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Legislative News and Views - Rep. Erik Simonson (DFL)

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Legislative Update: Long-term Economic Redevelopment

Wednesday, November 18, 2015

Dear neighbors,

With the continued discouraging news about additional layoffs and plant shutdowns on Minnesota’s Iron Range, coupled with an unknown and cyclical future within the steel industry, it is time that Minnesota institutes a long range economic redevelopment plan for all communities across the range who suffer greatly from the repeated ups and downs of just a few industries. People of the Iron Range are resilient, and as devoted to Minnesota’s economy as any, but it is time we took a new look at what is happening with the regional economy, and how we can facilitate the diversification of employment opportunities.

While there has been a segment of lost population, there is no reason why we cannot create a more stable economic outlook that diversifies local revenues, increases educational and job training opportunities, and provides stability in job growth that will allow families to prosper on the Iron Range.

Governor Dayton, with the support of Senate Majority Leader Bakk, has called for a special legislative session to address the ongoing unemployment issues of steelworkers. While I support this initiative, I am calling for additional legislation to be considered concurrently that will begin to lay the critical and necessary groundwork for a true economic recovery and diversification plan. The highlights of the bill would include:

  • An immediate appropriation to Minnesota Department of Employment and Economic Development of up to $15 million dollars

  • Opening and staffing a regional MN DEED office in a centrally located range city, focusing on long term planning for economic expansion and re-development

  • Creating a regionally focused economic re-development team, with experts representing, at a minimum:

    • The IRRRB

    • Local business organizations to include all types of current industry

    • Local labor organizations

    • State level labor organizations

    • MN DEED

    • Available national employment and economic development experts

    • Others as deemed fitting and necessary

This legislation will include language directing MN DEED and this team to address the future economy of the Iron Range, to include ideas of supplementing taconite operations, and more importantly a structured plan to diversify the regional economy. There will be a report required to be presented to the Governor and the legislature, no later than February 1st, 2017. This report shall include, at a minimum:

  • Status of work completed to date

  • Report on current diversification efforts underway

  • Report on projected future of both ferrous and non-ferrous mining activities, and their subsets of economic activities

  • Biography of final economic re-development team

  • Initial recommendations for legislature consideration

  • Initial recommendations for executive action(s)

  • Plan for the team to continue, and redefined scope of work

The economy of Northeastern Minnesota is one economy, interwoven and inter-dependent on the success of every community, whether you live in Duluth, on the North Shore, or on the Iron Range. We must continue to work together to ensure that economic security is possible for every family in our region, and I’m committed to that work. I encourage you to contact me at rep.erik.simonson@house.mn or 651-296-4246.

Sincerely,

Erik Simonson

State Representative