REGIONAL- A major infrastructure project in Tower and a workforce housing initiative in Ely headlined nearly $39 million in funding actions approved by the Iron Range Resources and Rehabilitation Board at a meeting on Thursday, May 29.
Tower’s waterfront redevelopment project took a significant step forward with a $566,000 grant to install permanent utilities supporting new housing and commercial growth along the East Two River and at the city’s harbor.
The project replaces an earlier plan for temporary infrastructure and now aims to accommodate six sustainable homes near the Marjo Motel as well as a major development at the harbor, including 14 townhomes, 12 condo-style apartments, and 7,500 square feet of commercial space.
The additional funding brings IRRR’s total commitment to the project to just over $1 million. Officials say the expanded scope will help ensure long-term viability for the riverfront and harbor, which has been a focal point of Tower’s economic development efforts.
In Ely, the board approved a $3.7 million increase to a prior grant to fully close the funding gap on a 37-unit market-rate apartment complex designed for the area’s workforce. The project is now expected to begin site preparation this fall, with construction slated for summer 2026.
The funding boost brings IRRR’s total investment to nearly $4.6 million. The project team continues to pursue additional support from the Minnesota Housing Finance Agency and local contributors to round out the development’s $9.7 million price tag.
Babbitt secured two grants for community enhancements. A $1.5 million allocation will allow the city to move forward with long-needed renovations to its ice arena, while a separate $60,000 public works grant will fund extensions of water and sewer lines to support an existing business, The Hideaway, with potential to serve future residential expansion.
Giants Ridge also featured prominently in the funding slate. The board approved a $7.6 million investment for major upgrades at the popular recreation area, including replacement or upgrades to chair lifts and irrigation systems, and the complete design and construction of a new Nordic and welcome center. The projects are aimed at improving guest experiences and strengthening year-round tourism offerings.
A second grant of $300,000 will support four trail-related improvements, including a walking bridge, new mountain biking and hiking trails, and expansion of the existing beginners’ skills park.
Other grants approved by the board included:
• Prospector ATV Club-$1.2 million, to build and connect multiple trail segments, including two river crossings, with ties to state parks and neighboring communities.
• Voyageur Country ATV Club – $225,000, for construction of 1.2 miles of new trail near the Koochiching County line, with added culverts, gravel surfacing, and gates.
Cook Public Library – $85,000, for roof, HVAC, and interior repairs following water damage from the June 2024 flood.
• Minnesota North College, Vermilion – $157,000, to improve the Veterinary Technician Program through facility updates and new equipment including an ultrasound machine, diagnostic lab tools, teaching camera, anesthesia monitor, and HVAC upgrades in animal care areas.
• Paul Bunyan Rural Telephone Cooperative – $383,000, to construct fiber infrastructure reaching 35 currently unserved households north of Morcom Township.