Heliene breathes new life into Range solar plant

July 25, 2019

By Kitty Mayo

 

    The story of solar photovoltaic module production in Mountain Iron, Minn. has entered a new chapter this year with Ontario-based Heliene revitalizing a plant started there in 2011.

    The Mountain Iron facility was built and operated originally by Silicon Energy with high hopes of energizing the region’s economy at the beginning of a new era of renewable energy. Those hopes faltered as Silicon struggled to make a go of it, and by 2015 Heliene began contract manufacturing there.

    Ultimately, Heliene took over operations in 2017, and in 2018 the Iron Range Resources and Rehabilitation board (IRRR), along with the state Department of Employment and Economic Development (DEED), gave loans totaling $3.5 million. The loan was split equally between IRRR and the state’s Department of Employment and Economic Development.

    Matt Sjoberg, director of business development for IRRR, said despite other failures in the solar panel business, the IRRR has faith in Heliene’s efforts.

    “They are up and running with more people working there now and they are making more panels than the prior tenant ever made. We are very happy to have found another company that would use that facility for what it was constructed for, with the added bonus of a much higher production capacity,” said Sjoberg.

    Currently the only solar module or solar panel manufacturer in Minnesota, Heliene has the full support of the Minnesota Solar Energy Industries Association (MnSEIA).

    Liz Lucente, MnSEIA communications director and general counsel, believes the ongoing demand for solar is not slowing and could give rise to more manufacturers moving into the state.

    Looking back, Lucente said legislation called “Made in Minnesota” was a robust policy giving rise to several solar module manufacturers in the state. 

    “A couple years ago there were four or five solar manufacturers here and when that program ended they all eventually shut their doors, with some of them moving out of state. It was disheartening,” Lucente said.

    According to MnSEIA, Heliene is filling a booming demand with a total of about 1,000 megawatts of solar installations underway, and a full half of that being community solar projects.

    Currently running with nearly 70 employees, the company hopes to continue to add staff within the next couple of months.

    An extremely strong year in 2017 is what prompted Heliene to expand into Minnesota permanently, then the tariffs of 2018 and the affected Chinese market with higher prices for solar component parts brought a very tough year.

    Despite fluctuations in the solar industry, Scott Mclorie, Heliene’s vice president of sales and business development, said the future for solar remains bright with very high demand, especially in Minnesota, but also across the country.

    “Regardless of policy, by and large the fundamental economic case for solar nationwide is very strong and that allows us as a North American manufacturer to grow,” said Mclorie.

    He said the perceived labor costs savings in a more rural location are not very evident, with competition from the mines bringing those up. However, he noted the welcoming atmosphere across the board in Mountain Iron and Minnesota from governmental agencies had the strongest pull.

    “The largest advantage had been that the region and state have been extremely supportive as our partners in diversification of the economy and adding another set of skills to the area,” Mclorie said. The second advantage in Mountain Iron has been an intact, trained workforce.

    “There was a workforce in place there from the previous plant and the city wanted to continue with solar manufacturing, being able to keep incredibly talented key personnel definitely played a part in driving us to committing to this area,” he said.

    Cautious growth seems to be the byword for Heliene’s success. Starting with its main office and original factory in Sault Ste. Marie, Ontario in 2010, the move to Minnesota was a measured one that happened in phases.

    “This market is so fast-paced that manufacturers have to respond and be reactionary in a challenging environment. Now the market has jumped back up and we are running full bore at Mountain Iron,” Mclorie said.

    Despite overseas manufacturers having the advantage of low cost of capital, Mclorie said Heliene’s competitive advantage lies in working smarter, not harder.

    “It is challenging, but we compete by having better logistics costs, and a much smaller sales organization that forms close partnerships with developers and installers,” he said.

    Even with the recent fall in global solar module prices, Heliene’s production calendar is nearly full for 2019 going into 2020. Nonetheless, ongoing uncertainty over how the application of additional tariffs will be applied is a cause for concern.

    “In the last six months our market has been challenged by the current administration’s tariffs, and the latest tariffs have still had an exemption for a certain number of cells imported to assist in supporting domestic production. Now there has been a walk-back on the safeguard of cells and a lack of clarity on how these things will be enforced and we are struggling with how that applies to us. It’s always easier to do business when you know the rules,” said Mclorie.

Itasca County Board closes out some road projects and awards new contracts

July 22, 2019

By Sally Sedgwick

 

    The Itasca County Board met on Tuesday, July 9 with all commissioners present except Commissioner Terry Snyder. There was no citizen input.

    Tom Suppes of the Minnesota Counties Intergovernmental Trust, a risk management pool, updated the board on the functions and operations of the trust. With 450 members, the trust services 81 of the 87 counties in Minnesota as well as other public organizations such as soil and water districts. The trust covers property/casualty and worker’s compensation claims (although Itasca County is self-funded for the latter). It also advises on risk mitigation, trains employees and elected officials, provides educational materials and runs an employee assistance program used by almost 10 percent of Itasca County employees in 2018. The county received a dividend of $89,286 from the trust in 2018.

    Crissy Krebs presented a Business Division update for Health and Human Services, with annual budget vs. current actual for financial, public health and social services. As of mid-year, revenues stand at $13.1 million (after receipt of the June 30 levy allotment), and expenses at $11.6 million. Noted was that chemical dependency costs are on pace for $1.2 million annually, well in excess of budgeted amount. 

    Dan Swenson and Commissioner Davin Tinquist sought a resolution of support for the Mississippi Headwaters Board updated comprehensive plan. The revised plan gives more authority to the eight counties, according to Swenson, who also noted that while Lake Winnibigoshish is considered a headwaters lake, Pokegama is not. Commissioner Burl Ives expressed concern about loss of tax capacity along the corridor. The resolution was approved. 

    In other business, the board:

    • Approved commissioner warrants in the amount of $2,070,015.33.

    • Recognized new employee Linette Welshinger (Sheriff’s Office).

    • Approved purchase of a new high speed printer for the Treasurer’s Department for $11,434.99

    • Awarded CR 340 Bridge removal/culvert replacements to William J. Schwartz and Sons for $173,985.20.

    • Awarded CSAH 93 (formerly CR 227) grading, aggregate base and bituminous work to Gladen Construction for $1,381,887.00.

    • Approved final payments on CSAH 13, CR 141, CR 253 and CSAH 45 (grading and base) road projects.

    • Entered into a cooperative construction agreement with Marcell Township to make safety repairs on a township bridge.

    • Recognized the 100th anniversary of the Farm Bureau in Itasca County.

    The board held a closed session to discuss the ERP Iron bankruptcy.

    The next regular meeting of the Itasca County Board is on Tuesday, July 23 at 2:30 p.m. in the Itasca County Board Room.

Annual Take A Kid Fishing held in Marcell

June 28, 2019

The U.S. Forest Service sponsored the annual Take A Kid Fishing on June 15 at the Marcell Visitors Center. The Bigfork Lions Club prepared and served lunch to approximately 40 children and their families. Activities included: fish painting, minnow races, fishing pole casting contest, fishing from the pier, and a boat safety talk. The children all received trinkets and fishing supplies provided by the U.S. Forest Service and the Itasca County Sheriff’s Office.

North Itasca Electric holds annual meeting, seeks director candidates from District 4 (Scenic area)

June 20, 2019

By Sally Sedgwick

 

    North Itasca Electric Cooperative, which provides power to northern Itasca and southern Koochiching counties, held its annual meeting on Thursday, June 13 with a pork loin dinner at the Marcell Family Center. 

    A moment of silence started the meeting for two directors who passed away during the year: Terry Schmitz, District 8 (Marcell) and Jim Cox, District 4 (Scenic area). Both had served as chair during their tenures.

    Incumbent directors Bruce Leino, District 7 (Squaw Lake area) and Roy Bain, District 9 (Bowstring area) were re-elected. Jeff Kilian was elected as a new director from District 8. A bylaw amendment regarding arbitration was also passed by the membership.

    During the meeting, Chair Larry Salmela (District 3) spoke on the challenge of the times; transitioning to the renewable energy sources of wind and solar. It’s important, he said, to tell the whole story - not only the benefits of capturing free sources of energy, but also the cost of storing and using that energy.

    CEO Brad Dolinski recognized the dedication of the cooperative team he works with and the success of the cooperative’s energy supplier Great River Energy. He spoke on the emphasis North Itasca Electric has put on safety during the year. Major projects during the coming year were reviewed.

    The District 4 position will be chosen by the board of directors from interested members residing in the district. The term will be until the next annual meeting election in 2020. Candidate packets should be picked up at the headquarters building in Bigfork and returned by Tuesday, June 25.

National Scenic Byway Highway 38 restoration project completion celebrated

June 13, 2019

By Sally Sedgwick

 

    It was a story of a major and historic road that would take many detours and 30 years to restore.  But in the end, according to Luke Skarlupka, Deer River district ranger for the Chippewa National Forest, it became a modern multi-use road that retained its characteristics and scenic integrity.   Across the board, he said, it was a win-win.

    He was speaking at the celebration of the completion of Highway 38 on June 8 in Bigfork, a project that began with a formation of a local leadership board in the 1990s.  Then, in 1996 it was one of the early recipients of the National Scenic Byway designation through the efforts of Congressman Oberstar.

    Tary Edington of the leadership board spoke on the sometimes challenging history of the highway restoration, which winds between Effie and Grand Rapids. A historically important road to bring products to northern Itasca County and bring timber south to markets, the highway has always been a key transportation route.  Yet, it was difficult to mobilize agencies to move forward to prioritize it.  He credited the Chippewa National Forest in rallying resources to come around a planning effort.

 

    Over the years the budget would change.  Itasca County Commissioner Terry Snyder pointed out that there were many, many hours of discussion among stakeholders and the public about what was important.  Once, to drive a point home, he recalled bringing an influential politician up the road in an empty logging truck during breakup.  He was a little green, said Snyder, but understood the need.

    “There was so much that went into this project,” said past Mayor Amy Pifher, “and MnDOT did an awesome job.”  Minnesota Department of Transportation Assistant District Engineer Michael Kalnbach in turn thanked the leadership board for its commitment to transportation and keeping everyone on task.  There was a lot of disruption, working around things like mail deliveries and daily travel to jobs. There were both complaints and kudos.  That last doesn’t happen very often, he joked; “I wanted to mention that.”

    Congratulations also came from Congressman Pete Stauber and from Sen. Tomassoni.  

    The project may be complete, but now the maintenance begins.  There are five planned future resurfacing projects on the schedule, Kalnbach said.  In 2023, the Bigfork city portion would be addressed.  The highway near Marcell would be worked on in 2024.  In 2025, it would be the portion between county roads 49 and 19, in 2027 between Bigfork and Effie and in 2029 between County Road 49 and Grand Rapids.

Walz, Legislature reach budget deal

May 23, 2019

BusinessNorth Report

 

    Minnesota Gov. Tim Walz, Senate Majority Leader Paul Gazelka and House Speaker Melissa Hortman announced a bipartisan state budget agreement that allows for investments in education, health care, and community prosperity, Walz said in a Monday news release. 

    “In one of the only divided governments in the country, I am proud that we came together across party lines to put together a budget that will improve the lives of Minnesotans,” Walz said. “While compromise means everyone doesn’t get everything they want, this budget allows for meaningful investments in education, health care, and community prosperity. We set out to show Minnesotans that divided government can work. Now I want to set out to show them we can do it better.”

    “The budget agreement represents a wise use of state tax dollars – funding key state priorities while protecting Minnesota taxpayers and Minnesota employers,” Minnesota Chamber President Doug Loon said in a prepared statement. “The agreement made important strides in keeping Minnesota affordable to raise families and for businesses to grow jobs.” 

    “Significant negotiating and compromises were made, which is a positive signal that divided government can work and can get good work done. We will continue working closely with the Legislature and governor’s office to finalize key policy items in these bills and to help ensure our business climate is competitive.”

    The governor’s office released highlights of the accord. Included in the final agreement will be:

    1. $59.51 million for Broadband, Agriculture and Housing

    • $40 million for broadband in FY20/21 only.

    • $4.51 million in FY20/21 and $3.9 million in FY22/23 for agriculture.

    • $15 million in FY20/21 and $10 million in FY22/23 for housing.

    2. $540 million for E-12 Education

    • General education formula increase of two percent and two percent.

    • Tribal Contract School Funding $3.536 million in FY20/21 and $4.670 million in FY22/23.

    3. $10 million for Economic Development

    • $11 million in revenue from unclaimed property in FY20/21 and $22 million in FY22/23.

    4. $13.78 million for Environment

    • Funding to address chronic wasting disease including funding for Department of Natural Resources and Board of Animal Health.

    • Aquatic Invasive Species surcharge of $10.60 to protect our lakes and waterways.

    5. $357.85 million for Health and Human Services

    • Increased spending offset by Health Care Access Fund (HCAF) resources of $270 million in FY20/21 and $514 million in FY22/23 and $142 million from the Premium Security Account in FY20/21.

    • All savings need to be substantiated and based on sound assumptions or backed by contingent appropriations.

    • No reduction to Department of Health funding in HCAF.

    • Creation of Blue Ribbon Council to identify $100 million in savings in FY22/23 and provide recommendations for legislative action. Any savings not implemented by the legislature will be backfilled by a contingent transfer from the budget reserve.

    6. $150 million for Higher Education

    • No reduction to University of Minnesota funding in HCAF.

    7. $125 million for Public Safety

    8. $63.37 million for State Government

    • $20 million for cyber security funding.

    • Funding increase for Minneapolis Employees Retirement Fund (MERF) moved to tax bill. Base for MERF retained in state government target.

    9. $93.45 million for Transportation

    • Funding for Metro Mobility in FY20 is $23.190 million. Additional $13 million in FY21 for Metro Mobility contingent upon closing balance for FY19 exceeding February forecast estimated closing balance.

    • $13 million for Deputy Registrar reimbursement.

    • $55.67 million for the MnLARS replacement system; and fees for DVS staffing and systems maintenance and operation.

    • $20 million for Disaster Assistance Contingency Account appropriation contingent upon closing balance for FY19 exceeding February forecast estimated closing balance.

    10. Taxes

    • Zero target in tax bill FY20/21 and FY22/23.

    • Include $20 million for MERF per biennium.

    • Middle class tax cuts of .25 to the second tier rate starting in tax year 2019 and reduction of the CI levy (Senate proposal). House Chair and Commissioner negotiate an equivalent amount of general fund tax expenditures and spending.

    11. Bonding

    • Debt service for $440 million General Obligation Bonds.

    • Debt service for $60 million Housing Infrastructure Bonds.

    12. $30.85 million for Vulnerable Adults

 

Other Agreements

    • $491.367 million from the budget reserve in FY22/23.

    • No savings that cannot be substantiated.

    • 1.8 percent Health Care Provider Tax effective for gross revenues received after December 31, 2019. No carve out, all categories, no sunset.

    • Reinsurance for two additional plan years.

    “All Minnesotans deserve affordable, accessible health care. I’m pleased our budget compromise preserves funding for our Health Care Access Fund, ensuring Minnesotans – especially people with low incomes or disabilities – can count on the care they need. This shouldn’t be considered a partisan victory, but rather a basic reflection of our values in this state. In regards to access, quality, and cost, we’ll keep working to improve health care for Minnesotans,” said Rep. Jen Schultz (DFL – Duluth), Chair of the House Long-Term Care Division.

    Rep. Liz Olson (DFL – Duluth), House Majority Whip, added: “Minnesotans care about each other and want to see everyone share in our success and this session I’ve been working to ensure they can. I’m proud that this budget agreement increases investments in all students and protects health care for Minnesotans. By no means is our work over, and I’ll keep fighting for a brighter future for Minnesotans.”

Calumet officials move forward with water, sewer project

April 27, 2019

    At last week’s Calumet City Council meeting, Civil Engineer Jon Loye was back in town to assist city officials on moving forward on this year’s million-dollar sewer and water project in the South East Quadrant. 

    The replacement of pipes under the alleys between 6th and 7th avenues as well as the pipes under the alleys between 7th and 8th avenues will be accomplished from Morgan to the ball park street. The alleys will be repaved. Repaving is scheduled on 7th Avenue from Gary Street to the east end and 8th Avenue from Gary to Morgan. 

    City officials allocated another $90,000 to rebuild the lift station where the pumps will be replaced and the holding tank will be relined. Loye divided the cost of the project at 35 percent being repaving, 34 percent to replace water mains and 31 percent will go to sanitary sewer. The construction cost is projected to be slightly over $800,000 with a 15 percent contingency. Engineering could cost as much as $190,000 and that will depend on any problems encountered during construction. 

    A resolution was initiated and Clerk April Serich took a roll call to approve the final bid from Casper Construction. Construction should begin after May 15.

    In other business, the council:

    • Voted to approve an authorization for construction services from TKDA Engineering.

    • Voted to Donate $150 to the Greenway Day of Caring. 

    • Approved a fence permit.

    • Agreed to send Mayor John Tuorila to the League of Minnesota Cities annual meeting this year.

    • Approved a building permit.

    • Agreed to spend $85 to rent a handicap accessible portable toilet.

    • Processed seven shut-off notices for the month.

    • Approved the AT&T request to place a standby generator at the Radio Tower.

    • Voted to add a third surveillance camera at the Radio Tower site.

Survey: Jobs, healthcare top list of local priorities

April 11, 2019

    Opinions and perceptions of Minnesotans are as varied as the landscape, according to the Rural Pulse 2019 survey of more than 1,500 residents recently released by Blandin Foundation. A companion study of the perspectives of 300 Itasca County area residents also was released in early April.

    Jobs that pay a living wage, access to affordable healthcare and childcare and concerns about opioids and drug abuse are shared across Minnesota’s communities—complex issues very much alive today at local, state and national levels. The strength and relative priority of these concerns depends, though, upon geography, income, gender, age and other factors.

    Rural Pulse, which has tracked such perspectives since 1998, specifically looks at what local issues residents say are most important and how their communities and the state are performing in addressing them. For example, in recent years, the study identified persistent economic frustration among Minnesota’s rural residents that had been underestimated and underreported as metro areas experienced booming post-recession growth.

    According to the 2019 survey taken in late January through early February this year, a third of both urban (31 percent) and rural (38 percent) residents polled continue to say metropolitan needs are more important to elected officials than those of rural communities. Notably, rural women (41 percent) and rural community leaders who are graduates of Blandin’s leadership training programs (64 percent), believe this to be true. Itasca County area residents feel strongly, too, with 44 percent of those surveyed here saying that metro needs seem to be more important to legislators than rural ones. 

The Economy 

    Among the wealth of data generated by the Rural Pulse survey, themes continue to arise related to the economy. While one in three Minnesotans statewide report that the economy has improved over the past year, they may not be personally feeling it yet. Only 28 percent of rural and 33 percent of urban Minnesotans reported their household income increased over the past year. 

    Over time, the Itasca County area has stood out among Rural Pulse data. The 2019 study is particularly notable when it comes to economic issues. For example: 

    • More than half (56 percent) of Itasca area residents report the local economy has stayed the same compared to a year ago; 22 percent feel it has improved since last year.

    • Compared to 36 percent among those in rural communities statewide, 54 percent of Itasca area residents feel their community does not provide an adequate number of living-wage jobs.

    • Four in 10 (41 percent) Itasca area residents do not feel their community successfully maintains or grows job opportunities, and 45 percent feel that their community is not doing a good job with economic development.

    • Only 17 percent of Itasca area residents say they saw a decline in their annual household income within the past year—down from 24 percent when surveyed in 2016. Nearly one-third (29 percent) saw an increase.

    Given a series of recent economic uncertainties, it is no surprise that Itasca area residents say that the availability of jobs is the most critical issue facing their community. In fact, jobs have been a top concern among Itasca residents since the community first was surveyed by Blandin Foundation in 1998.

    “Blandin Foundation invests in the Rural Pulse about every three years to provide a snapshot of how Minnesota is doing on issues that go straight to community health,” said Dr. Kathleen Annette, president and CEO. “I see a tremendous amount of commitment, leadership and optimism in these results. And, yes, concern about the local economy that we all must work to address.”

 

Migration

    Another way that the Itasca area stands out in Rural Pulse data is the loyalty of its residents. Nearly all (87 percent) of current residents expect to live in the same community five years from now—five percent higher than rural as a whole. Still, 19 percent have considered moving to a metro area over the past two years, mostly (65%) for job opportunities.

    Interestingly, considerably more Minnesotans living in urban areas have considered moving to rural Minnesota, 2019 surveying indicates. Citing quality of life as the main motivating factor, 27 percent of those in urban areas say they have considered moving to a less-populated rural area in the past two years, up from 21 percent in 2016. 

 

Diversity, Equity and Inclusion

    New to the 2019 Rural Pulse survey are questions related to diversity, equity and inclusion. 

    • Close to half (54 percent) of rural residents and 40 percent of Itasca area residents say they have at least some close friends of a different race or culture than themselves. 

    • When it comes to groups that may experience bias, discrimination or harassment in their community, most often mentioned by Itasca area residents were transgender individuals, those with drug or mental health issues, African Americans, Native Americans, recent immigrants and gays/lesbians. 

    • Minnesotans – both urban and rural and across all demographics – give themselves high marks when standing up to hate or discrimination if they see it occur; 80 percent (and 82 percent of Itasca area residents) agree that people in their community can do this.

 

Leadership

    After a dip to 37 percent in 2016, Rural Pulse this year found that 56 percent of Itasca area residents have served in a community leadership role. Of those who have not, most (54 percent) say it’s because they don’t have enough time, but 42 percent say they definitely would consider serving if asked.

    Rural Pulse results are available at www.ruralpulse.org.

Bavarian Market Village seeks vendors

March 07, 2019

By Manja Holter

 

The town of Biwabik, Minn. is experimenting with a novel economic development project.

Opening this spring is the Bavarian Market Village, a cluster of wooden huts, each of which can be rented by entrepreneurs looking for a low-cost, low-risk option to develop and market test their products.

Coined a “business incubator system,” the four chalets will have a Bavarian design to match the town’s over-arching theme.  Ranging in size from 144 to 192 square feet, the sturdy structures will lack water and sewer hook-ups but will be insulated and wired to guarantee the potential for year-around utilization.

The project is spearheaded by the Biwabik Area Civic Association (BACA). Kim Sampson, BACA member and project coordinator, was inspired by similar projects launched in Muskegon, Mich. and Tionesta, Pa. 

She envisions a European-like outdoor market that will provide  a shopping experience along the city’s main street corridor. Aiming for the feel of a German Christmas market, the group of stores will be complemented by a gathering area with benches, picnic tables and a stage for performances.

Hoping to jolt the local economy Sampson said: “Some of the start-up businesses may outgrow their small space and expand into a brick and mortar storefront. Others may remain in the small space, and some may discontinue their business but with limited risk and losses.”

Sampson secured $5,000 from the Arrowhead Regional Arts Council and a $20,000 Culture and Tourism grant from Iron Range Resources and Rehabilitation to make this project a reality. Fundraising efforts to procure matching dollars are underway. A private landowner provided use of the land for the chalets at a reduced price.

“Opening and operating a new retail shop can often be cost prohibitive due to the overhead required,” said Iron Range Resources and Rehabilitation commissioner Mark Phillips. “However, retail is a needed component for local and tourism economies of our region. The market village creates an affordable and low risk way for local entrepreneurs to market test their products and services, while at the same time providing retail options to the public. Our agency invests in business and community development that strengthens our region. The Bavarian Market Village has great potential.”

The market is set to be open from Memorial Day to Labor Day and on selected weekends in the fall and at the holidays. Options to extend the season into the winter months to capitalize on the nearby Giants Ridge ski tourism are still being explored. 

The BACA will manage the market and oversee the chalet lease agreements. Leases will be seasonal and while the specific amount is not yet determined, Sampson expects it will range from $2,000-$2,500 per year. It will include rent, utilities, a Wi-Fi connection and co-operative marketing. 

Sampson envisions a variety of potential business tenants, including artists, crafters and antique retailers. With Biwabik’s proximity to the Mesabi Trail she is hopeful a bike rental and repair shop will move into one of the chalets. Other business opportunities include clothing boutiques, souvenir shops or baked goods retailers.  

Construction of the first four chalets will be commissioned soon to guarantee a May opening. 

The entire Bavarian Market Village project will be rolled out in three phases. Phase one includes the construction of the first four sheds as well as the connecting deck. During phases two and three additional sheds will be erected, pending funding. 

According to Sampson, the track record for the pilot projects in Michigan and Pennsylvania is impressive. Tionesta, a town half the size of Biwabik with less tourism, currently has 12 chalets. Muskegon started with 11 chalets three years ago and is now up to 17. Both markets run at full capacity. What’s more, after their first year in Muskegon, three businesses expanded into brick and mortar stores.

“Approximately 5,000 cars per day drive on Biwabik’s main street,” Sampson said. “The market will have excellent exposure and be a tremendous asset to our downtown. In addition, Biwabik is part of Minnesota Department of Transportation’s Complete Streets program that will bring significant improvements to our corridor’s streets, sidewalks and parking in the year 2020. All of this is an exciting change for Biwabik.”

State seeks to block Essar from doing business here

February 05, 2019

BusinessNorth Report

 

    The administration of Minnesota Gov. Tim Walz is taking a much harder stance with Essar Global in connection with its new effort to control a potential mine development in Nashwauk.

    On Monday, Department of Natural Resources Commissioner Sarah Strommen said Minnesota is seeking to block Essar and its affiliates from doing any business with the state. That effort could prevent the India-based company from retaining mineral leases that are needed to extract ore from the Nashwauk site.

    “Governor Walz and Commissioner Strommen feel strongly that Essar’s past record demonstrates that it is not the caliber of business that should be doing business with the state,” DNR Deputy Commissioner Barb Naramore said in an e-mail to BusinessNorth.

    Essar Steel Minnesota worked to develop the site for nearly 10 years before it sought Chapter 11 bankruptcy protection in 2016, leaving a partially constructed processing plant behind, along with unpaid vendors and governmental entities. Through a lengthy restructuring process, the assets came to be owned by Mesabi Metallics. In a twist that many feared might occur, Essar again entered the picture. On Jan. 7, it settled $260 million of Mesabi Metallics’ debt, potentially opening the door for renewed involvement with the project. That occurred three months after Mesabi claimed it had obtained financing from a global energy and commodities company called Mercuria. That deal was supposed to close in the fourth quarter of 2018, but no further announcements were made.

    “As you know, the DNR and the State of Minnesota have a long and troubled history in working with Essar and its affiliates. Essar repeatedly failed to meet the construction and production milestones contained in the state mineral leases, failed to pay contractors, currently has approximately $64 million in unpaid debt to Itasca County and the state, and ultimately drove the project into bankruptcy,” Strommen said in her letter to Mesabi Metallics’ CEO Gary Heasley. “In short, Essar proved itself over a period of years to be an unreliable partner with contractors, local governments, and the State. The DNR has no confidence that Essar, if it were to take any operational, management, oversight, or even investor role in the Mesabi Metallics project, would act in good faith to ensure timely construction and professional operation of the project. DNR’s goal remains unchanged-to ensure successful construction and operation of a mine, pellet plant, and value-added facility that, in combination, will make full use of this outstanding ore body for the benefit of K-12 education, the University of Minnesota system, and local communities.”

    The DNR has initiated the process of seeking “debarment” of EssarGlobal and any of its affiliates from doing business with the State of Minnesota, in accordance with Minnesota statutes, Strommen wrote. 

    Additionally, the DNR is reviewing whether Mesabi Metallics is in full compliance with its permits and current mineral lease requirements, she added.

    “DNR is also continuing to evaluate the sufficiency of all information provided by Mesabi to DNR and on which DNR relied upon for reinstatement of the leases in July 2018,” Strommen said.

    Based in Duluth, BusinessNorth is a sister publication to the Scenic Range NewsForum.

Hockey Day MN

January 24, 2019

One of the many photos taken at the frigid 2019 Hockey Day Minnesota. 

Bigfork City Council moves forward on softball field, sets Scenic Range NewsForum as legal newspaper

January 17, 2019

By Sally Sedgwick

 

    The Bigfork City Council met Tuesday, Jan. 8 with a full agenda. New mayor Bryan Boone and councilors David Mann, Drew Francisco and Paul Gustafson, and Clerk Angie Storlie were present. Councilor Ben Maxa was absent.

    In public comments, EOWSKI! coordinator Sarah Stone discussed the alternatives of grooming the River Walk Trail with both tracks for cross country skiers and packed snow surface available for walkers. Concerns were expressed about the suitability of packed snow surface for current users. EOWSKI! officials will assess the feasibility of plowing one side and grooming the other side of the hospital/church loop with Joe Zimmer, Bigfork public works supervisor. 

    Official appointments for 2019 were set, including naming Scenic Range NewsForum as the official publication for the city. 

    The possibility of allowing hunting in the city by an owner or tenant with a minimum acreage was discussed and will be brought up to the Planning and Zoning Commission. Department of Natural Resources regulations would still be enforced.

    Moving forward on the proposed softball field north of the storage units on Co. Rd. 14 was discussed. Funding through the gambling tax, donors and grants was suggested, with fencing and lights being major expenses. The goal is to have the field playable by next summer’s softball season. 

    In other business, the council:

    • Approved payment of claims in the amounts of $57,449.83 and $124,023.47. 

    • Scheduled new meeting dates and times beginning February 2019. Council meetings were set for the second Thursday at 5:30 p.m. with the Planning and Zoning Commission meeting at 5:30 p.m. on the first Thursday of the month.

    • Set the use fees for the remodeled City Hall at $50 per day with $25 additional for use of the kitchen and a $50 damage/cleaning deposit. Existing regular users will continue at their current rate. Government and nonprofits will be at no charge.

    • Noted that as no bids for the excess birch flooring were received, the flooring will be offered as a donation to Bigfork High School.

    • Approved a purchase request by the Public Works Department for a 9 foot snow bucket for the Bobcat, primarily for airport use. 

    • Approved a reply to Bigfork Township’s letter regarding annexation of the Dollar General property.

    • Approved a computer board replacement for the main lift station generator in the amount of $2,087.50.

    Complete council minutes are posted on www.cityofbigfork.com. 

Johnson requests sheriff’s race recount

November 22, 2018

By Kitty Mayo

 

    In the long, and many-storied road to the Itasca County sheriff’s election, Bryan Johnson has taken another turn in his campaign: He’s asking for a recount.

    Johnson filed paperwork with the county requesting a recount last week, a move that could require him to pay for the recount out of his own pocket.

    LaNea Johnson, Johnson’s wife and assistant to his campaign, says that it was a decision that their family and friends were solidly behind.

    “It’s a decision that we wouldn’t have gone forth with if we didn’t feel like it’s a possibility that Bryan could come out the winner,” stated LaNea Johnson.

    Separated by just 219 votes in the final tally, incumbent sheriff Vic Johnson was declared the winner.

    Vicky Martin, elections administrator for Itasca County, says that before any recount the state canvass of results must occur, and that’s scheduled for Nov. 27. 

    “After that anyone with less than a 100 vote difference, or less than half a percent difference in votes can request a recount that is publicly funded. For those that don’t make that criteria they can request a recount at their own cost,” stated Martin.

    The Minnesota House District 5A recount, which covers three counties has been scheduled by the Secretary of State’s office for Dec. 3.

    In the race for the District 5A seat DFL candidate John Persell led by eight votes ahead of Republican incumbent Representative Matt Bliss.

    Martin says that she has scheduled Johnson’s recount for Dec. 10.

    When asked for a comment regarding the recount, incumbent Sheriff Vic Williams only wanted to show his support for how the election was run.

    “I think the integrity of our voting system is very good and our election officials are highly regarded,” Williams said.

    According to Secretary of State spokesperson Ben Petok, since the recount for District 5A includes multiple counties, including a portion of Itasca, that recount will happen out of the state office. The Itasca County Sheriff election recount will be facilitated by the Itasca County Auditor’s Office.

    “We’ve put a lot into this and human error is always a potential,” LaNea Johnson said. 

Sheriff’s race takes another unexpected turn

November 01, 2018

By Kitty Mayo

 

    The race to the Itasca County sheriff position has managed to develop yet another complexity in a competition that has been notably marked with contention and controversy.

    The Grand Rapids Herald-Review reported this week that they received a forensics report from an unnamed source alleging that Bryan Johnson had engaged in inappropriate use of a county-issued cell phone while he was in the employ of the Itasca County Sheriff’s Department. Forum Communications also has picked up the story and also stated the report was received from an unnamed outside source. The report alleges that Johnson’s former county-issued phone contained numerous sexually explicit images, videos and messages. 

    According to news sources, Johnson and his representatives have denied the allegations, suggesting the images could have been planted after the fact or downloaded by a previous user of the phone.

    The newly surfaced report is the latest development in a series of contentious events that have been a distinctive feature of this year’s sheriff’s race.

    Johnson worked as a sheriff’s deputy for Itasca County for 16 years, and is currently running against the incumbent Vic Williams for the sheriff position. Johnson also ran against Williams in his 2014 campaign for the same seat.

    An arbitration decision in September found that Williams had “just cause” for terminating Johnson from his deputy sheriff position. The 2017 firing stemmed from two instances of inaccurate time card entries totalling 12 hours.

    Johnson has staunchly denied any wrongdoing on his part, and contends that the action taken against him has been retaliation by Williams for opposing him as a candidate, as well as acting as a witness in an ongoing whistleblower lawsuit.

    That arbitration decision is being challenged by Johnson, with his AFSCME union staff attorney, Theresa Joppa, requesting an appeal based on what she calls “egregious errors” by the arbitrator.

    Protesters calling for investigation into the misappropriation of funds by the county, and specifically the sheriff’s department, gathered at the Itasca County courthouse earlier this month as well. The crowd also indicated they were there in support of sheriff’s deputy Michael Bliss who had just won a lawsuit against the sheriff’s office regarding his termination in 2016. Bliss was reinstated to his position in the same year.

    David Hanson, Beltrami County attorney, told the newspaper that he was only able to confirm that he had received a report from Soldo Consulting Group, and that he was reviewing it, but was unable to make any comment.

    In cases where law enforcement is investigated, it is standard operating procedure that a neighboring county would take over monitoring that to avoid any conflict of interest.

    A phone interview with Johnson revealed that he was interested in telling his side of the story, but for the most part was deferring to his union attorney.

    Johnson did say that there were explanations for the allegations about his cell phone, and that he believes he is purposely being made to look bad to the public. 

    “I haven’t even seen my phone in two years, and the things they are talking about are not like everybody thinks,” Johnson stated.

    According to Johnson, who specifically denies sending any inappropriate texts to people that he worked with, this is another attempt to derail his campaign.

    “This is $20,000 spent on this attorney by the county to make me look bad and I don’t even work for the sheriff’s department anymore, why are they pursuing this unless it’s to try to stop me from winning the election?” Johnson stated, referring to the Soldo Consulting Group attorney, Michelle Soldo, and the county’s payments to her for investigating the charges leading up to his arbitration as well as this recent report.

    Joppa cited Minnesota state statutes that she interprets to mean that public release of this report at this time was in violation of employee data privacy laws.

    “That is not public data under state statute, and if a data breach happened the entity responsible for the report has to notify the personnel and investigate that breach under statute,” Joppa stated.

    Other than the fact that a complaint has been filed, Joppa says that personnel data from public entities, such as a county, can’t be released until a full disposition and discipline has taken place.

    Joppa also stated that two other employees were also interviewed regarding the cell phone issue.

    “These employees that are the subject of this report have a right to challenge its accuracy before it’s distributed, it’s not fair to drag these other people into this,” Joppa said.

    Stating that in representing the union her job is to protect the privacy of its member’s data, Joppa also said that the report would likely have been made public eventually, but she believes that should have happened only after the parties involved had the opportunity to dispute the claims.

    In a statement on his Facebook page, Johnson added that similar cell phone allegations were brought up during his previous arbitration, but that they were not ultimately part of the findings in that case.

    “When I was put on administrative leave in early 2017 for the time card error, I turned over my cell phone and even my password to be fully transparent. I had nothing to hide,” Johnson wrote.

    With only days to go until Nov. 6, Johnson is continuing on with his election campaign.

Cliffs undeterred by state’s refusal to address its Nashwauk plan

September 20, 2018

By Ron Brochu

 

    Lourenco Goncalves isn’t a business executive who minces words. The chairman, president and chief executive of Cleveland-Cliffs was blunt at a 75-minute news conference Friday when he questioned why Minnesota officials won’t issue a permit to mine deposits the company controls near Nashwauk.

    “The land is mine and I want my freaking permit,” he said while visiting United Taconite in Forbes. 

    Because Department of Natural Resources executives won’t issue one, or even explain their position, they are being sued by Cliffs. Meanwhile, Gov. Mark Dayton’s administration is negotiating with other firms – which have no track record on the Iron Range, to take over the former Essar Steel Minnesota development. Dayton announced their interest on Tuesday but was forced to eat crow a day later when he learned Essar – which failed to pay dozens of contractors – was among them.

    “I get great support from mayors, from unions and from Rick Nolan,” Goncalves said, noting that Dayton and State Sens. Tom Bakk and David Tomassoni have ignored Cliffs, even though the corporation has money immediately available to fund a mining/processing project.

    “Where is Sen. Tom Bakk hiding these days? What is Sen. Tomassoni doing these days?” Goncalves asked rhetorically. “Vote Bakk out. Vote Tomassoni Out.”

    BusinessNorth, a sister publication to this newspaper, was unable to reach the state senators for comment.

    Although Goncalves declined to speculate why state officials are ignoring Cliffs’ interest, he noted that Dayton told him that an earlier Cliffs proposal didn’t offer enough. Although it included a hot briquetted iron (HBI) plant, a taconite pellet plant wasn’t in the plan. Other companies offered both but delivered neither. Cliffs went on to begin construction of the HBI facility in Toledo, Ohio.

    “I only made the deal in Toledo after I was denied Nashwauk,” he said.

    Goncalves said he can’t wait forever for Minnesota officials to support his proposal. Public corporations are required to spend excess profits on infrastructure or return it to shareholders as a dividend. But he indicated he will wait until after the gubernatorial election.

    “He’s like Hurricane Florence – it’s bad for awhile and then it goes away,” Goncalves said about Dayton.

Highway 38 detour to end Friday

September 13, 2018

    The Highway 38 detour will officially end on Friday, Sept. 14, according to the Minnesota Department of Transportation.

    The $8 million project to replace culverts and resurface the National Scenic Byway between Pughole Lake and Marcell had required a lengthy detour since the project began on May 14. 

    The end of the detour comes in time for visitors to travel the highway during the Bargains Are Great annual 47 mile garage sale event on Saturday and Sunday, Sept. 15 and 16. 

    Travelers are cautioned to watch for construction along the road as the project is completed.

After 13 years, stolen Ruby Slippers recovered

September 06, 2018

SRNF Report

 

    A pair of the famous Ruby Slippers worn by actress Judy Garland in the 1939 movie “The Wizard of Oz” have been found after being stolen in 2005.

    The famous shoes were on loan from a private collector to the Judy Garland Museum in Grand Rapids when they were stolen in late August of 2005.

    Tuesday afternoon, law enforcement authorities held a press conference in Minneapolis announcing the recovery of the shoes, which had been insured for $1 million at the time of the theft. The FBI reported that it has several suspects in the case but they are seeking the public’s help in identifying all who were involved. 

    Jill Sanborn, Special Agent in Charge of the Minneapolis Division of the FBI, and Christopher Myers, United States Attorney for the District of North Dakota, announced Tuesday that the shoes were seized in a sting operation conducted in Minneapolis earlier this summer.

    Grand Rapids Police Chief Scott Johnson noted that the recovery of the Ruby Slippers was part of a 13-year investigation that never ended. “The Grand Rapids Police Department followed up on every lead we received,” he said. 

    Johnson told reporters at Tuesday’s press conference that a break in the case came several months ago when a more “credible” tip surfaced. That tip led to an out of state connection, which triggered FBI involvement.

    Authorities described the case as an active investigation.

    “While the FBI has identified suspects and has executed multiple search warrants in Minnesota and Florida in connection with the investigation, investigators are seeking the public’s help to identify all parties associated with the initial theft and the more recent scheme to defraud and extort the Markel Corporation, the owner of the slippers,” reported the FBI in a news release.

    Anyone with information surrounding the theft or the extortion plot is encouraged to contact the FBI at 1-800-CALL-FBI (225-5324) or submit information via the FBI’s website at tips.fbi.gov. Tips can be anonymous.

    There are four known remaining pairs of Ruby Slippers in existence – those recently recovered by police, a pair housed in the Smithsonian Museum, a pair located in the Academy of Motion Pictures Arts and Sciences Museum and a pair owned by a private collector.

Cliffs will back off from Hibbing Taconite management role

January 01, 2020

    Cleveland-Cliffs won’t continue its role as manager of the Hibbing Taconite mine and processing plant beginning one year from now. It has given its partners a one-year notice of its resignation effective Aug. 12, 2019.

    Cliffs is a partner in the 42-year-old mine and processing plant, owning 23 percent. A subsidiary of ArcelorMittal owns 62 percent and a subsidiary of U.S. Steel owns 15 percent. The mine’s rated annual capacity is 8 million tons. It’s supply of ore, however, is expected to be depleted in seven or eight years.

    Spokesperson Pat Persico said the ownership stakes will not change as a result of the decision, and Cliffs will continue to take its share of taconite pellets from the facility.

    The company has not explained why it is pulling back from its management role.

    Separately, Cliffs has outlined some preliminary plans for its use of private mineral rights obtained from Glacier Park Iron Ore Properties near Nashwauk. Persico said the two business developments are unrelated.

Court sides with Nubai, dethrones Clarke at Chippewa Capital Partners

August 15, 2018

BusinessNorth Report

 

    A judge has prohibited Tom Clarke from claiming to be a leader of Chippewa Capital Partners or representing the company in any way.

     An order issued on Friday by U.S. District Judge Patrick Schiltz grants the preliminary injunction against Clarke that was sought by Nubai Global Investment Ltd. Clarke and Nubai disagree over who controls Chippewa, the company that successfully bid in a bankruptcy auction to restructure the partially developed assets in Nashwauk formerly controlled by Essar Steel Minnesota, which eventually came to be known as Mesabi Metallics. 

     “We are pleased that the court ruled in favour of Nubai Global Investment Limited and issued an Order on the terms that we had requested,” Nubai, a large investor in the Chippewa project, said in a news release. “With the unnecessary and needless distractions of the last few weeks now clearly addressed by the Courts, we can now re-focus our efforts on the Mesabi project.”

     Among the distractions was Clarke’s Chapter 11 bankruptcy filing for the ERP Iron Ore (ERPI) project. Like Chippewa, Clarke purchased Magnetation in a bankruptcy auction. But his firm, ERPI, was unable to restart the mining operation in Grand Rapids or the iron ore processing plant in Reynolds, Ind. Clarke’s overarching plan was to combine the ERPI and Chippewa operations. 

     Now, the affairs of both companies are tied up in legal disputes involving Clarke and other litigants. After Clarke was removed as CEO, Nubai named Gary Heasley as interim CEO to direct Chippewa’s Minnesota team, including construction and other business activities, as the principals had originally planned. 

     As recently as Aug. 8, Clarke has said he remained in charge and blamed Nubai for the ongoing management disputes. In a court document, he said, “I am aware that your ‘investors’ have already contributed approximately US $159 million to Mesabi through Chippewa, however, Nubai’s failure to meets its contractual obligations and contribute the additional US $91,447,257.47 by the required deadlines has deprived Chippewa and Mesabi of the funds they require to continue operations, and now endangers both your investors’ past investments and the future of the Mesabi project.” Terms of the contracts have not been released by the court, and the court has prohibited Clarke from making that information public.

    Beyond his removal from the executive team, Clarke has been prohibited from using any of Chippewa’s or Mesabi’s offices, premises, computers or communication systems without the consent of Nubai and also from selling any interest in Chippewa or Mesabi.

Child care shortage reaches crisis levels

August 08, 2018

By Beth Bily

    The availability of affordable child care in the region is gaining traction among key stakeholders as a major economic development issue and several regional organizations are pooling resources to address the problem.

    According to information from First Children’s Finance, an organization that provides financial and business assistance to childcare providers offering services to low and middle-income families, the lack of childcare in the state of Minnesota has become an obstacle to effectively growing rural economies. Programs offered by the organization include financial assistance, business training, business development, community consulting as well as online resources.

    In its 2016 study, “A Quiet Crisis: Minnesota’s Child Care Shortage,” the Center for Rural Policy outlined the problem as one with many causes:

    • A rapid decline in home-based child care. While child care centers have increased to fill some of the gap, in rural Minnesota there was a net loss of 15,377 child care spaces from 2006 to 2015. During that same period, the Twin Cities metro area experienced an overall 3,284 increase in child care spots.

    • Salaries and wages in the child care industry are a “huge deterrent,” with more than 85 percent of those employed making less than $20,000 annually.

    • Low income households and single parent families are particularly hard hit by the shortage, with child care costs absorbing a much larger percentage of their income. 

    • In rural areas, it’s more difficult for child care providers to raise prices due to a lack of clients able and/or willing to pay the increased cost.

    • As the job market has become more competitive, the lack of child care spots in rural areas has been a deterrent to job seekers, who instead opt for positions in the Twin Cities where child care is more available.

    Area stakeholders are well-aware of the problem. 

    “Having quality childcare available is an absolute imperative,” said Sonja Merrild, the Blandin Foundation’s director of grants. “We have heard this call for some time from our community.”

    To that end, the Blandin Foundation recently awarded grant funding to First Children’s Finance to launch a child care resource business center that will provide assistance to organizations across the Iron Range looking to create or expand childcare options. The organization already has worked with officials in Itasca County to assess its needs and is in the process of working with key players in the Quad Cities area. 

    While some might question why childcare centers need their own business support mechanisms, advocates, like Merrild, call the business “surprisingly complex.” 

    Issues arise around mandated child to worker ratios, recruiting needed workers that are increasingly in short supply and a large volume of regulations that must be adhered to.

    Northland Foundation Vice President/Director of KIDS PLUS Lynn Haglin added that those who enter the industry may not necessarily have all the tools they need to be successful. “People go into it (child care) because that’s where their heart is, but they may not be as aware of the associated business aspects.”

    The Blandin Foundation Board of Trustees recently approved a $195,000 grant over a three-year period to fund the development of resources locally, while the Northland Foundation has contributed $33,333 this year and will revisit providing additional funding at a future date. 

    The Iron Range Resources and Rehabilitation Board also has allocated funds toward addressing the child care shortage, said Communications Specialist Sheryl Kochevar. The IRRRB provided $20,000 in FY18 to the United Way for child care technical assistance; $11,667 to the Northland Foundation for a child care business study; $175,000 for internal and external and HVAC upgrades to Bright Minds Academy Daycare in Eveleth; and, $260,000 for infrastructure, site work and wetland mitigation for the Mountain Iron Childcare Facility Project.

    Work to expand the availability of child care in northeastern Minnesota is part of a broader statewide effort. Elsewhere in the state, the Minnesota Initiatives Foundations have partnered with First Children’s Finance to cover child care training costs and make that training locally accessible. 

    These efforts, said Haglin, are vital to the overall economic health of this region. “It’s (lack of child care) reaching a crisis point,” she said. “I think we’re going to have to come up with new solutions and we need the business community to come to the table.”

    The Center for Rural Policy Development has identified the shortage in the Arrowhead region as particularly troubling. Here, the 9,102 available child care spot capacity is falling short of need by nearly 5,000 spaces. The child care industry needs to grow 55 percent to meet the shortfall – the highest level of regional growth needed in the state.

    Further assessment of the issue is on the near horizon. The Northland Foundation, Blandin Foundation and IRRRB are jointly funding a study through Wilder Research on the economic impact of the childcare shortage in the seven county Arrowhead Region. The completed study is expected to be released in either late August or September, said Haglin.

Minnesota, Wisconsin employment reach record highs

July 26, 2018

BusinessNorth Report

 

    Minnesota employers added 6,600 jobs in June, according to seasonally adjusted figures released last Thursday by the Minnesota Department of Employment and Economic Development (DEED).

    The number of people employed in Wisconsin as well as the number of active participants in the state’s labor force reached record highs in June, and the data showed that Wisconsin gained both total non-farm (+7,400) and private-sector (+5,500) jobs from May 2018 to June, and a significant 17,600 manufacturing jobs over the year, according to the Department of Workforce Development (WDWD).

 

Minnesota

    DEED said May’s employment figures were revised from 10,200 jobs gained to 10,700 jobs gained. During the past year, Minnesota employers have added 45,517 jobs, a growth rate of 1.5 percent. The U.S. growth rate during that period was 1.7 percent, DEED said in a news release.

    Minnesota now has a seasonally adjusted total of 2,962,300 jobs statewide, the most in state history. The state’s seasonally adjusted unemployment rate held steady at 3.1 percent in June. The U.S. unemployment rate was 4 percent, the agency said.

    “Minnesota gained 17,300 jobs over the past two months, the state’s strongest growth spurt in more than a year,” said DEED Commissioner Shawntera Hardy. “Overall employment in the state is at a record level and continuing to grow, however, we must continue to invest in communities where job growth is not as strong.”

    Leisure and hospitality led all sectors with 2,700 new jobs last month, followed by manufacturing (up 2,000), construction (up 1,500), information (up 900), professional and business services (up 900), trade, transportation and utilities (up 600) and other services (up 200). Logging and mining held steady.

    Three sectors lost jobs: government (down 1,000), education and health services (down 600) and financial activities (down 600).

    Leisure and hospitality also added the most jobs over the past year with a gain of 13,728. Other industries adding jobs in the past 12 months were manufacturing (up 8,661), professional and business services (up 5,434), education and health services (up 5,143), trade, transportation and utilities (up 5,035), construction (up 4,744), government (up 4,137) and information (up 508).

    Other services (down 1,399), financial activities (down 386) and logging and mining (down 88) lost jobs over the past year.

    In the Metropolitan Statistical Areas, all five regions gained jobs over the past 12 months: Minneapolis-St. Paul MSA (up 2 percent), Duluth-Superior MSA (up 1.5 percent), Rochester MSA (up 0.2 percent), St. Cloud MSA (up 1.6 percent) and Mankato MSA (up 4.5 percent).

    DEED has added a section to its website that examines the unemployment rate by demographics (race, age and gender) and looks at alternative measures of unemployment. Minnesota’s black unemployment rate fell from 6.1 percent in May to 5.6 percent in June for yet another all-time low dating back to 2000. Minnesota’s Hispanic unemployment rate increased from 4.4 percent in May to 5.3 percent in June.

 

Wisconsin

    “Wisconsin continues to add jobs, which means more opportunities for Wisconsin job seekers,” said DWD Secretary Ray Allen. “Over 3,000 individuals entered the labor force from May 2018 to June, growing the pool of available workers to fill some of the 90,000-plus job openings available on JobCenterofWisconsin.com. Although the unemployment rate ticked up slightly from the record low rate of 2.8 percent that we experienced in April and May, it increased for the right reason – Wisconsinites are excited about the career opportunities that are being created by new and existing employers throughout the state and entering the labor force.” 

    The BLS uses three data sets to measure employment and unemployment:

    Current Employment Statistics (CES): compiled from a monthly survey sent to about 5,500 employers (3.5% of Wisconsin employers). CES data has been shown to be subject to significant revision. 

    Local Area Unemployment Statistics (LAUS): compiled from a monthly survey of 985 households and unemployment insurance claims. Measures the labor force, employment, unemployment, and the unemployment rate. 

    Quarterly Census of Employment and Wages (QCEW): compiled on a quarterly basis from Unemployment Insurance records from some 96 percent of Wisconsin business establishments.         Considered by most economists to be the most accurate measure of jobs, the QCEW includes data from almost all employers in Wisconsin.

    Other indicators of the state of Wisconsin’s economy include:

    Initial UI claims ended 2017 at their lowest level in the last 30 years.

    Continuing unemployment claims ended 2017 at their lowest level since 1973.

    Moody’s Investor Service upgraded the state’s credit rating, nothing that “The stable outlook reflects the expectation that the state will experience moderate economic growth and will continue its prudent fiscal management practices.”

ERP files for bankruptcy protection

July 19, 2018

BusinessNorth Report

 

    ERP Iron Ore of Grand Rapids has filed for bankruptcy protection in the District of Minnesota. The move comes three years after a predecessor company, Magnetation, declared bankruptcy on the same operation, in which iron is recovered from tailings.

     ERP purchased the former Magnetation assets in a Dec. 2016 bankruptcy auction and had planned to begin shipping new pellets later this year. But in recent weeks, it became evident ERP was experiencing financial problems. On May 19, four northern Minnesota companies filed an involuntary Chapter 7 bankruptcy petition against ERP saying they were owed nearly $5 million. Since then, several others have come forward including BNSF Railway Co., which said it is owed $11.9 million.

     “ERP has requested to convert the involuntary bankruptcy to a (Chapter 11) voluntary action in order to protect all creditors including all mechanic lienholders,” the company said in a document released Tuesday. 

     Claims in the statement released Tuesday by ERP, however, cannot be trusted, said the top executive of Cleveland-Cliffs, a competitor. The ERP statement references Mesabi Metallics Co. LLC, ERP’s sister company (formerly operated by Essar Steel Minnesota Inc.), which also was purchased in a bankruptcy auction.

    Entrepreneur Tom Clarke is a principal in both firms. The statement says Mesabi has committed to providing crude ore to Hibbing Taconite, which is managed and partly owned by Cliffs, “in order to extend the life of Hibbing Taconite and preserve Iron Range’ jobs. Tom Clarke has personally reached out to Cleveland-Cliffs Inc. CEO Lourenco Goncalves to provide crude ore to Hibbing Taconite.”

    Goncalves said he has never been contacted by Clarke and the claim is totally untrue.

     “He and I have never spoken,” said Goncalves, who also is board chair and president of Cliffs. “I don’t speak to anyone like Tom Clarke except in a court of law. He is a liar.”

    Goncalves has publicly criticized Clarke in the past, contending he lacks the financial resources to resurrect either the ERP or Mesabi facilities. The firms are engaged in an active lawsuit.

    “It’s important for the people of Minnesota to understand he lies with a straight face,” Goncalves said in an interview.

    Last week, the Minnesota Department of Natural Resources said it would withdraw mineral leases from ERP within 15 days unless rental payments are made. The bankruptcy action may put that decision in the hands of the bankruptcy court.

    Clarke was contacted late last week by BusinessNorth but did not return a phone call requesting comment.

     No other details are as yet on file with the court. Further updates on this story will be posted to our website: www.scenicrangenews.com as information becomes available.

Annual Ojibwe Pow-Wow

July 12, 2018

A group of Dancers along with their children pose for a photograph during a break at the Deer River Rice Festival Leech Lake Band of Ojibwe Pow-Wow.

4th of July kid-style

July 05, 2018

The kids at Trout Lake Campground in Bovey participated in a parade on July 3 sporting their patriotic gear and celebrating July 4. The kids rode throughout the campground as proud parents took pictures. The parade was put on by Tom and Norma Greniger who took over the campground in 2015 and have since worked to make the area more kid friendly. 

Salmela Jewelers closes doors for good

June 29, 2018

By Manja Holter

 

    The signage was large, loud and all over the place at 1259 S. Pokegama Ave. in Grand Rapids, announcing the closing of a jewelry store that has been part of this community for more than 65 years.

    Everything must go. All inventory (most marked down by 70 percent), display cases, cash registers and office furniture. Not every item might carry an actual price tag, but Len Salmela, owner of Salmela Jewelers, was determined to get rid of his store in its entirety.

    That’s not to say that he doesn’t remember its beginnings fondly. 

    “My dad, Arthur, began as a watch maker. He served an apprenticeship at Schmidt Jewelers of Duluth in the 1940s. He opened up his own repair store in Deer River in 1950. It slowly evolved into a full-service jewelry store, which he moved to Grand Rapids in 1963. It was the weekend Kennedy was assassinated. We will always remember when he moved,” said Salmela.

    Grand Rapids already had six jewelry stores when his father moved the business to its first location there on Highway 2 downtown (now home of the MacRostie Art Center.)

    “Most jewelers at that time were watchmakers. In those days, everybody had a mechanical watch. The railroad guys, for example, all had to get them cleaned once a year. He went into a tough competitive situation and he managed to make it.”

    Len is one of six Salmela siblings. When his father passed away suddenly in 1983, he was the only one without a job, making him the obvious choice for taking over the business.

    As a former maintenance mechanic in the mines, he lacked the experience one acquires during a goldsmith or watch-maker apprenticeship. But Len was quick in closing that skills gap by picking up tricks of the trade from the store’s employees. 

    “I welded and brazed with a torch. It’s kind of the same thing on a smaller basis. It’s a little tiny gas torch instead of a big acetylene torch.”

    Following the expansion of Highway 2 and the subsequent loss of storefront parking, Salmela oversaw the company’s move to its final location at Pokegama Plaza in 1993. 

    One of Salmela’s specialties was the tune-up and repair of grandfather clocks all around the region and his services will be missed - not only by private customers but business partners as well.

    Cherie Frick, antique dealer and co-owner of Icecube Coins & Antiques in Remer, Minn. said; “Len has helped us resize rings, repair jewelry and estimate the worth of diamonds. He was always very reasonable, personable and easy to work with. I am sad to see him close his business. It’s a real loss for us because I will have to find another jeweler that I can trust the same way.”

    Salmela turns 65 this summer. The approach of the retirement age led to the decision to close the business.

    “My wife and I had decided 10 years ago that that was our target for retiring. I had hoped to sell the business and had a couple people who were interested. But everything ended up falling through. I had also made a conscious decision that if I didn’t sell it by a certain time I was going to do a ‘going-out-of-business’ sale because I didn’t want to be one of these people who keep the store open for another 10 years hoping to find a buyer. I wanted to be done.”

    Salmela’s four children are all working and living in the Metro area. 

    “They all have jobs that are more lucrative than tying yourself down to a family owned business,” he said.

    When asked about the challenges that independently owned, small town jewelry businesses are facing, Salmela lists the retention of reliable employees as well as the increase of online competition.

    “I would have never believed it. I always thought people will want to see a diamond or ring before they bought it. You wouldn’t believe the things that come in for resizing etc. We won’t dare touch it because it’s made so badly.”

    Darrel Pitts, a former jewelry store owner with 47 years of experience, who is helping Salmela during the sale, said: “The millennials rather buy on the Internet. But they then come in and want us to confirm that the price they paid was legit. When asked what they paid it is always close to what we estimate, even though the customers thought they’re getting a deal because it was priced at a supposed discount.”

    Twenty-five to 30 percent of Salmela’s revenue was generated through repair work. He employed two people who will need to find new positions.

    Salmela also estimates that the area supported around three jewelers on average for the past 15 years. The closing of his store presents Grand Rapids with a dramatic reduction of that industry’s presence in the downtown market.

    Last July, another Grand Rapids jewelry store, JB Kaiser, opted not to renew the lease for its prominent sale space at the Central Square Mall. Instead, owner Jeff Kaiser opened up a small studio at his private residence, located on 30265 Sunny Beach Road.

    He, too, states that the internet had a huge impact on his business model, which set out be an over-the-counter jewelry sales and repair store when he first opened up shop in 1984.

    “The choices that the consumer has today have been extended tremendously by the Internet. However, most of the vendors are not jewelers but simply marketers. They buy and often don’t even touch the item. They have no expertise in jewelry.”

Kaiser is a gemologist and goldsmith by trade, which allowed him to shift his revenue streams towards the niche market of custom jewelry design. 

    “I increased that side of my business by 75 percent in the last years. Primarily, I have customers coming in with an image of a piece of jewelry saying ‘I want exactly that, except...’ I can create whatever they want. Most people coming in either special order or ask for custom design. It is what I enjoy doing most.”

    By downsizing his business from 12 showcases to two and moving his shop into his home, Kaiser was able to radically cut down his overhead cost.

    Additionally, Kaiser adapted to the market by creating “JB-on-the-Go,” which is essentially a mobile jewelry store housed in a former ambulance truck. He offers a full line of jewelry services from this vehicle as well as “house-sitting” and “temping services” for independently owned jewelry stores whose owners need a fill-in while they are on vacation or in need of time off. 

    The business idea came to Kaiser during his time as owner of the shop at the mall, which never allowed him to take a leave of absence.

    A sentiment that is likely shared by Salmela. He, too, is excited to “not be tied down” and “travel for more than five days.”

    As Salmela transitions into retirement, he looks forward to “moving south”, not as in Arizona or Texas, but the Twin Cities area to spend time with his seven grandchildren.

    Salmela’s closed its doors for the last time on June, 23.

Hen House offers ‘five star’ antique experience

June 20, 2018

By Sally Sedgwick

 

    It’s a little country community in the middle of the woods, first seen as a glimpse of a cupola from the old Aurora school between vintage buildings.

    And then you are there, in the center of a whimsical and eclectic collection of antiques, crafts, garden ornaments, collectables and most of all, color. It’s a stroll-through village, and everything you see is for sale.

    It’s the creation of Kim and Tom Breiwick called the Five Star Hen House, and it is located about nine miles south of Bigfork (two miles south of Scenic State Park) on Scenic Highway 7. It is open from 10 a.m. to 4 p.m. on just seven weekends a year, Friday, Saturday and Sunday from early June through July 15, as well as the Wednesday and Thursday of the July 4 holiday. 

    There is a Hen House, originally a log cabin bunkhouse Tom built for the couple’s children. There is also a Bird House, two cupolas, a Garden House and Man Shed. Named for their theme, some have backstories. The Garden House, for instance, started life as a horse stable. 

    Living in Buffalo, Minn., the couple moved north to live full time at their cabin about 15 years ago while keeping weekday jobs in their professions. They both enjoy collecting: Kim has a special interest in tin wind-up toys and Tom is an expert on - and collector of - marbles. 

    They started to create a way to display their collectables for sale, and in 2014 opened it to the public. Each year it changes and grows a little bit larger, laughs Kim. The best part for her is the returning customers and the conversations in the many chairs placed around the lawn. 

    In 2015, they needed to expand and rented a gift shop just south of Bigfork on Highway 38 that they renamed the Picadilly. That location is open from April to December every weekend (Friday through Sunday) from 10 a.m. to 4 p.m. The Hen House retains most of the rustic items, but both locations have a mix of “everything anybody wants,” including glassware, signage, furniture, handcrafts, toys and much more. 

    Kim collects items from all over the state, and carries lines from individual Minnesota artisans and producers. On her shelves you can find jellies, sauces, pickles, signs, sewn items and her own soaps and caramels, as well as antiques. Kim also finds furniture that is refinished by Tom.

    When she puts together her displays, she tries to make little vignettes – pleasing to the eye but not necessarily things that normally go together. She wants to make sure, she says, that customers walk in to find something unique and not like many other stores they have visited.

    Her experience has given her a unique look at the market. This year she sees a trend away from Depression glass, she said. The new desirable collectable, she believes, is Fire King, especially bowls and hard to find items like goalongs (expandable bowl holders with handles). 

    But whatever is trending, there will likely be a sample of it in the extensive collections at the two locations. 

    The Five Star Hen House is located at 55420 Scenic Highway, Bigfork, and the Picadilly is located at 58284 State Hwy. 38, Bigfork. Kim can be reached on Facebook at Five Star Hen House, by email at kimshenhouse@arvig.net or by phone or text at (218) 910-0603.

Celebrating Wilderness Day

June 14, 2018

Photos by Don Basista

Bigfork Wilderness Day was held on Saturday, June 9. Volunteers riding Old Big Fork Fire Truck No. 3 were throwing candy during the parade to children along Main Street.

Local students in non-fatal bus crash

May 10, 2018

    Twenty-two students and one staff member from ISD 318 (Grand Rapids School District) were traveling to the Great Plains Youth Institute in Crookston on May 7 when the bus they were on was involved in an accident five miles outside of Bagley.

    The cause of the accident remains under investigation. Several students and the driver were transported to local emergency rooms with minor injuries, such as cuts and abrasions. The Minnesota State Patrol responded to the incident and transportation was dispatched to pick up the students to return them to Grand Rapids. 

    According to updated reports from the school district, all 22 students were released and returned home by Monday afternoon. Two adults involved in the incident were reported as receiving medical care.

An icy opener

April 19, 2018

By Lee Bloomquist

 

In 60 years of living and working as a fishing guide on Lake Vermilion, Cliff Wagenbach has never seen ice like this.

“Three or four days ago, I was fishing crappies on Big Bay,” said Wagenbach, 70, who operates Cliff’s Guide Service. “I’ve got to say it has about 30 inches of ice and it’s hard ice. There’s also about eight inches of hard packed snow on top.”

Two weeks into April, it’s the winter of 2017-2018 – and there’s thick lake ice that won’t seem to say ‘uncle.’

With prolonged below zero overnight temperatures, record late snowfalls, and days of bitter cold winds, resort owners, guides, and northeastern Minnesota businesses that look to the fishing opener for revenue, expect many northern lakes to remain frozen for the May 12 Minnesota fishing opener.

“This one doesn’t want to quit,” said Wagenbach of the winter. “This is the latest I’ve seen the ice hanging on in this condition for years.”

Bays and small lakes fed by rivers or streams are likely to open up. But Wagenbach says large parts of lakes – like Lake Vermilion’s Big Bay – will probably remain ice locked. That will impact businesses across the region, according to some resort owners.

“It will have an effect,” said Jay Schelde, owner of Pike Bay Lodge on the Tower end of Lake Vermilion. “There’s been so much conversation about it that there will be a financial effect, no doubt about it.” 

Schelde, however, is more fortunate than some.

Schelde’s Pike Bay Lodge is on Pike Bay. Pike River flows into the bay, making it one of the first bodies of water on Lake Vermilion to open. It’s an annual opening day hot spot for anglers. 

“I’m booked up for opening weekend,” said Schelde. “But with the weather that’s been going on in the Twin Cities, some people down there have pretty much written it (the opener) off.”

In Virginia, Bob Arvola, owner of Duane’s Marine, says he’s been busy selling boats, motors and accessories, but the weather and expected late ice-out will have an impact.

“Definitely, people are not going to be moving around as usual,” said Arvola. “I think it’s going to hold people back, but the guys who are coming in here are optimistic and are coming in and buying them (boats). They realize they’ll have to wait, but business is still here.” 

Jeff Eibler, Minnesota Department of Natural Resources assistance fisheries supervisor in Tower, said the annual walleye egg harvest at the DNR’s Pike River hatchery will be delayed and shorter than average years. Eggs from spawning walleye on the Pike River are grown into fry and used to populate other lakes in northeastern Minnesota and some prairie lakes in the southwest portion of the state. In a normal year, about 850 quarts of eggs are harvested. This year, due to the late ice-out, Eibler expects about 650 quarts. 

“Our dock is frozen in about two feet of ice,” he said. “Our average set-in date is April 14 and our latest set-in date was May 4 in 2013. It’s looking like we’re kind of in that area this year.” 

Dissolved oxygen testing within the last week show some small, shallow lakes in the northeast with low levels of oxygen, said Eibler.

“Most lakes are still good, but a couple are looking like there could be a little winter kill up here,” he said. “Perch and northern pike are most resistant. Walleye, bass and bluegill tend to go first.” 

Joe Panichi, who operates Panichi Guide Service from the Niles Bay area of Lake Vermilion, says there’s at least 30 inches of ice near his home on Vermilion.

“A friend of mine was driving his pickup out onto the ice the other day,” said Panichi. “Usually, by this time of the year, the snow on top of the ice melts, but this year it hasn’t. It’s just kind of crystallized.”

Panichi says an icy opener is looking like a sure thing.

“Most people are thinking it’s (an ice-free opener) not going to happen,” said Panichi. “It’s not going to happen unless we get some miracle weather. You never know. Two or three days of 70 degrees would make a big difference. But if I had to bet, I’d bet against it.”

Pehrson Lodge owners Eric and Mary Hanson say in 21 years of owning the resort on the northwestern portion of Lake Vermilion, they’ve experienced late ice-outs only twice. However, the Hansons say within the last week, the probability of an ice-free opener has gone from likely to near certain.

“We still do not expect the ice to last more than a few days into the season,” said Eric Hanson. “The May sun usually weakens the ice quickly (we hope!)

The latest ice-out Lake Vermilion was May 23, 1950, according to records kept back to 1906 on lakevermilion.com

In 2013, the ice went out May 17.

At Lake Kabetogama, Lee Herseth, owner of Herseth’s Tomahawk Resort, says “the ice looks pretty thick yet.”

“I think it’s about the same everywhere,” said Herseth. “But it could warm up and be 80 degrees for a couple of days. It’s happened before.” 

On Lake of the Woods, about three-and-a-half to four feet of ice remain, according to Jace Luoma, assistant director of the Lake of the Woods Tourism Bureau in Baudette.

“It’s different all over the lake because the lake is so big,” said Luoma. “But I’ve been hearing about some big cracks in 4 Mile Bay and to the west.”

Spring is coming…especially in the greenhouse

March 22, 2018

Owner Missy Francisco checks some seedlings.

By Sally Sedgwick

 

There are 20 cows, 15 horses, 10 goats, assorted poultry, one parrot and thousands and thousands of flowering plants to take care of on Missy and Nick Francisco’s farm a mile east of Effie. 

The farm is home to Forevergreen Greenhouse, with almost 4,200 square feet of growing space plus a gift shop. 

On the farm, calving season coincides with greenhouse season, so Missy is generally up at 5 a.m. to check on the cows so she can be with the plants by 9 a.m.

The greenhouse began as two hoop houses in the mid 1990s, purchased from a neighbor after Missy learned the business working there for several years. Her green thumb and modest prices attracted a wide customer base so that in 2013 they were able to add two larger structures. 

The season begins in early February when Missy starts her top seller, patio tomatoes. Peppers also are started early. Other flowers and vegetables are planted according to notes kept in extensive journals each year. Now, by mid March, those structures are almost full of seedlings, baskets, bags and germination trays with a few flowers already peeping out. This week Missy is ready to start herbs. 

Missy’s mother and one or two additional helpers do all the planting, about half from seeds and half from already started plugs from a grower. The plugs, sometimes mandatory with patented varieties, do have an advantage, she says. They give the customer a bigger plant and thus earlier bloom in the garden. 

To plant and transplant, the greenhouse starts with over 10,000 pounds of planting soil. When the business began, the soil was mixed in a sink, Missy recalled, then a washtub. Now it’s mixed in a stock tank. 

The hanging baskets are watered through an elevated drip system, but the benches are watered by hand. It takes an hour to do the watering, and during summer heat that might be three times a day. 

In fact, Missy says, during the greenhouse busy season, she virtually lives there from dawn to dusk. There’s a mini kitchen just so that meals can be fixed on the spot.

The planting is timed to have flowers ready the first weekend in May, and the greenhouse will stay open through July. The greenhouse recommends that plants go into the ground around Memorial Day or even the first week of June in the Effie area, however. Geography is important, she noted. Even Grand Rapids, 50 miles to the south, can have as much as a week difference in optimal planting time. And once cold soil has warmed up, late planted flowers can grow much faster. 

After July, the greenhouse calendar keeps going. Next year’s seeds need to be ordered in September and plugs by the end of October in order to get industry discounts. That means adjusting for what sold out or didn’t sell this year, but also guessing what will be popular next year.

What does Missy see for this year? The greenhouse has always specialized in Wave petunias, but there are newer varieties, Crazytunias™ and Supertunias™, that have less deadheading and maintenance. Some “tried and true” flowers also have surprising new colors and forms – like double petals. Groundcherries – a sweet husked fruit - is also new to the greenhouse this year. And Missy has picked out some new annuals to try, including the daisy-like Argyranthemum that grows to 28 inches, and Regal Geraniums with big flower clusters.

Her most popular vegetable is the tomato, and in addition to patio tomatoes, her most popular variety is Early Girl. Altogether she grows twenty different varieties in all colors (red, yellow and purple), shapes, and sizes from cherry to Beefmaster.

As a business, growing plants is rewarding, but it is also vulnerable to many things: heavy snowfall that can deform roofs, power outages that turn off fans and heating systems, wood heat that runs out in cold temperatures. All the essential systems need to have backups: fuel oil furnaces, batteries and generators. 

Missy recalls the time a shipper left a box of plugs on the outside porch, freezing the entire shipment. This year a grower shorted a shipment by 40 percent without warning because of a crop failure. 

But when all the winter dangers are over and the greenhouse opens on the first Saturday of May, Missy can enjoy her favorite time: meeting new people and greeting families that come back year after year. 

Forevergreen Greenhouse is located one mile east of Effie off Highway 1. For more information call (218) 743-3358, email forever@bigfork.net or visit on Facebook.

District 318 to try again on new elementary schools ballot question

February 22, 2018

By Kitty Mayo

 

The school board for ISD 318 has approved an elementary facilities referendum amount of $68,910,000 as the number to be put before voters on April 10. 

The referendum proposal would build two new elementary schools, and renovate the aging Cohasset elementary. A second referendum question with a cost of $5,140,000, is designated for improvements to athletic facilities. Artificial field turf would be put in at three fields at the Grand Rapids High School, and almost $1 million would go into new lockers and a weight room at Bigfork. The second question is contingent on the passage of the first.

Previously, the Elementary Facilities Taskforce had outlined a plan that would have cost $74 million. However, with a $4.7 million grant from the Iron Range Resources and Rehabilitation Board, and land swap deals with the cities of Cohasset and Grand Rapids, that cost has been significantly reduced. The IRRRB grant is designated to be used for demolition and infrastructure costs.

According to the district tax calculator, the $68.9 million question would add $4.39 in taxes per month to a homestead valued at $100,000. The $5.1 million athletic question would add 33 cents in tax per month to a $100,000 homestead property. If both questions passed, the total tax impact on a $100,000 home in the district would be $4.72 per month. The debt service levies would be in place for 19 years. 

In 2015, an elementary facilities referendum with a price tag of $80.1 million failed to gain voter approval.

Currently, the existing buildings are rated to hold 44 sections of elementary students, however with classes overflowing to portable classrooms, there are now more than 50 sections.

Elementary students in the district are at four schools: Murphy, Southwest, Cohasset and Forest Lake, with fifth graders having been moved to the middle school. Shortened lunch periods and gym classes have been instituted due to overcrowding, and the three of the elementary buildings are not ADA (Americans with Disabilities Act) compliant.

A recent report on enrollment trends for elementary students indicated that overcrowding will only worsen in the coming years with numbers of new students on the rise.

“Significant space needs created by increasing enrollment makes the current elementary plan important for the future of our students. New facilities will address those space needs and enhance learning for students,” Superintendent Joni Olson said.

The preferred sites for two elementary schools are at the sports complex site, and just west of the hospital.

New buildings with improved technology infrastructure and full gyms would house Kindergarten through fifth grades, with capacity for 750 students each.

The oldest part of Cohasset Elementary, built in 1922 would be rebuilt under this plan, and that school’s capacity would be 300 students.

Mindy Nuhring, co-chair of the EFT, says that the process of communicating with the public and hammering out a plan has gone through numerous revisions to get it to this point.

“There have been a lot of positives making this plan, there wasn’t enough information, but we got a lot of answers to questions,” Nuhring said.

In that process talks with the city of Cohasset led to an agreement to work together on that elementary school’s renovation to come up with a collaborative effort. If the referendum is approved, the city will add a community center to the school, and share the cost of adding a full size gym to the building.

If the referendum passes, Nuhring says that construction would probably happen in 2019 and 2020, potentially bring 600 directly related jobs to the area.

The entire document detailing the facilities plan can be found at: http://www.isd318.org/, and click on “EFT presents Recommendation to School Board” under District News.

Region's airports grow, add service

February 01, 2018

Photo courtesy of Range Regional Airport

By Beth Bily

 

Few industries have faced greater challenge in the past two decades than commercial airlines. 

Embattled by post-911 fear, followed by an onslaught of new security measures that added inconvenience for travelers, regional airports also have struggled with decades of declining enplanements, the loss of commercial service at many locations and reduced profitability for a number of carriers.

Rural airports were hardest hit. While there were 16 commercial service airports in the state of Minnesota in the 1980s, that number had dwindled to nine by the early 2000s. Citing low or no profitability, Northwest Airlines pulled commercial service in this region from the Grand Rapids / Itasca County Airport in 2004. 

The decline in rural airports offering commercial service, however, predates 911. Industry experts have long blamed deregulation in the late 1970s, which allowed carriers to set their own schedules, for the rural commercial service demise.

With a third straight year of strong profits for domestic carriers, reduced competition regionally and designation as an Essential Air Service hub, which provides carriers with federal subsidies for service, Range Regional Airport has recently seen its own fortunes take off. 

In 2017, the airport reported record passengers for the 21st Century– levels not seen since 1999. Total passengers at the airport reached 15,089 in 2017, up nearly 20 percent from 2016. Although passenger numbers had been rising slowly, at a rate of about 4 percent annually for the past two years, last year’s big jump can be attributed to several factors.

The Chisholm-Hibbing airport completed a new $12 million terminal project in 2015 with a number of new amenities and increasing the terminal space from 8,900 to 21,000 square feet. Other upgrades included a luggage carousel, airplane boarding bridge and a TSA (Transportation Security Administration) screening area with more privacy.

Range Regional Airport Executive Director Shaun Germolus attributed the “ease of travel through a modern terminal facility” and the boarding bridge as big assets for passengers.

A solid partnership with SkyWest, the carrier that provides daily connecting flights to the Minneapolis/St. Paul airport, also has been a factor in the upswing, said Germolus. “They’ve been a good partner and have very good on-time rates.”

Finally, airport executives say the convenience and cost of traveling locally has made a big impact. “People now look at the overall costs of travel,” Germolus said, adding that parking, convenience and fuel costs to Minneapolis all contribute to the decision to fly local. The airport keeps these factors on the front burner for passengers with an online flight calculator, which measures the total costs/savings associated with flying locally.

Although overall passenger numbers at Duluth International Airport have remained relatively flat in recent years, it was announced last month that United Airlines would offer mainline service beginning in March. The carrier will be operating a combination of Airbus A319 and A320 aircraft on the first flight out and last flight in from Chicago’s O’Hare Airport. 

The new service will replace the regional 50-seat jet that provides the existing flight service to Chicago. According to information from Duluth International Airport, United “has continued to gain market share with its direct flights to ORD.” The carrier saw a 4 percent year-over-year increase from 2016 to 2017.

“United is really growing its market share here,” said Duluth International Airport Communications and Marketing Director Natalie Peterson. “If the region continues to show that there’s demand, good things will come from that.” 

Like Range Regional Airport, the Duluth International Airport has a relatively new terminal, which opened for business in 2013. The $78 million project tripled the size of the airport’s waiting area and added numerous amenities. The new terminal also has been a positive for the airport, said Peterson, noting that it’s enhanced the customer experience. The airport currently offers daily service through two major carriers – United and Delta, which offers flights to Minneapolis-St. Paul airport. The number of flights varies by demand, with Delta offering between four and five daily flights and United booking three to four flights each day.

Range Regional Airport offers daily flights to Minneapolis-St. Paul on 50-passenger jets through SkyWest, operating as the Delta connection. Chartered flights through Sun Country Airlines also are available. Germolus expects passenger numbers and flight options to continue to grow in the current climate. New charter flight destinations are on the horizon and fleet mix changes are possible in the future, which could potentially increase the number of available seats.

“We’re on a positive market trend and looking at different market destinations with charter flights,” said Germolus. “We should be able to maintain this and continue to grow.”

“It’s a profit-driven industry,” Peterson concluded. “Profits drive decisions.”

County identifies 2018 legislative priorities

January 18, 2018

By Kitty Mayo

 

Itasca County has begun to firm up a list of legislative priorities that officials would like to see addressed in the upcoming legislative session.

Currently a work in progress, Itasca County Administrator Brett Skyles says the following priorities defined by the board thus far are in no particular order of importance:

● Continued support for construction of a state-run veterans home in Bemidji.

● Reinforce reimbursement provisions already in place at Grand Village nursing home for staff retention. 

“Right now Grand Village is able to put money into salaries and other things to boost staff retention, and we want to make sure the legislature doesn’t do value-based reimbursement instead. It can be hard keeping staff at nursing homes, we want to play some defense,” said Skyles.

● Create a step-down unit for clients leaving Anoka-Metro Regional Treatment Center. 

While Skyles agrees more transitional placement is needed for Itasca County residents requiring mental health treatment, he says it is just a small step in the right direction. “We support it, but it doesn’t solve the issue of high county costs for treatment if there is nowhere else for people to go,” Skyles stated. Currently, with no mental health treatment facilities in the region people from Itasca County are brought to AMRTC, a costly placement at $40,000 per month that can fall to the county to pay if patients are deemed outside of the medical criteria for being there, even if there are no alternatives.

● Increased reimbursement rates for Indian Child Welfare Act out-of-home placements costs.

● Legislative funding for opioid prevention planning to decrease societal costs and financial burden to the county.

“This is going to be tough to fund, but it’s plain to everybody our reactive way of out-of-home placements and jail isn’t working and we really need to do something different with prevention,” said Skyles. 

● State support if Enbridge and other tax cases are ruled in the industries’ favor to alleviate local taxpayer burden.

● Increased regulation guidelines for vacation rentals by owners (VRBOs). Oversight is being sought for compliance for things like septic and commercial tax status. 

“With no regulation local folks are incurring costs such as increased use of law enforcement, and the county and state are losing out on taxes, too,” stated Skyles.

Current Itasca County Board Chair Leo Trunt believes it will be important to emphasize the disparity between what the state is required to pay for the county’s probation costs, and what they are actually paying.

“The state is required to pay 50 percent of our employee costs, but they never have and no one knows why that is,” Trunt stated.

Last year Trunt says that the state did increase their contribution for probation costs from 27 percent up to 31 percent, however, he hopes to see more progress this year.

“The way I read this, the legislature is supposed to appropriate the funding, and they should follow the law and do what they are supposed to do,” said Trunt.

Bridges are another area of high need, with Trunt saying that more than 20 percent of the bridges in the county are deficient and need repair or replacement. However, he sees the use of bonding dollars for bridge work to be a real economy booster.

“Bridges are expensive, but we could get the problem fixed, and put people to work, and create demand for concrete and steel,” Trunt said.

Contracted lobbyist for Itasca County, Loren Solberg, will receive the finalized list of priorities around the end of the month. “Then as our legislators are talking to their peers they can be armed with the information of what the county sees as top priorities,” stated Skyles.

Changing the world with Charity@13

January 11, 2018

Corinne Hubbard (l) and Bekah Storlie raise money for charity. - Photo by Sally Sedgwick

By Sally Sedgwick

 

Best friends Corinne Hubbard of Coleraine and Bekah Storlie or Bigfork are doing something special with their free time. 

Since they were little, said Bekah, they would set up a lemonade stand in front of Kocian’s grocery to raise money for cancer research. Then when one of their family members had health issues, it brought charity close to home. 

“Now it’s really important for us to fundraise for people who need our help,” said Bekah.

The two decided to form an initiative, Charity@13, to support causes they felt were worthwhile. They started a website, charityat13.wordpress.com and adopted a motto: “Changing the world, one lemonade stand at a time.” 

For November and December they decided to support Support Our Troops, an organization that sends care packages to overseas military, to help them through the holiday season away from home. They set a goal of $150 and made it. Now, for January and February they want to help toward the wildfires in California and have set a goal of $300.

What do they do to raise money? They talked about it and came up with an idea: a hot chocolate stand. For the December fundraiser they made toffee candy from Bekah’s mom’s family recipe, selling it to neighbors and then, on a bitterly cold day, in front of Kocian’s Family Market in Bigfork, offering hot cocoa and coffee as well as toffee. 

  Corinne and Bekah are committed to their beliefs. “Easy to say. Easy to plan,” writes Bekah in her online blog. “Hard to commit to. Hard to do. Being charitable is one of those easier said than done things.” 

But they encourage other teens to start thinking in the same way. Charity@13 is something that they, as busy teens, find time to do. So “...get a table, a pitcher, some red solo cups and some lemonade,” writes Bekah. “...read our motto, and change the world.”

 

Reprinted with permission from WATTS NEWS, a member newspaper of North Itasca Electric Cooperative.

EOWSKI! - Nordic family skiing at Scenic State Park

January 04, 2018

Sarah Stone sizes and records a pair of skis for a young participant. - Photo by Sally Sedgwick

By Sally Sedgwick

 

Every Sunday in January and February from 1-3 p.m., Scenic State Park is home to a unique family ski gathering.

Started four years ago, Edge of the Wilderness Ski (EOWSKI! pronounced YEOW-ski) formed with a mission: introduce kids and adults of all ages to the fun and outdoor sport of Nordic skiing. The idea was a concept of Sarah Stone, a former cross country ski coach who had moved to Effie with her family from southern Minnesota.

Stone found support from Amy Chichanowski of the Minnesota Youth Ski League, Catherine McLynn of Mt. Itasca youth ski development and a number of local community members. They found a spot: a half mile trail on the Old Effie School grounds with warming space at the Effie Friedheim Lutheran Church. 

But they faced a big barrier: equipment. Unless kids had the opportunity to use well fitting skis, they might not enjoy the sport enough to continue. And equipment is expensive.

Here again Stone found support. Bigfork School shared some student equipment and Itasca Trail Sports of Grand Rapids added to it. Later she applied for and received grants: from the American Birkebeiner Ski Foundation and the North Itasca Electric RoundUp® program. 

Now EOWSKI! could offer a variety of equipment sizes, but skiing just on Sundays didn’t seem adequate. How could kids practice at home? In a creative move, skis went home with participating families for the whole season for a suggested $50 donation per family or $30 for individuals. This year a special Equipment Day was offered in December to get fitted for skis. Over 40 pairs of skis were handed out.

With those skis come free lessons on Sundays, said Stone. The rental fee helps EOWSKI! offer services like the lessons, sizing skis, etc. Those with their own equipment are still welcome at the lessons for a small donation. The group will work with families if there’s a financial barrier.

EOWSKI! also provides an adaptive ski program with the ability to facilitate a blind skier or use of a sit ski. Children on the autistic spectrum also benefit from skiing, explained Stone. The motion and action of skiing has been shown to have a positive effect for those conditions, she said.

 

Scenic State Park

This year the weekly ski lessons/gatherings have moved to Scenic State Park. Trails are not being groomed this year at the park, but in an agreement with EOWSKI , Ranger Jordan Schaefer, park manager, said that volunteers will be grooming about 3 miles of classic ski trails and a special quarter mile loop for lessons near the historic lodge. The lodge and its fireplace will be open for hot cocoa and warming.

Trail grooming is done using a club snowmobile pulling first a tenderizer to break up the snow and then grooming with a tracksetter. The object, says Stone, is to make the trails as nice and safe as possible. 

The park location will offer expanded opportunities. Anyone can come and use the longer groomed trails as part of the gatherings on Sundays. A park vehicle pass will be required, however ($7 daily or $35 annual), and equipment will be not available at the park unless arranged ahead of time by calling Stone at (218) 743-7025.

EOWSKI! is in the process of becoming a nonprofit 501(c)3 to increase its ability for grant and funding opportunities. While grants are important – Stone says that top on their wish list is a trailer to be able to store and transport skis and other equipment – there are many other needs for the group. Volunteers help on ski days, manage equipment and groom trails, for instance.

EOWSKI! also extends beyond Sunday gatherings. The group partners with the Bigfork School to present Nordic ROCKS, a school program developed by the Central Cross Country Ski Association and offered coast to coast across the northern United States, including six schools in northeastern Minnesota. On Feb. 3, the program will come to the Marcell Family Center as part of its free Winter Frolic from 11 a.m. to 1 p.m.

For more information on EOWSKI!, contact Sarah Stone at (218) 743-7025.

Wild Rice rule could prove costly to local cities

December 14, 2017

Photo courtesy of the MPCA

By Kitty Mayo

 

The Minnesota Pollution Control Agency’s proposed wild rice rule regarding excess sulfide has raised a lot of questions, and could burden many local municipalities with high water treatment costs.

The MPCA is proposing to amend the current 10 milligrams of sulfate per liter of discharge water to 120 micrograms of sulfide per liter in sediment.

Mary Connor, MPCA water quality information officer, says that the previous rule was too broad and nonspecific to the problem.

“Our research finds that sulfide is what hurts wild rice, and it is produced when bacteria in the soil turns sulfate into sulfide,” said Connor.

The new rule would allow the MPCA to individualize sulfate discharges to each body of water, making the standard more responsive to local conditions. The MPCA predicts this will affect at least 130 permitted facilities, including many small cities throughout the Iron Range.

“That’s when the complex math comes in, depending on the chemical makeup of each lake and stream,” said Connor, explaining that the mix of carbon and iron in sediment determine how much sulfide is created.

Connor admits the only method currently available for municipalities to remove sulfate is reverse osmosis, a very expensive process.

“We absolutely will consider costs if this rule is approved and variances or a schedule of compliance that will bridge the time between when the standard is set and when an economically feasible way of water treatment is possible without widespread economic harm,” Connor stated.

Connor says that a good deal of misinformation is being dealt, including the idea that the 10 mg of sulfate per liter of water standard is being made more stringent or being kept the same.

“The 10 mg per liter rule made in 1973 was based on evidence that wild rice in waters with high sulfate didn’t do as well,” Connor said, “However, that standard has been found to be too arbitrary, and the new standard would protect wild rice by amending the sulfate standard for better precision in treatment.”

After wrapping up public hearings, and the closing of the public comment period, what happens next is in the hands of the administrative law judge who oversaw the hearings. While there is no set timeline for the judge to present her findings, it could take nine months. The deadline for rule completion is January 2019.

Frustrated by the process that could leave municipalities and industries with massive costs, Steve Giorgi, director of Range Association of Municipalities and Schools (RAMS), says the proposed sulfate standards are unreasonable.

“Part of the frustration is that the MPCA hired a consulting firm to do a cost analysis of potential treatments for sulfate and that report is not due until June 2018,” Giorgi said.

He believes that timing leaves local residents without information they should have before the public hearings in November. 

Instead of increasing regulation, Giorgi wants to turn public discourse in another direction: making an overarching plan to make wild rice sustainable. He says RAMS has started the conversation with industry leaders, but that it’s just in the early stages.

‘We want to look at wild rice rehabilitation through investment with the ultimate goal to have sustainable wild rice growth for years and years to come,” Giorgi said.

RAMS’ stance is that the MPCA research is too narrowed without looking at important mitigating factors. However, Connor at the MPCA argues that while more needs to be studied in terms of variables affecting wild rice, the research is clear that higher sulfide levels do harm wild rice.

“This proposal is aimed at protecting existing wild rice, and it would do that, and it would keep sulfide from building up in places where wild rice restoration could happen,” Connor said.

While the MPCA counters that they are not legally allowed to consider cost in the regulation-making process, Giorgi says that reassurances that variances to allow time to gain compliance are not enough.

“Even with a five-year variance it is still very costly to move toward compliance and the funding isn’t going to be there for everyone, what are towns supposed to do, triple their user rates?,” Giorgi asked.

Giorgi says that he reached out to SEH Engineering in Virginia, Minn. to get an idea of potential costs for changing a system like the one in the city of Hoyt Lakes. He says that their estimates to add a reverse osmosis treatment system there could be upwards of $5 million, and could possibly double the current annual operating costs for the city.

While the proposed rule does not immediately affect the city of Grand Rapids, there is concern that it could have a future impact.

 

Julie Kennedy, Grand Rapids public utilities general manager, says there are identified wild rice waters both upstream and downstream from the city. Kennedy says that in partnership with the Minnesota Environmental Science and Economic Review Board, a group of cities focused on wastewater treatment regulations, they believe the changes are coming too quickly.

“As a member of MESERB our concern is the urgency the MPCA is trying to push new rules without sufficient scientific background, our request is to wait until the science is there,” said Kennedy.

Consultant: N-K enrollment resilient

November 23, 2017

SRNF Report

 

At last week’s meeting of the Nashwauk-Keewatin School District, John Powers of Insights North was on hand to deliver a presentation on the district’s enrollment trends. 

Powers started his presentation by stating that overall enrollment is expected to decline 6 percent from 598 presently to around 561 by 2027/2028. Despite the decline, Powers said that the average class size would increase from 44 to 47 before declining to 43 during the same time period. Class sizes for grades 7-12 are expected to drop from 48 to 40 and then increase to 43. Open enrollment numbers are expected to remain strong, especially from Hibbing and Greenway districts, but at levels slightly lower than today.

Looking at past trends, total student enrollment had dropped from 2009 to 2013 but has since increased slightly and stabilized. Powers attributed the trend to open enrollment. Non-resident enrollment has increased by 56 percent over the past 10 years. Non-resident students now represent 31 percent of the K-12 enrollment, up from 19 percent 10 years ago. Greenway School District is the source of most open-enrolled students in Nashwauk-Keewatin. 

Powers said that he expected open enrollment into the district to decline slightly over the next 10 years.

The district also has seen some of students open enroll out. There was a moderate increase in students open enrolling out of the district from 2011 to 2013, however, that trend has since stabilized and N-K currently attracts about 33 more students per year than it loses. Powers said that equates to about $300,000 coming into the district due to open enrollment.

Powers noted that 10 years ago, 85 percent of the district’s resident students were enrolled in Nashwauk-Keewatin. Today that figure is 73 percent. He characterized the trend as relatively stable to slightly declining.

Powers said that the district has been enjoying a steady increase in kindergarteners open enrolling into the district over the past ten years. Fewer kindergarten students have been open enrolling out of the district resulting in a net gain. Powers characterized the trend as “huge,” noting that the district could attract 80 new students over the next 10 years if the trend could be sustained. He cited pre-kindergarten programming as a possible reason for the trend.

Powers talked about births briefly. He said that births in Itasca County peaked in 2007 at 528 and then declined to an average of 467/year. Future births are expected to decline below that level before rising again.

At the conclusion of the presentation, Board Director Barb Kalmi asked if Powers had looked into available housing in the district. Powers responded that was a tough number to assess. He said that it was impossible to build housing in hopes that people would move into those homes. The best thing that a community can do is create subdivisions with utilities and the usual amenities.

Powers said people in need of housing would build houses in those subdivisions, he said. He cited the north addition to Bovey as such a success story.

Kalmi then asked Powers if he saw any big differences in the data relative to the study he did for the district six years ago. Powers said that he did not see any big differences. Powers said one might expect to see big losses to the Nashwauk-Keewatin’s neighboring districts, but that it simply wasn’t happening. He characterized the district as resilient, and said he didn’t expect any significant changes going forward.

In other business, the board:

• Hired one robotics instructor, one paraprofessional, accepted the resignation of one coach, and approved the termination of one paraprofessional.

• Voted to use $150,000 left over from the Keewatin Elementary parking lot project on other district projects.

• Voted to accept the first reading of the wellness policy.

• Approved policy No. 34, regarding unpaid meal charges.

New 69 kV transmission line planned for Scenic area

November 02, 2017

By Sally Sedgwick

 

    Great River Energy plans to build a 14 mile, $5.5 million transmission line connecting the North Itasca Electric Cooperative (NIECI) Bigfork Substation to a new substation serving the Scenic area along and east of Highway 7. The 69 kV line is scheduled to be operational in 2020.

    The improvements will increase reliability and voltage issues in that section of the NIECI system, explained North Itasca Electric CEO Brad Dolinski. 

    Preliminary routing was displayed at an open house hosted by GRE and held at NIECI headquarters in Bigfork on Oct. 25. The proposed route starts at the Bigfork Substation just south of Bigfork on Highway 38, travels due east to Highway 7. There it will run south about 11 miles along the highway corridor before turning east cross-country about 2 miles to County Road 340 and from there east to the new substation.

    The new Scenic Substation will be constructed by NIECI near the intersection of County Roads 340 and 341 just south of Anderson Lake. It will serve an estimated 700-900 homes with distribution lines running south, southeast and northwest. 

 

Study of alternatives

    In fact, the cooperative and its engineer STAR Energy Services began to look at issues in the Scenic area about five years ago. Power quality was of concern, which could cause lights to blink, dim and flicker, explained John Pierson of STAR Energy Services, as well as bringing the system voltage in the area outside of the accepted standard. 

    The problem was identified to be the long distance from the Bigfork substation which fed the area. The distribution lines coming out of Bigfork were at the system voltage, 12.47 kV, which then provided power to homes along Highway 7 before reaching the lakes area in the Scenic. 

    Different alternatives to a new substation were explored: Was it possible to purchase power from an adjacent utility? Could NIECI handle it internally; reinsulating, rebuilding and putting in a duplicate circuit? 

    The transmission/substation alternative, said Pierson, gave the best reliability and quality of power at the lowest cost to cooperative members. It also provided a future means to handle any growth in that area of the system.

    Following this analysis, the GRE transmission siting group also developed an alternate transmission route that did not use the lone highway corridor. Opening up a new corridor, however, ran into issues with rivers, wetlands and other natural resource concerns including the spread of noxious weeds, explained Dale Aukee, senior field representative, land rights for GRE. 

 

Easements

    The proposed route will primarily use the existing Highway 7 corridor for the 100-foot easement required. The 65-75 foot poles will be located just outside the current road easement, pointed out Aukee, so that only the outside 50 feet will require additional vegetation control.

    The 45 property owners along both sides of the easement were notified in early October. Land ownership includes state and federal landowners, tax forfeit land, company and individuals. The line will run through about 2.5 miles of the Chippewa National Forest and through the Scenic State Park. 

 

Environmental concerns

    Although no state or county route or conditional use permits are necessary for a 69 kV line, other reviews have started. GRE will be working with the Department of Natural Resources, the Corps of Engineers, the Minnesota Historic Preservation Office, and through the process for the Land and Water Conservation Act funding state recreational facilities. 

    Plans will also be made for mitigation efforts, said Parlow, including erosion controls, wildlife friendly netting for seeding and vehicle matting to limit ground disturbance during construction. 

 

Schedule

    Once the actual pole placement is finalized, easement conversations with landowners will take place next summer. Survey and design work is anticipated to run from winter 2018 through spring 2019, with construction beginning the following fall. The line should be completed in spring 2020. 

    Comments and questions from cooperative members and landowners are welcome. Contact GRE Senior Field Representative Dale Aukee at (763) 445-5978 or by email: daukee@grenergy.com.

N-K High School Principal resigns

October 26, 2017

Scenic Range NewsForum Report

 

    Nashwauk-Keewatin High School Principal Derek Gabardi has submitted his resignation to the school district.

    At last week’s meeting of the N-K School Board, officials initially were prepared to accept Gabardi’s resignation with no conditions. However, following the recommendation of interim Superintendent Matt Grose, the board opted to accept the resignation and relieve Gabardi of his contract once the district finds a suitable replacement. 

    Grose praised Gabardi for his service. Gabardi said that it had been a pleasure to work for the district and that he would be happy to abide by the terms of the motion. Board Chair Lisa Peratalo thanked Gabardi, saying that he had guided the district through some difficult times. 

    Gabardi taught in the N-K district for several years before moving to Mesabi Academy. He accepted the N-K principal post in October of 2014. Once released from his contract with ISD 319, Gabardi will be heading to Hibbing to assume the position of assistant principal at Lincoln Elementary School.

    Superintendent Grose noted that it was rare for a principal to resign during the school year, but not unheard of. He said that the district would post the position with the intent of finding a permanent replacement, but if the candidate pool did not lend itself to that outcome, then the district would weigh other options.

    In other business, the board:

    • Approved the resignation of one paraprofessional, the hiring of one paraprofessional, one AfterSchool CR, one Indian Home School Liaison position, and the resignation of the Junior High Basketball Coach.

    • Approved the Indian Education Program Plan

    • Accepted the first reading of the District’s policy on unpaid meal charges.

    • Approved a two-year contract between the District and Education Minnesota Local Number 1444. Under the terms of the agreement, salaries range from $37,273 to $71,519 for 2017-18, dependent on educational level attained and years of experience.

    • Approved a wrestling cooperative agreement with Greenway and International Falls.

NRRI unveils solid, renewable biofuel

October 12, 2017

By Beth Bily

 

    Executives from several partnership organizations were on hand Wednesday, Oct. 4 at UMD’s Natural Resources Research Institute Coleraine Lab as the Renewable Energy Lab was unveiled.

    More than 10 years in the making, the lab currently has the ability to produce solid biofuel from wood waste on a “commercially relevant scale” of three to four tons per day. The briquette biofuel “replicates the energy output and durability of traditional coal” and can be used as an alternative to coal in electric power generation and other applications.

    The briquettes currently are made through a heat treatment process known as torrefaction, which concentrates the energy content of the wood waste. Researchers describe torrefaction as a process similar to that used to roast coffee. 

    “Torrefaction makes processed wood into a higher quality fuel source for combustion or gasification applications. The darkened and pelletized renewable resource is easily densified, grinds easily, repels water and does not rot, making it easier to ship and store than unprocessed wood. It basically becomes a renewable, coal-like fuel with net zero carbon emission, and reduced ash, sulfur and mercury,” NRRI explained in the organization’s Fall 2012 newsletter. 

    Dr. Rolf Weberg, NRRI executive director, noted that the resulting biofuel has the advantages of being able to be stored outside and can be used in place of coal with little modifications needed. 

    The lab will have further capabilities in the coming months and years. Further processing can be employed to create syn-gas or liquid fuels.

    “I’m really proud to have this research lab in my district,” said Rep. Sandy Layman, R - Cohasset. “This is the first step to higher value products.”

    NRRI Associate Director Don Fosnacht said that key to the research is bringing the process up to commercial scale. Commercial scale testing has already taken place through partnership with the Coalition for Sustainable Rail and others. Biofuels have been successfully used to power trains at the Milwaukee Zoo, noted Davidson Ward, president of the Coalition for Sustainable Rail. Trials have shown “serious promise.” Duane Goetsch, president of Syngas Technology, said his company is partnering in the project to allow trials to move past the traditional small laboratory setting.

    “Facilities like this are rare,” he said. “To develop technology at this scale requires millions. This partnership helps clear that (financial) hurdle.”

    By spring of next year, the lab facility will install a moving bed torrefaction reactor, which will greatly increase the output of briquettes. Another methodology, hydrothermal carbonization, will convert processed materials and agricultural products to an “energy mud” that can be used alone or “with other torrefied products to form solid fuels.”

    The bio-energy lab is partially funded through an Xcel Energy grant. Other funding comes from the Minnesota Department of Agriculture, Minnesota Power, Heetway, K.R. Komarek, Inc. and the Consortium for Advanced Wood to Energy Solutions.

First place for 4-H Science of Agriculture

October 05, 2017

Members of the Itasca County 4-H Science of Agriculture Team explained their innovation to county commissioners at last week’s county board meeting. Their project, the ATV Fencing Buddy, won first place at the state challenge competition. Members of team are: Wyatt Lignell, LeRoy Porter, Quiana Radaich and Kaitlyn Slettom. The team was led by Becci Rasmussen and Robbie Radaich.

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