Laurentian Vision Partnership

Meeting LXIII Report

"Planning and Project Implementation 2016"

Wednesday, October 19, 2016 Mining and Reclamation Classroom I Chisholm, Minnesota

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L a u r e n t i a n V i s i o n P a r t n e r s h i p M e e t i n g L X I I I

October 19, 2016

“Planning and Project Implementation 2016”

M E E T I N G O B J E C T I V E

The Facilitator reviewed the past meeting results and next steps, highlighted meeting objectives and went over the agenda for today’s meeting. Northeastern Minnesota’s mining industry and the communities that have grown out of natural resource development, are facing changing landscapes. Impacted by global and national factors, existing Iron Range mines and proposed resource-based projects are embracing new challenges to remain globally competitive and operate with a social license to mine. Communities facing land use issues and seeking to provide residents with a high-quality of life are advancing new business, community and recreational projects by cooperatively solving land use issues. LVP, by convening stakeholders in timely discussions, seeks to collaboratively address the needs of communities, mining operations, resource management, land retention, reclamation, environmental permitting, local revenue generation and land reuse. The focus of this meeting is on several timely topics including the Iron Ore Alliance, a coalition between the United Steelworkers and US Steel to support the future of mining; Range Regional Rail Initiative and its focus on addressing captive rail issues and competitiveness; an overview of the Duluth Seaway Port and its role in supporting mining transportation needs; we will learn about the Black Diamond Beach Innovation Project in Silver Bay; and an update on Recharge the Range as its Action Teams move ahead on priorities and initiatives for a shared vision and action strategy for the Range. Finally, we will review and provide an update on FY 2017 Innovation Grant program and funding availability, and hear progress reports from regional groups and work groups including information on mine mapping in the Cuyuna Range and Large Scale Regional Projects Mapping changes.

M E E T I N G S U M M A R Y

Laurentian Partnership Debriefing

Participant introductions and expectations

Opening comments

Review of Meeting LXII results and next steps (May 2016)

Overview of meeting objective and agenda

P R E S E N T A T I O N

Iron Ore Alliance

Chris Masciantonio Co-Chair Iron Ore Alliance;

General Manager of State Government Affairs, US Steel

John Rebrovich Co-Chair, Iron Ore Alliance, and Assistant to District 11 Director

United Steelworkers Union The presenting team was introduced and provided additional background on themselves and their involvement with the Iron Ore Alliance (IOA). Chris is an attorney located in Pittsburg and has been involved in managing state and local government affairs for US Steel since 2007. John is a third generation steelworker from Keewatin and has worked in the iron mining industry since 1976 most recently with the District 11 Union in 2013. The team shared a PowerPoint presentation. Chris explained that the IOA was established in 2013 in response to the universal need for management and the union to work together to address common issues related to offshore competitors and unfair trade issues. John shared that 70-80% of the issues they agree on and each were working on independently. This Alliance has over 2,000 members and is working collaboratively in St. Paul and Washington to educate and challenge the inappropriate trade activity going on impacting the steel industry and its economic vitality and jobs. Chris went on to explain the illegal steel dumping, its sophistication by foreign suppliers and how the IOA has worked to challenge these actions with legal trade cases. He highlighted the products involved, countries involved and the number of cases in litigation today. China is a major violator and an important law suit “Case 337” is pending under the Tariff Act that could be a significant outcome for the industry. This will be decided by late 2017 with a final decision made by the President of the U.S. John explained that all of this is a global issue with other countries involved in fighting China’s steel dumping. They went on to share the significance of this industry to Minnesota, the Iron Range and the U.S. economy. They concluded with comments on the pending state sulfate rules issue and its implications for the industry on the Iron Range. They explained how the industry works with the MPCA and EPA and how complex

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the sulfide issue is based on the work done over the past couple of years on it. Everyone wants to be good stewards of the environment and want the science to dictate an appropriate standard that will be followed to protect wild rice and the area’s water supply. Costs and stakes are high and this must be done right. IOA will continue to address this issue, challenge and educate all of the stakeholders on its ramifications. A meeting will be held today at 11:00 AM to bring this issue forward. The team went on to address several questions on the “337 Case” and global politics; Trans Pacific Partnership and its potential negative impacts; and, members wanted a sense on how confident we are that a positive outcome will be achieved on trade. The presentation was well received by members; a copy of the presentation is available on the LVP website at www.lvpmn.org.

P R E S E N T A T I O N

Iron Range Regional Rail Initiative

Mark Zimmerman IEDC

Matthew Radzak Minnesota Power

The panel was introduced and Mark began explaining the competitive rail issue impacting the region and an initiative underway to address the problems. A PowerPoint presentation was shared. It was explained that “Captive Rail” was one of the major Recharge the Range issues identified. Mark described the history of captive rail and how class one rail lines, of which there are four in Minnesota, control 90% of the trackage. In areas where only one class one rail provider serves a given area they control the trackage and pricing and service. That is the situation in the West and Central and East Range Areas where two different class one rail serve these respective areas and present an uncompetitive situation for our businesses. They explained how this affects our large and small businesses and our ability to attract and retain other businesses that rely on rail for their business. In response, a coalition of local government, economic development and business representatives are seeking funding to conduct the engineering necessary to provide a spur/”Cross Range Connector” to connect the rail lines in the west (BNSF served) with the Central and East served by CN. They reviewed a map showing the areas impacted, explained how the group organized on the West Range and asked for more interest and involvement by the Central and East Range area to further address these issues across the region. The whole area is impacted and could be addressed in a phased approach including doing an overall engineering assessment followed by a two phased construction project to build the necessary connectors and provide class one competitive access by two rail vendors from West to East. They addressed several questions on work to date, the bonding bill and next steps. Mark then asked for interested volunteers to sign up today or get in touch with him or Matt after the meeting. This work will continue. Following the presentation by Mark and Matt, Jim Plummer, IRRRB, shared a brief PowerPoint and explained that the Governor has established the State Rail Initiative by Executive Order to address statewide economic development and safety issues. Three groups have been setup as inter-agency work groups focusing on communications, safety and economic development. IRRRB is involved and is bringing the competitive rail issue and other rail concerns to this group to expand the understanding and need for action this next legislative session. The presentations were well received by members; copies of the presentations are available on the LVP website at www.lvpmn.org.

P R E S E N T A T I O N

Duluth Seaway Port Authority Overview and Ties to Mining on the Iron Range

Kate Ferguson Director of Business Development

Duluth Seaway Port Authority Kate introduced her background and position at the Duluth Seaway Port Authority (DSPA) and shared a PowerPoint presentation that describes the Port, its services and relationships with the Iron Range business community, and its strategic significance to the region and overall transportation capabilities. She shared several handouts, one being a map of Great Lakes and the Bi-National Waterway that exists to provide global water access to our region on a seasonal basis, and moves over 170 million tons system wide. Another was of the Duluth Harbor area which highlights over twenty active private terminals and the publicly owned DSPA area. A number of the private terminals serve the mines and other businesses as well as the DSPA. Her presentation shared a number of statistics on the Port, its economic impact on the region and its significance overall. She went on to explain that the DSPA was recently rebranded as “Duluth Cargo Connect” and is being promoted as such with all of its existing and new capabilities. She briefly highlighted the Port and the Terminal which is comprised of 40 acres, with a 400,000 SF indoor storage space, four Class One railroads coming into the area with a Foreign Trade Zone in place on site with sub-zone designation available for other locations in the region. She explained the strategic location and the types of major cargos being served such as wind generation, container shipping, heavy cargos such as coils and other value added cargos such as clay. She announced that in November CN established an intermodal facility on site at the DSPA and represents a major new strategic option for all types and sizes of businesses to move goods by truck and rail. CN is well connected and will significantly improve the competitive transportation costs for businesses. More details can be provided by contacting Kate. She concluded by explaining the other properties owned and managed by the DSPA including AirPark adjacent to the Duluth International Airport, renovation and redevelopment of Docks C & D on the

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waterfront and the US Steel site in Morgan Park, a large superfund site on the St Louis River that is being cleaned up and positioned for redevelopment in partnership with US steel and the City of Duluth. These are all under the responsibility and leadership of the DSPA. She addressed several question on the new Intermodal Facility and how the locks system impacts shipping loads and our competitive position with other ports. Kate’s presentation was well received by members; a copy of her PowerPoint presentation is available on the LVP website at www.lvpmn.org.

P R E S E N T A T I O N

Silver Bay Black Diamond Beach Innovation Grant Project Overview and Outcomes

Lana Fralich City Administrator

City of Silver Bay Lana provided a PowerPoint presentation on an exciting new project that will provide direct public access to Lake Superior via shoreline property on Lake Superior adjacent to Northshore Mining. This will be a publicly owned area with an existing business park to the east and accessible within the city. The area consists of three beaches, 31.2 acres of land and 3500 feet of shoreline. An Innovation Grant of $125,000 from IRRRB/LVP was used to acquire, plan and prepare to use and further develop the site with a major municipal campground, trails system and direct access to Lake Superior and the beach waterfront. Northshore Mining was instrumental in making this property available for the proposed uses and has assisted in getting this positioned for public access and use. Lana shared pictures of the three main beaches and highlighted the other amenities that can be connected or accessed by users of this site. A hotel is currently onsite in the business park and other services are available to serve the tourist and user including the Northshore Recreational Trail System for multiple uses. A $2.2 million campground is planned with a bonding request pending at the legislature for $1.7 million. This was all possible with the support of IRRRB, Northshore Mining and the City. Lana’s presentation was well received by members; a copy is available on the LVP website at www.lvpmn.org.

P R E S E N T A T I O N

Recharge the Range Update Mary Finnegan

Deputy Director, IRRRB Mary shared a brief update on Recharge the Range. She highlighted the purpose and four major meetings held in 2016 from February to June engaging businesses, local officials and non-profits, arts and cultural interests and a major all-inclusive event in June at the Discovery Center. Seven action teams were organized following the June event focusing on Large Business Development; Small Business and Entrepreneurship Development; Natural Resources; Education and Talent Development; Livable Communities; and Tourism Development. These teams have been meeting and working on clarifying their specific goals and objectives and identifying immediate and longer term priorities and initiatives. IRRRB is helping to coordinate communication and is prepared to assist as needed. This has been a different way of looking at economic development and was designed to be more engaging with younger folks involved and others in both the public and private sectors encouraged to participate. This is expected to be an ongoing effort with more details to be shared in the future. Anyone interested in being on the mailing list for information on meetings and meeting notes from the work teams should contact Sara Ferkul at IRRRB.

P A R T N E R S H I P P R I O R I T I E S

Regional Group Action Progress Reports

The following Regional Groups were present and provided an update on their major activities related to LVP. Copies of the handouts are available on the LVP website at www.lvpmn.org.

REGIONAL GROUP CURRENT PROJECTS

Western Mesabi Mine Planning Board (WMMPB)

Doug Learmont

Highlighted a field trip taken by the Board in September involving visits to Enbridge, Coleraine Minerals Lab, Hibbing Taconite and other sites. Currently addressing needs for improvements to Highway 169, the Hill Annex Mine, and Comp Planning. A more detailed written summary was shared on these and other topics.

East Range Joint Powers Board (ERJPB)

Curt Anttila

A comprehensive plan is being developed for the East Range Area that will be finished in January 2017. It involves all of the communities and will include a major public engagement process. IRRRB is completing an assessment of Giants Ridge to determine how best to manage and accelerate the long-term use and development of this regional recreation center. A work group has been meeting and recommendations forthcoming. Shared information on several downtown and retail concerns that are impacting the area. And concluded by expressing his support for Recharge the Range and initial efforts underway.

Quad Cities

Jaimie Niska

No representation today.

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Central Iron Range Initiative (CIRI)

John Fedo, Ruck Crum & Pete Kero

John Fedo reported for the group. He announced that CIRI and its Brownfield Collaborative was successful in securing a $600,000 grant from the federal EPA for Brownfield Redevelopment. Nineteen communities partnered in this second successful request. The project is underway with a chair elected and consultant RFP’s in play with Phase I and II expected to get underway soon. Virginia is the fiscal agent for this second major award. This is all about economic development and cleaning up old mine lands and other properties for reuse across the Iron Range.

P A R T N E R S H I P P R I O R I T I E S

Work Group Action Progress Reports

Individual work group representatives provided the following reports and next steps.

Action Areas Work Group Priorities Work Group

Representative(s) Update/Next Steps

TARGETING PRIORITY PROJECTS

FY2017 Innovation Grants funding availability and project eligibility criteria and focus LVP Web Site Redevelopment

Jim Plummer, IRRRB

Dan Jordan, IRRRB

Innovation grants have been awarded annually since 2006 with $200,000 available in FY 2017 to address former mining impacted project. Jim reviewed the eligibility criteria and new criteria to use for evaluating project proposals. The weighted criteria will include 60% for economic development, 20% for community benefit and 20% for project management. Proposals are now accepted online with a new process for pre-applications and final applications. LVP Coordinating Committee will review projects with IRRRB staff. The emphasis will continue to fund bricks and mortar projects. We have two pending projects totaling about $100,000 being considered. Funds will remain available until June 30th.

Web site is being refreshed. Dan shared some slides on the site and proposed changes including a new front page and highlighting our supporters. IRRRB is leading this work and is expected to be done in the next several months.

DELIVERING TOOLS AND RESOURCES

1. Large Scale Projects Mapping update (new approach/format) - change

Dan Jordan, IRRRB Tim Pastika, MDNR

Changes have been made to the map to color code and identify “non-active” project locations. Any other changes should be shared with Dan or Tim for future upgrades. No other changes were mentioned. The Large Scale Map is now up to date as modified.

2. Cuyuna Range mapping underway

Tim Pastika, MDNR About 90% of the update changes have now been made capturing key information similar to other maps for the Iron Range. We expect to have it up on the LVP web site soon and will share with the communities in the Cuyuna Range area when ready. This is another milestone in providing tools to assist with land use planning on the Iron Formation. Questions or request should be directed to Tim.

O T H E R B U S I N E S S U P D A T E S a n d F U T U R E T O P I C S

Future Topics/Presentation Recommendations of LVP Coordinating Committee (January 2017)

The group discussed a number of possible discussion topics highlighted on the agenda by the Coordinating Committee. The following topics were highlighted as possible priorities for the January 2017 meeting, with others continuing on our list for future consideration in 2017:

Legislative recreation use of mining lands (new draft legislation)

Envision Model

Recharge the Range Update

St. Louis County land use planning and recreation planning/tie with Itasca County?

State of mining/future opportunities – marketing the region for mining

In addition to these proposed by the Committee, the following were highlighted by the membership today:

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Highway 53 update and trails connection completion (St. Louis County Trails Task Force)

o Bonding bill tie

o Long term transportation planning for Northeast Minnesota

o Highway 135 improvements for 2018

NRRI – $2.6 million Mining Innovation Project Update and Results

Recharge the Range update

The Coordinating Committee will meet and develop the next agenda based on this input.

C O O R D I N A T I N G C O M M I T T E E M E E T I N G The next Coordinating Committee will be held on Tuesday, December 6, 2016 from 9:00 A.M. to Noon at the Mining and Reclamation Classroom, at Minnesota Discovery Center in Chisholm. Work Group and Regional Group representatives will be asked to assist in developing the January 2017 membership meeting agenda.

L V P Q U A R T E R L Y M E E T I N G The next Laurentian Vision Partnership meeting will be held on Wednesday, January 11, 2017 from 9:00 A.M. to 12:30 P.M. in the Mining and Reclamation Classroom at Minnesota Discovery Center in Chisholm.

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MEETING OBJECTIVE

Northeastern Minnesota’s mining industry and the communities that have grown out of natural resource development, are facing changing landscapes. Impacted by global and national factors, existing Iron Range mines and proposed resource-based projects are embracing new challenges to remain globally competitive and operate with a social license to mine. Communities facing land use issues and seeking to provide residents with a high-quality of life are advancing new business, community and recreational projects by cooperatively solving land use issues. LVP, by convening stakeholders in timely discussions, seeks to collaboratively address the needs of communities, mining operations, resource management, land retention, reclamation, environmental permitting, local revenue generation and land reuse. The focus of this meeting is on several timely topics including the Iron Ore Alliance, a coalition between the United Steelworkers and US Steel to support the future of mining; Range Regional Rail Initiative and its focus on addressing captive rail issues and competitiveness; an overview of the Duluth Seaway Port and its role in supporting mining transportation needs; we will learn about the Black Diamond Beach Innovation Project in Silver Bay; and an update on Recharge the Range as its Action Teams move ahead on priorities and initiatives for a shared vision and action strategy for the Range. Finally, we will review and provide an update on FY 2017 Innovation Grant program and funding availability, and hear progress reports from regional groups and work groups including information on mine mapping in the Cuyuna Range and Large Scale Regional Projects Mapping changes.

PROPOSED AGENDA

9:00 Laurentian Partnership Debriefing Randy Lasky, Facilitator

Participant introductions and expectations

Opening comments

Review of Meeting LXI results and next steps (January 2016)

Overview of the meeting objective and agenda

9:15 PRESENTATION: Iron Ore Alliance

Learn about the alliance between the United Steelworkers and US Steel…why was it formed, who’s involved and what’s their focus and outlook for the future?

Chris Masciantonio, Co-Chair, Iron Ore Alliance, and General Manager of State Government Affairs

US Steel John Rebrovich, Co-Chair, Iron Ore Alliance, and

Assistant to District 11 Director United Steelworkers Union

10:00 PRESENTATION: Iron Range Regional Rail Initiative Mark Zimmerman, IEDC Mathew Radzak, Minnesota Power

10:40 PRESENTATION: Duluth Seaway Port Authority Overview and Ties to Mining on the Iron Range

Kate Ferguson, Director of Business Development Duluth Seaway Port Authority

11:15 Break

11:25 PRESENTATION: Silver Bay Black Diamond Beach Innovation Grant Project Overview and Outcomes

Lana Fralich, City Administrator City of Silver Bay

11:40 PRESENTATION: Recharge the Range Update Mary Finnegan, Deputy Director, IRRRB

11:50 Partnership Priorities: Regional Group Action Progress Reports

What’s happening in regional areas across the Iron Range?

o Western Mesabi Mine Planning Board (WMMPB) Doug Learmont

o East Range Joint Powers Board (ERJPB) Curt Anttila

o Quad Cities Jaimie Niska

o Central Iron Range Initiative (CIRI) John Fedo, Rick Crum, and Pete Kero

12:05 Partnership Priorities: Work Group Action Progress Reports

Targeting PRIORITY PROJECTS Jim Plummer, IRRRB

FY 2017 Innovation Grants funding availability and project eligibility criteria and focus

Partnership Meeting LXIII Wednesday, October 19, 2016 (9:00 AM – 12:30 PM)

Mining & Reclamation Classroom, Chisholm

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12:15 Delivering TOOLS and RESOURCES

Large Scale Projects Mapping update (new approach/format) - change project status, definitions and classifications?

Dan Jordan, IRRRB and Tim Pastika, MDNR

Cuyuna Range mapping underway Tim Pastika

12:20 Other Business Updates and Future Topics Facilitator

Future Topics/Presentation Recommendations of LVP Coordinating Committee (January 2017) o Legislative recreation use of mining lands (new draft legislation)

o Envision Model o Recharge the Range Update o St. Louis County land use planning and recreation/Itasca County tie? o State of mining/future opportunities – marketing the region for mining

Future Topics/Presentations (Winter 2017 and beyond) o Environmental panel or focus – Conservationists for Common Sense, or others?

o St. Louis County Trails Taskforce ­ Tie to mining land use and reclamation – plans? ­ ATV use of mining lands for recreation purposes?

o St. Louis County Land Use Plan development ­ Mark Johnson/Barb Hayden/Mary Anderson

o LP – Hoyt Lakes siding plant o State of mining

­ Bankruptcy/projects in jeopardy ­ New/energizing opportunities

o Convene summit on balanced land use o Regional environmental issues – federal and state regs and policy considerations

­ Sulfate ­ Mercury emissions ­ Haze rules ­ Land exchange ­ Class One – tribal lands ­ BWCA buffers ­ Minnesota Clean Power Plan

o The bio-industry opportunity on the Range o Recharge the Range o Lessons learned from T.H. 53 relocation project – multiple stakeholders, how might apply to other future projects o Iron Range Regional Planning – a regional approach to balancing immediate and long-term mining land retention

needs and sustainability expectations with community growth and development needs o Value added iron update o Titanium mining development – new technology o Future charrettes o ManganiFerrous iron ore mining

­ Large scale project updates: PolyMet; Mesabi Nugget; Twin Metals; Magnetation; Essar; UTAC; KeeTac; Mining Resources

o Recognize role as forum (strategy on this); state, federal, county levels, and others

12:25 What’s Next? Facilitator

Meeting Schedule (January/February 2017)

Meeting date and agenda

o Coordinating Committee – TBD Representative from each work group and each sub-regional group

o Laurentian Vision Partnership – January 11th (Wednesday)

Wrap up announcements and conclusions

12:30 Adjourn

ATTENDANCE SHEETS:

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