White Earth Economic Development Strategy

What will it take to create economic prosperity on the White Earth Reservation? Over the last year the Headwaters RDC has been actively working with the White Earth Reservation Office of Economic Development to answer this question. Under the leadership of these organizations, an Economic Development Taskforce was created by selecting diverse individuals and organizations to help guide the project.  The goal of this project is to create a development strategy to ensure the White Earth Reservation is able to compete in a transformed global economy.  

The White Earth Economic Development Strategy has focused on coordinating the efforts of individuals, organizations, tribal government, and private industry concerned with economic development. By providing a forum to identify problems and opportunities and analyze the White Earth Reservation’s economy, the project should help local areas coordinate their programs and activities to maximize their resources. . The project is intended to help create jobs, foster more stable and diversified economies, and improve living conditions for the White Earth Reservation.

For more information on the White Earth Economic Development Strategy, please contact Dean Johnson.

Headwaters RDC Focuses on Renewable Energy

It is clear that a shift towards renewable energy is gaining momentum in the United States.   Renewable energy not only offers an alternative to fossil fuels, but also acts as a potential area of economic growth.  The benefits of this growth come in various forms, including job creation and diversified tax revenue.  To help the Region take advantage of these changing conditions, the Headwaters RDC has had roles in two projects that will help position the Headwaters Region for success in the renewable energy industry.

Headwaters Renewable Energy Collaboration

The Headwaters Renewable Energy Collaboration is a region-wide renewable energy project led by the Headwaters RDC. The goal of this initiative is for the Region to become a leading center of production for renewable energy goods and services.

The Headwaters RDC, with the assistance of a committee consisting of individuals and organizations with a common interest in setting the Region up for success in the growing bio-energy industry, will create a regional strategy to take advantage of opportunities and overcome challenges necessary to create growth in this industry in our region.

REDI

The Rural Energy Development Initiative (REDI) is a statewide wind energy project administered by the Southwest Initiative Foundation (SWIF) and is sponsored by the State of Minnesota and the Center for Rural Policy and Development.

The goal of REDI is to maximize rural economic development and stabilize rural economies by building renewable energy capacity, expertise, and leadership through the State of Minnesota.

This goal will was accomplished by providing organizing and technical assistance to rural entities seeking to develop wind energy projects for the purpose of selling the energy to an electric utility and by raising awareness of the local economic, community and environmental benefits of renewable energy development, energy conservation and efficiency. 

In the past year the Headwaters RDC has held a number of informative presentations for community members who were interested in learning more about  opportunities in wind energy and has assisted a number of individual landowners begin to navigate the wind energy arena.

Meet an HRFC Customer: EXB Solutions, Inc.

EXB Solutions, Inc. opened its principal office in Bemidji in June 2008.  The company specializes in software testing for aerospace and defense industries.  EXB also has offices in Wayzata, Alabama, and Arizona.  Bemidji is classified as a HUB Zone community, which gives companies such as EXB a competitive advantage when seeking government contracts. 

Management was extremely impressed with what Bemidji had to offer in regards to its quality of life, communications/technology systems, and highly trained workforce.  EXB hired five BSU graduates out of the engineering program, with average salaries of $55,000.  They also hired a Paul Carpenter to manage the office, who comes with significant experience out of Phoenix, AZ.  One of the first projects the team was charged with was software testing for the launch system for the space shuttle. 

The company has not been immune to the recession as in late 2008 the Bemidji office lost contracts with one of their largest customers, Honeywell. These large companies were taking cost-saving measures, such as returning in-house some of their engineering work.  However, EXB management reports signs of a turnaround are evident as new contracts are beginning to materialize.

The HRFC partnered with the Joint Economic Development Commission, the Northwest Minnesota Foundation, and the Neilson Foundation to provide the necessary financing for EXB to located in Bemidji.

Summary of HRFC Loan Activities

Currently, the HRFC Revolving Loan Fund (RLF) consists of an asset base of $4.1 million with 24 active EDA loans and 4 active flood loans.  Over its 29-year history, the RLF has made $11.56 million in loans partnering with $45 million in private funds and $12.2 million in other public funds.  Jobs created and retained during the programs’ existence amount to 3699 to date.  Due to the economic slowdown felt throughout the region, loan activity was limited to modifications to the existing portfolio loans. Staff devoted time to marketing the RLF to potential business borrowers, bankers, and other key partners in our region.

The decline in applications was also experienced by the several city and private RLFs the HRFC helps to administer.  They include the cities of Blackduck, Bagley, Mahnomen, and the Blackduck Telephone Company RLFs.  Compared to the record number of 11 applications received and approved last year, only 2 were processed among those RLFs this year.  Despite the temporary lull in activity, the HRFC RLF and the city RLFs remain an important asset in the region’s economic development tool chest.