News and Events

At its regular meeting on February 7, 2012, the Board of Directors for Itasca Economic Development Corporation (IEDC) accepted the resignation of Joe Broking, President & CEO, and voted unanimously to name Jeff Borling as Interim President & CEO.

Joe Broking informed the Board of Directors and IEDC Investment Partners of his plans to resign his position on February 1, 2012, after accepting a new role as Chief Financial Officer for Magnetation Inc., headquartered in Grand Rapids, MN. Broking’s last day at IEDC will be March 1, 2012. An Executive Search Committee has been formed and the IEDC Board of Directors anticipates hiring a permanent replacement in Q2 2012.

During the past 18 months, Broking has served as an invaluable asset for IEDC, leading several new business expansion and attraction initiatives on behalf of the organization and its partners from throughout the region. Highlights have included new agreements with future tenants of the Itasca Eco Industrial Park and the Itasca Technology Exchange, as well as several successful consulting projects aimed at helping local businesses increase revenues and expand their employment base in Itasca County.

“It has been an honor to work for this organization and all of the great public offices, foundations and businesses in the Itasca County area,” Broking stated. “This decision was not an easy one, but I am confident in the leadership of Jeff Borling and the IEDC Board of Directors and I look forward to continuing my strong support for the regional economy in my new capacity at Magnetation.”

Jeff Borling has served as Director of Itasca Business Development for APEX and IEDC since February, 2010 and has led countless initiatives on behalf of the two organizations under a collaborative agreement. Borling will assume the President & CEO role on an interim basis beginning March 2nd and will lend the necessary leadership and support to guide IEDC through this brief period of management transition.

Itasca Economic Development Corporation (IEDC) is a 501(c)(3) non-profit formed in 1981, with a mission of helping create quality jobs. Support for IEDC comes from the Blandin Foundation, Itasca County and several local units of government, as well as from many individuals and private businesses.

If you would like more information about the President & CEO position at IEDC, or if you would like to submit your resume for consideration, please contact Teri Heikkila: (218) 326-9411 x.20

On Thursday, January 26, 2012, Jeff Borling represented the region at the 2012 Minnesota Green Chemistry Conference, delivering a presentation highlighting the many opportunities available in northeast Minnesota and northwest Wisconsin for chemical and fuel companies utilizing renewable wood resources to produce value-added goods. Borling noted the closure of the three Ainsworth wallboard factories in northern Minnesota as a clear opportunity for these growing companies, both in the advantage of leveraging existing assets at the plant sites themselves, and in the advantage of recapturing the un- or under-utilized timber resources no longer being harvested for these production facilities. 

An overview of the progress made by APEX and the Itasca Economic Development Corporation (IEDC) in redeveloping one of these plants as the Itasca Eco Industrial Park was also provided, with high-level information regarding the integrated development concept IEDC and APEX are leveraging to promote the growth of synergistic wood products companies at this location. As talks progress with a potential anchor tenant at the site, this site could offer significant competitive advantages to co-located companies seeking to produce green chemicals and other value-added goods from wood, or from the byproducts generated by the anchor tenant. 

Aditional speakers at the conference included representatives from Dow Chemical Company, SC Johnson, Ecolab, Segetis, Reluceo, the Minnesota Dept. of Employment & Economic Development (DEED), and the BioBusiness Alliance of Minnesota, among others.  These and many other well known companies are in the process of developing and/or bringing to market exciting new products that could very well be made from wood feedstocks in the near future. 

These products include plastics, reinforced composites, pigments and inks, paint additives, adhesives - even compostable baby diapers - all of which would be a welcome addition in helping to diversify the forest products industries of Minnesota and Wisconsin and all of which would be welcome additions as manufacturing processes housed at the Itasca Eco Industrial Park.

To learn more about Minnesota's Green Chemistry activities or the opportunities available for your business at the Itasca Eco Industrial Park, please contact Jeff Borling: 218-326-9411 x.23

On January 19, 2012, APEX hosted a reception at the Kitchi Gammi Club for several regional businesses interested in learning more about APEX and the benefits of membership.  Rob West, APEX President & CEO, outlined the organization's mission, vision and key objectives in northeast Minnesota and northwest Wisconsin, making the business case for becoming an APEX member.  Representatives from seven businesses in a diverse set of industries attended the reception, along with several members of the APEX Executive Committee and staff. 

One of these companies was Island Investment, Inc., which manages and develops many properties throughout the region, including the Canal Park Lodge in Duluth, the Holiday Inn Express in Mt. Iron, and Canal Park Brewing Company, currently being built on the lake front in Canal Park.  Talks have continued with Company representatives since January and Island Investment is planning to join APEX in the near future.

We look forward to welcoming Island Investment, Inc. and others to join our list of new members for 2012, which includes Involta, Citon Computer Corporation, C.W. Technologies, Granite Equity Partners, and Itasca Economic Development Corporation.  We thank these and all our members for supporting our efforts to help create jobs and increase investment activity in our region.

If you would like more information about an APEX membership for your business, please contact Sandy Johnson: (218) 740-3667

After nearly eight years as President & CEO, Rob West has announced his intention to resign from APEX in mid-2012 to pursue new opportunities.  West informed the APEX Executive Committee of his decision in July of 2011, in order to allow for a full year of succession planning and executive recruitment.

On Thursday, November 3, 2011, at a regular meeting of the APEX Board of Directors, West and APEX Board Chair Dr. Tom Patnoe provided members with an update on the management succession plan the APEX Executive Committee has developed in preparation for West's departure. Although none are pleased to be saying goodbye to APEX's founding executive after nearly a decade of successful leadership, APEX members were quick to offer their feedback and support for the executive search process, which will be led by KeyStone Search out of Minneapolis.

Rebecca Driscoll, Principal with KeyStone Search, was on hand to provide an overview of the executive search process and to answer any questions members had about the methodology, the types of candidates being sought, and the basic philosophies KeyStone pursues in meeting the needs of their client organizations. At the heart of KeyStone's approach lies a proprietary process to understand, identify and create a common language to describe the client organization's culture and core values. 

Rather than relying on their "gut feel" to understand APEX's unique culture, KeyStone focuses on 14 components which must all be executed with excellence and in true partnership with the client organization, before the "right" candidate can be secured. Interviews with APEX members, economic development partners, staff, and other relevant stakeholders were held during the final weeks of 2011, as KeyStone works to assess the culture and core values this dynamic organization upholds.

APEX members raised various questions, including several regarding the emphasis placed on candidates with local ties to the region APEX serves.  Although Driscoll acknowledged the importance of place and the need for APEX's next CEO to understand the unique values and characteristics of northeast Minnesota and northwest Wisconsin, she also noted that as APEX continues to grow, it is important that the next leader be measured against successful executives nationwide. She cited the executive search process KeyStone recently concluded for the Blandin Foundation in Grand Rapids as an example of similar work in the region.

Rob West joined APEX nearly 8 years ago and has successfully led the organization from a grassroots campaign led by a handful of local executives, to a regional engine for business and economic development activity in a nine-county territory of northeast Minnesota and northwest Wisconsin. With support from over 65 of the region's leading private sector employers, APEX, together with its partners, has helped to create or retain more than 2,700 jobs and has spurred on millions of dollars in new economic activity under West's leadership.

Although Rob is quick to correct anyone who suggests this is a "retirement," his departure from the organization is indeed pending and the new chief executive is expected to be in place sometime around June of 2012. Over the next several months, we at APEX hope you will join us in thanking Rob for his leadership and his service to the region over the past decade.  There's no telling what will be in store for him over the next ten years, but no doubt his work will continue to benefit the region and all those who work with him. 

If you have any questions about APEX or the executive search process, or if you have a candidate you would like to recommend, please contact Rebecca Driscoll at: (612) 375-8841

Several new members have joined APEX in 2012, including Involta, an Iowa-based company which provides full service data center facilities and expertise to manage and protect mission critical computer systems and associated data. Founded in 2007, Involta was ranked #40 on the 2010 Inc 500 list of the fastest growing private companies in the United States and is recognized as a preeminent provider of data center facilities and technology services in the Central United States. APEX and its partners worked extensively with the Involta management team in 2011, as the Company moved forward with plans for a new data storage facility in the Duluth Technology Park.

Also new to APEX this year is CW Technology, a leading provider in networks, information technology, print management and phone systems in the upper Midwest. CW Technology serves a wide range of customers and clientele from all over the five-state region, including city governments, health care providers, financial institutions, regional corporations, small businesses and home users. CW Technology recently announced several new additions to its Duluth staff and anticipates a strong year in 2012.

Granite Equity Partners has also joined APEX in 2012, further strengthening the relationship between APEX and one of Minnesota's leading private investment firms. Headquartered in St. Cloud, 

Granite Equity Partners is a private investment firm founded by community-based entrepreneurs, executives, investors, and business professionals, who intend to make a positive impact on businesses in Greater Minnesota. The firm specializes in financing buyouts, recapitalizations, and growth company transactions, which include the sale or purchase of a business, generational transfers, or business expansions.

Finally, we are pleased to report that Citon Computer Corp has joined APEX this year. Citon specializes in IT innovation - from customized commercial PCs, to the design and deployment of high-end security solutions for international companies. The Company recently relocated to a new headquarters building in downtown Duluth to accommodate the growth of its three core businesses - Citon, Telcologix and Vilarri Mobile Solutions. The new facility will also house Citon's new Cloud Computing Data Center, further expanding its service offering to customers and clientele.

Like all APEX members, the companies above have a vested interest in seeing the communities of northeast Minnesota and northwest Wisconsin thrive. They have invested in APEX because of our results-driven approach to driving new investments and private sector job growth throughout the region.  If your business is interested in joining APEX, you can learn more by contacting Sandy Johnson at: (218) 740-3667 

In the meantime, please join us in welcoming Involta, CW Technology, Granite Equity Partners, and Citon Computer Corp as the newest members of APEX!

On December 16, 2012, Joe Broking, President & CEO of Itasca Economic Development Corporation (IEDC), met with Rob West, President & CEO of APEX to discuss the results of the two organizations’ collaborative efforts over the past two years and to renew the contract which defines the agreement. Under the terms of this arrangement, APEX provides a fulltime staff person to serve as a member of the IEDC team in Grand Rapids, with an objective of driving new economic activity and job growth in and around Itasca County.

The contract with APEX, initiated in February, 2010, came on the heels of the IEDC’s decision to purchase the former Ainsworth oriented strand board manufacturing facility in Grand Rapids and has provided a necessary level of support as IEDC completed a period of management transition and worked to redevelop the former board plant for future use. As such, much of the team’s work over the past two years has been focused on redeveloping the site as the Itasca Eco Industrial Park (IEIP), a premiere location for world-class manufacturing operations in the heart of North America.

In marketing this property to new and expanding businesses, the APEX/IEDC team sought to attract companies which would leverage the region’s extensive timber resources, so as to regain not just the production jobs lost through the closure of the Ainsworth operation, but also the logging and supplier jobs associated with the timber demand of the former OSB mill.

Given the sustained downturn in the nation’s housing market and flat growth reported in the region’s paper/pulp mills, the team quickly set its sights on the advanced biofuels, biochemical and biopharmaceutical industries, as among the few areas of notable growth in the nation’s forest products sector. An extensive marketing plan was developed to penetrate these industries and today, the team is pleased to report that a memo of understanding has been executed with one of the world’s leading advanced biofuels producers. Formal agreements are expected to be secured sometime in 2012.

Today, as the APEX/IEDC team looks to renew its contract for the next two years, the 2012-2013 marketing plan has been expanded to focus on a number of other opportunities in and around Itasca County, beyond the work which continues to progress at the IEIP. The APEX/IEDC team will continue its efforts to close the deal with the potential anchor tenant and to market the remaining land parcels to other synergistic businesses, but 2012 will also see the rise of new initiatives aimed at supporting the large mining-related projects in Itasca County and expanding the IT/Computer Sciences sector in the Grand Rapids area.

If you would like to learn more about APEX’s work in Itasca County and across Minnesota’s Iron Range communities, please contact Jeff Borling at: (218) 326-9411, ext. 23

On January 31, 2012, APEX is pleased to announce that Dr. Eric W. Kaler, President of the University of Minnesota, will be featured as the keynote speaker at the 2012 Annual Meeting, beginning at 3:00 p.m. at the Kitchi Gammi Club in Duluth.  At this invite-only event, APEX members will review the activities and outcomes of 2011, while looking ahead to another successful year in 2012. 

After the regular business portion of the meeting, Dr. Kaler will present the APEX Board of Directors and membership with information regarding his plans for the University system, including the role he sees for more rural campuses like the University of Minnesota-Duluth. With APEX members representing an effective cross-section of the region's business community, questions are sure to arise on the issues of workforce development, investments in the Arrowhead Region, and the potential for enhanced interaction between the University system and the local communities it serves. 

Prior to assuming the presidency at the University of Minnesota on July 1, 2011, Dr. Kaler served as provost and senior vice president for academic affairs and vice president for Brookhaven National Laboratory affairs at Stony Brook University in Stony Brook, New York. Kaler received his undergraduate degree from the California Institute of Technology in 1978 and his Ph.D. in chemical engineering from the University of Minnesota in 1982.

Kaler has received many awards and recognitions for his research, including election to the National Academy of Engineering in 2010. President Kaler and his wife, Karen, have two adult sons, Charlie and Sam. In addition to traveling with his family, Dr. Kaler loves to read, watch baseball and play with his dogs, Mo and Lida. 

Please join us in welcoming Dr. Kaler as the keynote speaker at the 2012 APEX Annual Meeting.  We look forward to visiting with you on the 31st and thank you for your ongoing support. To learn more about the APEX Annual Meeting, please contact Sandy Johnson at: (218) 740-3667 

During October and November, 2011, APEX hosted a series of "Breakfast Club" meetings with small groups of member businesses, in an effort to better understand the key issues and opportunities our members want us to focus on in 2012.  These Breakfast Club meetings, held each year at locations in Duluth and Superior, typically include groups of seven to ten member businesses who sit down over breakfast with members of the APEX Executive Committee and Rob West, President & CEO, for a candid conversation about what APEX is doing well and what we need to improve on over the next year. 

In all, five meetings were held this year and 45 of APEX's 60 member businesses represented.  Feedback revealed several critical issues facing businesses in northeast Minnesota and northwest Wisconsin, including a growing demand for skilled and/or highly trained workers and a need for APEX to focus more on helping to retain and grow existing businesses in the area. Access to early stage capital was raised as a challenge again this year, although there are still varying opinions as to how APEX should get involved in solving this challenge, if at all.

In other instances, issues that were raised consistently in prior years were seen to have improved in 2011.  An example is the sense of provincialism that has often been blamed for creating "turf wars" between neighboring communities, causing some to compete adversely with one another instead of working together toward shared prosperity. Although these problems are perceived to continue in certain areas of the region, most APEX member businesses seemed to agree that these sentiments have weakened in recent years and some credited APEX's regional approach as having played a role in this improvement. 

Going forward, the membership challenged APEX staff and leadership to think big and continue positioning the organization as a leader in regional economic development activities.  In addition to a dedicated and effective staff, members cited other strengths which bode well for the organization's success, including the engagement of business leaders and economic development partners throughout the APEX network.  Our members urged us to call on them more often to add strength and valuable insight to our initiatives. Others focused on the Strategic Resources Group, describing the consulting arm of APEX as vital to the success of business retention and expansion efforts.

Regardless of their individual feedback, it was clear that the majority of APEX members are satisfied with the organization's performance and are ready to pledge their support for another year.  We would like to take this opportunity to thank our members for their support now and into the future.  Thanks to their investment in the region, APEX will continue to help grow the regional economy.

If you'd like to learn more about how an APEX membership can benefit your business, please contact Sandy Johnson to arrange a meeting with our CEO, Rob West: (218) 740-3667

On November 16-17, 2011, Elissa Hansen, APEX Director of Business Development attended the Policy and Progress: Border to Border Broadband conference held at the Greysolon Ballroom in Duluth. Hosted by the Blandin Foundation, the conference opened with an overview of the National Broadband Policy by Tom Koutsy from Connected Nation. Connect Minnesota, a subsidiary of Connected Nation, also provided an overview of efforts aimed at getting all broadband providers in the state communicating effectively with one another. Connect Minnesota has created and kept an updated detailed map of the state's broadband coverage, thereby helping to accurately pinpoint the major gaps within the state. You can learn more by visiting www.connectmn.org

The other major focus areas covered at the conference included the Minnesota Intelligent Rural Communities (MIRC) projects. The four projects occurring in northeast Minnesota include:

1. Cook County: Fiber Optics through the Forest by Arrowhead Electric Cooperative
2. Greater Minnesota Broadband Collaborative by Enventis Telecom
3. Fiber to the Premise in Lake County by Lake County 
4. Northeast Minnesota’s Middle Mile Fiber Project by Northeast Service Cooperative

 
Each project focuses on creating more connectivity in varying ways across the Arrowhead Region and throughout Minnesota and Wisconsin, while further educating the public on the benefits of expanded broadband infrastructure and its capabilities for personal and business use. To learn more about how APEX is leveraging this world-class infrastructure to expand the region's business base, please contact Elissa Hansen at (218) 740-3667

On Thursday, October 25, 2011, Jeff Borling, APEX Director of Itasca Business Development, joined a delegation of regional business and community leaders to testify before the MPCA Citizens' Board in support of US Steel's expansion of the Keewatin Taconite plant in northeast Minnesota. The hearing centered on the approval of two water quality permits associated with the expansion project, which involves the re-commissioning of a portion of the mining operation that was shut down around 1980.

Borling represented APEX and IEDC in describing how economic and environmental issues are often inextricably entwined in Minnesota's natural resource-rich Arrowhead Region, resulting in a history of sound planning and development which has balanced the need for jobs against the desire to protect the natural environment in this beautiful place we call home. 

In considering the transparency with which US Steel has approached this project and the significant investments the Company has made in deploying new, cutting-edge environmental technology in the State of Minnesota, the majority of testimonials applauded the project and welcomed the much needed jobs and economic activity it will produce. Testimonials were also provided by Rep. Carly Melin, District 05B; Senator Tom Saxhaug, District 03; Jeremy Smolich, Plant Manager, Keewatin Taconite; Bud Stone, President, Grand Rapids Area Chamber of Commerce; and Mayor Tom Sampson from the City of Keewatin, among others.

After careful deliberation, the MPCA Citizens' Board approved the water quality permits and said that together with the air quality permit approved by the board in September, these actions "show a way forward to protecting the environment while still providing for needed economic expansion." Approval of the air and water permits means the MPCA has removed one of the last remaining barriers to expansion of the Keewatin Taconite operation. All that remain are two wetlands-related permits, one from the MPCA and one from the US Army Corps of Engineers, both of which are expected to be issued sometime in the next 6 to 10 months. 

Once final permits are approved and the expansion project begins full-steam, estimates show the potential to create more than 120 permanent high-paying jobs in the Keewatin area, along with 500 temporary construction jobs over the next several years.  More importantly, the approval of these permits shows that northeast Minnesota continues to value the culture and communities built around the region's mining industry - past, present and future.

In the meantime, APEX and IEDC will continue to engage with the large mining projects currently underway in Itasca County and across the Iron Range, lending our support in any way possible.  Other activities include playing a supportive role in workforce development and training initiatives through our members and other partners, and we are also actively working with a number of mining suppliers and related manufacturing operations seeking to expand or relocate their operations into northeast Minnesota. 

If your business is poised to grow alongside Minnesota's bustling mining and manufacturing sector, please contact Jeff Borling today to find out how APEX and IEDC can support your success: (218) 326-9411 ext. 23