In the latest move to diversify the Iron Range beyond mining, the state will give four companies in the region $4.85million to expand their businesses and manufacturing operations.
The Iron Range Resources and Rehabilitation Board (IRRRB) approved the funds late last week during a board meeting in Eveleth, Minn. State officials say the loans and grants will stimulate economic development and bring jobs to the region.
"I am very excited," said IRRRB Commissioner Tony Sertich during the board meeting. "These are existing businesses within our area that are growing. ... And our support will help them get more business, more international business and make sure that Minnesota is chosen for where they grow jobs."
The IRRRB said that the funds are expected to generate an additional $13 million in private investment, create 80 jobs and keep another 238 jobs in northeastern Minnesota, board members said.
The Chisholm-Hibbing Airport Authority received $2.5million, the largest of the five loans and grants. That loan will help complete a building that was partially constructed at the airport in Hibbing in 2006.
The idea, which the IRRRB funded with $1.6 million at the time, was for the 30,000- square-foot structure to entice industrial tenants to the site, who would rent, build out the rest of the property, and create jobs.
Shaun Germolus, executive director of the airport authority, said that it took nearly six years, but the group now has a long-term tenant that can bring jobs to the region.
During Thursday's meeting, Sertich admitted that the initial building went up at the worst possible time. "The building was built and the economy went into the tank," he said.
