IRRRB Approves $2.5M Loan For Tenant Expansion

By KBJR News 1

October 11, 2012 Updated Oct 11, 2012 at 10:32 PM CDT

(HIBBING, MN)---The Chisholm–Hibbing Airport Authority received backing today from the Iron Range Resources and Rehabilitation Board that will help them move forward with plans to complete the interior design and construction of the airport speculative industrial building.

More jobs will be coming to Hibbing by next spring.

“They hope to increase that by about 50 jobs in the next two, three, to five years,” Shaun Germolus, Executive Director of the Range Regional Airport, said.

The Iron Range Resources and Rehabilitation Board has approved a two point five million dollar construction loan to build out the vacant building owned by the Chisholm–Airport Authority.

The space has been vacant for five years and out of the fifty or so tenants that offered to occupy the structure, Detroit Diesel Manufacturing DMR has been selected.

"We were searching for a company with stability and to be around for more than a couple years. One that would enhance jobs," Germolus said.

The new occupant will also provide revenue to the airport and help payback the existing loan.

"Our goal is to bring world class remanufacturing to this region and through the past five years, we've been able to grow the business 625 percent, while providing very stable and good employment for the employment base on the Iron Range," David Rhode, Operations Manager with Detroit Diesel Remanufacturing, said.

The building will provide Detroit Diesel Manufacturing DMR the ability to continue production and job growth.

What about the funding?

The IRRRB will be issuing the non–recourse direct loan to the Airport Authority and repayment won't begin until the tenant has moved in.

The repayment of the multi–million dollar loan will come from lease revenues.

Once the expansion is complete, It is expected to provide 50 environmentally conscious jobs.

"We are a very good steward to the environment. The jobs we create are considered green jobs because of the fact that instead of a product going into a landfill, we are actually able to bring those products back into our facility and we are able to remanufacture and repair them and send them back out," Rhode said.

Detroit Diesel plans to open its doors on April first of 2013.

Officials from the Airport Authority say this innovation and support keeps the Iron Range competitive in a global economic market.

Justin Reis, NNC. jreis@northlandsnewscenter.com