meeting of the iron range resources and rehabilitation board 18 2017 packet... · 2017. 12. 15. ·...

Meeting of the

Iron Range Resources and

Rehabilitation Board

Iron Range Resources & Rehabilitation Mesabi Conference Rooms I & II

Eveleth, Minnesota

Monday, December 18, 2017 – 4:00 p.m.

Iron Range Resources and Rehabilitation Board Meeting December 18, 2017

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Meeting of the Iron Range Resources and Rehabilitation Board

Iron Range Resources & Rehabilitation – Mesabi Conference Rooms I & II Eveleth, Minnesota


TABLE OF CONTENTS

RSF Industries, Inc. ........................................................................................................................................................ - 4 -

FY18 Infrastructure Project ........................................................................................................................................... - 6 -

School Collaboration Account ....................................................................................................................................... - 7 -

Range Trust .................................................................................................................................................................... - 8 -

Exhibit A: IRRRB October 26, 2017, Meeting Minutes ...................................................................................................... ii


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MEETING OF THE IRON RANGE RESOURCES AND REHABILITATION BOARD

Iron Range Resources & Rehabilitation –Mesabi Conference Rooms I & II Eveleth, Minnesota


AGENDA

1) Roll Call

2) Approval of October 26, 2017, Minutes See Exhibit A

3) Commissioner’s Comments

4) RSF Industries, Inc.

5) FY18 Infrastructure Project

6) School Collaboration Fund

7) Range Trust

8) Adjournment


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RSF Industries, Inc.

2212 5th Avenue West

Hibbing, Minnesota 55746

DIRRR Bank Participation Loan

Applicant: RSF Industries, Inc.

Project Location: 2212 5th Avenue West, Hibbing, Minnesota 55746

Principal(s): Gina and Jeff Halter

Project Description: This loan would be used to purchase a used CNC VF-8/40 Vertical

Machining Center

Market Opportunity: RSF Industries, Inc. feels a necessity to replace an old ineffective

piece of equipment with a newer system to insure the satisfaction

of existing customers. Replacing the current CNC will increase

both precision and efficiency allowing RSF to gain competitive

posture for soliciting outside of the region.

Project Investment: Equipment Loan – Security State

Bank – 60 Month amortization

negotiated rate.

$ 37,000

DIRRR

60 Month amortization formula.

$ 37,000

TOTAL $ 74,000

Jobs: __1__ Planned New __3__Retained (per this piece of equipment)

Wages $_28,000____ - $_67,000___ per year plus benefits

Collateral: CNC VF-8/40 Vertical Machining Center


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Business History: RSF originally started in Hibbing over 100 years ago as an

automotive shop owned and operated by the Lee family. Over the

years the family expanded the business to include roofing and

fabrication services. Eventually the company split into three

entities: Range Cornice and Roofing, Range Heating and Sheet

Metal, and Range Steel Fabricators. One of the first projects RSF

completed was fabricating the steel that is supporting the iconic

Iron Man statue in Chisholm. RFS was recently purchased by Gina

and Jeff Halter in 2016. “Over the past several years we’ve spent

countless hours researching potential business acquisitions and

believe strongly that the flexible capabilities and products offered

by RSF provide ideal ability for client and segment diversification

and virtually unlimited expansion opportunities. The ability to pivot

across industrial segments e.g. mining, machinery, medical

components, consumer goods, forestry products, aviation and

utilities was a key component in our decision to focus on the

acquisition of this type of business.” Said Jeff Halter. Since

acquiring RSF, the Halter’s have over doubled their workforce to

over sixteen fulltime employees.

Past DIRRR History: None

Contingencies: None

Technical Advisory

Committee

Recommendation:

Recommended by the TAC Committee on December 12, 2017.

Funding Authorization: Douglas J. Johnson Economic Protection Trust Fund: This project is authorized under the provision of the Douglas J Johnson Economic Protection Trust Fund Act (Minnesota Statues sections 298.291 –

298.298) pertaining to expenditures of Douglas J Johnson

Economic Protection Trust Fund monies for economic

development projects in that these statues authorize small

business development loans to private enterprises for the purpose

of job creation and economic development within the Taconite

Assistance Area defined in Minnesota Statues Section 273.1341


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FY18 Infrastructure Project

Date: December 18, 2017 To: Iron Range Resources & Rehabilitation Board From: Mark Phillips Commissioner RE: FY18 INFRASTRUCTURE PROJECT

PURPOSE The Infrastructure Grant program provides funds for cities, townships and tribal units of government that can be used for infrastructure, site work or healthcare capital projects that support community and economic development. ECONOMIC IMPACT

FY18 infrastructure grants 1

Iron Range Resources & Rehabilitation Investment $200,000

Total public/private investment $1,792,500

Leverage 9 to 1

Cook County EDA Grant Amount: $200,000 The project consists of property acquisition for the expansion of the North House Folk School in Grand Marais. The North House Folk School’s strategic plan addresses the need for additional educational campus capacity. The proposed property acquisition includes the purchase of the Dockside Fish Market, which is a unique lakefront parcel adjacent to the North House Folk School’s campus property. The project is projected to create five permanent jobs and three construction jobs.

USES SOURCES

Property acquisition $1,390,000 Iron Range Resources & Rehabilitation

$200,000

New construction 402,500 Cargill Foundation 850,000

Blandin Foundation 50,000

North House Folk School 25,000

Private 667,500

TOTAL $1,792,500 TOTAL $1,792,500

PO Box 441 4261 Hwy 53 South

Eveleth, MN 55734-0441


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School Collaboration Account P.O. Box 441

4261 Highway 53 South

Eveleth, Minnesota 55734-0441

(218)735-3000 • 800-765-5043

Date: December 18, 2017 To: Iron Range Resources and Rehabilitation Board From: Mark Phillips

Commissioner

RE: IRON RANGE SCHOOL COLLABORATION ACCOUNT EXPENDITURE

Minnesota Statutes Section 298.28, subdivision 7a created the Iron Range school consolidation and cooperatively

operated school account (“School Account”) for the purpose of authorizing the Commissioner, after consultation

with the Iron Range Resources and Rehabilitation Advisory Board (“Board”), to provide disbursements to assist

certain statutorily identified school districts with the payment of bonds that were issued for qualified school projects,

or for any other school disbursement to school districts that are located within the taconite assistance area as

defined in Minnesota Statutes Section 273.1341 (“TAA”)

On October 26, 2017, the Department of Iron Range Resources and Rehabilitation Board heard a presentation from

representatives of Independent School District 318 outlining a funding request for a proposed school building

renovation and construction project required to meet instructional space issues as the result of continued growth in

the district. After discussing the project the Commissioner and the Board agreed that a focus group selected by Board

Chair Tomassoni would convene at a later date to determine what, if any, role the agency might have in the project.

The focus group met on November 13 and determined that a grant from the School Account in the amount of

$4,700,000 for demolition and infrastructure costs associated with the project would be an appropriate investment.

Funding for the project is contingent upon the approval of a referendum by the voters of ISD 318.

Funding Authorization:

This expenditure is authorized under the provisions of the Iron Range School Consolidation and Cooperatively

Operated School Account as codified under Minnesota Statutes, 298.28, subdivision7a.


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Range Trust P.O. Box 441

4261 Highway 53 South Eveleth, Minnesota 55734-0441 (218)735-3000 • 800-765-5043

Date: December 18, 2017 To: Iron Range Resources and Rehabilitation Board From: Mark Phillips

Commissioner RE: RANGE TRUST – EXPENDITURE FOR ORGANIZATIONAL COSTS

In 1977 the Minnesota legislature and governor enacted the Northeast Economic Protection Fund, which was created in response to the need to rehabilitate and diversify the economy of northeast Minnesota, which experienced frequent cyclical declines due to its dependence on mining. That fund was converted into a trust fund in 1982 and was renamed the Douglas J. Johnson Economic Protection Trust Fund (“DJJ Fund”) in 2000. All of the money in the fund comes from taconite production tax dollars and investment returns on those dollars, which are paid by mining companies in lieu of local property taxes – it is truly local money to be used for economic development in the agency’s service area. Over the years the DJJ Fund has been vital to the local economy and has been used to provide financing for dozens of successful economic development projects. The DJJ Fund was a critical financing component for the Delta Airlines, Anthem Dental and Blue Cross Blue Shield projects, which have brought in 1,000 jobs with benefits to our service area. We are fortunate that the DJJ Fund has a balance of approximately $175 million, and we know the DJJ Fund will play a crucial role in future economic development projects. Unfortunately, the large balance of the DJJ Fund has made it a target for use to balance the State of Minnesota’s general fund budget deficit. In 2011 the legislature passed a provision in the Omnibus Tax bill that would have transferred $60 million from the DJJ Fund to the general fund – only a veto by Governor Dayton prevented the transfer. In response to the threat to raid the DJJ Fund, former agency Commissioner Tony Sertich incorporated “Range Trust”, a nonprofit corporation established to receive DJJ Funds to protect them from future legislative raids and ensure the money is used for economic development purposes in northeast Minnesota. On December 18, 2014, the IRRR Board passed Resolution No. 15-016 authorizing the transfer of up to $100,000,000 to Range Trust subject to the occurrence of certain conditions (a copy of the resolution is attached to this memo for your convenience).

Range Trust remains in good standing but little has been done to organize it primarily because the political climate

toward the agency and DJJ Fund has been relatively calm. However, that could change soon depending upon a

number of variables that are outside of the agency’s control. Therefore, I am proposing the expenditure of up to

$50,000 to enable Range Trust to complete its organizational process and begin to meet the conditions set forth in

Resolution No. 15-016 so it would be able to accept a transfer of DJJ Funds to ensure the region’s critical economic

development needs are met and that “our” money is not redistributed to other areas of the state.


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Iron Range Resources and Rehabilitation Board Meeting October 26, 2017, Meeting Minutes

Exhibit A: IRRRB October 26, 2017, Meeting Minutes

Iron Range Resources and Rehabilitation Board Meeting Minutes October 26, 2017

Page 1

IRRRB Meeting Minutes Thursday, October 26, 2017 – 4:30 p.m.

Iron Range Resources & Rehabilitation – Mesabi Conference Room Eveleth, Minnesota

1) Roll Call Senator David Tomassoni, chair, called the meeting to order at approximately 4:30 p.m. Present: Representative Rob Ecklund, Representative Sandy Layman, Representative Jason Metsa, Representative Julie Sandstede, Senator Tom Bakk, Senator Justin Eichorn. Excused: Representative Dale Lueck, Senator Carrie Ruud. Minute Taker: Laureen Hall, Executive Aide. Also present: Mark Phillips, Commissioner; Steve Peterson, Executive Director of Development; Al Becicka, Legal Counsel; Roy Smith, Director of Talent Development; Matt Sjoberg, Director of Business Development; Janelle Greschner, Business Recruiter; Bob Scuffy, Accounting Director; Chris Ismil, Community Development Representative; Sheryl Kochevar, Communications Director; Janette Godec, Executive Assistant; Sara Ferkul, Information Officer; Kevin Bird, Fayal Township; Rob Mattei, City of Grand Rapids; Mike Youso, Grand Itasca; Dr. Mike Zakula, Minnesota Dental Foundation; Joni Olson, ISD 318; Kent Koerbitz, Grand Rapids Chamber of Commerce. 2) Reorganization of the Board – Resolution #18-001

a) Procedure for Electing a Chair/Vice Chair

Representative Jason Metsa moved Resolution #18-001 to comply with legislation passed in the 2017 Session regarding developing procedures to elect a chair/vice chair who will preside over and convene Board meetings. Resolution #18-001 resolved that the Board ratified and reaffirmed the terms of Senator David Tomassoni as chair and Representative Jason Metsa as vice chair for the remainder of the current Legislative Session. Seconded by Senator Tom Bakk. Motion carried. Voting in Favor of the Motion: Representative Rob Ecklund, Representative Sandy Layman, Representative Jason Metsa, Representative Julie Sandstede, Senator Tom Bakk, Senator Justin Eichorn, Senator David Tomassoni Voting Against the Motion: None Abstain: None Excused: Representative Dale Lueck, Senator Carrie Ruud

IRON RANGE RESOURCES AND REHABILITATION ADVISORY BOARD

OF THE STATE OF MINNESOTA PROCEDURES TO ELECT ADVISORY BOARD CHAIR AND VICE-CHAIR

Resolution No.: 18-001 WHEREAS, during the 2017 Minnesota legislative session, 2017 Laws of Minnesota, Chapter 94, Article 7, Section 26 was enacted, amending Minnesota Statutes Section 298.22, subd. 1a, by adding paragraph (b), which requires the agency’s Advisory Board (“Board”) to develop procedures to elect a chair who shall preside over and convene Board meetings as often as necessary to conduct duties prescribed by Minnesota Statutes Chapter 298; and


Page 2

WHEREAS, historically the Board has accepted nominations and elected a chair and vice-chair, who may preside over a Board meeting when the chair is not available, by majority vote among its members present at its first meeting that falls after the first Tuesday after the first Monday in January of each odd-numbered year, such time period being concurrent with a new session of the Minnesota Legislature (“Legislative Session”); and WHEREAS, the terms of the chair and the vice-chair have run concurrent with each Legislative Session; and WHEREAS, the Board believes that its procedure for electing a chair and vice-chair has been effective and continuing to follow such procedure would be in the Board’s best interest; and WHEREAS, the Board met in open session at 4:30 p.m. on October 26, 2017, at the agency’s Administration Building near Eveleth, Minnesota, to consider, among other matters, adopting procedures to elect a chair and vice-chair and has determined that following its current procedure for such elections would be in the public interest. NOW, THEREFORE, IT IS RESOLVED, that the Board, pursuant to Minnesota Statutes Section 298.22, subdivision 1a (b), hereby adopts its current procedure for electing a chair and vice-chair at its first meeting in each new Legislative Session as described above, with such terms to run concurrent with the duration of the Legislative Session within which such election occurs. BE IT FURTHER RESOLVED, that the Board hereby ratifies and reaffirms the terms of Senator David Tomassoni as chair and Representative Jason Metsa as vice-chair for the remainder of the current Legislative Session. PASSED AND ADOPTED BY VOTE OF THE IRON RANGE RESOURCES AND REHABILITATION ADVISORY BOARD THIS 26th DAY OF OCTOBER 2017.

Member Aye Nay Abstain Excused

Senator Tom Bakk X

Senator Justin Eichorn X

Senator Carrie Ruud X

Senator David Tomassoni X

Representative Rob Ecklund X

Representative Sandy Layman X

Representative Dale Lueck X

Representative Jason Metsa X

Representative Julie Sandstede X

TOTAL 7 0 0 2

Signed:__________________________ Senator David Tomassoni, Chair


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3) Approval of the May 23, 2017, Minutes Representative Julie Sandstede moved approval of the May 23, 2017, meeting minutes. Seconded by Senator Justin Eichorn. Motion carried. Voting in Favor of the Motion: Representative Rob Ecklund, Representative Sandy Layman, Representative Jason Metsa, Representative Julie Sandstede, Senator Tom Bakk, Senator Justin Eichorn, Senator David Tomassoni Voting Against the Motion: None Abstain: None Excused: Representative Dale Lueck, Senator Carrie Ruud 3) FY18 Budget Amendment – Resolution #18-002

Action required: Approval requires a simple majority of the quorum Senator Tom Bakk moved to approve an amendment to the FY18 Budget to add $340,000 of agency carryforward Board account funds to the FY18 Budget for a line item for Board account projects as presented in Resolution #18-002. Seconded by Representative Rob Ecklund. Motion carried.

Voting in Favor of the Motion: Representative Rob Ecklund, Representative Sandy Layman, Representative Jason Metsa, Representative Julie Sandstede, Senator Tom Bakk, Senator Justin Eichorn, Senator David Tomassoni Voting Against the Motion: None Abstain: None Excused: Representative Dale Lueck, Senator Carrie Ruud

IRON RANGE RESOURCES AND REHABILITATION ADVISORY BOARD OF THE STATE OF MINNESOTA

FISCAL YEAR 2018 AGENCY BUDGET AMENDMENT APPROVAL

Resolution No.: 18-002 WHEREAS, the Board and Governor have previously approved a Fiscal Year 2018 ("FY18") Department of Iron Range Resources and Rehabilitation agency budget pursuant to the provisions of Minnesota Statutes Section 298.22, Subd. 11, for the funding of the operational expenditures, programs and projects of the agency, which covered the period of time from July 1, 2017 through June 30, 2018 (the “FY18 Budget”); and WHEREAS, the Commissioner has requested the Board to approve an amendment to the FY18 Budget to add $340,000 of agency carryforward Board account funds to the FY18 Budget for a line item for Board account projects (“Proposed Budget Amendment”); and


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WHEREAS, the Board met in open session at 4:30 p.m. on October 26, 2017, at the agency’s Administration Building near Eveleth, Minnesota, to consider, among other matters, the Proposed Budget Amendment and determined that amending the FY18 Budget as proposed would be in the best interest of and help promote the mission of the agency. NOW, THEREFORE, IT IS HEREBY RESOLVED, that the Board approves the Proposed Budget Amendment. PASSED AND ADOPTED BY VOTE OF THE IRON RANGE RESOURCES AND REHABILITATION ADVISORY BOARD THIS 26th DAY OF OCTOBER 2017.


Senator Tom Bakk X









TOTAL 7 0 0 2

Signed:__________________________ Senator David Tomassoni, Chair 4) Bois Forte Bank of Chippewa – Resolution #18-003 Representative Rob Ecklund moved that the Board recommend the expenditure of up to $100,000 of Board Account Funds to provide a grant for the proposed Bois Forte Band project to replace the HVAC system within the Bois Forte Health and Human Services Building, as presented in Resolution #18-003 and Board packet materials. Seconded by Senator Tom Bakk. Motion carried. Voting in Favor of the Motion: Representative Rob Ecklund, Representative Sandy Layman, Representative Jason Metsa, Representative Julie Sandstede, Senator Tom Bakk, Senator Justin Eichorn, Senator David Tomassoni Voting Against the Motion: None Abstain: None Excused: Representative Dale Lueck, Senator Carrie Ruud


Page 5


OF THE STATE OF MINNESOTA BOARD ACCOUNT

BOIS FORTE BAND OF CHIPPEWA INFRASTRUCTURE PROJECT GRANT RECOMMENDATION

Resolution No.: 18-003 WHEREAS, the Commissioner is authorized to expend, after consultation with the Iron Range Resources and Rehabilitation Advisory Board (“Board”), monies made available under Minnesota Statutes Sections 298.22, subd. 1(a) and 298.28, subd. 7 (“Board Account Funds”) for projects within or for the benefit of the taconite assistance area (“TAA”) as defined in Minnesota Statutes Section 273.1341; and WHEREAS, the Bois Forte Band of Chippewa (“Bois Forte Band”) has requested a grant in the amount of $100,000 to replace the HVAC system within the Bois Forte Health and Human Services Building (the “Proposed Bois Forte Band Project”); and WHEREAS, the Commissioner has requested the Board to recommend the expenditure of up to $100,000 of Board Account Funds to provide a grant for the Proposed Bois Forte Band Project; and WHEREAS, the Board met in open session at 4:30 p.m. on October 26, 2017, at the agency’s Administration Building near Eveleth, Minnesota, to consider, among other matters, the proposed expenditure of Board Account Funds for a grant to the Bois Forte Band for the Proposed Bois Forte Band Project and has determined that the expenditure of Board Account Funds for that purpose would be in the public interest and promote economic development for the benefit of the TAA. NOW, THEREFORE, IT IS RESOLVED, that the Board hereby recommends the proposed expenditure of up to $100,000 of FY18 Board Account Funds to provide a grant of $100,000 for the Proposed Bois Forte Band Project. BE IT FURTHER RESOLVED that the Board’s recommendation for the expenditure of FY18 Board Account Funds for the Proposed Bois Forte Band Project is further contingent upon all such project financing being in place before the agency’s funds are released. PASSED AND ADOPTED BY VOTE OF THE IRON RANGE RESOURCES AND REHABILITATION ADVISORY BOARD THIS 26th DAY OF OCTOBER 2017.


Page 6


Senator Tom Bakk X









TOTAL 7 0 0 2


P.O. Box 441



(218)735-3000 • 800-765-5043

Date: 10/26/2017 To: Iron Range Resources & Rehabilitation Board From: Mark Phillips Commissioner RE: FY18 Bois Forte Health and Human Services Building HVAC Replacement Project

PURPOSE Minnesota Statutes Sections 298.22 and 298.28, subd. 7, authorize the use of Board Account Funds for expenditures within or for the benefit of the Taconite Assistance Area (TAA). ECONOMIC IMPACT

FY18 development infrastructure grant 1 Iron Range Resources & Rehabilitation Investment

$100,000

Total public/private investment $260,570 Leverage 1.5 to 1


Page 7

Bois Forte Band of Chippewa Grant Amount: $100,000 The proposed project will be to replace the HVAC system within the Bois Forte Health and Human Services Building in Nett Lake. This facility houses mental health, behavioral health and chemical dependency programs. The facility currently houses 17 employees and provides services to clients across the TAA. The offices typically serve approximately 550 clients per year, with one-third of the clients residing within the TAA. The project is projected to create two construction jobs.

USES SOURCES

New Boiler System $260,570 Iron Range Resources & Rehabilitation

$100,000

Bois Forte Band of Chippewa 160,570

TOTAL $260,570 TOTAL $260,570

5) 2017 Infrastructure Projects – Resolution #18-004

Representative Jason Metsa, moved that the Board recommend an expenditure of up to $3,027,238 of FY18 TEPF Public Works Funds for community and economic development infrastructure projects, vs. the $3,097,238 presented in Resolution #18-004, opting to remove the Eveleth-Virginia Airport grant for $70,000. Seconded by Representative Julie Sandstede. Motion carried.



OF THE STATE OF MINNESOTA TACONITE AREA ENVIRONMENTAL PROTECTION FUND

INFRASTRUCTURE PROJECT RECOMMENDATIONS Resolution No.: 18-004 WHEREAS, the Commissioner is authorized to expend, after consultation with the Iron Range Resources and Rehabilitation Advisory Board (“Board”), the Taconite Area Environmental Protection Fund monies made available under Minnesota Statutes Section 298.223 (“TEPF Funds”) to promote the economic development of the Taconite Assistance Area designated in Minnesota Statutes Section 273.1341 (“TAA”), by investing in local economic development projects within the TAA; and WHEREAS, the agency’s approved fiscal year 2018 ("FY18") Budget includes the allocation of up to $6,000,000 for infrastructure projects from TEPF Funds (“TEPF Public Works Funds”); and


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WHEREAS, the Commissioner has received proposals for the expenditure of up to $3,097,238 $3,027,238 of such TEPF Public Works Funds for community and economic development infrastructure projects, which are more specifically described in Exhibit A, which is attached hereto and incorporated by reference (collectively the “Proposed Projects”); and WHEREAS, the Board met in open session at 4:30 p.m. on October 26, 2017, at the agency’s Administration Building near Eveleth, Minnesota, to consider, among other matters, the Proposed Projects and has determined that the expenditure of TEPF Funds for the purposes and in the amounts specified below would be in the public interest and promote economic development within the TAA. NOW, THEREFORE, IT IS RESOLVED, that the Board hereby recommends the expenditure of up to $3,097,238 $3,027,238 of FY18 TEPF Public Works Funds to provide grants for the Proposed Projects in the amounts and for the purposes set forth in Exhibit A. BE IT FURTHER RESOLVED that the Board’s recommendation for the expenditure of FY18 TEPF Public Works Funds for all Proposed Projects, including those Proposed Projects which have associated private development work, is contingent upon the agency, in its grant contracts, requiring each such grantee entity to commit to the payment of prevailing wages for the funded project as required by law, or to the extent required in the Board’s Resolution 96-005. BE IT FURTHER RESOLVED that the Board’s recommendation for the expenditure of FY18 TEPF Public Works Funds for the Proposed Projects is further contingent upon all such project financing being in place before the agency’s funds are released. PASSED AND ADOPTED BY VOTE OF THE IRON RANGE RESOURCES AND REHABILITATION ADVISORY BOARD THIS 26th DAY OF OCTOBER 2017.


Senator Tom Bakk X









TOTAL 7 0 0 2



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EXHIBIT A Aitkin County Grant Amount: $93,000 Long Lake Conservation Center (LLCC) is requesting funds to assist in replacing its old Garn wood burning boilers. The current heating system is over 30 years old and has breaks that are beyond repair. The new system would need to be installed for the center to stay operational in the upcoming winter season. LLCC is Minnesota’s original residential environmental learning center. Established in 1963 with a donation of 200 acres to Aitkin County by the Southwest Minneapolis Kiwanis Club, LLCC currently has over 45 schools and 3,500 students and staff visit each year. An estimated 190,000 students have attended the conservation educational center. The project is projected to create two construction jobs.

USES SOURCES

New Boiler System $187,600 Iron Range Resources & Rehabilitation

$93,000

Aitkin County 94,600

TOTAL $187,600 TOTAL $187,600

City of Aurora Grant Amount: $350,000 Infrastructure, access road and site development to service the expansion of Lakehead Constructors in Aurora. The project includes the purchase of the former Minnesota Power Service Center and land acquisition from the City of Aurora HRA to add several amenities including a new 7000 sq. ft. service and equipment building. The estimated number of permanent jobs after completion of the project is 15 office and shop employees, eight job superintendents, and depending on workload, anywhere between 25 to 200 foreman and craftsman employed by the company. The project is projected to create 16 construction jobs.

USES SOURCES

Infrastructure, roads, and site development

$1,028,115 Iron Range Resources & Rehabilitation

$350,000

New building 1,742,171 Private 3,049,844

Building renovation 280,000

A&E 195,341

Contingency 154,217

TOTAL $3,399,844 TOTAL $3,399,844

City of Aurora Grant Amount: $150,000 Infrastructure and site work for the construction of a new facility for Embarrass Vermillion Federal Credit Union in Aurora. Embarrass Vermillion Federal Credit Union (EVFCU) is constructing a 4,000 sq. ft. building. The current need for the credit union to build a new facility has arisen out of the sale of its current location by Minnesota Power. As a result, the plan to complete the new building will enable the credit union to stay in Aurora, retain six employees, contribute to the tax base and expand its membership and workforce to employ more people. The project is projected to create nine construction jobs and 1.5 permanent jobs.


Page 10

USES SOURCES

Infrastructure & site work $242,025 Iron Range Resources & Rehabilitation

$150,000

Facility Construction 800,000 Private 1,176,312

Equipment 100,000

A&E 97,984

Contingency 86,303

TOTAL $1,326,312 TOTAL $1,326,312

City of Babbitt Grant Amount: $50,000 The City of Babbitt is requesting funds to assist in replacing the heating system in the city owned and operated Ron Castellano Ice Arena. Built in 1968 for the Babbitt Youth Hockey and Figure Skating Club, the arena features a standard 200 x 85 ice sheet with seating for 1,000 spectators on vintage wooden bleachers. The arena currently operates on a steam heat and must be converted to a water heat to remain open for the upcoming winter season. The project is projected to create two construction jobs.

USES SOURCES

New Boiler System $99,654 IRRRB $50,000

City of Babbitt 22,654

Babbitt School 27,000

TOTAL $99,654 TOTAL $99,654

City of Bigfork Grant Amount: $100,000 The City of Bigfork is requesting funds to assist with ADA handicap accessibility and building upgrades along with the restoration, renovation and preservation of the Bigfork Village Hall/Community Center. The building was constructed in 1936 by the WPA and Village of Bigfork. It is a unique two level fieldstone building with a flat roof. The building is listed on the National Register of Historic Places. The project is projected to create five construction jobs.

USES SOURCES

Construction $708,583 Iron Range Resources & Rehabilitation

$100,000

City of Bigfork 65,583

MN Historical Society 520,000

Bigfork Improvement Group 23,000

TOTAL $708,583 TOTAL $708,583


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City of Chisholm Chisholm Economic Development Authority (CEDA) Grant Amount: $200,000 The project consists of funding the City of Chisholm with a grant to be administered by CEDA. The CEDA revolving loan fund currently doesn’t have the funding capacity to assist a downtown business in its expansion and relocation within the City of Chisholm. CEDA will administer the grant funds through their revolving loan fund and provide funding as part of the expansion project. The United Way expansion and relocation is a total project investment of $1,000,000 and will create two permanent jobs and seven construction jobs. Chisholm – Hibbing Airport Grant Amount: $250,000 The project is comprised of new airfield lighting infrastructure and lights. Properly maintained airfield lighting is a critical safety issue and is required for an airport to possess an FAA operating certificate to allow airline operations. The current airfield runway lighting at the Range Regional Airport was installed in 1984 and has exceeded its useful life. The Range Regional Airport serves Minnesota's Iron Range accommodating daily commercial jet service, general aviation business, recreation, emergency services and military aircraft. The airport is recognized as a vital component for transporting people, goods and services to the area and contributing to the region's economic development. It is estimated that in 2018 the Chisholm-Hibbing airport will experience over 30,000 aircraft operations and over 30,000 people traveling through the terminal facility. The project is projected to create 12 construction jobs.

USES SOURCES

Infrastructure and Lights $1,645,249 Iron Range Resources & Rehabilitation

$250,000

A&E 337,360 FAA 1,417,609

MNDOT 200,000

Airport Authority 115,000

TOTAL $1,982,609 TOTAL $1,982,609

City of Cohasset Grant Amount: $189,000 Infrastructure and site work for the construction of a new facility in Cohasset’s industrial park. This 72,000 sq. ft. site will house a new $13 million corporate headquarters for Lake Country Power. Cohasset has entered into an agreement with Lake Country Power to purchase 25 acres within the new industrial park to build their new facility. The new facility will house 65 employees. The project is projected to create 15 permanent jobs and 90 construction jobs.

USES SOURCES

Infrastructure and Site development

$744,900 Iron Range Resources & Rehabilitation

$189,000

Construction 13,000,000 Private 13,555,900

A&E 16,830 City 16,830

TOTAL $13,761,730 TOTAL $13,761,730


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Cook County EDA Grant Amount: $120,000 The project consists of infrastructure and site work for new workforce housing development in Lutsen Township. One Roof Community Housing (ORCH) will construct a 16-unit apartment complex in Lutsen Township. The housing development comprises four buildings with four units in each building. Half of the units will be one-bedroom and half will be two-bedroom apartments. ORCH will be the developer and owner of the apartments. The project is projected to create two permanent jobs and 17 construction jobs.

USES SOURCES

Infrastructure & site work $396,520 Iron Range Resources & Rehabilitation

$120,000

Home Construction 1,962,561 Cook County Tax Abate Bonds

1,423,000

Land 39,230 DEED 420,750

Contingency 91,232 Cook County EDA 311,693

Engineering & Wetland Mit 135,900 IRRRB FY17 350,000

TOTAL $2,625,443 TOTAL $2,625,443

Cook County EDA Grant Amount: $75,238 This project includes the repair and upgrade to the Lake Superior waterline intake. This is an emergency waterline project in Cook County. The damage is caused by an unprecedented algae growth located on the waterline intake. The water flow is essential to the areas tourism winter sports economy as it is needed for snow making at Lutsen Mountain. The project is projected to create one construction job.

USES SOURCES

Waterline Repair $150,475 Iron Range Resources & Rehabilitation

$75,238

Private 75,238

TOTAL $150,475 TOTAL $150,475

Eveleth-Virginia Airport Grant Amount: $70,000 Infrastructure and site development for a new business locating at the Eveleth-Virginia Airport. This project involves infrastructure and building upgrades to make a hangar at the Eveleth-Virginia Airport suitable for North Memorial Air Care to operate a medical base. North Memorial Air Care provides air medical support to local EMS agencies and enables patients across the region to access high-level health care quickly. The project is projected to create ten permanent and three construction jobs.

USES SOURCES

Infrastructure and site development

$200,000 Iron Range Resources & Rehabilitation

$70,000

Hangar renovations 200,000 Airport 3,000

Equipment 3,000,000 Private 327,000

North Memorial 3,000,000

TOTAL $3,400,000 TOTAL $3,400,000


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Fayal Township Grant Amount: $200,000 Sewer line extension for a new business locating in Fayal Township on Highway 53 South. This project involves infrastructure extension to the former K&B Drive-In site, which was destroyed by a fire last year. A developer working with Fayal Township plans to construct a 10,000 sq. ft. convenience store retail center at this site. The project is projected to create eight permanent and 20 construction jobs. Agency funding is contingent upon a project development agreement being in place by June 30, 2018.

USES SOURCES

Infrastructure $175,015 Iron Range Resources & Rehabilitation

$200,000

New Facility 2,800,000 Private 2,834,769

A&E 33,502

Contingency 26,252

TOTAL $3,034,769 TOTAL $3,034,769

City of Grand Rapids Grand Rapid Economic Development Authority (GREDA) Grant Amount: $300,000 The project consists of funding the City of Grand Rapids with a grant to be administered by GREDA. The GREDA revolving loan fund currently doesn’t have the funding capacity to assist a business in a large-scale expansion project. GREDA will administer the grant funds through their revolving loan fund and provide funding as part of the expansion project. The Grand Itasca expansion is a total project investment of $4,100,000 and will create four permanent jobs and 27 construction jobs. City of Hibbing Hibbing Economic Development Authority (HEDA) Grant Amount: $300,000 The project consists of funding the City of Hibbing with a grant to be administered by HEDA. The HEDA revolving loan fund currently doesn’t have the funding capacity to assist in a major restoration and preservation project in Hibbing. HEDA will administer the grant funds through their revolving loan fund and provide funding as part of the restoration project. The public school/community auditorium project is a total project investment of $3,150,000 and will create 21 construction jobs.


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City of Hibbing Grant Amount: $350,000 Infrastructure and site development for the expansion of a business in Hibbing. The project consists of the construction of a new 100,000 sq. ft. manufacturing complex for L&M Radiator. The project will be a concrete tip-up steel reinforced building that will wrap around the existing main manufacturing building and will include approximately 85,000 sq. ft. of manufacturing space and 15,000 sq. ft. of office space. In addition, the project includes renovation of approximately 27,000 sq. ft. of existing office and manufacturing space. The company is currently in a hiring drive for 55 employees, and the project is projected to create 115 construction jobs.

USES SOURCES

Infrastructure and site development

$1,771,000 Iron Range Resources & Rehabilitation

$350,000

New Facility 14,000,000 Private 17,458,000

Equipment 1,700,000 Hibbing EDA 250,000

A&E 757,000 DEED (Job Creation) 170,000

TOTAL $18,228,000 TOTAL $18,228,000

City of Virginia Grant Amount: $300,000 The City of Virginia is requesting funds to assist with the Phase II restoration and preservation of the Historic Olcott Fountain in Virginia’s Olcott Park. The Olcott Park was built during the Great Depression using funding provided through the government’s WPA program. It took three years to construct and was put into service in 1937. The Olcott Fountain is a National Historic Site. Phase II portion of the project includes restoring the landscape and Observation Deck back to its original state. The community of Virginia has privately raised $470,000 to date, and construction to restore the fountain has begun. The project is projected to create seven construction jobs.

USES SOURCES

Fountain Restoration $500,000 Iron Range Resources & Rehabilitation

$300,000

Landscape and Observation Deck Restoration

400,000 Private Individual Donors $470,000

St. Louis County 20,000

Virginia Community Fdn. 10,000

City of Virginia 100,000

TOTAL $900,000 TOTAL $900,000

6) Minnesota Dental Foundation – Resolution #18-005

Representative Julie Sandstede moved to recommend the expenditure of up to $240,000 of Board Account Funds to support a competitive loan forgiveness program that will provide up to two dentists with incentives to practice general dentistry in the Taconite Assistance Area to help alleviate a documented dental service shortage within the TAA, as presented in Resolution #18-005 and Board packet materials. Seconded by Representative Rob Ecklund. Motion carried.


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BOARD ACCOUNT DENTAL PROGRAM GRANT RECOMMENDATION

Resolution No.: 18-005 WHEREAS, the Commissioner is authorized to expend, after consultation with the Iron Range Resources and Rehabilitation Advisory Board (“Board”), monies made available under Minnesota Statutes Sections 298.22, subd. 1(a) and 298.28, subd. 7 (“Board Account Funds”) for projects and programs; and WHEREAS, the Minnesota Dental Foundation (“MDF”) has requested a grant in the amount of $240,000 to support a competitive loan forgiveness program that will provide up to two dentists with incentives to practice general dentistry in the Taconite Assistance Area (“TAA”), as defined by Minnesota Statutes Section 273.1341, to help alleviate a documented dental service shortage within the TAA (the “Dentist Loan Forgiveness Program”); and WHEREAS, the Commissioner has requested the Board to recommend the expenditure of up to $240,000 of Board Account Funds to provide a grant to the MDF for the Dentist Loan Forgiveness Program; and WHEREAS, the Board met in open session at 4:30 p.m. on October 26, 2017, at the agency’s Administration Building near Eveleth, Minnesota, to consider, among other matters, the proposed expenditure of Board Account Funds for a grant to the MDF for the Dentist Loan Forgiveness Program and has determined that the expenditure of Board Account Funds for that purpose would be in the public interest and promote economic development within the TAA. NOW, THEREFORE, IT IS RESOLVED, that the Board hereby recommends the proposed expenditure of up to $240,000 of FY18 Board Account Funds to provide a grant of up to $240,000 to the MDF for the Dentist Loan Forgiveness Program consistent with the information provided in the board packet materials and as presented at its meeting. PASSED AND ADOPTED BY VOTE OF THE IRON RANGE RESOURCES AND REHABILITATION ADVISORY BOARD THIS 26th DAY OF OCTOBER 2017.


Page 16


Senator Tom Bakk X









TOTAL 7 0 0 2


P.O. Box 441



(218)735-3000 • 800-765-5043 Date: October 26, 2017 To: Iron Range Resources & Rehabilitation Board From: Mark Phillips Commissioner RE: Minnesota Dental Foundation - $240,000 Workforce Grant

The Minnesota Dental Foundation is requesting a $240,000 grant from the agency for two loan forgiveness recipients within the Taconite Assistance Area (TAA) of northeastern Minnesota. The funding would be used to administer the Martha Mordini Rukavina Loan Forgiveness Program. The purpose of this competitive program is to provide an incentive to attract dentists to practice general dentistry in the TAA. The TAA is an area that has a documented need for dentists who will provide services to its communities and underserved populations. Martha Mordini Rukavina Loan Forgiveness Program History The Martha Mordini Rukavina Loan Forgiveness Program was funded by the Iron Range Resources and Rehabilitation Board to help dentists pay back educational loans if they were willing to practice in the TAA for at least five years. The recipients selected for this program each received $30,000 for four years for a total of $120,000 as long as they complied with the program requirements. This program started in 2009 with three dentists and became a program of the Minnesota Dental Foundation in 2011. Two more recipients were selected, one in 2013 and one in 2015. Applicant Eligibility

Applicant must hold a D.D.S. or D.M.D. or equivalent degree.

Applicant must hold a license to practice dentistry in the State of Minnesota.


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Applicant must have documented educational debt held by the US Department of Education or a commercial lender. (Loans from family members or other non-institutional sources are not eligible for loan repayment assistance.)

Applicant must not be in practice in the TAA at the time of application.

Applicant must commit to practice full-time (at least four days per week) in the TAA for five years from the date of receipt of the first installment of the forgivable loan.

Evaluation and Criteria Each applicant will be evaluated for selection based upon information provided on the application and during the personal interview. The criteria will include, but is not limited to where and how the applicant intends to practice, educational history, grades, written statement and previous experience. The Minnesota Dental Foundation, along with its selection consultants, reserves the right to determine the weighing of any criteria. It is the intent of this program to make loan forgiveness funds available to two dentists who commit to practicing general dentistry full-time in the TAA. Forgivable loan amounts of up to $120,000, not to exceed the applicant’s documented outstanding debt, will be dispersed at a rate of $30,000 per year for four years, commencing 90 days after the first patient is seen. Failure of the recipient to maintain a fulltime general practice in the dental shortage area of the TAA for a period of five years will result in a 100% forfeiture of all monies received. All recovered funds will be awarded to another individual using the same selection criteria. Applicant has 90 days from the letter of acceptance or the awarding of a license to practice dentistry in Minnesota to notify the Minnesota Dental Foundation of their intention to accept the forgivable loan. Funding Authorization This project is authorized under the provisions of the Board Account Fund, as codified under Minnesota Statutes, Sections 298.22 and 298.28, subdivision 7, as an expenditure within or for the benefit of the Taconite Assistance Area defined in Section 273.1341. 7) Virginia Eveleth Economic Development Authority (VEEDA) – Resolution #18-006

Representative Jason Metsa moved to recommend the expenditure of up to $650,000 of DJJ Business Development Project Funds to provide a non-recourse direct loan to VEEDA to repay the VEEDA loan with the City of Virginia and allow VEEDA to consolidate its debt, as described in Resolution #18-006 and Board packet materials. Seconded by Representative Sandy Layman. Motion carried.

Voting in Favor of the Motion: Representative Rob Ecklund, Representative Sandy Layman, Representative Jason Metsa, Representative Julie Sandstede, Senator Tom Bakk, Senator David Tomassoni Voting Against the Motion: None Abstain: None Excused: Representative Dale Lueck, Senator Justin Eichorn, Senator Carrie Ruud


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OF THE STATE OF MINNESOTA DOUGLAS J. JOHNSON ECONOMIC PROTECTION TRUST FUND

VIRGINIA EVELETH ECONOMIC DEVELOPMENT AUTHORITY PROJECT LOAN RECOMMENDATION

Resolution No.: 18-006 WHEREAS, the Commissioner is authorized to expend, after consultation with the Iron Range Resources and Rehabilitation Advisory Board (“Board”), the Douglas J. Johnson Economic Protection Trust Fund monies made available under Minnesota Statutes Sections 298.291-298.294 (“DJJ Funds”), to provide loans and participate with private sources in providing financing for various projects located within the Taconite Assistance Area defined in Minnesota Statutes Section 273.1341 (“TAA”) which will serve the purposes detailed in Minnesota Statutes Section 298.292, subdivision 1; and WHEREAS, the agency’s FY 2018 Budget includes provision for the use of certain DJJ Funds for economic development projects under a budget line item for DJJ Business Development Projects; and WHEREAS, the Commissioner has requested the Board to recommend the expenditure of up to $650,000 of the DJJ Business Development Project Funds to provide a non-recourse direct loan to the Virginia Eveleth Economic Development Authority ("VEEDA") to repay the VEEDA loan with the City of Virginia and allow VEEDA to consolidate its debt ("VEEDA Project"), under the terms and conditions more fully set forth in the Board packet materials, which are attached hereto and incorporated by reference as Exhibit A; and WHEREAS, the technical advisory committee, appointed by the Commissioner under the provisions of Minnesota Statutes Section 298.297 to review the terms and conditions of the proposed VEEDA Project, met on September 12, 2017, and recommended approval of the VEEDA Project and the proposed agency financing for it; and WHEREAS, the Board met in open session at 4:30 p.m. on October 26, 2017, at the agency’s Administration Building near Eveleth, Minnesota, to consider, among other matters, the proposed expenditure of DJJ Business Development Project funds for the VEEDA Project; and WHEREAS, the Board determined that the expenditure of such funds are for the purposes authorized by law and will promote economic development in the TAA. NOW, THEREFORE, IT IS RESOLVED, that the Board hereby recommends the expenditure of up to $650,000 of FY 2018 DJJ Business Development Project funds to provide a non-recourse direct loan to VEEDA in support of the proposed VEEDA Project, on the terms and subject to the conditions set forth in Exhibit A and as otherwise discussed at the meeting. PASSED AND ADOPTED BY VOTE OF THE IRON RANGE RESOURCES AND REHABILITATION ADVISORY BOARD THIS 26TH DAY OF OCTOBER 2017.


Senator Tom Bakk X






Page 19





TOTAL 6 0 0 3


P.O. Box 441



(218)735-3000 • 800-765-5043 Date: 10/26/2017

To: Iron Range Resources & Rehabilitation Board

From: Mark Phillips

Commissioner

RE: Non-recourse Loan Request of $650,000 from the Virginia Eveleth Economic Development

Authority

The Virginia Eveleth Economic Development Authority (“VEEDA”) has requested a non-recourse loan in the amount of $650,000 from the agency to alleviate the budgeting and cash flow constraints on the Cities of Eveleth and Virginia. The IRRR Board approved a non-recourse loan to VEEDA, a joint initiative of the Cities of Eveleth and Virginia in the amount of $1.8 million in 1995 for the construction of the initial “spec” building located in Progress Park (at 1402 Progress Parkway in Eveleth, the “1402 Building”). The 0% loan is secured with real estate with repayment coming from “net rents” received on the building. Payments have been made as agreed on the loan which has a current balance of $567,857 – which will be fully amortized in about five years should the rate of repayment in recent years continue. In March 2004, the IRRR Board approved a $900,000 non-recourse loan to VEEDA for a major expansion of Progress Park, which included the construction of another “spec” building (located at 1404 Progress Parkway in Eveleth, the “1404 Building”) and a major expansion of infrastructure within the park. The major funder in the $5.8 million project was the US Economic Development Administration (“EDA”) – which provided a $2.8 million grant to the project. Other funding sources included a $900,000 nonrecourse loan from the IRRRB and contributions of $850,000 each from the Cities of Eveleth and Virginia. The Cities respective contributions came in the form of a loan from the City of Virginia to VEEDA, with each City accepting responsibility for repayment of 50% of the loan. Because revenues from the 1404 Building have been insufficient to repay the $170,520 annual debt service on the loan, the primary burden of servicing the debt has fallen on the Cities. The loan has a current balance of $637,693. The proposed loan from the agency would be used to repay the VEEDA loan with the City of Virginia and allow VEEDA to consolidate its debt under consistent terms, while relieving the cash outlays of the respective Cities. The loan would be secured with a mortgage, junior only to the existing agency debt, on the 1402 Building (the


Page 20

grant with the EDA has restrictions on encumbrances on the 1404 Building until 2025), with repayment coming from “net” rents received on both the 1402 and 1404 Buildings. I recommend approval of the proposed loan.* *Recommended for approval by the TAC Committee on September 12, 2017, by unanimous vote.

8) Iron Range Higher Education Account – Resolution #18-007

Representative Julie Sandstede moved to recommend the expenditure of up to $1,195,000 of Iron Range Higher Education Account funds for programs, as presented in Resolution #18-007, Exhibit A. Seconded by Senator Justin Eichorn. Motion carried. Voting in Favor of the Motion: Representative Rob Ecklund, Representative Sandy Layman, Representative Jason Metsa, Representative Julie Sandstede, Senator Tom Bakk, Senator Justin Eichorn, Senator David Tomassoni Voting Against the Motion: None Abstain: None Excused: Representative Dale Lueck, Senator Carrie Ruud


IRON RANGE HIGHER EDUCATION ACCOUNT EXPENDITURE RECOMMENDATION Resolution No.: 18-007 WHEREAS, Minnesota Statutes Section 298.28, subd. 9d allocates five cents per taxable ton of taconite taxes to the agency to be deposited in an Iron Range higher education account (“Higher Education Account”) to be used for higher education programs conducted at educational institutions in the Taconite Assistance Area designated in Minnesota Statutes Section 297.1341 (“TAA”); and WHEREAS, Minnesota Statutes Section 298.2214 created the Iron Range Higher Education Committee (“Committee”) to advise the commissioner of the Department of Iron Range Resources and Rehabilitation (“Commissioner”) on providing higher education programs within the TAA; and WHEREAS, pursuant to 298.28, subd. 9d, the Commissioner, after approval by the Committee and consultation with the Iron Range Resources and Rehabilitation Advisory Board (“Board”), approves expenditures from the Higher Education Account; and WHEREAS, on August 11, 2017, the Committee met and approved the expenditure of up to $1,195,000 for the programs described in Exhibit A, which is attached hereto and incorporated by reference (“Proposed Programs”); and WHEREAS, the Board met in open session starting at 4:30 p.m. on October 26, 2017, at the agency’s Administration Building near Eveleth, Minnesota to consider, among other matters, the proposed expenditure of up to $1,195,000 for the Proposed Programs, and has determined that the proposed expenditures would be in the public interest within the TAA.


Page 21

NOW, THEREFORE, IT IS RESOLVED that the Board hereby recommends the expenditure of up to $1,195,000 of Higher Education Account funds for the Proposed Programs in the amounts and for the purposes set forth in Exhibit A. PASSED AND ADOPTED BY VOTE OF THE IRON RANGE RESOURCES AND REHABILITATION ADVISORY BOARD THIS 26th DAY OF OCTOBER 2017.


Senator Tom Bakk X









TOTAL 7 0 0 2

Signed:____________________________ Senator David Tomassoni, Chair

EXHIBIT A Proposed Programs

1. Up to $1,000,000 to the Northeast Higher Education District (NHED) for use by the Iron Range Engineering

program for the continuation of a higher education program that, in collaboration with private industry,

allows students to earn a Bachelor’s of Science degree in engineering from Minnesota State University

Mankato.

2. Up to $195,000 for phase two of a feasibility study to determine the development of the next innovative

iteration of Iron Range Engineering currently referred to as the Minnesota Institute of Engineering.

9) School Collaboration Account

Representative Jason Metsa moved to recommend the annual ongoing expenditures from the School Account for payment of bonds for the qualified school projects a presented in Resolution #18-008, Exhibit A-1. Seconded by Senator Tom Bakk. Motion carried. Voting in Favor of the Motion: Representative Rob Ecklund, Representative Sandy Layman, Representative Jason Metsa, Representative Julie Sandstede, Senator Tom Bakk, Senator Justin Eichorn, Senator David Tomassoni Voting Against the Motion: None Abstain: None Excused: Representative Dale Lueck, Senator Carrie Ruud


Page 22


IRON RANGE SCHOOL CONSOLIDATION AND COOPERATIVELY OPERATED SCHOOL ACCOUNT SCHOOL ACCOUNT EXPENDITURES

Resolution No.: 18-008 WHEREAS, in 2014 the Minnesota Legislature enacted, and the Governor approved, multiple session laws that were codified as Minnesota Statutes Section 298.28, subd. 7a, which created a new Iron Range school consolidation and cooperatively operated school account (“School Account”) for the purpose of providing disbursements to assist certain statutorily identified school districts with the payment of bonds that were issued for qualified school projects, or for any other school disbursement to school districts that are located within the taconite assistance areas defined in Minnesota Statutes Section 273.1341 (“TAA”) as approved by the Iron Range Resources and Rehabilitation Board (“Board”); and WHEREAS, the Board, at its meeting on February 22, 2016, approved expenditures to assist the Mesabi East, Mountain Iron-Buhl and St. Louis County school districts with the payment of bonds for qualified school projects as specifically set forth in Exhibit A to Board Resolution 16-026, which Exhibit is attached to and incorporated by reference to this resolution as Exhibit A-1; and WHEREAS, in 2017 the Minnesota Legislature enacted an amendment to the School Account statute that provides that expenditures from the account may be approved as ongoing annual expenditures; and WHEREAS, the Board met in open session at 4:30 p.m. on October 26, 2017, at the agency's Administrative Building located near Eveleth, Minnesota, and at such meeting has determined that approving annual ongoing expenditures from the School Account for the payment of bonds for the qualified school projects as provided in Exhibit A-1 (“Proposed Disbursements”) would be in the public interest and promote the advancement of schools within the TAA. NOW, THEREFORE, IT IS RESOLVED, that the Board hereby recommends that the Commissioner approve expenditures for the Proposed Disbursements as ongoing annual expenditures as provided in Exhibit A-1. PASSED AND ADOPTED BY VOTE OF THE IRON RANGE RESOURCES AND REHABILITATION ADVISORY BOARD THIS 26TH DAY OF OCTOBER 2017.


Senator Tom Bakk X









TOTAL 7 0 0 2



Page 23

EXHIBIT A-1


Page 24

10) ISD 318 Presentation and Discussion Joni Olson, ISD 318 Superintendent and Kent Koerbitz, Board Chair of the Grand Rapids Area Chamber of Commerce, made a presentation regarding a new building project that would address space issues within the Grand Rapids school district. After Board discussion, it was resolved that a focus group of the Board would be formed and meet at a later date to discuss the issue and consider appropriate action regarding a possible investment from the School Collaboration Account. 11) Adjournment

The meeting adjourned at 6:55 p.m.

meeting of the iron range resources and rehabilitation board 18 2017 packet... · 2017. 12. 15. ·...

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