Good evening.

This is In Business.

I'm Ken Buer.

Thank you for joining us.

This is our first show of a brand new year, 2026.

We bid farewell to 25 with the gay of New Year's parties.

I'm sure everyone, I hope, enjoyed.

And now we're in a brand new year.

This is a business program, so we're kind of going to focus on what the year was and what the year coming up is as far as business is concerned in our region.

Now, if this were a show that had been on the air for a while, we'd have a greatest hits reel from 2025, and we'd look back at all the shows we did over the past year and grab our sterling moments and share them with you in some sort of a package that would look back reflectively on 2025.

But we've only been around for six shows, so pretty much our hit reel is about 30 seconds long.

So, instead, we're going to take a look back with experts at what 2025 was like economically in our region.

What were the high points?

What do we need to work on in the new year ahead?

And then for the new year ahead, what's going to happen on the Iron Range and what's going to happen here in the Twin Ports.

To talk about that, we have Ena Rukavina.

She is the commissioner of the Iron Range Resources and her economic development expert are going to visit us along with to get the duth version, Mayor Roger Reiner talking about what lies ahead for the city, but also to discuss how the city can work more with Minnesota's glorious iron range so the region can do better as a whole.

And that's our discussion on in business this evening.

But because this is the first new show of the brand new year, there is a tradition that must be done and that is you all watched it on TV.

I'm sure the dropping of the ball on Time Square signifying away with the old and welcome in with the new.

And we're going to do a ball drop as well for our very first show.

But this is public television.

So, instead of having a Waterford crystal ball, by the way, the one they use this year, first time ever seen, uh, we're going to have to do a couple of shortcuts.

Uh, this is our crystal ball.

This is Luke Moravik.

He's, uh, the morning show host on the North 1033.

The name of your program, Northland Morning every day, Monday through Friday from 6:00 a.m.

until 9:00 a.m.

So, pretend it's our own rocking New Year's Eve.

We've got Luke Moravik from the North 1033 playing the role of Dick Clark.

Uh, but I think we need a little elevation.

So, uh, as they say, uh, take us up, Luke.

The tradition of dropping a ball on New Year's Eve started, by the way, in 1833 in Greenwich, uh, England, where they would drop a ball every hour on the hour to let the boats in the harbor set their chronometers, their watches, so that they could shoot the stars and find out where they were.

And that started the tradition of marking an event by dropping a ball.

in 1907 is the first time they ever dropped a ball in New York City's Time Square.

And they've been doing it every year since, with the exception of several years during World War II when there wasn't a blackout in New York City, but there was a dimout.

Didn't stop people from celebrating New Year's Eve, though.

So, Luke is with us.

We have our ball.

As I said, it's not Waterford Crystal, but a very nice beach ball.

It'll work.

All right.

Now, Luke, uh, don't drop the ball by dropping the ball, right?

One literal, one a vernacular, right?

And so drop the ball means you don't drop the ball.

So you drop the ball.

I'm following you.

Okay.

Drop the ball.

Countdown.

Three, two, one.

Happy New Year.

Welcome to In Business.

I'm Ken Ber.

As we begin a new year, we're taking a regional look at where our economy has been and where it may be headed.

Business communities and local governments are balancing opportunity with uncertainty.

To get us started, we sat down with Monica Hayes.

She's director of the Bureau of Business and Economic Research at the University of Minnesota here in Duth to talk about the ups and downs of the past year.

Let's take a look.

My name is Monica Haynes from the UMD Bureau of Business and Economic Research.

So, economic highs from the past year.

Um, you know, we're coming off of two really huge, like record-breaking construction projects.

Obviously, the Essentia construction, which just kind of finally wrapped up in the past couple of years, and then the can of worms construction, which now is just completing.

Um and those two projects together over the past um you know five or six years have really been a huge boon for the trades you know construction and um all of the capital investments that have been coming into the region have been huge.

So now with those being done there's a little bit of a lull I think in that industry.

It might not be quite as strong in the in the coming next few years.

The past few years we have been obviously recovering from the pandemic.

I will say there's been upward growth in terms of employment but about half of the sectors in the economy have not yet gotten back to their preandemic employment levels.

So we still have half of our city or our region's economy that are still below what we were five or six years ago.

So it's um we are recovering but the recovery is slow and it still is not back to that level where it was before.

Tourism is still um struggling to regain kind of the the the levels that it had in the past.

um kind of nationally consumer sentiment is starting to really get low.

So, you know, that luckily that hasn't been playing out in terms of consumer spending.

People are still spending kind of to normal levels, but there's this kind of anxiety and sense that the economy is maybe weakening or that people's spending isn't going as far.

So I think that there is some economic anxiety happening among the public and obviously here in Duth we're not immune to that.

So after years of little to no population growth in the city of Duth we actually have seen a kind of sizable increase in population over the past couple of years and that is um bucking the trend of the state.

So statewide we're actually seeing population declines but here in Duth that's not that's not the case.

So I think in that sense we are kind of um a little bit different than the rest of the state or other parts of the country perhaps surprising but one thing that I think is really important economically and this is not just in Duth but probably nationwide is just um the housing shortage.

So, Duth has it a very severe housing shortage.

Um, our vacancy rate is super low.

We don't have a lot of opportunities for rental properties.

And then we have an aging population who would like to move into, you know, maybe different types of transitional housing or um adaptive or accessible housing and those options aren't usually available.

And so I think that's one of the biggest issues citywide and regionwide that we're struggling with is how to find the right mix of housing for the population that we have and also the population that we will be having in the in the near future.

The lack of housing really limits for a lot of businesses kind of who they can recruit and hire.

So if you're a really large business like Essentia or Cirrus and you recruit from all over the country, it can be really hard to actually hire and recruit new workers if they can't find a place to live locally.

So it can be a real um detriment to our businesses and our economy.

This is in business.

Thank you for joining us and thank you Professor Monica Hayes from UMD for your insightful look back at 2025.

You know, it's interesting the difference between nostalgia and a year review.

A year review leans towards the negative because, well, we just live through all that was fraught with concern.

But with time brings nostalgia.

And if you thought 2025 was challenging, well, it won't be long before your memory paves over the rough spots and remembers the smoother going.

And that's why it said that if you don't know history, you will repeat it.

Most of us know some uncomfortable history.

And that's why the reason it's so easy to forget.

So while we wait patiently for nostalgia to cloud the past, let's switch to the future.

With us is Duth Mayor Roger Reinard.

2026 starts Mayor Reinard's third year in office and he'll be sharing his vision for the year ahead.

Eda Rukavina is commissioner of the Iron Range Resources and Rehabilitation.

Its mission is to enhance the economy of northeastern Minnesota's techite assistance area.

With her is Ryan Mitch.

He is the executive director of business development for Iron Range Resources.

Thank you all for coming.

And I want to start here in town with you, Mayor Reinard.

Um I know you're a runner, so I'll put this in uh in a frame that makes sense.

You're at the 13.1 mile mark of your first marathon as mayor, right?

What have you learned in the first half of the race that you are going to apply to the new year?

Well, I think a couple things.

One is that, you know, there's a difference between campaigning and actually serving.

You have to take those ideas you've spent a year talking to folks about and figuring out how you translate those into action.

You know, number two, the city of Duth is a huge entity.

Uh, and there's the city, the community, and then there's Capital C, City of Duth, the corporate entity.

You know, we're uh roughly 920 employees, about $13 million general fund operation.

We're the 10th largest employer in the city of Duth.

You know, so you walk in the door and try to figure out how is it that you take these things we've talked about, translate them into this huge uh entity that's bureaucratic by nature and then actually achieve outcomes.

So, you know, as you note, being halfway through that first term, this is the point at which, you know, I'm starting to feel some momentum.

You know, our leadership team is almost entirely rebuilt.

That took a good year to get that where it needed to be and then to build those partnerships outside city hall.

Uh and then between the two to get folks to understand here is the change in philosophy.

Um for us that means focusing a lot more on our core city services and delivering well on those being really responsible about our portion of the tax levy.

Um, and then also really focusing I think Miss Hayes, Professor Hayes did such a good job of talking about two issues that I'm sure we'll talk more about, but where uh we're seeing growth in our economic sector, especially on the manufacturing side and then what's our uh really big limiting factor and in Duth it's housing.

Our employers can't hire because we don't have the people and we don't have the people because we don't have the housing.

So, I'm excited for the next two years and really seeing us continue to make progress, but actually pick up the pace because we've now built the machine internally that we need in order to help move the community to where we think it needs to go.

Let's head north.

Uh, uh, you've had one more year on the job than the mayor has.

What is in your learning curve that is going to propel you and the organization Iron Range Resources into the future?

Um, thanks Ken.

Um yeah, I the Iron Range Resource is a little bit different than Duth.

Um geographically speaking, we have a lot larger of a territory.

Um but we work closely with Duth and all of the arrowhead.

Um you know, I came into my role three years ago.

This is my fourth year.

Uh there's been quite a bit of changes.

Um economic development in northern Minnesota is just different than some other parts of the state.

We're really heavily reliant on mining, natural resources, and sometimes uh what you want to do with economic development is impacted by outside factors.

And that we really saw this past year uh the market and what happens at a national scale and a statewide scale impacts our um e you know the economy of northern Minnesota.

So we saw two out of six tachinite mines um you know ramp down.

We have one completely idled, Minorca and um HIPPTAC that has um partially idled and so that impacted over 600 people.

Um they are still laid off today.

Um but more than just those families and for those families, they're feeling it.

I know they're, you know, on unemployment right now, but they're looking for what their next line is.

And that's when our agency really comes in.

Our job is to do economic development, to diversify, to look for other manufacturing that can compare to those types of jobs.

So, we've been doing that.

We're continuing to do that.

Um, but it is difficult in these times that uncertainty um looking for uh different types of manufacturing to bring that in when you have the uncertainty of what's going on at the federal level and the state level.

We'll talk about that shortly.

Ryan Mitch, you're with IR.

What is your job do and what do you see economically for the short term, maybe just this summer?

Yeah, thanks Ken.

Um, so I oversee the business development team at ILR.

uh really coordinating and implementing the business incentive uh programs that we offer working with agency partners to help attract businesses to and retain the businesses operating within the tackite assistance area.

Uh I think looking ahead 2025 was a challenging year for a lot of folks.

There was higher interest rates uh inflationary pressures uncertainty around federal policies and global conditions.

Uh and I think you know going ahead we're seeing some of those things start to uh stabilize and uh looking into 26 I think that uh you know as uncertainty eases uh we'll see more uh more growthoriented uh economic environment.

Mayor Rinard um you mentioned it earlier uh uh Professor Hayes mentioned it as well.

So uh what are we going to do about the housing situation?

Yeah.

in Duth Minnesota.

You know, and I think uh Professor Hayes also mentioned for after decades essentially of stagnant population from 1980 until the last uh couple of years, Duth effectively did not grow in population uh after decreasing from the high point in the 1960s.

So, not only as a community mentality, but frankly as a housing construction industry, what we learned to become really good at is the one-off custom home because we weren't building housing at scale.

I had a meeting just this morning with multiple different uh partners on housing in the community and what I shared with them is what we have to remember how to do is build housing at scale that post World War II where you might build 12 houses all at the same time and one has a dormer, one has two dormers, one has none.

They're all the same floor floor plan.

Um and that is the engine that we are rebuilding.

You know, I'm grateful to have strong partnerships with our private business community.

grateful to have uh tools like our housing authority.

Uh really big news for the city of Duth is the community foundation is looking at investing 25% of its uh asset base back into the community and housing.

So those partnerships are going to produce significant results.

But coming back to your first question, you know, it took a minute and me as mayor talking about this over and over and over again, I think, for the community to understand how high a priority this is and how it impacts our employers and their inability um to uh to hire.

So, I'll conclude just by saying there's three great opportunities in the city of Duth for housing at scale.

Lester Golf, former Lester Golf Course, which we talked a lot about at the end of last year, the former Central High School site, and then downtown Duth.

And we need all three of those in the game.

Eda, the Howard Street project up in Hibbing.

Uh they're going to tear down a couple of old buildings, use a parking lot, and build I think a three or four story multipleuse housing.

Uh IR involved in that.

Um yeah, we are a little bit.

This is a led by the city and like much of the work that our agency does.

Um the efforts are led by the city.

We're there to help support.

Uh we under my um leadership uh we started a new housing program with the iron range resources.

Um we've been hearing the same things that is happening in Duth.

We have uh employers that want to hire.

There is not enough housing.

And we're talking about all types of housing for engineers, for doctors down to middle-class working people and all sorts.

And so we created a new program.

Um and we're really happy about that.

But we can't do that alone.

We're really um we're doing that with state efforts and in the last legislative session um the greater Minnesota housing fund was increased.

That was really pivotal in helping move some of these projects because what we see in our rural areas is that it costs the same to build an apartment building, but the developer can't charge the same rents.

And so you're stuck with that like, well, who's going to build it?

The need is there.

And so we're coming in to help kind of bridge that gap, working with developers and working with different communities for different levels.

And so Hibian is moving forward.

Um we supported them with a little over 200,000.

We'll see we'll continue to work with them as they move forward.

And then we have some other exciting projects happening in Elely and um around many other communities too.

Ryan, can you share one of those projects with us that uh you're working on right now or is still stopped top secret?

There there's lots in the works right now.

You know that in the winter times it's a lot of planning and and getting ready for what 26 is is going to have.

So, um, not anything that I'm quite ready to share with you today, but, uh, watch for those shovels to hit the ground and and see some things coming out of the ground.

Well, there goes the scoop.

Uh, we all agree that we all do better when we all do better, and cooperation between Duth and Minnesota's glorious Iron Range, uh, is a topic I know that the two of you are very interested in.

So, if we all do better, when we all do better, Mayor Reinard, how do we do that better?

Yeah.

Well, I mean, first of all, isn't it glorious Duth and the Iron Range?

I mean, I think you got the adjective wrong.

No, we are so uh connected to the Iron Range, and I think that is something that Duth at times has forgotten.

You cannot be a regional center disconnected from your region.

So, one of my priorities has been to help rebuild that uh connection.

We know that it is out there in terms of culture.

We know it's familial, but it is so strong on the academic side.

You know, I recall when I was serving in the legislature and we went into the great recession.

It was a month be before duth went from a point above the state unemployment doing better than to a point below and it was all because of what was happening on the iron range those secondary and tertiary work connections as well as the economic con connections.

So I think it begins with us just acknowledging we are one region and we do literally all sink or swim together.

Rukavino, commissioner of IRR.

Uh, dovetail on that.

What What are the cooperative advantages and opportunities?

Um, well, yeah, we have a long history of Duth and Iron Range being interconnected with mining and the port.

I actually sit on the Duth Seaway Port Authority.

Um, we the Iron Range wouldn't be who we are without Duth.

Duth wouldn't be who they are without the Iron Range.

Um, but as a region, we can make so much more happen.

And I think those partnerships really matter.

at the state level, our leaders and our state leaders working together to advocate for the region.

Um, and at the federal level as well.

I think those partnerships are key and I, you know, we can do a lot together.

We're going to wrap up and, um, I just want to get a word from each one of you and a thumbs up, thumbs down or neutral, uh, your optimism or for the year ahead.

Oh, two thumbs up.

I think we're well positioned for growth.

Anything on the range?

Um, well, I'm a little bit hesitant just because we do not know what's going on with that mining market, but we have some exciting projects that are there for potential.

So, I I want to say thumbs up and I'm a little bit I'm a little bit here.

It's it's not completely up, but it's close.

Our guests have been uh Ryan Mitch.

He is the economic economic executive director for IRR.

Commissioner uh Rukavina is the commissioner of the Iron Range Resources.

And of course, the honorable Roger Reinard is the mayor of Duth.

Thank you all very much for being with us this evening.

Oh, thanks.

Thanks for having us.

Before tonight's final story, here's a quick look at some top business news from across the region.

An advocacy group is asking for reconsideration of the sale of Minnesota P's parent company.

Clean up the river Environment or Cure has filed a petition with the Minnesota Public Utilities Commission citing new information about a potential data center project that was not disclosed during the original approval of Elite's private equity takeover.

Meanwhile, the Minnesota Department of Natural Resources has approved a metallic mining exploration plan in northeastern Minnesota.

Franconia Minerals will conduct exploratory drilling at up to 19 sites near Babbot through March of 2027.

The area is part of the Duth Complex, one of the world's largest undeveloped metallic mineral reserves.

And finally, we remember Dick Enrio, a familiar face in Minnesota homes for decades.

Born in Chisum and Rico was known for the line, "Why buy new when slightly used will do?"

He built more than 25 businesses, including Second Wind exercise equipment, before devoting his later years to charity.

Dick Enrio passed away last month in Brooklyn Park.

And now for our final segment of this evening, another Orange Cone Construction Zone.

And it's time again for another Orange Cone Construction Zone.

And we're at the corner of Maple Grove and Lav in Hermantown.

And we're at the Pillars of Hermantown.

And being built behind me is a brand new $9 million complex called Fox Ridge at the Pillars.

And it's an assisted living facility for 55 plus that has all this beautiful view.

And more importantly, these duplexes get you all the services and all the amenities of the pillars which are right over there.

Convenient and new.

These are duplex town homes.

There's 10 units that are going up, two units in each one.

They've been working on it since August, and it looks like they're making some great headway.

Installation is going to be starting in just a couple of weeks, and by this fall, you're going to see Fox Ridge at the Pillars at Hermittown, ready for occupancy for the 55 plus crowd.

I'm in another orange cone construction zone.

This one at the So Patel paper plant on I35 in the western section of the city of Duth.

The original plant was built in 1987 by Pentair and Minnesota Power as Lake Superior Paper Industries and they made super calendar paper.

Now that doesn't mean it was paper for like really big calendars.

Super calendar was a process that turned paper so it could be printed on inexpensively and it was used in flyers and circulars much like you used to see in the Sunday paper.

And that was the problem.

There's not many of those anymore.

So, the company goes through several different ownership changes.

Verso paper is the last owner making super calendar paper and they closed the plant.

It sat around for a while and then ST paper had a great idea and they turned it from super calendar which nobody really wanted anymore into tissue.

All kinds of tissue that we use all the time when you think about it.

This new plant with a new paper machine then in 2024 was sold to the Italian paper manufacturer, a multinational firm called Sulatel.

And they are now making tissue and a lot of it.

65,000 tons a year.

Now think about how much that is when you figure out how light tissue paper is.

That's a lot of product.

You usually ship it on big rolls.

But for $200 million, they're going to convert it into products that you see on your store shelf.

Take those big rolls, cut them down, make them into stuff that you buy off the shelf all the time, like for blowing your nose or that other thing you use tissue paper for.

This is going to be the converting plant right here.

Also on property is a 13story automated, fully automated warehouse that will stack these products and then get them ready for shipping.

600,000 square ft all together, a $200 million project that's going to hire 160 people.

The first line of seven in that converting plant gets underway in March.

And already employment here has skyrocketed to 175, but they're still looking for more people.

At the Sofatel plant, it's another orange cone construction zone.

Back in the black and white days of television, Richard Boone played Paladin on a program called Have Gun Will Travel.

I'm Ken Buler.

on in business and I have orange cone will travel because this is another orange cone construction zone.

We're on Minnesota's glorious iron range in the Queen City of Virginia where the city has just completed a $32 million brand new state-of-the-art public safety facility, combining all of their regional services for the city and surrounding area into one brand new building for $32 million that was just completed.

Obviously, Virginia very proud of their orange cone construction zone.

I'm Ken Builder.

Thanks for watching In Business.

Now, if you missed any parts of tonight's show, you can always watch it at pbsnorth.org or listen on Monday at 5:30 on the North 1033.

Thanks again for watching and until next time, let's take care of each other.