Bois Forte Band of Chippewa

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Bois Forte Indian Reservation

Comprehensive Economic Development

Strategy Document

YEAR 2013

Prepared by:

Bois Forte Planning and Community Development

Table of Contents

RESOLUTION / ...... / 2
1 / Methodology / ...... / 4
1.A / List of CEDS Strategy Committee: / ...... / 4
2 / Background – where are we as a region? / ...... / 5
2.A. / History. / ...... / 5
2.B. / Geography / ...... / 6
2.C. / Transportation / ...... / 7
2.D. / Land Use / ...... / 7
2.E. / Environment / ...... / 8
2.F. / Infrastructure / ...... / 8
2.G. / Population / ...... / 9
2.H. / Economy / ...... / 9
2.I. / Workforce indicators / ...... / 9
Occupation / ...... / 10
T.E.R.O / ...... / 10
Employment Status / ...... / 11
3 / Assessment / ...... / 12
3.A. / Cluster analyses / ...... / 12
3.A.1 / Tourism / ...... / 12
3.A.2. / Retail / ...... / 12
3.A.3. / Timber and bio-energy / ...... / 12
3.A.4. / Wild Rice / ...... / 13
3.A.5. / Health Care. / ...... / 13
3.B. / Other related plans. / ...... / 13
3.C. / Investments. / ...... / 13
3.D. / S.W.O.T. Analysis / ...... / 13
Strengths / ...... / 13
Weaknesses / ...... / 14
Opportunities / ...... / 14
Threats / ...... / 14
4 / Vision – / ...... / 15
4.A. / Vision Statement / ...... / 15
4.B. / Goals / ...... / 15
4.C. / Objectives / ...... / 15
4.D. / Suggested Projects. / ...... / 16
5 / Implementation Plan / ...... / 17
5.A. / Possible Projects / ...... / 17
5.B. / Plan of Action / ...... / 18
5.C. / Partners / ...... / 19
Local/Regional / ...... / 19
Federal and State / ...... / 20
5.D. Performance Measures / ...... / 20
6 / Disaster Resiliency Strategy / ...... / 21
6.A. / Emergency Planning / ...... / 21
Bois Forte Emergency Plans / ...... / 21
ACKNOWLEDGEMENTS / ...... / 22

RESOLUTION

WHEREAS, the Bois Forte Reservation Tribal Council is the duly elected governing body of the Bois Forte Tribal Government; and

WHEREAS, the CEDS was developed to set the Bois Forte Band Of Chippewa’s vision for economic development and to maintain the Band’s eligibility for funding through the United States Economic Development Administration; and

WHEREAS, the CEDS was recommended for approval by the CEDS committee;

NOW, THEREFORE BE IT RESOLVED, that the Bois Forte Reservation Tribal Council formally adopts the 2013 Bois Forte Tribal Government CEDS, authorizes the staff to implement the CEDS, and assist the Bois Forte Tribal Government in developing EDA eligible projects that fulfill CEDS goals.

1. Methodology

1.A List of CEDS Strategy Committee:

Andy Datko, Planning and Community Development / Jennie Rowland, Bois Forte Transit Coordinator
Bernard O’Leary, Vermilion Wellness Center / Jennifer Pontinen, UMD
Carol Burr, Commissioner of Housing / Jim Tolan, Fortune Bay
Corey Strong, Bois Forte Executive Director / Joel Astleford, Commissioner of Public Works
Dawn Benner, TERO Officer / Nikki Pieratos, CDFI
Gary Gotchnik, CEO Fortune Bay / Randy Long, IT Director
Gordy Adams, Small Business Program / Tara Geshick, Natural Resources Department
Coordinator / William Whiteman P&CD

1.B. This Bois Forte CEDS is being completed in cooperation and integration with the Arrowhead Regional Development Commission’s CEDS plan.

1.C. Community and business sector participation. The CEDS committee includesrepresentation from Tribal Businesses and community members.

1.D. The CEDS Committee’s deadline for completion of the CEDS will allow for a 30 day Public comment period prior to submittal in October 2013.

1.E. The RTC will adopt this document by resolution prior to submittal in October 2013.

2. Background – where are we as a region?

2.A. History.

Bois Forte, or “strong wood”, was the French name given to the Indians living in the densest forests of what is now extreme northern Minnesota. The Bois Forte Band of Ojibwe (also referred to as Chippewa) has lived in northern Minnesota for centuries, but they did not originate there. The people journeyed from the east coast up the Saint Lawrence River, around the Great Lakes and followed rivers and lakes inland.

The community first entered into a treaty with the United States in 1854 that set aside an undefined region around Lake Vermilion as a reservation. The regions at Nett Lake and Itasca County–Deer Creek–were officially established in an 1866 treaty, and the Lake Vermilion lands were defined in an 1881 executive order. In 1997, the Bois Forte Reservation Tribal Council assumed full responsibility for the delivery of all government programs and services to its people.

2.B. Geography

The Bois Forte Reservation is located in northern Minnesota in Koochiching and St. Louis counties, approximately 40 miles south of the Canadian border. The reservation is divided into five distinct geographic areas.

The Nett Lake Reservation encompasses approximately 108,000 acres of which 43 percent is wetland. The Nett Lake sector is home to the majority of the Bois Forte Band members (approximately 668 people) and the Band’s primary government offices. The Nett Lake reservation contains the main population center of Nett Lake Village, and also the smaller Palmquist residential area.

Indian Point and Sugar Bush are separate parcels within 1 mile of each other and encompass 81.2 acres and 84.2 acres respectively. They are located on Pelican Lake near the town of Orr, Minnesota. Approximately 80 people reside in these two areas, which are located about 15 miles east of Nett Lake.

The Vermilion Lake Reservation is located on Lake Vermilion, near Tower in St. Louis County. Approximately 220 people reside on the 2,000 acres. Fortune Bay Resort Casino, the Bois Forte Heritage Center, the Vermilion Family Wellness Center and the Vermilion Community Center and Health/Dental Clinics also are located at the Vermilion Lake Reservation.

Deer Creek Reservation encompasses 120 acres in Deer Creek Township, Itasca County. However, no Band members live in Deer Creek.

Most of the land on the Reservation consists of wetlands or boreal forests on rocky ground. Land development is therefore difficult and expensive.

Bois Forte Indian Reservation

Nett Lake Sector – 108,000 acres

Lake Vermilion Sector – 2,000 acres and

Deer Creek Sector – 23,000 acres

Lakes:
Nett Lake 7,800 acres
Lake Vermilion 40,000 acres
Busties Lake 400 acres
Navigable streams:
Little Fork river
Big Fork river
Nett river
Woodduck river
Lost river
Woodduck river
Popple creek
Portage creek

2.C. Transportation

The Bois Forte Reservation at Nett Lake is served by U.S. Highway 53, St. Louis County State Aid Highway 23, and Minnesota Trunk Highway 65, along with numerous local arterial and collector streets. The Lake Vermilion Reservation is served by U.S. Highway 169, St. Louis County road 77, and County Road 104. There is also a pedestrian/bicycle trail at Vermilion which links several residential neighborhoods, the Vermilion Social Center and Clinic complex, and Fortune Bay Resort Casino.

There are no direct railroad connections on the Reservation, but a major rail line serves the region, along the Highway 53 corridor from International Falls to Duluth. Airports serving the region include the Orr Regional Airport, Cook Regional Airport, Tower Regional Airport, Hibbing/Chisholm Regional Airport (with commercial flights to Minneapolis), and the Duluth International Airport (with flights to Minneapolis, Chicago, Detroit, and beyond).

Bois Forte initiated a public transit system, Big Woods Public Transportation, in 2012. This system currently has two buses that provide commuter route service and on-demand transit, and also contracts with Arrowhead Public Transit to provide additional routes that connect to their larger regional transit system.

2.D. Land Use

The Bois Forte Reservation Tribal Government has adopted a comprehensive land use and development plan, and zoning ordinance, in order to encourage the most appropriate use of Reservation land; and to recognize and preserve the economic, environmental and cultural values of all lands within the Bois Forte Reservation.

The Land use plan and zoning ordinance includesdevelopment guidelines and designated districts for residential, commercial, industrial, public works, government and administrative, natural and cultural resource protection, and recreational use areas.

The Reservation is heavily forested and comprised of pine, aspen, cedar, birch, ash and other species. Timber is managed by a Reservation Forester with an objective of maintaining an annual allowable cut that plans for future growth.

According to timber cover type, common wetland related species including cedar, black spruce, swamp conifer, swamp hardwoods and tamarack occupy approximately 39% of trust lands within the Reservation. It is estimated that up to an additional 15% of trust lands are likely to be wetlands.

Nett Lake itself is a critically important natural and cultural resource, and is managed for its natural wild rice production. It is also an important fall staging area for waterfowl, and provides migration habitat for waterfowl and other migratory birds in the spring. White-tailed deer is considered the most important big game animal on the Reservation. There is a small harvest of moose within Reservation boundaries annually. Ruffed grouse are plentiful and its habitat management is largely compatible with that for deer.

2.E. Environment

As noted above, the environment consists primarily of northern boreal forest with numerous wetlands, exposed bedrock or rocky soils, with numerous lakes and rivers. It is a natural environment rich in natural resources such as wild rice, fish and wildlife, timber resources, and lakes and streams that are attractive for recreational uses. The numerous wetlands and rocky soil conditions do present challenges to land and infrastructure development.

2.F. Infrastructure

Bois Forte has a Public Works department that maintains public water and sewer systems at Vermilion, Nett Lake Village, Palmquist, and Indian Point. There are 117 miles of roads identified on the Indian Reservation road (IRR) system for Bois Forte. This includes 96miles of tribal roads maintained by Bois Forte Public Works, and 21 miles of State and County Roads.

Telecommunications infrastructure has generally been inadequate, but recent projects are bringing fiber optic cables into Nett Lake and Vermilion beginning in 2013. This will greatly improve the telecommunications capacity on the Reservation.

The Reservation is served by Lake Country Power, an electrical distributioncooperative. There is no natural gas available on or near the Reservation, and little prospect of that occurring in the future. The area is served by several propane distribution companies.

2.G. Population

Bois Forte Minimum Data Report 2012

Total Tribal Enrollment / 3350 / 1639 / 1711
Total Tribal Resident Indian Population (TRIP) / 4460
TRIP under age 16 years old (by gender) / 876 / 433 / male / 443 / female
TRIP between 16-64 years old (by gender) / 2691 / 1338 / 1353
TRIP over 64 years old (by gender) / 893 / 443 / 451
TRIP between 16-64 years old not available for work / 338 / 96 / 243
Total TRIP employed in Public sector / 401 / 213 / 189
Total TRIP employed in Private sector / 157 / 92 / 65
Total TRIP employed but below poverty level / 198 / 105 / 93
Total Trust/Restricted Acres / 42820

2.H. Economy

The economy in the northeastern Minnesota has traditionally been dominated by mining, timber, and tourism. Of these, tourism and timber have been most prominent on the Reservation, with tourism related businesses the most important. Under the management of the Bois Forte Development Corporation, the Band now owns and operates Fortune Bay Resort Casino, The Wilderness Golf Course, WELY–End of the Road Radio, the Y-Store, Ledge Liquors, Y-Express Lube, Nett Lake C-Store and Bois Forte Wild Rice. Fortune Bay Resort Casino officially opened in August of 1986 and currently employs over 500 people, annually injecting more than $30 million into the economy of northern Minnesota.

The Bois Forte Band has carefully reinvested their revenues and diversified their business portfolio as part of their commitment to strengthening the region’s economy and increasing Band member employment.

2.I. Workforce indicators

The BIA American Indian Population and Labor Force Report indicated that exactly half of the Bois Forte Reservation population was available for work, but that 39% of Band members were out of the labor force. In a 2010 Tribal Self-Governance Minimum Data Collection Report, Bois Forte reported nearly identical statistics. However, the BIA and Bois Forte reports only address limited employment data.Since the 2010 U.S. Census did not ask questions related toemployment, the American Community Survey serves as the only source for the information shared in the rest of this section and subsequent sections related to employment.

The American Community Survey provides the most current employment status data for the Bois Forte Reservation. The trend reports that Bois Forte experiences an unemployment rate over double the rest of the county, state, and nation (see graph). As of July 2011, the U.S. Bureau of Labor Statistics reported unemployment rates of 8.2% for the St. Louis County area, 7.2% for Minnesota, and 9.1% for the nation.

Expecting the same disparities in the unemployment rate as before, the Bois Forte Reservation could have a present unemployment rate between 16.5%-18%.

The American Community Survey also provides further information on employment status by the number of hours worked. Of the 84% employed, only 65% worked full-time (over 35 hours per week). In the past 12 months reported, only slightly more than half of those employed full-time worked the full year. In fact, 30% of “full-time” workers actually worked less than half of the year.

Occupation

Employment in various occupations differs by gender. Nearly 2/3 of the male working population works for private for-profit entities compared to only ½ of the female working population. Men are also twice as likely to be self-employed. Conversely, women work for the local tribal government at nearly double the rate of men.

T.E.R.O

Tribal Employment Rights Organization

The Tribal Employment Rights Organization (TERO) was established by tribal law, enacted by the Bois Forte Tribal Council, to promote and require Indian Preference in employment, training and contracting. The TERO Ordinance, revised and adopted on July 20, 2005, covers all non-governmental employers and projects located on or near the Nett Lake Indian Reservation.

The Nett Lake Band of Chippewa Indians have a sovereign right to employment opportunities on and near their own land. These rights are protected through your local TERO Ordinance enacted by the Bois Forte Tribal Council.

In the event a job opening occurs for which they are qualified, Tribal members register with the TERO office to ensure they are listed by job skills and qualifications.

The TERO Commissionconsists of 5 members and officers and 2 alternates who are appointed by the Bois Forte Tribal Government.

Employment Status
Population Age 16 years and Older
Source: American Community Survey
Bois Forte Reservation / St. Louis County / Minnesota / United States
Not in Labor Force / 38.77% / 37.90% / 28.80% / 34.96%
Unemployed / 15.98% / 5.70% / 5.98% / 7.15%
Employed / 84.02% / 92.43% / 94.08% / 92.85%
In Labor Force / 61.23% / 62.10% / 71.20% / 65.04%

Assessment

3.A. Cluster analyses

The Bois Forte Reservation is located within the Northeast Minnesota Economic Development District. The Arrowhead Regional Development Commission (ARDC) has prepared a Comprehensive Economic Development Strategy for the Northeast Minnesota Economic Development District. That strategy document and associated planning efforts have identified nine industry clusters in the region. Those clusters are:

1. New energy production, manufacturing and servicing.
2. Regional creative clusters.
3. Innovative manufacturing.
4. Mature manufacturing.
5. Timber, wood, paper and spinoffs.
6. Mining.
7. Medical services and biomedical/biotechnical spinoffs.
8. Transportation and logistics support.
9. Arts, entertainment, recreation and visitor industries (tourism).

Some of these industry clusters have greater relevancy to economic development opportunities on the Bois Forte Reservation, and some have less. The clusters most applicable to the Bois Forte Reservation are as follows.

3.A.1 Tourism. The major businesses of the Bois Forte Band are tourism related. Fortune Bay Resort Casino and the Wilderness at Fortune Bay (golf course) are very successful Band owned businesses, and are tourism dependent. These businesses attract hundreds of thousands of visitors each year. The success of these established businesses, and the visitors they attract, presents possibilities for other related and complementary businesses, or for businesses that could provide support services to these established businesses. The Band also has potential to increase Cultural Tourism activities, which is a growing niche in the tourism market, and one that the Band is well positioned to participate in.

3.A.2. Retail. This is related to the tourism cluster listed above, but is separated out as its own cluster. The Band has a successful track record operating two convenience stores and a liquor store. That experience and success could be extended to other retail business opportunities to serve the “captured” visitor market at Fortune Bay, or the local resident population.

3.A.3. Timber and bio-energy. The Band has a substantial timber and woody biomass resource on the Reservation, and there are also significant biomass resources in the surrounding area. In 2009 the Band completed a Biofuels Feasibility Study, with assistance from the Natural Resources Research Institute (NRRRI) of the University of Minnesota. That study quantified the biomass resources available for possible utilization for innovative bio-energy production. The Band also has an active forest management program designed for sustainable harvest of its timber resources. The local paper and wood products manufacturing industry has undergone a period of steep decline, with several local wood products plants permanently shutting down over the past ten years. The timber and biomass resource remains however, and could provide an opportunity for the right kind of innovative bio-energy business.

3.A.4. Wild Rice. The Band controls access to a very significant and important natural and cultural resource – Nett Lake, which is one of the most productive wild rice lakes in North America. The Band has an existing wild rice sales and marketing program, but there is potential for increased economic activity utilizing this resource, both by the Band and by individual members.

3.A.5. Health Care. The Band operates medical and dental clinics at Nett Lake and Lake Vermilion, and is in the process of building a new clinic at Vermilion. There may be potential for support businesses, such as pharmacy services, that could leverage these existing businesses.

3.B. Other related plans.

Other plans that were consulted and used as reference material in the preparation of this CEDS plan include: