Iron Range Resources and Rehabilitation Board Commissioner Tony Sertich visited with Cook County residents on Wednesday, March 28.
Iron Range Resources and Rehabilitation Board (IRRRB) Commissioner Tony Sertich started the Wednesday, March 28 “listening session” with a bit of self-deprecating humor. He told the audience of about 40 people in the Cook County courthouse commissioner’s room that he had a combined major from Hamlin University of theater and political science. “That truly means I’m not good for much more than giving talks like this,” he said.
He also apologized for not bringing his “economic stimulus package”—his wife—with him on this trip. He said he and his wife love the North Shore and visit often.
Sertich then shared information about the IRRRB, an organization whose work he is clearly proud of. The IRRRB, he said, has been an economic development agency for 71 years, longer than the state Department of Economic Development and it is also older than other agencies such as the Department of Human Services and the pollution control agency.
He said the IRRRB is the only state agency that serves just part of the state and the only state agency located in rural Minnesota. However, its service area is the size of the state of West Virginia. It encompasses parts of seven counties and 15 school districts.
Sertich said IRRRB receives no state taxes. All of the money to operate IRRRB comes directly from mining production taxes. There are currently six mines in service on the Iron Range.
He said the IRRRB’s mission is to invest in business, community and workforce development for the betterment of northeastern Minnesota.
He then listed the examples of how IRRRB works to fulfill that mission, through loans to private businesses; through infrastructure loans and grants to government entities; through workforce development by partnering with regional colleges and trade schools; through mine reclamation (tree planting, fish stocking, and re-grading to leave mined areas in better shape), and through operation of Giants Ridge recreation area.
He said one of the most important ways that IRRRB supports the North Shore is through the cultural tourism fund. Sertich said the North Shore received $113,486 from this fund last year.
Sertich also introduced a new website that promotes small businesses in the IRRRB area: www.madeontherange.com. On this website, businesses can submit a photo about a business and some information. Sertich noted that IRRRB wants to get people to “shop local.”
He said IRRRB wants to work with existing Minnesota businesses. He said the agency’s first mission is economic gardening. “I’d rather grow one job at 50 businesses than try to find a business with 50 jobs from far away. That’s what we’re focusing on in our agency.”
Mike Schelmeske of Grand Marais said that touched on one of his concerns, about the large companies coming to the Range to conduct copper mining. He asked how it would impact the IRRRB financially—and how it would affect the natural environment.
Sertich said financially, precious metals mining could have a positive impact on IRRRB’s revenue. He said there were many details to be worked out, since it is a new process. The current production tax is based on tons of taconite pellets to get a small amount of value, versus “buckets of precious metals.”
Regarding the environmental permitting and reclamation of any future mines, Sertich said the IRRRB has no authority over that. IRRRB works with mining companies on reclamation of mines prior to 1982. After that, the Minnesota Department of Natural Resources is responsible. “Reclamation is not the mission of this agency—our mission is economic development,” he said.
Sertich took several other questions, a number of them focusing on concerns about non-ferrous mining projects. Sally Nankivell, executive director of the Cook County Visitor’s Bureau, asked if Sertich would address the importance of clean water and clean air and healthy forests on tourism and the balance between tourism and industry. Sertich replied that IRRRB is not a regulatory agency. “As far as setting standards, that work is done by regulatory agencies… What we’re looking for is sustainable jobs, jobs that support families,” he said.
Richard Struck said sustainable jobs are well and fine but said our communities need a sustainable natural environment. He asked Sertich if the IRRRB could get involved. “Could your board look at this scientifically and put a halt to the ramming of this whole mining issue until we find a solution to this issue of how we are going to contain this sulfuric acid discharge? We cannot afford this in our St. Louis River watershed. We have too much at stake in a lot of communities beyond the Iron Range.
“We could have a lot of environmental ramifications if we have a leak in the dike. Could your board take this on? Sit back a little bit and be more inclusive and look at the environment in which you practice your mission? That’s a big challenge and that may not be what you want to hear.”
Sertich said he respects that everyone has different opinions, but said most of his board was in favor of allowing the regulatory agencies to do their due diligence and “letting it play out.”
Struck pressed, “Do you support a sustainable natural environment?”
Sertich said, “Absolutely, I live here too. But I also use a cell phone. I drive a car with a catalytic converter… I’m also a student of history. When iron ore went in the tank, we didn’t say ‘the iron ore industry is gone’…we reinvented our entire industry. We invented a better way to do taconite, a process that produced the steel that helped America win two World Wars. We invented our way out of it.
“I’m not a scientist. I’m putting my trust in the scientists, in the folks who can figure out how to make this happen,” said Sertich.
There were more questions about mining and concerns expressed about environmental damage, which Sertich continued to deflect with the answer that his agency was not involved in the current mining projects. He suggested that concerned citizens talk to the permitting authorities, the Minnesota Department of Natural Resources, the Minnesota Pollution Control Agency, the EPA and the U.S. Army Corps of Engineers.
There were other questions for Sertich. Sherrie Lindskog asked how the IRRRB decides what communities should receive grants and what businesses should receive loans. Sertich said the IRRRB board has criteria to follow, with questions, such as does it create jobs; does it leverage funding from other sources; and does it serve a community that is losing population?
Commissioner Bruce Martinson noted that Cook County taxpayers receive a huge benefit from the taconite tax credit. He said many people are concerned that the tax credit could be lost if for some reason Cook County was taken out of the taconite district. He asked if there was some way to reopen the dock and railroad facility at Taconite Harbor.
Sertich said the challenge of using the Taconite Harbor dock/loading facility is that companies would have to cross rails owned by two different companies to reach the Schroeder dock. However, he said this is something that IRRRB does market and encourages companies to use. “It’s on our radar screen,” he said.
There were questions about the businesses that IRRRB has helped on the Range and about how it could possibly help Cook County Higher Ed and more, for about an hour longer than the scheduled time to end the meeting.
Sertich encouraged anyone with further questions to contact him at (218) 735-3014 or at tony.sertich@state.mn.us.
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