Iron Range official takes new approach to area's population decline

DULUTH — It's the only state agency that works for just a portion of Minnesota, covering 13,000 northeastern square miles.

The state created the Eveleth-based agency, now called the Department of Iron Range Resources & Rehabilitation (IRRR), more than 80 years ago during a mining industry downturn, using the region's mineral wealth to help Iron Range cities and businesses survive the boom-and-bust periods. In lieu of property taxes, mining companies pay millions in taconite production taxes to cities, school districts, townships and the IRRR.

"I can't reiterate enough how unique it is not just in our state, but the rest of the nation," said IRRR Commissioner Ida Rukavina, appointed to the role in December by Gov. Tim Walz.

For its part, the IRRR and its advisory board of legislators, the Iron Range Resources & Rehabilitation Board (IRRRB), focus on economic development, reinvesting in public works projects and private businesses, from campgrounds and mountain biking trails to broadband expansion and manufacturing. Its total 2024 budget is $67.8 million.

Rukavina, daughter of the late state Rep. Tom Rukavina, was raised in Virginia, Minn. Growing up, she traveled to all corners of the Iron Range with her father to community meetings and gatherings as he did his work. The 44-year-old, who was named for her Italian immigrant great-grandmother (pronounced "Ee-da," by the way), previously was executive director of the Range Association of Municipalities and Schools.

The Star Tribune met with Rukavina in Eveleth to discuss her new role. The following conversation was edited for length and clarity.

Q. What should the IRRR do to fight rural population decline and its effects on the economy?

A. As someone who grew up in the North Woods, I love living in northern Minnesota and taking advantage of our lakes and small towns and schools. I would hope we can be an agency that helps communities attract and retain people.

We know that St. Louis County remains stagnant. When we look at workers, there's still a huge need for working-age people. Housing is one of those ways that we can address populations. Broadband is another way. (The agency has invested nearly $6 million in broadband projects since 2015.) During the pandemic, it kind of opened our eyes in some ways of things that we could do. People wanted to move here and did if they had broadband or the high speed internet needed for their remote job. But there's still a huge lack of opportunities and a lot of communities that don't have anything or minimal internet speeds. That hinders growth.

Supporting our schools and colleges enhances the quality of life for people here, allowing them to stay. Rock Ridge, the newest school, is like a career academy. We won't solve the population [problem] just by keeping every graduate here. But allowing students to realize that there's fresh opportunities right out of high school or out of the community college system will help our population growth.

And making [communities] livable. The Crosby-Ironton area; IRRR funds went towards helping the bike park there, and in Chisholm and in Ely. You see people getting excited about fun places to live.

Q. Any new IRRR priorities?

A. For the first time we have a fund that will go towards housing. The new (state) budget created a $5 million housing pilot program to look at how we can increase housing projects. It's really exciting, because we have a huge need for housing. Employers are telling us it's a problem. We know we have 100-year-old housing stock. We don't have enough apartments, and we have people who moved up here during the COVID pandemic. We have employers that are saying they can hire 100 employees, but we need to have housing for those folks.

Q. The company behind a proposed $440 million Iron Range wood product plant opted to build elsewhere on the heels of a Minnesota Court of Appeals setback. What does the loss of the Huber wood mill mean to the region?

A. It's really tough for the west end of the Iron Range. Itasca County is looking at losing tax base with the shutdown of the coal operating plant. So, they're looking at other increases to their tax base, because otherwise it goes on to homeowners just to have basic services. The economic development agencies were looking at attracting a business that can employ a lot of people and also help the tax base to make it livable.

It's difficult for people in northern Minnesota and economic development agencies to figure out the next step. … We want to encourage businesses to have conversations right away with potentially impacted people, whether that's a community or a tribe.

Q. What do you think about the state's recent decision to award Mesabi Metallics' revoked mineral leases to Cleveland-Cliffs?

A. We're happy there is a path forward for the stability of Hibbing Taconite. That is one of the operating mines that has a huge impact to the production tax, to the communities. So I think there is a sigh of relief for the industry as a whole. But it's a decision that not everyone feels the same about, depending on the community they live in.

Q. How did your father influence your work?

A. He passed on his love of the region and the people, and people's stories and working for people and making life better. And that's what I wanted to continue doing.