Welcome to In Business.

I'm Ken Wheeler.

Tonight, we're going to talk about the future and the past and something that's very important that's going to happen in St.

Paul during the upcoming legislative session.

This is probably going to be a bonding year, a capital bonding year.

Now, when I say that, I'm not talking about the capital in St.

Paul.

I'm talking about capital as in money it takes to do things in Minnesota.

Build new, repair old.

It's the infrastructure bonding bill that's going to be top of mind for our state legislators and lawmakers in St.

Paul this session.

That's what in business is about tonight.

We're going to take a look at some bonding requests.

What is it that St.

Louis County hopes to find in the bonding bill?

What is it that the city of Duth and other entities hope to gain and get funded through the bonding bill that hopefully passes this year's legislative session?

We're up here at the Lakespare College because this is a success story of past bonding.

bonding that created this whole new addition to Lake Spear College, which is training the men and women who will be building and working and doing the jobs that the bonding bill will finance over the coming years.

They're learning it here on a project that was bonded for this particular business.

And that is what in business is all about tonight.

We're going to have a great series of guests.

We'll tour Lake Spear College.

We've got lawmakers who tell us how all this happens in a very short period of time in St.

Paul to hopefully craft a bonding bill and what that means.

And then because we're starting at Lake Spirit College, we're going to end up where all the vocational technical began here in the city of Duth right after World War II.

It's an amazing story and you're going to meet a very interesting Civil War hero that played a small role in the future we enjoy today.

It's coming up next.

and join us for in business.

Welcome to In Business.

I'm Tony Certich filling in for Ken Bueller.

This week we're focusing on state bonding.

What it is, how the process works, and why it matters.

Bonding dollars help pay for infrastructure projects, public facilities, and economic development projects that can help shape communities.

Later in the show, we'll be joined by state legislators for a roundt discussion on what a potential bonding session could look like and what projects are being considered.

But first, we're taking a look at a project that received bonding support several years ago, how it turned out, and what it tells us about the impact of these investments.

My name is David Klene.

I'm the vice president of advancement and external relations at Lake Superior College.

We're in the welding lab at Lake Superior College.

The collection of our welding lab and our CNC tool making and our computer aated design is collectively known as our integrated manufacturing center.

It's a combination of a bonding bill that we received a few years ago for $8.3 million plus reserve funds that the college had been planning for for a number of years to remodel and expand the campus to bring back our manufacturing.

We fortunately are part of the Minnesota state system and so we were able to leverage the expertise of our government relations officials, our chancellor, the board of trustees to move this project up the list for Minnesota State.

It was very important that we continue to have advanced manufacturing, our welding and our our computer a design and the uh CNC programs remain in the Twin Ports area.

we were at risk of not having a home and we would have had to have that long pause until we could find those find a new home or find those dollars to add on.

So, what Lakes Spear College received for the bonding was the ability to remodel a a section of our old existing T building, which we believe stands for trades, and then add on some pre-cast concrete walls to build out a large welding space, which we're in right now with natural light and plenty of space for individual welding and for group welding.

And then also our CNC toolm program which needs a lots of space for their big machines, their manual machines plus their uh computer machines.

We also got a couple extra classrooms out of the deal and a robotics lab and a prototyping lab.

So this is the new welding lab and it's part of a new building addition.

And we had the pre-cast concrete walls and we've got windows up here that lead to the the CAD lab.

So the PAD students get to see all the action.

And then different booths for group welding.

And then behind me are individual welding booths.

So students get a chance to to do welding here on their own with their own welding equipment.

A cutting machine.

So they can cut the metal to spec and they can uh do some other different kinds of welding is is so both TIG and MIG welding is done here.

So, here's our CNC lab and we have our example products of what our students work on here.

So, here's some injection molding products they're doing making some fishing lures that fit in here and they'll learn how that injection process works.

And here they've they've made some bottle openers.

So, it's kind of cool.

And they'll learn how to uh take a raw piece of metal like this, turn it into something beautiful like this.

The students love this new space because they're working part-time often in the in the real world get with their jobs and learning that way as well.

And they're using uh modern equipment and so they want to learn on modern equipment.

So they're enjoying having this the new equipment but also learning those core principles on some pieces of equipment that don't change.

Well, thanks to the taxpayers who really fund our school in addition to tuition dollars and the bonding bill that comes from the state of Minnesota, we are able to boost the local economy, the manufacturing sector.

We have a strong manufacturing sector here with Sears, Molen, Altech, other big companies and lots of smaller shops that are doing important things under the radar.

a lot of businessto business manufacturing and without with that interruption if we were unable to continue our programs, we would have really seen the problem of our the the smooth flow of jobs here in this area really take a hit.

So, we're grateful to the taxpayers, to the the legislators for making this possible on such a fast turnaround.

We just took a look at how Lake Superior College used their bonding funds and now let's look at some future projects that could benefit from similar investments.

My name is Keith Nelson.

Um I've been a St.

Louis County Commissioner for the past 24 years.

Um I'm also the chair of the St.

Louis County Solid Waste Committee.

The number one request for St.

Louis County bonding this year is the $6 million which St.

Louis County will also be matching with $6 million to do a $12 million project at Canyon, Minnesota, which would be a second water treatment facility, which will allow us to treat all of the water from south St.

Louis County.

Our plant in Virginia will allow all of the water from northern St.

Louis County to be treated, but we want to be able to treat the water from southern St.

Louis County as well.

So that $12 million will put us in a position to be able to have a second plant up and running within two years.

So it's it's it's a very aggressive plan that that I'm certain that the area legislators one all of them are backing it and this needs to be a priority because it not only covers St.

Louis County but this also covers Lake County, Cook County, Cooch County and Carlton County.

This is truly a tremendous regional push to get this done.

We did identify a problem that that quite frankly um has been manifesting itself within Lake Superior and the problem of course is PAS and the fact that it's now contaminated the fish population and there are advisories out on on it as a result of it.

A lot of people are talking about PAS these days.

St.

Louis County is doing something about it and I think that's the most important part.

We're actually going to have a reverse osmosis water treatment facility up and running this summer that will be cleaning all of the waste water coming out of landfills in St.

Louis County.

The chemical is used in literally everything.

Um so it's it's been around for quite a few years.

Um but um the one of the best examples I've heard used is clothing, non-iron clothing.

Um, Pifas is what makes it so that it it is something you can just shake it and hang it on the hanger.

But the problem is PFAS is a forever chemical and as a forever chemical um it it manifests itself and stays within the system for as long as it has no halflife.

It just keeps building and building and building which is what's been happening in Lake Superior.

Um there is POS in almost all waste water and because of that the only way to really cure it is to go through that reverse osmosis and purify the water and then the PAS that's left the powder that would be left is actually burned and and it's gone.

So you can destroy it but it takes a process to do it.

I am confident that we will see this happen this year um in the legislature if there's a bonding bill, which I believe there will be um because there's necessary investments throughout the state of Minnesota.

This happens to be the one for northeastern Minnesota that kind of brings us all together under one roof of asking for something that not only will it have a an effect immediately, but this is going to have a generational effect.

All right, John Dukich.

I'm the uh government affairs and policy officer for the city of Duth.

So this upcoming session, bonding is really important for the city of Duth.

With a tight financial picture and outlook in front of us, uh we could use every dollar that the that the state uh is able to provide and you know, I'd like to highlight a couple of projects in particular.

Uh lot D uh along the Bayfront and then our water treatment plant are our two top priorities this session.

So we are requesting uh $10.85 85 million from the state to help with environmental cleanup, uh seaw wall repair, and some other uh remediation efforts to get the site ready for uh development.

And that includes, you know, some housing um which we desperately need here in Duth as well as some uh commercial and uh hotel space along with the possibility of having a slip for a a uh freshwater research institute.

L is owned by the city.

Uh we are working with the developer to help uh put this project together.

Um, if you're familiar with Pier B, it's just adjacent to Pier B on the harbor front.

So, in total, the the investment we're looking at is about $22 million.

Um, that will generate, we expect, about 215 or $250 million in private investment.

Uh, the other bonding project, our other request is for the water treatment plant.

Um, we are looking at about $50 million in total repairs at that plant.

And our request this year is, you know, half that amount, $25 million, um, which will help offset the cost to residents and residents.

You the the Duth water treatment plant doesn't just serve residents of Duth.

It serves residents and businesses and institutions in Hermantown and Proctor and Rice Lake.

It's truly a regional asset and one that we can't afford to um, let fall into disrepair.

So, the chances of a bonding bill this year, that's that's the question.

That's the kicker.

And I think uh the the other component that complicates this is that it's an election year of course and you know we have to see how politics plays into the outlook and and the likelihood of a bonding bill.

Um there are some important retirements coming up in the legislative session and I think you know that along with the community needs across the state I think you know hopefully uh raise the chances of a bonding bill this session.

Joining us now for our roundt discussion is representative Natalie Lesnikar.

She serves in the Minnesota House representing District 3B.

Representative Lesnikar, thanks for joining us.

Thanks for having me.

Can you explain the process of what bonding is?

Now, I know session hasn't started yet, but this process probably started this summer with tours.

So, can you walk us through the process?

Yeah, the process has really started, you know, since I started in in 2023.

And it starts, you know, visiting with people in the community, the the leadership uh at the schools, the cities, the counties, and just looking at what what are the top priorities in in the district and then in the region.

I try to look at it from both perspectives, uh to make sure that we are addressing, you know, the things that are going to help us uh have a commercial tax base and development and housing and and uh clean water and all those types of things.

So, but it starts with all those conversations back home and and having a lot of uh meetings to just review what is the number.

There's many multiple competing priorities for everyone.

But that's really the start and then we start prioritizing it and then looking at what would the numbers possibly look like.

All right.

Well, Senator Hoschild uh wasn't able to make it into the studio today, so we caught up with him yesterday.

We asked for his thoughts on bonding and the likelihood of a bonding bill passing this year.

My name is Grant Hashchild and I'm the state senator for district 3 which is basically all of northeastern Minnesota outside of Duth picks up parts of Cuching and Itaska County, St.

Louis Lake and Cook County.

For state bonding, this is really something that I often see get pushed to the very end of session which is really frustrating for those of us that really support bonding as a top priority.

for communities like mine where we live in a really rural part of the state, it's critical for our infrastructure and for our cities to get that state funding because it can't all be passed on to property tax owners in these small communities.

Um, so the process is going to play out at the session where we will likely negotiate on other pieces of legislation and really leverage other policy with the bonding bill.

So we'll see where things land.

Um, the House is tied 50/50.

the Senate.

We have a one seat majority, so it's really tight.

And that means we're going to have to really negotiate.

And my hopes is we ultimately get a really strong bonding bill for Northern Minnesota.

The chances of a bonding bill this year are pretty strong because we're going into an election year.

Everybody wants to be able to show their communities that they can get things done and support infrastructure.

That said, bonding, you just never know.

It can get tied to other policy, can get bogged down in sort of the legislative negotiating process.

So my hope is that we try to put aside the politics, focus on core infrastructure and breadandbut issues and pass a bonding bill as quickly as we can.

This is in business and we're back with representative Zelelesnikar.

Uh you heard Senator Hostile talk about uh the challenges of a bonding bill.

What do you think the likelihood is that uh we will get a bonding bill this year in a year where all 201 legislators are on the ballot and we've got different needs all over the state?

You know, I I went and visited when the bonding tour for the house came through our region and met with them and I think people are really encouraged and excited because the focus is really on core uh priorities and so there isn't uh outlying topics that we're we're focusing on and that's how we got a bonding bill passed last year was looking at water and core infrastructure the basic things and to make sure we have those first.

And so I think people understand that and you know we passed you know I supported having lead pipes replaced and in and in infrastructure for our our college all the different assets that the state owns to make sure that we're taking care of those and and making sure people have the utility expansion that we have for development.

So I'm hopeful that we'll be able to get it done this year and and it's not necessarily always Democrat versus Republican in passing a bill like this.

you need a super majority and so even in a tight legislature you need an overwhelming support and sometimes it breaks down even geographically.

Can you talk about what it takes from your perspective to put together a bill that's going to get that supermajority support?

I think you have to listen to other people.

You have to understand what matters back in their community because the the top priorities for every district may not align.

You have agricultural communities.

We have uh some communities that have strong uh commercial tax bases and and then we have greater Minnesota.

So the the issues are different and so you know prioritizing that and then looking for where we can get wins to get bonding to happen is really what it takes.

Great.

We asked Senator Hoschild why bonding remains uncertain and here's what he had to say.

So bonding is the only piece of legislation that requires a supermajority vote because we're using the state bonding authority to borrow money in order to make investments in infrastructure.

We need that supermajority vote.

Whereas every other piece of legislation and budget item just requires a simple majority.

So what this means is that even if you do have a majority in the legislature like we do in the Senate, we require minority members to join us in order to pass the legislation.

That means they feel a sense of leverage with the majority to say, "Okay, if you guys want our votes for this infrastructure package, you have to give us X, Y, and Z in order to earn our votes."

And that's where the process really gets bogged down is it starts to become about other issues rather than the breadand butter infrastructure that everybody supports.

One interesting thing that I see playing up politically on bonding is that you have a lot of suburban legislators in the DFL who are from wealthier communities that don't have as much need for bonding and so there's not as much pressure from them to pass a bonding bill.

On the flip side, within the Republican party, you have a lot of rural legislators that are against bonding because they see it as borrowing money and putting, you know, money on on the debt for Minnesota.

So you really have this give and take in both parties where people are starting to say is a bonding bill necessary.

And as a senator for the most rural district in the state in northeastern Minnesota, that really concerns me because ultimately my communities don't have the property tax base and the capacity to fund much of the critical infrastructure that we need, which is why a bonding bill is so critical for northern Minnesota.

So we have to make sure that we're working with both sides of the aisle to say no, no, a bonding bill is necessary.

we should pass it as quickly as possible and get bipartisan support for it.

So, you know, that's how the politics is playing out and my hope is we can kind of put that aside and focus on infrastructure and key needs.

This is in business and we're back with Representative Zelelesnikar.

So, why do we use bonding uh instead of paying for these projects outright with the state budget?

Well, that's a very good question.

I mean, that would have been more possible in 23 when we had 18.5 billion, but we don't have that right now.

So right now it's going to be borrowing money and so you know we don't have the cash on reserve that we had.

So I think that's going to be the issue to what Senator Hoschild said for some people who feel like we what what kind of debt load can we have in Minnesota.

That's going to be an issue that we're going to have to have conversations about.

I do think it's really important though that we find we look at where money shifted within agencies where we can uh make a difference to make sure bonding is still a priority which I think could happen.

And that is to make sure that we're not having these costs go to the property tax owner, which is an a big concern back home is that these issues are here.

We need to have, you know, the water treatment plant.

We need to take care of the PAS.

We've got other issues, you know, and infrastructure.

And so, if we don't address it, it's going to fall on property tax owners.

So, I think we have to move money from uh making sure we're intentional and taking care of our core services and and making choices.

right now.

We also asked Senator Hoschild which bonding projects he's most excited about.

Here's what he had to say.

Yeah, I mean all sorts of projects.

We have utility and um you know housing development in Proctor.

We have uh wastewater in Duth, Hermantown, Rice Lake area.

We have anything from community centers to arenas to uh roads and trails.

There's all sorts of projects that different communities are looking for.

And you know, I think it's really important that regardless of your zip code, regardless of how big your community is, that you get a quality of life that really helps support your communities.

And ultimately, I think we should support those communities being able to get state investments for those ideas.

This is in business and we're back with Representatives Lesnikar.

So, what projects are you looking forward to supporting this year and hoping to get passed?

I mean, all the items that Senator Hchild and the commissioner addressed, I support, too.

I think the ones that weren't messaged were on making sure the Duth airport tower is I'm we're going to need more money to get that project done.

Another $4 million.

That's going to be important to make sure our third oldest tower in the country is updated for safety.

And the Northshore sanitary sewer line is another million dollars to make sure we protect Lake Superior.

Um with uh sewage overflow, we need to make sure the pipes are stable.

So I think we have a lot of issues.

uh housing and utilities for Proctor at top priority.

Hermantown, Two Harbors, Rice Lake, some of the other areas have had some expansion dollars happen for their communities.

So, I'm hoping Proctor is going to get us crack at it this year.

Great.

And so, you have to pick and choose what your favorite projects are, but you know, we heard from Lakesia College earlier in their show, but actually the University of Minnesota and the State College system prioritize projects in their own lists.

Is that helpful for legislators or do you want more say in that?

No, I think it's very helpful.

I think ultimately when we and and really St.

Louis County and the district and the areas come together to really look at making sure that we look at the region and we look at the whole Northeast and to look at what are the real top priorities that are going to affect everybody if we don't get it done.

The the wish list is great and and welld deserved and uh so bonding is a big important thing for northeastern Minnesota.

Always has been.

And I'm looking forward to session and and getting it done.

Okay.

In the remaining seconds that we have, what is the likelihood you think that a bonding bill will pass this year?

Because you don't have to pass one legally, but what do you think the chances are?

I think if we prioritize the core services that matter and we look at making sure that we're protecting water and the types of things we did last year, we have a really good shot of it.

We're going to have to move money from other areas and make really tough decisions, but I think there's money there.

We grew government by 40% so we can find money other places to make funding happen.

And that's the position I would take.

Representative Zlesnikar, thank you for being a part of this conversation.

And we thank Senator Hoschild as well.

And now our final story.

We're looking back at the first vocational training school in Duth that was started after World War II, created to train the workers who build the very projects that are funded through state bonding.

We started out this evening's in business up at Lake Superior College talking about an expansion of the school made possible by bonding through the state legislature and the taxpayers of Minnesota and how that expanded their technical offerings to people getting into the trades.

Lakes College actually started right here.

This is the CC Salter School on London Road in Duth.

It was built in 1902.

Now after World War II all the GIs were coming back looking for careers and jobs.

Hence they started technical education vocational technical education and one of the first places in Duth to do that was here at the CC Salter school.

In 1950 it became the vocational technical school before moving up to its current campus in the 1960s.

But the question is who is CC Salter?

Charles C. Salter was born in 1832 in New Haven, Connecticut.

He's trained at Yale, becomes a pastor, a preacher, and he joins the 13th Connecticut Regiment and starts fighting in the Civil War as a chaplain.

But his service of the military during the Civil War is very short-lived.

He's only there for 5 months after he loses his voice.

In 1862, he moves to Minneapolis and there he becomes one of the pastors at the then Plymouth Congregational Church.

Now, fast forward to 1871.

Duth is booming.

The Northern Pacific Railway has arrived.

The town is ecstatic.

Everyone is exciting about building new and they bring in CC Palter, now Dr.

Charles C. Salter.

and he is going to be along with 15 parishioners the foundation of becoming what is now the pilgrim congregational church here in duth.

It was built without any debt and the reason for that is again 1871 duluth is booming.

Money is not a problem.

So they build to many other places including their current location on four street.

And by the way Charles C is a hit.

He's got a personality that is inviting, welcoming.

He's said to be a very jovial person and he's very well respected.

Also in 1871 something else happened.

The ship canal is dug and sailors are now coming into Duth waterfront and bringing their ships with them.

As a ministry to all these sailors that are coming to town, they start the Bethl, the Bethl Society as a ministry for these sailors.

In 1887, guess who takes over the Bethl?

That's right, CCal.

And changes it to what it is today in a treatment center for people with dependency issues.

The Bethl still rings today.

The school is still here.

And now you know who CC Salter is and where Vocational Technical School started in Duth, Minnesota, right behind me at the CC Salter School on London Road.

I'm Tony Certich.

Thanks for watching In Business.

If you missed any parts of tonight's show, you can always watch it at pbsnorth.org or listen on Mondays at 5:30 p.m.

on the North 1033.

Thanks again for watching.

We're glad you're here.

See you next time.