The Iron Range Resources and Rehabilitation Board will pump over $500,000 in mining tax funds into a brewery and tap room planned for the old train depot in Ely, but the owners’ stance on mining was a point of contention prior to approval.
Ultimately, the IRRRB voted 5-1 Wednesday to support both a $300,000 downtown redevelopment grant and a $259,826 loan for Border Lakes Brewing, which is planning a better than $2 million development of the historic train depot located at the corner of Camp Street and Central Avenue.
But before they gave their OK, some lawmakers voiced concern about the company’s ties to Northeastern Minnesotans for Wilderness, which is part of a coalition opposed to proposed copper- nickel mining ventures in the region.
One of the listed owners of Border Lakes Brewing is NMW co-chairperson Jeff Soderstrom, and both State Sen. Rob Farnsworth (R-Hibbing) and State Rep. Roger Skraba (R-Ely) sought clarification of the company’s stance on mining.
“I’d hate to see an anti- mining sign in the window of this business,” said Farnsworth.
Soderstrom was not present at the IRRRB board session in Eveleth, but company representative David Miller was.
Miller called Border Lakes Brewing’s stance on mining as “agnostic” and “we don’t have a stake in the mining fight,” and he also told the board “I can assure you (an anti-mining sign) would never happen.”
Nevertheless, board members briefly debated using funds derived from regional taconite mines for the project.
“What I would hate to see is that an organization that is taking mining money and then advocating against mining,” said Farnsworth.
Skraba added “I hope everybody understands that it’s mining money that’s going into this project.”
According to the NMW website, Soderstrom is “a Senior Vice President of Risk Mitigation for Ameriprise Financial in Minneapolis. Upon learning more about the sulfide-ore copper mining threats in 2013, Jeff helped start a Twin Cities Boundary Waters Business Group to raise awareness in the corporate community.”
In the IRRRB meeting packet, Jeff and Mary Soderstrom and Kenneth Ripp were listed as the primary investors in Border Lakes Brewing and are providing $1 million in funds for the development of the old train depot - which was last known as Ely’s Wilderness Outfitters.
Vacant for years and deteriorated to blight conditions, the property is one of many in Ely that has been purchased by the Ott family and eyed for major redevelopment.
Initial work to stabilize the main structure has been completed and renovations are underway to turn the facility into a “community-focused brewery and tap room” with an outdoor event center envisioned for the back of the property.
In addition to the IRRRB funds, this phase of the project will be supported by the owners’ private investment, $259,826 in loans from the Entrepreneur Fund, a $200,000 grant from the Minnesota Department of Employment and Economic Development, and $50,000 in loans from the city of Ely’s economic development authority. Half of the city loan is forgivable.
Meeting packet information indicated that the project will result in six full-time jobs and 12 part-time jobs, with wages ranging from $16 to $35 per hour.
“We’re devoted to family and community to make this a successful operation,” said Miller. “The individuals involved are committed to the success of Ely.”
Miller added that the interior of the business will “pay homage to the history of the community and the reasons for its success.”
Skraba voted for the funding and said he wanted the venture to succeed, while reiterating his own support for new mining in the region.
“I want the community to flourish,” he said. “It’s a $2 million investment. It’s a big deal. I support that but the thing I’m cautious about is what is the ultimate goal (of NMW). My ultimate goal for northeastern Minnesota is to grow, to use the natural resources we have. We take rocks and we make metal. That’s what we do and we do a darn good job of that. Everybody comes up here and says it’s pristine and beautiful, but yeah, we’re still mining.”
Voting against the motion to fund the project was State Sen. Keri Heintzeman (R-Nisswa).
