said the south east corner of city hall was not repaired adequately the first time. Several funding grants are available, and they also need the original construction drawings. A petition was circulated and residents who want to save city hall out numbered the nay-sayers by 50:1. Johnson noted grant writing is a very time consuming process and deadlines are in April.

    In a separate matter, Johnson identified three watersheds in town where storm drain water could be funneled into something or someplace other than Trout Lake. 

    Mary Drewes represented the Mount Itasca ski hill and said it was a virtual ant hill of activity with the Olympic Ski Jumping Tournament and the tubing hill was a big attraction. She thanked the press for their coverage of the ski jumping tournament.

    Coleraine Police Chief Lonnie Mjolsness was busy on an investigation and could not attend the meeting. Chief Mjolsness, however, did release a police report that included the total number of calls listed at 1,287 for the year 2018. For the month of December, 112 calls were reported and the breakdown consisted of 57 calls in Coleraine with 15 in the annexed area and 6 handled by the school resource officer. Bovey had 28 calls for December and there were 10 mutual aid calls. The TLFD responded 10 times and one of those was a carbon monoxide alarm.

    Clerk Anderson released the list of appointments where Dan Mandich and Jeff Troumbley will be on the fire board, Joe Pollard will be the liaison for the Mt. Itasca ski hill and the members of the library board were listed as Jennifer Inglebret, Megan Hannah, Lila Dezelske, Kathy LaFond and Tom Patnaude. 

    In other business, the council:

    • Voted to appoint Councilor Joe Pollard to the Brownfield Coalition.

    • Voted to update the library bylaws that were set in 1909.

    • Agreed to hire Steve Campbell as the new city maintenance mechanic. 

    • Expressed the need for one new person on the Planning and Zoning Commission.

    • Voted to approve the annual audit.

    • Noted that the windrows left in front of driveways by the plow truck are the responsibility of the home owner.

    • Announced the new Fire Chief as Ken DeCoster.

    • Decided to expend $1,500 for legal work to divide the old fire hall property into three separate parcels.

    • Reported that the rink attendants are doing a good job.

    • Placed an order for one new fire truck.

    • Discussed the city’s right to switch insurance companies.

Effie City Council appoints new council member, plans work on skating rink

January 24, 2019

By Sally Sedgwick


    The Effie City Council met on Monday, Jan. 14 to organize, make 2019 appointments and consider pending issues.

    Mayor Greta Drewlow brought the meeting to order with two council members, Lil Longtine and Tom Lamont, and Clerk Carolyn Schmit present. The resignations of two council members, Joanne Krickhahn and Tim Grady, were accepted and new appointee Angela Walker was sworn in. Residents interested in applying for the remaining open council seat should contact the city clerk at or 218-743-6767.

    Appointments to area boards and city positions were made. Scenic Range NewsForum was designated the legal newspaper for the city. Lil Longtine was appointed acting mayor. John Licke will be city attorney.

    Up to $500 from the skating rink fund will be used for broomball equipment for youth and repairs to the rink so it can be flooded. The equipment will be stored in the locked warming house with the key available at Effie Country Service. A report will be submitted to the League of Minnesota Cities. Payment for city property missing from the warming house will be sought. 

    Two nuisance ordinance violations were discussed. A court date of Jan. 28 has been set for a suit against the city relating to one violation. A motion to release impounded vehicles with assurance of a privacy fence being erected by June was approved for the second. Attempts will be made to settle both issues out of court. 

    In other business:

    • December 2018 claims and payroll of $13,205.65 were approved.

    • The move of dedicated funds totaling $8,553.37 to a separate savings account was approved.

    • Purchase of a new sample collector for sewer system reports for $2,036 was approved.

    • Services rendered to the city by former council member Bob Cassibo were noted with thanks.

    • Meetings for 2019 will be the second Monday of the month at 6 p.m. in the Effie Community Center. The November meeting will be Nov. 18 due to Veterans Day. A possible change of time will be discussed at the next meeting.

    • Council members were asked to review local city ordinances for discussion at the next meeting.

    • The next meeting was set for Feb. 11 at 6 p.m. in the Effie Community Center.

Tinquist elected new county board chair at organizational meeting

January 17, 2019

By Sally Sedgwick


    The Itasca County Board met on Tuesday, Jan. 8 in an organizational meeting. Davin Tinquist, commissioner from District 1, was elected the new board chair and Ben DeNucci, commissioner from District 5 was elected 2019 vice-chair. All newly elected or re-elected officials took the oath of office administered by Judge Sarah L. McBroom.

    New fees were discussed and approved for the renovated Pavilion at Gunn Park. Considering several options, the board approved a fee of $75 for a half day and $150 for a full day for pavilion use, reservations can be made through contacts on the Itasca County Parks webpage. 

    In other business:

    • A list of various appointments to various committees, commissions and boards was approved. The board opted to not participate in the Minnesota Rural Counties Caucus this year and the Arrowhead Procare Pool board has dissolved.

    • The Herald Review was selected as legal newspaper to carry the official proceedings, first run financial statements and delinquent tax notice. The Scenic Range NewsForum was selected for second run financial statements.

    • An agreement with the Minnesota Department of Public Safety for updating the county’s Hazard Mitigation Plan and commitment of at least $11,250 of matching funds for the update were approved. 

N-K students are achieving academically

November 22, 2018

    The ISD 319 School Board convened for it November meeting on Nov. 15 at the High School. High School principal Ranae Seykora was on hand to bring the board up to speed on activities at the high school. 

    Seykora said that she was implementing a new program at the high school to recognize students who were achieving A’s in their classes. Seykora said the high school partnered with the Nashwauk Chamber of Commerce to sponsor a pizza party for those students achieving four or more A’s. Seykora said there are 125 students out of 284 who are receiving four or more A’s in their classes.

    Seykora next broadened her perspective on grades at Nashwauk-Keewatin. She noted that 58 out of a total of 82 juniors and seniors were taking college level classes. She added that ACT scores improved at the high school in every area tested including math, science, reading and, English.

    Superintendent Matt Grose continued discussion about college-level classes in high school. Grose said that he thought there were several advantages to this program. 

    One advantage, said Grose, is that kids are exposed to a rigorous curriculum. Another advantage he cited is that kids get to participate in and get a college experience in a much less threatening environment. 

    “Some of our students, they might be the first ones in their family that get to go to college or it might not be part of their family culture,” he said. 

    Grose also mentioned the economic benefit of the program, pointing out that if the 58 students Seykora cited each took 3 credits at $300 per credit, there would be a savings of over $50,000 in tuition for area families. 

    The superintendent concluded his remarks by saying; “It reinforces the idea that this is an academic institution, and we are scholars around here. I think that is something we want our kids to be thinking about.

We’re scholars. We’re smart. We do whatever we want.” 

    Band Director Chad Snider reported that more than 400 people attended a pancake fundraiser event. Previously, Snider had received approval from the Board to purchase a concert shell at an estimated cost of about $12,000. Snider said that towards the end of the pancake breakfast, he was approached by a person who wanted to know how much money he had saved for the shell. Snider told the individual he had about $3,000 saved. The person, who wishes to remain anonymous, volunteered to pick up the remaining $9,500. Upon hearing this news, Snider said that his students were excited and asked him what they can do to say “Thank You.” Snider said that he had purchased numerous thank you cards that the students will be signing. He added that a song would be dedicated to this and other donors at the band’s first concert on Dec. 12.

    In other business, the board:

    • Accepted and certified the results of the Nov. 6 election.

NRRI: Transforming the future of plastic

November 01, 2018

By Kitty Mayo


Plastics have revolutionized the world, and now we are drowning in it. In an effort to take a step back from petroleum dependence and find biodegradable plastic options, scientists at the Natural Resources Research Institute (NRRI) are endeavoring to make plastic from trees.

The conventional approach to plastic relies on petroleum, a tie to the chemical industry and fossil fuels that has researchers searching for greener alternatives.

Earlier this year the University of Minnesota Duluth’s NRRI received a $3 million grant from the U.S. Department of Agriculture for a project called Integrated Biorefinery Optimization. For the NRRI, that boils down to turning tree constituents into a renewable bio-plastic. 

Analogous to a petroleum refinery, a biorefinery converts biomass, like trees, into multiple products like fuels, heat and value-added chemicals. This USDA project has the stated objective of reducing biorefinery costs in order to decrease U.S. dependence on foreign oil.

Lignin is a structural material in trees that makes up about 30 percent of woody plant mass. An undervalued waste product in biorefineries that make ethanol from tree pulp, scientists all over the world have been trying to find ways to get this intriguing material to meet plastic specifications.

NRRI’s project has several collaborative partners and, if successful, could have great economic benefits for Minnesota and Wisconsin’s forestry industry.

For the last 20 years, companies around the globe have been looking for ways to turn cellulose into fuel or other useful chemicals, a process that requires the removal of all the other components, like lignin. The paper industry uses wood pulp, removing the lignin as well. That leaves a lot of lignin going to waste.

“What has eluded a lot of people is finding a way to remove lignin that leaves something useful,”said NRRI’s Initiative Director for the Wood Products and Bioeconomy group, Eric Singsaas. “We took a different approach.”

Ten years ago while working at the University of Wisconsin - Stevens Point Singsaas began using an organic solvent called butanol to remove lignin from cellulose, resulting in several successful patents.

Step one is removing lignin from trees using the butanol method Singsaas helped develop.

Project partner Department of Energy’s Oak Ridge National Laboratory (ORNL) has created a durable bioplastic they call ABL for acrylonitrile-butadiene-lignin. Using 50 percent renewable content, ABL is recyclable and is intended to compete against the petroleum product currently in place, which is called ABS.

An extrudable and moldable thermoplastic, ABS can be found in a million every day items, from car bumpers, to luggage, composite decking and toys. Its major downside is that ABS is made from petroleum-derived chemicals.

Step two: Use ORNL’s technology to create ABL plastic from lignin sourced with NRRI’s patented solvent process.

“The goal of the project is to develop something equal to or better than ABS that uses lignin in the form of a composite siding or decking product,” Singsaas said.

The practical side of the USDA project is in the hands of Attis Innovations who will operationalize the manufacturing of ABL for market.

Vice President of Marketing for Attis Innovations division, Chris Kennedy noted Attis is a commercialization partner for the project and will modify the basic technology already developed by other partners to upscale separation of lignin from biomass and manufacture ABL.

“Our role is to take that process and modify it to make it capable for commercial scale proportions, moving from the two tons of biomass processing a day that AST is currently capable of, to scale that up to processing 200 biomass tons daily,” said Kennedy.

Attis Innovations has its corporate headquarters in Georgia, but will be working in Wausau, Wis. as a partner on the USDA grant to expand their pilot facilities.

Beyond the USDA project, the NRRI group is continuing to pursue development of a biodegradable lignin product. Singhaas said biodegradability is a desired feature that goes beyond plastic forks. 

“If you use a petroleum based product in applications for plastic mulch landscaping or agriculture you have to go in and remove it, but if you can use lignin to make plastic mulch that would degrade in two or three years you could leave it in place,” Singsaas said.

The technical challenge requiring a lot of chemistry know-how is how to get durability, heat resistance, tensile strength and biodegradability into that product. 

Singhaas has already piloted a plastic fork project from lignin, but the prototype wouldn’t heft your potato salad without losing a few prongs, and a lignin spoon will melt when stirring coffee.

“What keeps me up at night is how to get a natural product to have all the properties of single-use packaging that will displace all the plastics polluting our lakes and oceans,” Singsaas said.

Traditional markets for forest products in both Minnesota and Wisconsin have struggled in recent years. With the shrinking of demand from the paper and OSB industries due to international competition, Singsaas noted this development could open up new markets to the forest industry previously not accessible.

Singhaas said Minnesota had historically shipped a great deal of unprocessed logs out of the state. Creating the template for a bioplastic industry from growing trees to manufacturing a finished product is a chance for the state to increase the economic value of forestry products by retaining production in-state for job creation, he said.

Preliminary numbers predict the use of lignin over petroleum to make plastics could result in a 70 percent savings in greenhouse gas reductions.

Arbitrator says firing was justified, former deputy plans appeal

September 20, 2018

By Kitty Mayo

In an arbitration decision released last week, Itasca County Sheriff Vic Williams was found to have “just cause” for termination of 16-year veteran deputy Bryan Johnson. Both men are vying for the position of county sheriff in this year’s general election.


Stemming from two instances of inaccurate time card entries in 2017 totaling 12 hours, Johnson was put on paid leave while a Beltrami investigator looked into the matter. He was later terminated. Johnson asserted that disciplinary actions taken against him were retribution for his involvement in an internal whistleblower case and for his 2014 election run against Williams. The county and Williams, however, countered that the actions against Johnson were unrelated to the 2014 election.


Appointed arbitrator James Laumeyer addressed three areas of concern in his assessment of the case: whether the mandated paid leave was a violation of the union collective bargaining agreement; the question of whether the time card entries were intentional theft; and if the county was justified in its termination of Johnson.


Laumeyer wrote in his findings that the paid leave of absence was not disciplinary, as contended by Johnson’s union, but rather accepted practice during an investigation. He went on to say that the erroneous timecard entries were not intentional despite county’s claim that they were an attempt to commit theft or fraud.


Finding that Williams had just cause for the termination, Laumeyer concluded that Johnson “did display a pattern of deceit and dishonesty in his efforts to “cover” up his erroneous entries, characteristic of a “web of deceit.”


Williams said little on the matter, but appeared satisfied with the arbitrator’s conclusions. "An independent arbitrator heard all the evidence and made a thorough and well-reasoned decision," Williams stated.


In a phone call Johnson said that his union attorney is requesting an appeal of the hearing based on alleged “egregious errors” by the arbitrator. Johnson responded in writing with his reaction to the arbitration findings.


“I unequivocally deny any and all assertions that I was untruthful in the matter. I have never deviated from the truth,” Johnson stated. “It also should be noted I challenged the sheriff in the 2014 election and I am also a witness against him in an ongoing whistleblower lawsuit, filed by yet another sheriff’s office employee.”


Johnson says he will continue his campaign seeking election as the Itasca County sheriff.


Union staff attorney for AFSCME council 65 Theresa Joppa, who handled Johnson’s case, noted that under the Uniform Arbitration Act in Minnesota normally an appeal of an arbitration is not an option, however, in this case she says that she feels that the arbitrator made technical errors in the way he conducted the hearings.


“I have serious concerns that he did not allow me to present grievance testimony, Johnson should be allowed to respond to each accusation and the arbitrator did not allow that. He made egregious errors,” Joppa said.


Joppa has formally requested that AFSCME file an appeal. If the union agrees a district court judge would review the request for a rehearing of the case with a different arbitrator.


“It’s a mischaracterization of Bryan to say these things are lies that can’t be remembered completely clearly at all times, Bryan is being slandered and I think we should all ask ourselves what’s the motivation for the sheriff to have Johnson fired from the department,” said Joppa.

Nyhus named champ in 2nd Annual Kossak Kohlrabi contest

September 13, 2018

    A lively bunch of 15 or more gathered on Thursday morning, Sept. 6, in Keewatin for the Second Annual Kossak Kohlrabi weigh-off.

    The largest kohlrabi in 2017 was 24 lbs., 14 oz. This year, Richard Nyhus was the winner at 22 lbs., 14 oz. Blake Liend brought home the honors of “Kohlrabi Champ in Training” at 14 oz.

    After much laughter, it was decided there will be another competition in 2019.

Iron Range Engineering to launch Bell Program

September 06, 2018

By Kitty Mayo


    The Iron Resources and Rehabilitation Board (IRRRB) has awarded $5 million to the Northeast Higher Education District to launch a hybrid version of its Iron Range Engineering called the IRE Bell Program.

    Funding will come from the Douglas J. Johnson Economic Development Fund and will be dispersed over four years.

    Incoming students to the new engineering program will spend an intensive six months in the region, then return home for a two-year paid cooperative placement. They will continue online classes throughout their co-op, returning to the school for a one week exam period each year.

    According to Bill Maki, president of the Northeast Higher Education District, building the co-op experience into this educational model is a novel approach.

    “We don’t believe anyone else is using the co-op model where community college students are working in the engineering industry while going to school. We’re taking proven successful practices from the IRE and building on it,” said Maki.

    IRE was recently recognized by the Massachusetts Institute of Technology (MIT) as ranking in the top five in the world for its innovative approach to teaching engineering.

    At full capacity of 75 students, the program is projected to bring $8 million in tuition into the region, and add 45 new staff jobs. The first cohort will be about 30 students with 15 new staff being hired immediately, with the Bell Program launching in July of 2019. Recruitment has already started, with half of the first year’s students already signed on.

    IRE is located in Virginia on the Mesabi Range College campus and collaborates with Minnesota State University - Mankato. The IRE Bell Program graduate will have a four-year degree from MSU Mankato.

    Most of the 150 graduates of the decade-old IRE program are from, and work in the region. Maki says that IRE Bell will expand to a national audience as a startup, while keeping the traditional IRE program intact.

    The pilot cohort will be located at Giant’s Ridge for much of their training and will use the Virginia campus facilities as well. During their co-op phase of the experience, students will take online courses with professors in Virginia. The program culminates in a Bachelor of Science degree in Engineering, a unique degree with a broader curriculum rooted in a project -based model.

    “We believe it’s a strong model because students are getting real world experience immediately and earning money to reduce the cost of education,” Maki said.

    A Bell Experience pilot with 38 students took place this May at Giant’s Ridge. It drew people from 10 different states to give them a sense of the IRE Bell program and evaluate the level of their interest.

    Maki says that NHED has been working on development of IRE Bell since 2016, and $345,000 has already been invested looking at curriculum with national and internal experts in engineering. An additional $245,000 was spent in 2018 to study the market and gather input from community college faculty and students.

    Ron Ulseth, director of academics and instructor at Itasca Community College in Virginia, says that taking the engineering project to the next level will have a great impact.

    In the traditional IRE model, students do complete a project, but it typically comprises about 20 percent of their learning experience. Ulseth says that a greater focus on project learning is the key difference of the Bell Program, something that he says impacts sustained learning as well as motivation to learn.

    “When you learn an engineering principle and then use it on a project, those memories are much more vivid and last long after the test, and in hands-on learning we see that students are much more motivated to engage in learning what they will use in real life,” Ulseth stated.

    Ulseth sees professional development during the course of the program as a huge boost to employability for graduates.

    “Working on teams and in the industry is going to help them develop a set of professional skills for overcoming conflict and entering the professional practice as a graduate,” said Ulseth.

Tourism initiative to encourage visitors to ‘live like a local’

August 23, 2018

By Beth Bily


    A soon-to-be launched initiative of Visit Grand Rapids hopes to capitalize on one of the most recent trends in tourism – doing what the locals do.

    The initiative is the brainchild of Visit Grand Rapids Executive Director Megan Christianson. She says the idea came to her following a trip to a U.S. travel show, where a similar approach was presented by a tiny town in New Mexico.

    Visitors today, and particularly millennials, are looking for a unique vacation experience. They want to see the amenities and the way of life that a particular place has to offer. To that end, Christianson is planning and developing 360-degree videos which will showcase a few local treasures in Grand Rapids and Itasca County. The videos will focus on the area’s “hidden gems” that aren’t always well-known to out-of-town visitors. 

    The videos will tell the stories of nine locals and hit on the themes of the “live-work-play” opportunities here. Some of the topics touched upon will include bike riding on local trails, amenities found at the local YMCA and relay the Native American story. 

    One highlight she points to with particular fondness is the story of the Green Heron Bed and Breakfast, located on Pokegama Lake. Here, she said, the owners use locally produced products such as wild rice and maple syrup to provide guest meals. “People will hear that story and want to stay there,” Christianson told Itasca County Commissioners during an update on the project at a county board meeting this summer.

    Christianson plans to get the word out on these hidden gems through development of a web landing page. Funding for the project comes from $10,000 set aside by Visit Grand Rapids, which is 90 percent funded through locally generated hospitality taxes, as well as a $10,000 grant from the Iron Range Resources and Rehabilitation Board tourism fund.

    The importance of drawing more visitors to town is reflected by the numbers. Tourism is a multi-billion dollar annual industry in Minnesota, generating $15 billion in gross sales annually and approximately $41 million per day, according to figures from Explore Minnesota. The industry as a whole generates 265,000 full and part time jobs and accounts for 11 percent of private sector in employment in the state. In Itasca County, lodging and hospitality account for about $74.5 million in annual spending, generate $4.8 million in state sales tax and 1,573 positions in private sector employment.

    It’s also an industry that’s experienced solid growth, with leisure and hospitality-based businesses growing by 50 percent from 2004 to 2016, according to state figures.

    While the goal of the initiative is to draw more tourists to the region, Christianson also hopes that will entice viewers to want to live and work in the area as well – or perhaps even relocate a business here. 

    While no one expects a video to be the basis for a business or personal relocation, they can offer an initial glimpse of an area, its people and its way of life. 

    Those who relocate here “had to be introduced to this area somehow and a lot of it is through visitation or vacation,” Christianson said.

    Itasca Economic Development Corp. President Mark Zimmerman agreed that the project has the potential to portray the area in a positive light. “We certainly hope testimonials on why people like to live here can increase visitors to our area and help with workforce attraction for our local businesses.”

    The Live Like a Local initiative is currently in the development stage, with plans in place to market the project this fall. Christianson noted that October through December is a critical time for getting the word out – that’s when travelers are likely to make their plans for the following year.

Tax cases, child protection, county jail issue weigh on county budget planning

August 15, 2018

By Kitty Mayo


    Facing a number of serious impacts, Itasca County is beginning its 2019 budget planning, with department heads in the process of putting together their budget requests for next year.

    The Blandin tax court ruling, the Enbridge tax court case, and the need for a new jail are just some of the factors impacting the board’s decisions.

    While the budget for next year is still in the early planning stages, Itasca County Board Chair, Leo Trunt, says that many challenges are facing the board.

    He expects that the Health and Human Services department will be asking for additional staff, especially for child protection.

    “One of the major things affecting the county is what I call ‘societal ills’, like opioid abuse and the pressures that creates for out of home placements for children, as well as an increase in costs from related crimes and jail sentences,” Trunt said.

    “We can’t just levy our way out of this, we have to figure out ways to hold down costs and realign our resources,” Trunt stated.

    Trunt admits that he is worried about the tax court issues, and is concerned that the way that the Blandin tax case was settled will negatively affect private homeowners by shifting a greater tax burden onto property taxes.

    “We are also facing a problem with the Enbridge pipeline taking us to tax court with the state’s formula for tax appraisals increasing taxes dramatically. It could require a massive payback in the millions, as well as losing property tax dollars going forward,” Trunt stated.

    He says that the county is appealing to the state to own its share of the back taxes for changing the formula, and is hoping the current Supreme Court case will come down in the county’s favor.

    Another financial consideration on the horizon is the mandate for a new jail, with a plan required by the state to be in place by 2021. Currently a jail study committee is looking at the most cost effective plan for a new jail, which could include remodeling the existing structure, or the construction of a new building.

    Brett Skyles, Itasca County administrator, says that in a recent routine inspection the Minnesota Department of Corrections made the decision to require Itasca County to do something to improve the outdated jail facilities.

    With one of the oldest jails in the state, Skyles says that the building no longer met current specifications for health and safety.

    “We’ve been doing our best with the building we have, but the DOC finally said ‘You’ve done all you can do,’ and put us on notice to have an approved plan in place in three years,” said Skyles.

    Meanwhile, in terms of opioid addiction prevention, and the massive financial impact to Itasca County, Skyles says some solid findings have come out of committee meetings on that issue.

    “We’re finding out that there are some good programs going on now in prevention with good statistics of success, but we have to figure out how to fund more of those expensive interventions without recreating the wheel,” Skyles stated.

    Budget planning meetings are scheduled for Sept. 5 and 7, with a proposed levy expected to be released once those meetings are completed.

Three vying for county attorney job

August 08, 2018

By Kitty Mayo

    Three candidates are vying for the Itasca County attorney job, Matti Adam, John Dimich, and Ellen Tholen. In a race that has the incumbent, Jack Muhar, not pursuing re-election the upcoming primary election on Aug. 14 will narrow the field to two.

    Each candidate was asked two questions: How are they best qualified to be Itasca County attorney?, and What changes, or new direction would they bring to the Itasca County attorney’s office?


Matti Adam

    Adam is currently the assistant county attorney, and she believes that helps make her the best candidate to become county attorney. Proud of her contributions to an office that has a very high performing rate from their child support enforcement revenue stream, Adam says she finds it very rewarding to be a strong advocate for people who need it. She is currently on unpaid leave from her position per county policy that requires a county employee running for a county office to take a leave.

    “My willingness to take unpaid leave should demonstrate to voters how dedicated I am to the work of the office and moving it forward. I understand the obligations of the office, and since 2014 have handled every type of civil and criminal case, as well as giving general legal advice to 16 different county departments,” Adam said.

    The new direction that Adam intends to bring to the county attorney office is that of greater efficiency.

    “Overall, the office already does a good job, but we need to continue to work on being more efficient, look at implementing technology efficiencies when we can and understand that the world is changing to an internet age with the way evidence is coming in, like data from phones. We need to stay on top of trends with technology in evidence for investigations and how we share that in court,” Adam said.

    Building inter-agency relationships and increasing communication opportunities are also ways that Adam wants to make a difference.

    “The better relationship my office has with the county departments, the better able we will be to meet their needs. I want to run an open office for people to be able to stop in and visit or call,” Adam said. “Ultimately my goal is to provide high quality advice and efficient services to the residents of the county that promotes public safety.”


John Dimich

    Dimich says he is best qualified because of his 40-plus years of experience as an attorney, extensive knowledge of local governments, and his role as previous Itasca county attorney from 1981 to 1986. He has also served as the city prosecutor for Grand Rapids, LaPrairie, Taconite, and Nashwauk, and is the city attorney for Coleraine, Bovey, Keewatin, and Bigfork.

    “I’m running because I have the experience. I’ve been the Itasca County attorney for five plus years and have the knowledge of the local governments,” Dimich said.

    Cutting costs to a rapidly expanding county attorney budget is at the top of Dimich’s list for change.

    “In the last four years the county attorney’s budget has grown by $368,000, and that’s not inflation, it’s from adding attorneys and staff. I would reduce the size of the office, in part by going to court myself and handling my share of cases and allocating cases to shift where growth is. I am not going to believe that we need to keep adding attorneys where every statistic tells us that our county is getting older and crimes are not going up,”

Dimich said.

    Other costs that Dimich says he will manage better include the way bail is set, shortening county jail stays by toughening up on probation violations, and initial sentencing.

    Too often, Dimich says, bail is set too high and offenders are then forced to do their time in jail, at greater cost to the county. He also believes that offenders that have repeated probation violations should have their cases resolved more rapidly by sending them to execute their sentences in state prisons, rather than being given the chance to spend time in the county jail at a higher local cost.

    “If we take the position that probation isn’t working for some people at this level then their sentences should be executed, let’s get tougher on probation violations,” Dimich stated.

    Dimich says that he believes the office needs general efficiency, better communication with the public and a quicker response to questions from individuals and agencies.

    “The bottom line is what I want to bring is a change in attitude and direction that is different from the way things have been done for the last 28 years,” Dimich stated.


Ellen Tholen

    Tholen says she is best qualified to be the future county attorney due to her bachelor’s degree in Criminal Justice, along with 29 years practicing law in various areas representing hundreds of clients. She also cites her experience as a veteran of the U.S. Army where she served in the military police office as being critical experience for this job.

    “What sets me apart from the other candidates is that I’ve worked with law enforcement investigating crimes and know what is necessary from that side to then prosecuting a crime, I have a great understanding of the system with my degree in criminal justice,” Tholen stated.

    Taking the county attorney’s office into a new direction through a change in ideology is Tholen’s plan. Using a restorative justice approach, she says that the alternative approach holds the non-violent offender accountable and focuses on restitution to the victim.

    “One of the biggest things I want to change is the traditional punitive system in place that is not working to eliminate or deter non-violent crime,” Tholen said.

    Tholen says that while public safety is best served through punitive measures and incarceration for violent crimes and drug dealers, many adult offenders and most juveniles would be less likely to re-offend through restorative justice. She gives the example of a juvenile who steals liquor from a relative’s store, when caught is charged with underage drinking and felony burglary. With a felony they will be barred from financial aid for college and many job opportunities.

    “We need to change the culture of punitive mentality and incarceration that just perpetuates recidivism, and look at what is really best for keeping them from re-offending,” said Tholen.

    Another new direction Tholen plans includes pursuing sexual assault crimes more diligently. She believes that if a victim is willing to testify that the county should prosecute the case.

    “Reaching out to the community and strengthening ties to other agencies can create a change to intervene with a different approach that will reduce the likelihood of re-offending. There is so much power as a county prosecutor to reduce mass incarceration by determining when you decide to charge,” Tholen said.

Bankruptcy court sides with Cliffs in land dispute

July 26, 2018

BusinessNorth Report


    A federal bankruptcy court on Monday sided with Cleveland-Cliffs Inc. in a dispute over land that once was set aside to feed a proposed Essar Steel Minnesota LLC (ESML) taconite and pig iron processing plant near Nashwauk.

    The parcels were owned or leased by Glacier Park Iron Ore Properties LLC (GPIOP) and became entangled in ESML’s Chapter 11 bankruptcy. ESML’s successor company, Mesabi Metallics LLC, was acquired in a bankruptcy auction by Chippewa Capital Partners, which is led by entrepreneur Tom Clarke. When Chippewa missed a bankruptcy court financing deadline last October, Cliffs struck a deal to obtain the land from GPIOP, leaving Chippewa with a non-contiguous group of parcels controlled by the state of Minnesota. Mesabi Metallics sued Cliffs with hopes to reclaim the GPIOP holdings.

    In his ruling, Judge Brendan Shannon of the U.S. Bankruptcy Court for the District of Delaware determined Mesabi Metallics LLC’s lease rights terminated on Oct. 31, 2017, when it failed to exit bankruptcy as required. 

    The acquired land is approximately 553 acres in size. The leased acreage is approximately 3,215 acres, Cliffs said. 

    Chippewa Capital Partners had hoped to refurbish what remains of the ESML plant. Despite the Cliffs land acquisition, Clarke has said he could move the project forward with only the state leases, which were awarded to Chippewa earlier this month.

    Since then, however, ERP Iron Ore, which is affiliated with Chippewa, filed for Chapter 11 bankruptcy protection on the former Magnetation holdings on the West Range. Despite an apparent desire to restructure ERP, Clarke has told the Duluth News Tribune that ERP intends to shutter the former Magnetation holdings. But Itasca County, a significant creditor, has not received any formal notification from Clarke regarding his intentions. A meeting between county officials and ERP executives has been scheduled for this week.

NK mulls new single school, community facility

July 19, 2018

By Kitty Mayo


    Nashwauk-Keewatin School District is moving forward with developing plans for a new facility, and is looking to area city councils for collaboration.

    Superintendent Matt Grose says that extensive discussions have been ongoing with the school board about the best way to move forward with needed upgrades to the existing Nashwauk-Keewatin facilities.

    “The reality is that doing nothing is a choice, but that means at some point our choice gets taken away from us,” said Grose, referring to the ongoing deterioration of the districts’ buildings, and the possibility that the schools could ultimately face closure if not upgraded.

    The two school buildings serving Nashwauk-Keewatin students are more than 100 years old, and are two of the oldest operational school buildings in Minnesota.

    A building audit completed last year recommended infrastructure upgrades that would improve environmental safety for about the next 25 years, including electric, plumbing and roofing.

    But even a temporary fix, such as the audit suggested, would be extremely costly. Estimated to take between $18 million and $22 million to make the buildings functional for another quarter century, Grose says no one recognizes that option as a good one.

    “We have more projects to complete than facility funds to pay for them, and ongoing maintenance costs will become an issue,” Grose stated.

    Prioritizing student safety, the upgrades would bring environmental safety concerns into compliance. However, they would not address what Grose refers to as educational purpose. Elementary rooms are smaller than standard state recommendations, and some of them are awkwardly shaped, inhibiting good classroom flow.

    “These existing buildings were designed at a time when the educational purpose was not the same, and remediating that in the current buildings would come at an incredible cost,” Grose said.

    Moving to a consolidated site may be the most cost efficient and overall effective possibility, according to Grose.

    “The board wants us to explore finding a partner or partners to help with sharing costs for a new facility, with the ultimate goal of improving educational programming at the same time,” Grose stated.

    Possible partners include the municipal government entities of Keewatin and Nashwauk.

    “We are trying to determine what type of partnership will give the best opportunity to build new buildings, and improve the educational environment,” said Grose.

    Other partnership opportunities being explored include creative and innovative ideas like partnering with the cities to have shop classes participate in maintaining their vehicle fleet.

    “In true collaboration everybody has to be willing to take on uncomfortable change and do things differently, and we are hoping that people are going to be receptive to significant change,” Grose stated.

    Recognizing that a new pre-Kindergarten through 12th grade building that would house the approximately 600 Nashwauk-Keewatin students would cost more than the district could afford, Grose says that collaboration is critical for the district to survive.

    “Running a referendum that large would be unrealistic for our community, so we’re going to need some support from other partners to make it happen,” said Grose.

    In a community survey of 436 residents last year the possibility of some form of tax increase to improve the educational facilities was supported by 72 percent of the respondents.

    Craig Menozzi graduated from Nashwauk-Keewatin in 1974 and has recently returned to live in the area following his retirement from a 37-year career in education. Menozzi is working with Grose and the school district to develop plans for a new facility.

    Menozzi says that a preliminary architecture’s sketch of a concept diagram shows what one iteration of a new facility might look like. “The facility could include the school’s educational needs, and also be a civic and public safety center.”

    Meetings with both city councils have occurred, and Menozzi says that the idea of working together on a shared facility has been well-received.

    In addition to the concept of combining the two schools, creating community meeting and event space and housing all the two cities offices under one roof also are being discussed.

    “The survey showed that people really want a place where they can meet and exercise, and we are really excited about this as a unique concept for rural America where cities and schools collaborate to share resources,” said Menozzi.

    The big question, Menozzi says, is how to pay for such an expensive plan. That leaves finding a partner or partners to share costs a top priority. A more in depth look at what community members want is being planned. Officials hope to define a specific direction within the year.

Public employee insurance pool dissolved; small cities, county face financial fallout

July 12, 2018

By Kitty Mayo


    Effective July 1 the Arrowhead Procare Pool, the consortium that provides health insurance for many public employees in the area, was dissolved and its board disbanded.

    Made up of over 30 entities, and covering over 900 employes, the discontinuation of Procare has come as a surprise to some.

    “It came so fast, how could we possibly be prepared?” said Bill King, mayor of Keewatin, whose employees were covered under Procare. King says that the city was first notified of the impending dissolution just a couple months ago.

    Affecting many small towns, the ultimate financial impact is still unclear. With Itasca County covering shortages, several small communities are left owing money to the county.

    In years past, King had served on the Procare board, and he reflected that there had always been a good surplus of funds, the loss of which he is struggling to understand.

    While King says that employees will continue to receive similar coverage through the Northeast Service Cooperative, he anticipates that both the city and employees will see unfortunate financial fallout.

    NESC will carry Keewatin employees for six months at higher premiums with a similar plan. After that negotiations will be entered, and King expects that while premiums will be similar to the past, a higher deductible will be a hidden cost.

    “It’s going to be a different kind of plan with NESC after six months, more of a health savings account, and the city will have to negotiate this with our employees in the next few months,” stated King.

    Meanwhile, King is concerned about the money Keewatin already owes to Itasca County for covering shortages on past claims, and expects that claims filed before the ending June 30 deadline are yet to strike a tough blow to the city’s budget.

    Arrowhead Procare began in 1987 when a group of government entities in the area pooled their resources to purchase health insurance for their employees. A consortium of a small group of public employers, this method of insurance works by employee-paid premiums being used to purchase fully insured plans from Blue Cross Blue Shield, with the ability to leverage lower premiums by adding groups. 

    In 2008, Procare discontinued purchasing insurance from a third-party provider and created a self-funded pool for health, dental and life insurance. In a self-funded pool contributions are pooled and then used to pay claims.

    Itasca County auditor/treasurer Jeff Walker says the events leading up to the dissolution of Procare remain somewhat of a mystery.

    Walker says that the move to self-insure was motivated by outrageous cost increases. And for a time, Walker says the self-insure method was working well.

    “We had established a pretty good reserve of $3 to $4 million, and everything was going along fine,” Walker stated. 

    However, according to Walker, that dynamic began to shift as costs of claims recently began to outstrip monies going into the reserves.

    “During the last couple of years reserves began to decline, in other words, our claims were out-doing our premium dollars. We were spending more than we were taking in,” Walker said.

    In the last six to seven months a rapid decline in Procare’s reserves resulted in them being completed exhausted by this spring.

    Walker says that since the group is not allowed to view each individual claim, they are not able to put their finger on what exactly happened, but the end result is clear: there was no money left to pay claims and keep the collaboration going.

    Itasca County has also made the decision to turn to NESC for continuation of health insurance, where Walker says that there will be no loss of benefits, and no longer any direct exposure for the county.

    “Under the Arrowhead Procare system if a claim was turned in, we would pay it directly from the Procare pool reserves, and we were collecting about $1 million in premiums a month and paying out $1.3 million in claims,” Walker stated.

    With Itasca County making up about 75 percent of the pool, Walker says the county suffered a direct liability with the imbalance.

    “There was no distinguishing between claims for each entity, and it became up to us to keep the pool viable,” Walker said.

    Walker says that claims still coming in will continue to be paid until the county secures coverage.

Iron Range grocers battle Dollar Store impact

July 05, 2018

By Sally Sedgwick


    Al Zupancich’s grandfather opened a grocery store in Ely in the early 1900s. Now, three, four and five generations later, the family is still in the grocery business, running six neighborhood grocery markets across the Iron Range. 

    There was a time when residents had a choice of up to four or five groceries and a co-op in every town, he said - each store catering to a different religious or ethnic culture and taste. 

    Now that choice is gone, and the remaining neighborhood groceries are facing a new threat to survival: corporate America.

    Larger markets offer groceries in corporate big box retail stores. But now a similar business model has come to small town rural America. It’s called the dollar store. And it has come suddenly. 

    “I’ve seen a lot of changes through the years,” said Mike Kocian, who followed his father in the grocery business in Bigfork. “But I’ve never seen things change as fast as they have in recent years.”

    One rapidly growing presence on the Range is Dollar General, a $22 billion company based in Tennessee. It has about 14,000 stores nationwide, making it the largest “small box” discount retailer in the country. Today it has 17 stores within 100 miles of Virginia, including smaller markets like Aurora, Hoyt Lakes, Floodwood and Ely. And more are in the planning stages.

    The relatively small 9,000 sq. ft. stores carry many of the same items as the small grocery, being especially competitive with pop, chips, soap, paper products and milk, according to Scott Magoon of Blackduck Family Foods. 

    Just entering its first summer market with a Dollar General store in town that opened last October, Blackduck grocery sales have already trended lower by 5-10 percent, Magoon said, and that number is similar for Zup’s, with stores in Ely, Babbitt, Tower, Silver Bay and Cook. Zup’s in Aurora closed when two nearby Dollar General stores were built. 

    Renee Johnson, owner of The Grocery Store in Floodwood, said her loss in annual sales was $143,000 after the Dollar General store was built there in 2016. She also owned a hardware store in town, but closed that and combined inventory with the grocery as a result of the new competition.


    In most small markets there is a limited economic pie. When a new store is built, it takes a sizable piece of that market share. “Anything purchased from a dollar store is one less item you’re going to sell, be it pop, bacon or whatever,” explained Jim Zupancich, Jr. of the Ely Zup’s grocery. 

    So how can small groceries be sure they have enough of the pie to survive?

    Many small groceries have a secret weapon along the outside walls of the store: meat, deli and fresh produce. The dollar store may affect sales in the center of the store; the Charmin and the Miracle Whip, said Al Zupancich, who owns Eveleth Country Foods. Neighborhood grocers, however, often have a meat cutter on staff, offer homemade and/or ethnic specialties, and even grind their own beef. 

    Those specialties are significant. 

    In Eveleth, for instance, the meat and deli departments are responsible for 60 percent of the store’s volume. 

    How to face the challenge of the dollar store model is not just a local issue. Concentrating on what separates the small grocery from a dollar store and then marketing that advantage is advice that the Rural Grocery Initiative in Manhattan, Kan., shares with its small groceries. That includes a message that full service groceries have more fresh fruits, fresh meat and dairy products, and more healthy foods, said David Procter, director of the Center for Engagement and Community Involvement at Kansas State University, which houses the grocery initiative. 

    Other distinctions can be promoted through customer service, since the dollar store operates on a very lean labor model, and keeping the store clean and bright, because discount stores can appear a little chaotic. Procter urges carryout and even delivery if possible. 

    The ultimate goal is to be the store that the customer chooses to walk into. One way to influence that choice is to become part of the fabric of the community.

    The neighborhood store can integrate into its community by doing a variety of things like sponsoring a softball team or donating paper plates and cups for a baseball tourney, Procter said. Independent stores can be flexible in terms of amount and type of donations, while corporate stores are limited by company policy. 

    “We give to every nonprofit whenever we can,” said Jim Zupancich. 

    It can be a balancing act. Kocian’s Family Market looks for ways to lower prices, said Mike Kocian. He and his employees have been researching ways to meet the challenge of a Dollar General anticipated to be built across the street in Bigfork later this year. 

    The store negotiates with its suppliers and offers a loyalty program to customers for discounts on selected items. There are also new ways of packaging that haven’t been available to groceries before, said Kocian, like bulk items and larger bags, as well as “cheater sizes,” smaller amounts in a package that is then priced lower.

    “But we also want to be here to support the community,” he points out. “There’s a steady stream of people who need funds to grow their organizations … This is our community and we want to continue serving it.”

    Almost all profits from a locally owned business stay and work in the community, said Procter, and this is the story that needs to be told. 

    Jim Zupancich agreed: “The local guy who helps your community is the guy you want to stay true to.”

Group hopes to fuel region’s mining growth

June 29, 2018

By Kitty Mayo

    Mining in Northeastern Minnesota continues to be a hot topic, with both sides of the copper-nickel mining debate generating vocal support. A nonprofit group formed in Ely, Up North Jobs, is a strong proponent of expanding mines in the area. 

    To that end, they have organized a series of talks they call monthly mining programs, with Mike Cole, founder of the private group Minnesota Miners, speaking to the group last month.

    The Ely resident says he is particularly concerned with the similar governmental regulation challenges facing the mining industry across state borders.

    Engaging pro-mining groups across the country through social media, Cole says his organization has found support from people not just in Minnesota, but also Wisconsin, Michigan and Montana. 

    “I’m tired of seeing what’s happening to the communities in northeastern Minnesota with the ever-dwindling school enrollment and lack of small town businesses,” Cole said.

    Arguing that too much attention has been paid to developing tourism, Cole believes tourist dollars cannot replace the economic security of mining.

    “The weather is too variable, the dynamic of the younger generation – who don’t want to go on a canoe trip to the Boundary Waters without all the amenities and wifi – makes tourism something we can’t depend on. It’s not sustainable,” Cole stated.

    He grew up in Ely, and previously worked for a security company at the mines, so he understands the ebb and flow that also comes with a mining economy.

    Still, he is placing his bets on mining expanding into the copper nickel realm, and Cole says he believes more mining will bring a wave of new family residents, school enrollment and demand for clinics and all the infrastructure that a growing population brings with it.

    Originally affiliated with the group Fight for Mining Minnesota, Cole says he was inspired to start Minnesota Miners because he wanted to broaden connections to other communities outside of the state that were experiencing similar obstacles.

    “We all have to work together toward a common goal, and in places like Montana and Wyoming they have been fighting a lot longer than we have