2 min read October 2022 — Buoyed by a strong mining and forestry industry, Department of Iron Range Resources & Rehabilitation Commissioner Mark Phillips spoke to Invest: about regional economic diversification efforts. Outdoor tourism and manufacturing are helping drive further growth while housing and broadband needs remain critical to the region’s long-term success.
What are some of the region’s recent wins and what role has the Iron Range Resources & Rehabilitation played in them?
We’re committed to the region’s mining and forest products industries. We have strategies around those traditional industries but our core mission is to diversify our region’s economy. We’re always exploring innovative technologies, manufacturing and value-added products. We recently had an exciting announcement from a major forest products company out of South Carolina that will be investing in a large facility near Grand Rapids. It’s one of the largest expansions of a company from outside of the state of Minnesota. There will be additional indirect employment opportunities stemming from this investment; it will have a major economic impact in our area. We’re looking at a late 2024 opening for this facility.
Our unique business development financing programs are among the most wide-ranging and creative in the United States. Whether a new business is being established or looking to expand, we have financial tools, dedicated support, and local resources to assist a business. In fact, you won’t find better incentives for a wider range of industries anywhere else. Most recently, a solar-manufacturer and an EV-related manufacturer have both expanded in our area. We’re always fine-tuning our approach and looking into diversification opportunities for our economy.
What are the current challenges facing the region and how does that impact diversification efforts?
When the economy softens, it impacts our regional mining industry. Steel producers are moving from old blast furnaces to electric arc furnaces. We’re encouraging our mining industry to also innovate and provide value-added mineral diversification.
Increasing our quality of life through investment in tourism and recreation is key to our regional economy. It adds to our desirability as a place to live and helps to attract entrepreneurs. Our agency owns a ski-resort and two championship golf courses. Over the last 10 years, we’ve invested in mountain biking trails and built hundreds of miles of trails across northeastern Minnesota.
Workforce will continue to be a challenge for all communities for the foreseeable future. But we have some advantages in our workforce development programs. We work directly with local industries and businesses to collaborate with educational institutions in developing training programs suited directly to business needs.
Broadband is a current challenge for our region. We’ve recently prioritized investment in broadband. Most investments require a local match which we are able to provide. Our goal is to provide high-speed broadband to all northeastern Minnesota businesses, homes and schools.
How are the Departments’ strategic priorities decided?
We significantly engage and listen to the public on what our agency should do and prioritize. The public input helps build and develop our strategic plan and budget. Our strategic planning process is a four-year cycle which follows the election of the governor and appointment of our agency leadership.
We consider community development, business development and workforce development to be our three-legged stool. Most of what we do ties directly back to those three priorities.
What are the key infrastructure needs of the region?
Our region continues to be considered an underserved or unserved broadband area. We’re starting to see some federal money come through and are seeing the application end of that. Most of these state and federal programs require some local investment, and we can provide that local match. It makes their applications attractive and competitive.
Most of our financial assistance for a project is tied to infrastructure needs. Our agency can assist with site selection, infrastructure development, building construction or acquisition and streets and roads. Community funding in a diverse array of programs helps support development, sets the stage for growth and makes this region a desirable place to work and play.
What is the agency’s outlook for the region over the next two to three years?
We are looking forward with a strong sense of optimism for the future of our region. Our business and community development programs have been receiving increasing numbers of funding requests for quality, innovative projects. Unprecedented levels of federal funding are also coming into the region, creating leverage that will help accelerate economic growth and post pandemic transformation.
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