IRRRB to support housing projects

By Lee Bloomquist
News Tribune staff writer

EVELETH -- Build them and they will come.

At least that's what some IRRRB officials are hoping.

After a heated debate over spending philosophies, the Iron Range Resources and Rehabilitation Board voted 9-1 Monday night to support housing construction projects across the Taconite Tax Relief Area.

But passage didn't come easy.

Rep. Tom Rukavina, DFL-Virginia, fought the projects, saying the IRRRB can't afford to spend money on housing when 1,400 LTV Steel Mining Co. workers are to lose their jobs next summer and Iron Range taconite production is falling.

``We have 1,400 people that are going to lose their jobs next year and we are going to lose 14 million dollars (in LTV production taxes),'' Rukavina said. ``Fifty-five people in Babbitt are going to lose their jobs and we are building eight homes there? Rome is burning and we are fiddling.''

The board, under a policy established roughly two years ago, provides developers with up to $10,000 for construction of a single-family home.

But with LTV set to close and Minntac Mine in Mountain Iron cutting taconite production for the remainder of 2000, Rukavina says the IRRRB shouldn't spend money on housing.

Sen. Doug Johnson, DFL-Tower, said housing is needed on the Iron Range to attract new business and families.

``I agree with Rep. Rukavina that we need to help the (LTV) workers and their families find employment,'' Johnson said. ``We are doing that and tonight we provided a grant to Mr. (Larry) Lehtinen. I think affordable housing is important if we're going to rebuild the Range.''

The board also approved three taconite industry projects, including one that IRRRB officials hope could someday reopen LTV Steel Mining Co. Grants of $1 million each were approved for EVTAC Mining Co. and Hibbing Taconite. A $148,000 appropriation was also OK'd to continue studying the feasibility of building a semi-finished steel slab facility at LTV Steel Mining Co. in Hoyt Lakes.

EVTAC Mining Co., shuttered for 21 days following an Oct. 13 conveyor system fire, will use the $1 million as part of a $4 million upgrade plan that could help it reduce production costs by up to $1 per ton.

Hibbing Taconite will use its $1 million as part of a $5.2 million project to complete a new tailings basin exterior dam design. That will reduce dam construction costs by up to $7 million in 2001, and cut energy, maintenance and production costs.

The board approved $148,000 for a four-month plan for LTV Steel Mining Co. by consultant Larry Lehtinen.

Lehtinen has said that a 1.25-million metric ton semi-finished steel slab plant would be feasible at LTV.

He projects developing permits, customers, marketing and plant design would cost roughly $9.8 million. But for now, that price tag is too hefty for the IRRRB.

IRRRB officials agreed to allow Lehtinen to prepare a marketing assessment of potential Great Lakes-area customers, preliminary engineering drawings and to produce an environmental review plan.

Johnson was elected chairman of the Senate Finance Committee Monday in St. Paul.