Range Associationof Municipalitiesand Schools

Special Board Meeting Minutes

Friday, April 1, 24, 2016 – 4:30 P.M.

Iron Range Resources and Rehabilitation Office

Call to order:

President Paul Kess called the meeting to order at 4:58 P.M.

Roll Call:

Present:

President Paul Kess (City of Ely); Jim Fisher (McDavitt Township); Pat Medure (ISD 318-Grand Rapids); Charlie Baribeau (City of Virginia); John Berklich (ISD 701-Hibbing); Bob Berrini (Morse Township); Ben DeNucci (City of Nashwauk); Pat Garrity (City of Hibbing); Walt Hautala (ISD 2711-Mesabi East); Michael Jugovich (City of Chisholm); Bob Larson (ISD 2142-St Louis County); Ray Marsnik (ISD 696-Ely); Stu Lehman (City of Buhl-Alternate); Lance Northey (Supt Assn); Mark Skelton (City of Hoyt Lakes); Al Stanaway (City of Mt. Iron); Deron Stender (Supt Assn); Kim Stokes (ISD 706-Virginia); Dave Worshek (City of Aurora); Ed Zabinski (City of Grand Rapids)

Absent:

ISD 2154-Eveleth/Gilbert; City of Silver Bay; Great Scott Township; Nashwauk Township

President Kess called the meeting to order at 4:58 P.M. and stated the purpose of the Special Meeting was to meet with Governor Mark Dayton to discuss the reconsideration of allowing access agreements on State leased lands for mining exploration in Minnesota.

President Kess stated the Range Association of Municipalities and Schools has 46 members and represents 72,000 people and has a motto of “One Range, One Voice”. On March 14, 2016, the RAMS board unanimously adoptedResolution No. 01-2016, in support of access agreements on State lands. RAMS is also united in their position to support the environmental process that is currently in place. On behalf of the RAMS board, President Kess asked Governor Dayton to reconsider his decision to block the Department of Natural Resources from authorizing any access or lease agreement for mining on State lands position for the Twin Metals project.

Governor Dayton stated the Twin Metals project, whose parent company is a Chilean based mining company, is bad for Ely and bad for the Boundary Waters. The proposed copper, nickel and precious metals mine project is too close to the Boundary Waters and has too many environmental risks. Twin Metals will continue the drilling process, but the State will not enter into any additional access agreements or leases for the Twin Metals project. Governor Dayton felt it was better to confront the issue now and stated his decision was the best for future generations.

Mike Jugovich stated the area is losing too many young people, due to lack of jobs. The environment is critical to us all, but disagreed with the Governor’s decision.

Pat Medure stated the Twin Metals project would have a long term economic return in northern Minnesota for future generations and asked the Governor to reconsider his decision and allow Twin Metals to continue with environmental process.

Executive Director Giorgi thanked Governor Dayton for his willingness to meet with the RAMS Board of Directors. He also thanked the Governor for his support of working class families by passing a more progressive tax system, restricting the flow of foreign steel imports and the recent extension of unemployment benefits.

Director Giorgi reviewed the following facts that reinforce the concern that RAMS has with the Governor’s position on the access agreements on State leased land for potential precious mineral mining development in northeastern Minnesota:

Fact #1In the past 15 years, the Taconite Relief Area (TRA) has endured the highest unemployment rate in all of Minnesota, except for two separate years when northwestern Minnesota had slightly higher rates.

Fact #2 When looking at 20 different employment sectors found in the TRA and in all of Minnesota, 14 of those 20 employment sectors declined since the year 2000. In comparison, only six employment sectors in the rest of the State saw a decline in the same time period.

Fact #3Since the year 2000, employment growth and decline were worse in the TRA than the rest of the State.

Fact #4 Population declined on average between two and nine percent since 2000 across the TRA, as determined in the 2010 census.

Director Giorgi stated RAMS is working with the IRRRB to “Recharge the Range” and we need to trust the regulatory agencies, both on the State and Federal levels. Director Giorgi questioned how the Twin Metals project is in close proximity of the BWCA, if a buffer area has been developed. He also questioned what the government can do to help the Iron Range, if the minerals cannot be accessed. Director Giorgi stated he would like to continue the dialogue with the Governor to understand his position.

Bob Berrini also expressed his concern about the loss of young people because of the lack of jobs.

A representative of the Department of Natural Resources stated Twin Metals will continue to follow the process that is currently in place, but no new access surface agreement will be issued.

Director Giorgi stated the State restricting access is more troublesome for the developer, who is making a huge investment in the project.

Governor Dayton responded that the Twin Metals project puts the BWCA at risk, and he is not willing to approve that. If the Bureau of Land Management approves the project, he will review it accordingly. Governor Dayton is protecting this region for future generations.

Charlie Baribeau disagreed that the water in the Boundary Waters would be affected, if it is treated. He stated there has been a downturn in all communities with the lack of jobs and noted the City of Virginia’s population has dropped from 14,000 to 8,712.

Ray Marsnick stated Ely’s school population has reduced by one-half, which makes it hard to maintain the schools.

Kim Stokes stated RAMS will continue to work with the Governor to make the Iron Range vibrant.

Keith Nelson, St. Louis County Commissioner, stated the St. Louis County Board got the information regarding the Twin Metals project through the eyes of the press. Commissioner Nelson requested that the Governor and his staff explain and define the Governor’s viewpoint. Commissioner Nelson also stated the BWCA was created hundreds of years ago, and not in the 1960’s.

Comments from the public:

A resident of the City of Ely stated he appreciated the Governor’s stand and understands that the environmental risk is too great to take.

An owner of an Ely business stated the copper/nickel mining has too many risk factors, as the EPA ranks hard rock mining has the most polluting. He applauded the Governor for his decision and leadership, as the project is next to the BWCA protected area.

A contractor in Ely stated the development of a copper/nickel mine would have a large impact and affect many other areas of the economy.

Governor Dayton thanked everyone for respecting the difference points of view and stated he will set up a meeting with local officials to further discuss the Twin Metals project.

Meeting adjourned at 5:55 P.M.

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