19 February 2010Iron Range Resources Board approves Eco Park grant
An Iron Range Resources development grant of $250,000 that supports the creation of 175 new direct jobs and 300 indirect jobs at an Itasca Eco Industrial Park was approved Thursday, February 18, 2010, by the Iron Range Resources Board at a meeting at the State Capitol.
The grant is part of a $5.9 million Itasca Development Corporation plan to redevelop the former Ainsworth wood products plant in Grand Rapids. An out-of-state business has signed a letter of intent to lease 50,000 square feet of space at the 400,000 square-foot site for the manufacture of wood pellets. The Itasca Development Corporation, which in December 2009 acquired the property from Ainsworth, projects that phased redevelopment of the facility and a green business incubator could ultimately result in 175 new jobs within the proposed park and more than 300 indirect jobs. Iron Range Resources funding approved Thursday for the project would come from the Douglas J. Johnson Economic Protection Trust Fund.
The board also approved:
- Additional forbearance on a $6 million loan to Essar Steel Minnesota, LLC, until December 31, 2010. Under the forbearance, either $180,000 in interest will be repaid on or before March 31, 2010 for interest accrued in 2009, and a similar amount before the end of 2010 and 2011, or Essar Steel Minnesota will incrementally increase a bank letter of credit for the principal of the loan to also secure the accruing interest. Essar Steel Minnesota’s taconite, direct-reduced iron and steel slab project near Nashwauk will create 2,000 construction and 500 permanent jobs.
- An amended loan agreement with Magnetation, Incorporated, reducing the interest rate on a loan from 20 percent to 10 percent and ultimately to 5 percent; capitalizing accrued and unpaid interest on the loan; accepting reduced interest payments on the loan; and requiring new personal guarantees from company shareholders. Magnetation, headquartered in Nashwauk, currently employs 31 full-time equivalent employees and 20 full-time equivalent contractors.
- A $75,000 Public Works Infrastructure Grant to the City of Leonidas for construction of a new water line loop, increasing water flow and providing safe drinking water to residents. Installation of a new storm sewer system that will handle increased runoff is also part of the $159,025 project.
- A $145,000 Public Works Infrastructure Grant to the City of Taconite for replacement of a 60-year-old storm sewer pipe as part of a $292,864 project along Nelson Street North. The pipe serves 16 homes, about 50 residents and the fire department and baseball park.