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At Tuesday’s Iron Range Resources and Rehabilitation (IRRR) Board meeting, approximately $9 million in projects were reviewed that are expected to grow existing businesses, support child care, modernize infrastructure and public facilities, upgrade essential services and increase the housing inventory.
For Babbitt, Mayor Andrea Zupancich was on hand in St. Paul to see the board approve $1.45 million for the proposed West End Housing Project. The monies are to construct utility infrastructure, roads and site work to create 18 single- family lots and one site for up to 12 twin/townhomes and one multi-family apartment building.
“I’m excited that the project is finally moving forward after being stalled for the last couple years,” said Zupancich. “This is a great opportunity to get some construction jobs first of all and some new housing in our community. There is definitely a need for newer, updated housing in the community. With more lots and newer and larger homes, this will bring families in along with tax revenue and new opportunities.”
The $4 million project would be funded with $2 million in state bonding, $435,469 from the city of Babbitt, $100,000 from the St. Louis County Community Development Block Grant program and the IRRRB monies.
“Housing availability is one of the greatest challenges facing our communities in Northern Minnesota,” said Senator Grant Hauschild. “These investments will not only create new housing opportunities but also strengthen our communities by attracting and retaining workers and families. By investing in housing infrastructure, we’re building a more vibrant and prosperous future for our region.”
Babbitt’s grant was the largest of $2 million in housing grants approved by the IRRRB.
Hauschild said the housing crisis on the Iron Range has been a significant barrier to economic development, with local employers struggling to attract and retain talent due to a lack of available housing.
“These housing projects represent more than just infrastructure— they’re about building community, supporting local businesses, and ensuring that families can live and thrive in the towns they work,” said Hauschild. “This is about creating a sustainable future for Northern Minnesota.”
Another $4 million project to receive funding was for a street project in Ely.
The board approved $200,000 for the Harvey Street project in the city of Ely.
The project consists of utility upgrades and road reconstruction of Harvey Street. The city will work in conjunction with St. Louis County on a complete urban reconstruction. The city’s participation is to remove and replace the sanitary and storm sewer lines. The project includes storm sewer improvements on Conan Street from Second Avenue East to Third Avenue East, which is one block south of Harvey Street, and water main replacement.
The bulk of the project funding will come from St. Louis County at $3.2 million. Other funding sources include the city of Ely for $ 552,000 and a CDBG grant for $106,000.
Sen. Justin Eichorn (R-Grand Rapids) was elected as board chair and Rep. Roger Skraba (R-Ely) was elected as the vice chair of the IRRRB.
The meeting was held at the InterContinental St. Paul Riverfront Hotel.
IRRR is funded through taxes paid by Minnesota’s mining industry.
