Board of Commissioners

AGENDA ITEM REPORT

Subject: HRDC Regional Comprehensive Economic Development Strategy (CEDS)

Meeting: Board of Commissioners - 03 Jan 2023
Department: Administration
Staff Contact: Jeff Cadwell, County Administrator

BACKGROUND INFORMATION:
The Headwaters Regional Comprehensive Economic Development Strategy (CEDS) provide an
economic roadmap to strengthen the regional economy. It analyses the strengths and weaknesses
of the Region, establishes a vison for the economy of the Region and creates goals, objectives and
offers useful benchmarks for evaluating process. The primary goal of this document is to create
strategies for a new dynamic innovative economy that links that assets of the Region to generate
new knowledge, start new businesses, and transform existing businesses into thriving 21st century
companies. HRDC staff wish to meet with the Commissioners to discuss our findings, review our
subsequent recommendations for the 2022 – 2026 CEDS, and to seek approval of the strategic
direction and action plan of the CEDS.

RECOMMENDATION:
Approve the recommendations of the 2022 - 2026 CEDS, strategic direction and action plan as
presented upon review.

ATTACHED DOCUMENTS:
2022 Annual Report Final_compressed
2022 Hubbard County CEDS Memo
CEDS Executive Summary compressed
2022 - 2026 CEDS
010320300X Resolution
 ANNUAL REPORT
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2022

INTRODUCTION 2
 CONTENTS A LETTER FROM THE CHAIRMAN
Cal Larson

I N T R O D U C T I O N .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 - 6 I am honored to serve as the Board Chair of the HRDC. It is a joy and

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A Letter From The Chairman . . ........................................................................................ 2 profound personal satisfaction to work with leaders from our region and
From the Executive Director....................................................................................... 3-4 our committed staff who share a collective vision of creating successful
communities.
Commission Members .. ................................................................................................ 5-6

In March, we hired Naomi Carlson as the new HRDC Executive Director.

T A L E N T A N D P R O S P E R I T Y .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 - 2 2
I’m pleased that Naomi stepped into this new role and excited to see her
CARES EDA Planning................................................................................................. 9-10 leadership move the organization forward. Naomi is very passionate about
CARES ACT Business..................................................................................................... 11 providing exceptional service to the entire Region. I’m confident that The
HRFC Lending Activities .............................................................................................. 13 HRDC will continue to make our region better with Naomi and our staff
CARES ACT RLF. . ............................................................................................................ 13 making significant positive differences in advancing our mission of creating
successful communities.
Business Spotlight.......................................................................................................... 14
The region benefits greatly
Economic Development Activities . . ...................................................................... 15-16
The HRDC is a highly effective organization meeting a host of critical from the leadership and
CEDS........................................................................................................................... 19-20 community and economic development needs within the region. This is done dedication provided by the
HRDC Board and staff.
Mahnomen EDA........................................................................................................ 21-22 first by building strong partnerships and cultivating relationships, listening
to what is not being shared. I consider it my great privilege to help align
L I VA B L E C O M M U N I T I E S . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 3 - 3 8 the voices and lead our commission to ultimate results in building healthy,
HHDC............................................................................................................................... 25 successful and sustainable communities. We ARE the “GO TO” organization for our customers. Leading the way by
enhancing our region’s economic opportunities. HRDC is positioned to help offer leadership and commitment to
Akeley Project................................................................................................................. 26
our region.
Beltrami HRA . . ................................................................................................................. 27
CDBG - Covid Grant...................................................................................................... 28 We have continued to work hard on serving our communities in our region through economic development
Supportive Housing . . ................................................................................................ 29-30 activities as well as business lending through the Headwaters Regional Finance Corporation. The HRDC serves our
Housing Rehabilitation................................................................................................. 31 region in supportive multifamily development along with homeownership education and to increase the success of
home buyers. In addition, we provide single family housing rehabilitation resources to increase the quality of existing
Mahnomen & Bemidji SCDP Admin............................................................................. 32
housing. Our third phase: EAST CONIFER ESTATES are nearing completion, that provide affordable housing. This
Home Owner Education​​. ............................................................................................... 33
past year we facilitated bikeable and walkable community workshops that addressed barriers and ways to improve
Down Payment Assistance ........................................................................................... 34 active living in our region. We are also focused on supporting and leading new creative transportation coordinating
100 Cups of Coffee........................................................................................................ 35 opportunities and initiatives and will continue to pursue this work for years into the future.
Racial Equity Accountability Project.......................................................................... 36
NWRECB.................................................................................................................... 37-38 I would like to thank my colleagues who serve and offer their leadership on the Executive Committee: Ron Johnson,
Vice President; Rick Rone, Secretary; and John Nelson; Treasurer. The Executive Committee continues to provide
additional time and commitment to help guide the organization through another exceptionally challenging and
T R A N S P O R TAT I O N , H E A LT H & S A F E T Y.. . . . . . . . . . . . . . . . . . 3 9 - 4 6
unpredictable year. Thank you.
MnDOT Activities .................................................................................................... 41-42
CRP Group and MN197 Project.................................................................................. 43 As we look to the future and the opportunity ahead, I am thankful that I am able to be a part of this commission.
Lake Country Scenic Byways........................................................................................ 44 As we look to the future, we as a Commission will be adding 2 At Large positions to our Executive Board to gain
Local Human Service/RTCC. . ........................................................................................ 45 more expertise and additional perspective. It is a privilege to serve and be a part of such a wonderful, dynamic, and
energized organization.
SHIP............................................................................................................................ 45-46

H R D C S TA F F.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 7 - 5 2
Welcome Intern.............................................................................................................. 49
Welcome New Specialists............................................................................................. 50
HRDC 2022 Staff .. .................................................................................................... 51-52

A L E T T E R F R O M ITNHTER C
OH AN 2
DAUICRTMI O
 FROM THE EXECUTIVE DIRECTOR
Naomi Carlson

As I reflect on this past year, I am grateful and truly honored to be a part of an organization that seeks The HRDC’s commitment to helping our communities in our Region
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to foster authentic relationships within the region in order to create successful communities. The HRDC as a whole be successful looks many different ways depending on
tagline is “Leading the Way,” which effectively communicates our brand to our Region. We, collectively, our customers and partnerships. For transportation we have led
as the HRDC Team, desire to provide the leadership that our Region needs to be successful. and completed an update to the Local Human Service Coordination
Transportation Plan which focuses on improving transportation
The key message that we carry into initiatives, projects, and new partnerships is that wherever we go for the most vulnerable. For our economic development work we
and in whatever we do, people are most important. We base our work on valuing others and what their have been able to provide staffing for the Mahnomen EDA. We
needs are. This is the HRDC way. We want others, our customers and partners, to be in the spotlight. If have addressed our region’s affordable housing needs through
this is happening we as a staff and as a Commission are successful. both building new housing and managing rehabilitation of aging
housing. We have also supported new and existing businesses
The HRDC seeks out opportunities to actively encourage participation of people whose voices have through various loan funds. It is such a complete joy to be a part
historically not been at the table as important issues are discussed. Our organization continues to of a staff team that is committed to the local communities needs
step into work activities recognizing the importance of listening to a broad range of viewpoints and and challenges and also supporting the health and well-being of
promoting equitable solutions to community issues. I am so proud of our staff team for pressing into this entire Region.
these partnerships. This is not always the easiest way, however, often times it is the most rewarding. Naomi Carlson
The following pages provide a deeper dive in the wonderful
What I want our partners to know about the HRDC is that we exist to serve our communities. The HRDC programs and initiatives our HRDC staff team have been a part of
staff team and Commission are committed to finding creative solutions to community issues. We support over the past year.
and champion new opportunities and get behind those voices that are not being heard. We partner with
customers in our region who try new approaches to issues that have been hard to find solutions for in
the past. We connect with customers and provide leadership through facilitating conversations across
multiple sectors and around many important issues. We want to build healthy, sustainable and equitable
communities, which happens one healthy relationship at a time.

The HRDC is committed to helping our communities in

our Region as a whole be successful looks many different
ways depending on our customers and partnerships.

F R O M T H E E X E C U ITNI V
TRE ODDI R R 4
U ECCT TI O N
 COMMISSION MEMBERS

The HRDC is governed by a 25 member Commission,

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with a large majority of the members consisting of local elected officials.

• 6 | County Commissioners • 3 | American Indian Tribal Council Representatives

• 5 | Mayors or Councilpersons from Small Cities (one each from Red Lake, White Earth, and Leech
• 4 | Township Board Members Lake Reservations)
• 2 | School Board Members • 4 | Citizens representing public interests (business,
• 1 | Mayor/Councilperson from Cities over 10,000 higher education, natural resources, and labor)

Executive Committee:

• Cal Larson – Chair • John Nelson – Treasurer

• Ron Johnson – Vice Chair • Rick Rone – Secretary

The present membership is as follows:

• Ed Arneson – Lake of the Woods County Townships • John A. Nelson – Clearwater County

• Allen Bedford - Higher Education • Buck Nordlof – Lake of the Woods County

• Peter Buesseler – Natural Resources • Larry Olson – Mahnomen County

• Randy Finn – Leech Lake Reservation • Jay Pike – School Districts

• Grant Frenzel – Business • Rick Rone – Lake of the Woods County Small Cities

• Craig Gaasvig – Beltrami County • Nicholas Seitz - Beltrami County Small Cities
Commission Members at the May 2022 meeting
• Theora Goodrich – Hubbard County Townships • Todd Turner – Mahnomen County Townships

• Mike Harrom – Labor • Ted Van Kempen – Hubbard County

• Ron Johnson – City of Bemidji • Bobbie Wosika – Hubbard County Small Cities

• Cal Larson – Clearwater County Small Cities • Sarah Young – School Districts

• Deb McArthur – Mahnomen County Small Cities • Vacant – Clearwater County Townships

• Brian Merschman- Beltrami County Townships • Vacant – White Earth Reservation

• Michael Meuers – Red Lake Reservation

C O M M I SISNI T
ORNOM
DEUM
CT S 6
B IEORN
 TALENT &
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PROSPERITY
C A R E S E D A P L A N N I N G

CARES ACT BUSINESS

C A R E S A C T R L F

H R F C L E N D I N G A C T I V I T I E S​​​

R L F A C T I V I T Y

H R F C B U S I N E S S S P OT L I G H T

ECONOMIC DEVELOPMENT ACTIVITIES

CEDS

M A H N O M E N E D A

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 CARES EDA PLANNING

COVID-19 Planning Regional Economic Recovery & Regional Mobile

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The rapid spread of the novel coronavirus has caused major disruptions to businesses and communities across
Resiliency Planning Market Data Analysis
the world. COVID-19 has been devastating to the Headwaters region’s economy. Exacerbating the situation
is the region’s dependence on tourism and service industries which were hit hardest during the pandemic as The U.S. Economic Development Administration has outline During the summer of 2021, HRDC staff
demand for products and services declined as consumers were encouraged to avoid travel and public spaces. The new investment priorities for their grant programs with partnered with UMN Extension to utilize
most immediate need at the time were the businesses. Equity being top priority. These priorities ensure that mobile consumer tracking data to better
their grant investment portfolio contributes to building, understand the markets that the three
In partnership with EDA’s Chicago Regional Office, the Headwaters Regional Development Commission (HRDC) improving, and better leverage economic assets allow retail corridors of the Bemidji community
received a CARES Planning Grant to undertake short-term and long-term economic development planning and businesses to succeed and regional economies to prosper. serves, regionally. By obtaining points of
coordination to assist with the Economic Recovery and Resilience Plan for the region’s economy. A few short-term With Equity being a top porosity, it will be woven throughout origin data and trip data within Bemidji
projects led by staff include the Northwest Regional Broadband Gathering and CARES Act Business Assistance the Region’s Economic Recovery & Resiliency Plan as it is an about its regional market, it will help
Programs. To date, HRDC staff have processed 271 applications and has awarded $3.1 million total in grants economic priority for the region. The strategies of this plan businesses within the corridors better
funds to businesses. During this past year, staff have also been working closely with the Blandin Foundation focus around six economic essentials to ensuring economic understand who they are serving and
and Northwest Regional Development Commission to address broadband access and led the Blandin Broadband resiliency that include the following: develop more targeted marketing and
Communities Program for the City of Mahnomen. customer service plans based on this
• Career Building and workforce and skills training
information. The scope of this project
• Broadband Access and Development will follow a customized mobile data
• Childcare Access analysis research protocol to include:
collection data and do initial analysis, peer
Northwest Regional Broadband Gathering • Building the Entrepreneurial Ecosystem
review of analysis, preliminary results
• Housing Access and Affordable Housing Options review, write full report, send report out
The Blandin Foundation partnered with HRDC and Northwest Regional Development Commission partnered to for peer review, revise report based on
• Connecting Community to Physical Assets
host the Northwest Regional Broadband Gathering. Staff facilitated the conference to raise awareness among peer review, facilitated discussion. The
elected officials (city, township, county, and state) of the region’s broadband needs and opportunities, and • Supporting Main Streets and Community Hubs
final report will also provide strategies
increase their commitment to support investments in both. The information gathered from this regional cohort Region’s Economic Recovery and
was shared at a Statewide Conference in October 2021 to showcase and amplify successful work underway The tourism industry in the Headwaters Region is a
Resiliency Plan.
across Minnesota to advance broadband access, adoption, affordability, and use. It will also be used in the Region’s critical part of the economy and creates much of the areas
Economic Recovery and Resiliency Plan to provide long-term strategies to becoming a globally accessible region. employment. The COVID-19 pandemic has highlighted
Attendees at the gathering learned and participate in the following: a need to not only diversity our workforce but to develop
long-term strategies to adapt and become more resilient.
• Broadband data and trends due COVID-19 The plan will include economic resiliency indicators
that play a role in the future of the Region’s economic
• How our region is addressing broadband
recovery and resiliency that include aging workforce and
gaps in broadband, affordability, access,
workforce shortage, supply chain disruptions, and industry
and adoption
diversification and advance technology. The final plan will
• Finance tools for local governments to be completed prior to the CARES Planning Grant period of
support broadband infrastructure July 31, 2023 and shared with regional partners and local
• An opportunity to share perspectives government units.
and voice their concerns on broadband
challenges

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 CARES ACT BUSINESS HEADWATERS REGIONAL
HRFC & HRDC Supporting Businesses through Pandemic FINANCE CORPORATION
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In partnership with EDA’s Chicago Regional Office under the CARES Act Disaster Recovery and Resiliency Wrapping up over $3 million in COVID Relief funding to businesses in the region
Grant, the Headwaters Regional Development Commission has been tasked to undertake short-term and
long-term economic development planning and coordination focused on pandemic recovery and resiliency.
To assist with planning efforts, HRDC hired Antonio Franklin, Economic Development Planner, to act as the Headwaters Regional Finance Corporation (HRFC) is a subsidiary of HRDC charged with providing business
COVID-19 recovery coordinator. He has been tasked with providing technical assistance to communities and financing to start-ups and existing businesses to meet their capital needs from real estate purchases to equipment to
non-profits in the region and implementing economic resiliency projects throughout the region in response working capital. HRFC houses five loan funds within the organization with a total asset base of nearly $7 million. In
to the pandemic. addition, our staff provides administrative support and loan analysis to nine city, county, or utility company revolving
loan funds in our 5-county region. HRFC staff works closely with local banks and other lending partners to structure
A highlight of our assistance to in providing emergency financial assistance to small businesses experiencing loan packages which will provide comprehensive financing terms to start-ups and businesses looking to grow.
financial hardship due to COVID-19 related restrictions. This work involved developing policy, processing
grant applications for qualified businesses, direct marketing, and managing reporting for local governments. Our main loan fund, designated as our General Fund, originated from the federal Economic Development
In addition, we provided grant recommendations based on a scoring method and a financial assessment of Administration and has been in existence for over 40 years and has grown to an asset base of $3.2 million. This
each applicant. To date, HRDC staff has processed 271 applications and has awarded $3.1 million total in fund was recently de-federalized, providing more flexible lending options for future financing requests. Our newest
grants funds to businesses in the Headwaters Region. The following local governments have been assisted fund originated during the pandemic as the HRFC received a grant in the amount of $3,140,000 from the EDA for
by the HRDC to coordinate their CARES Act Business Assistance Program: City of Bagley, City of Blackduck, COVID relief efforts. Staff has worked extremely hard to get these dollars out to businesses and we can happily
Clearwater County, Hubbard County, Lake of the Woods County, and Mahnomen County. report the full balance has been loaned out or committed. Discounted rates as low as 0% provided an incentive in
this challenging economic environment for a business to access needed working capital, facilitate a purchase of a
business, or to help fund its expansion plans. To date, this fund has assisted in creating /retaining 358 jobs in less

The Northwest Angle Loan Program than two years.

The HRFC also received funds from Minnesota Department of Employment

HRFC has been administering a new Business Grant program which was created specifically for Angle Inlet in
and Economic Development’s (MN DEED) Emerging Entrepreneur Fund.
Lake of the Woods County. HRDC staff compiled gross revenues from prior COVID grantees in Angle Inlet Loans by County
This fund is targeted for loans to businesses owned by women, BIPOC,
to make a recommendation of funding allocation to our State Representatives. Due to the border closures
veterans, disabled, and low-income persons. We have committed
between U.S. and Canada, these businesses experience significant economic impact. The Northwest Angle Mahnomen
our first $75,000 allocation and were awarded an additional 8.1%
loan program was open to any “remote recreational business” in the area that lost more than 30 percent of
$100,000 to lend. Finally, the HRFC successfully completed
its revenue between March of 2020 and 2021 and was impacted by the border closure. The strong growth
its first award from MN DEED, originating ten years ago,
across the Headwaters Region in recent years has contributed to a demand for financing options like our
which was a pre-curser to the Emerging Entrepreneur Fund.
RLFs. The financial support provided to businesses was critical to keep the business community thriving
With this fund the HRFC provided $177,000 in loans to five
through this challenging time.
majority women-owned businesses during this period. Lake of
the Woods
24.2%
To date, HRDC staff has processed 271
applications and has awarded $3.1 million
total in grants funds to businesses in the
Headwaters Region.
Hubbard
1% Beltrami
54.5%
The HRFC team remains committed to serving the businesses of
our region with a variety of lending tools and deep partnerships. Clearwater
12.1%
We strive to be valued advisors for our borrowers and look
to maintain trusted relationships with lenders, partners, and
businesses throughout the region. For more information check out
our website at www.hrdc.org/business-finance.

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 RLF ACTIVITY BUSINESS SPOTLIGHT
of the HRFC revolving loan funds
*Includes CARES Act RLF Data
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Four Pines Bookstore

Great things happen when people follow their passion. A lover of books herself,
Gina Grinde wanted to offer an extraordinary reading experience to her
customers. She received a loan from HRDC in April 2021 to open Four Pines
Bookstore, the only independent bookstore in Bemidji. Gina used her loan to
purchase inventory, furniture, and shelving.
$20,359,851 225 3037 3366 The loan has zero interest for 2 years and
Funds Disbursed Total Loans Jobs Created Jobs Saved she has used the savings to purchase a wider,
uniquely curated variety of books. Being
able to offer our borrowers loan funds at an
initial zero percent rate has really been an
accelerant to small business in our region
during the pandemic. June 11th marks the
1-year anniversary for Four Pines Bookstore.
Congratulations to Gina on her first year of
business!

CARES ACT RLF ACTIVITY

Since origination of the fund in mid-2020

Loans used for Working Capital, Fixed Assets, and 3 Start-Ups Hatchet House
Hatchet House is the newest venue for family
entertainment in the Bemidji area. It opened Spring
Loaned out $3,140,000* of 2022 in downtown Bemidji. Owner, Melissa Olson,
wanted to bring a new type of venue to Bemidji,
researched the growing trend of axe throwing, and
decided it would be perfect for this northwoods
25 Loans* community. She secured a loan from a local bank to
complete renovations on the building, and HRFC
provided $63,000 in gap funding for the purchase of
inventory, equipment and working capital from the
358 Jobs Saved & Created CARES Act RLF Fund. The venue boasts not only axe
throwing, but foosball, giant Jenga and other games, a
variety of food and beverage options, and has the ability
to host private parties.
*Includes two loans committed, but not yet funded.

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 ECONOMIC DEVELOPMENT
ACTIVITIES

Bemidji Area Makerspace

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The Headwaters Regional Development Commission (HRDC) was

designated as the Economic Development District for the region in
1974. The HRDC receives annual Partnership Planning assistance from
HRDC staff provided technical assistance to Greater Bemidji, a local economic
the United States Department of Commerce Economic Development
development organization in Bemidji, Minnesota. We worked closely with our local
Administration (EDA) to administer the economic development
partner to develop a makerspace model for the Bemidji area called the STEAM Factory.
programs for Beltrami, Clearwater, Hubbard, Lake of the Woods, and
Mahnomen Counties located in north central Minnesota. It is a 3-year
To add to the strong entrepreneurial
program that must follow the Standard Scope of Work outlined by the
ecosystem, this project will function
EDA. A new EDA Partnership Planning Grant was submitted for FY2022 -
as an entrepreneurial incubator and
2025 The planning grant scope of work includes the following:
workforce training and educational
resource. It will serve and benefit
1. Prepare and maintain the Comprehensive Economic Development Strategy
the community by allowing members
• Collect data relevant to the regional economy to gather and pursue their passions while catering to the development of their future
• Identify opportunities/issues and define vision/goals for the region through the sharing of knowledge, hand-on skills and resources.

• Create strategies to accomplish goals

The mission seeks to bridge the divide between traditional education paths and real-
• Coordinate activities to implement these strategies world industry. Partnering directly with local community and industry leaders, we
• Create prioritized list of TA and Public Works projects are developing educational training and certification opportunities that directly align
and evolve with industry demands. Solidified by the foundation of supporting the
2. Aid local economic development related activities and act as a liaison between appropriate state and federal independent passions and the entrepreneurial aspirations of our members.
interests.
During this past year, HRDC staff put together 5 makerspace case study models from
3. Promote growth, development and retention of businesses and industry within the region. both Minnesota and South Dakota. These studies help the Advisory Committee form
the comprehensive business model and to identify revenue streams and opportunities
4. Provide economic development support to counties within the region, filling in gaps and providing services for growth. Staff also helped organized and facilitated weekly planning meetings with
for which they lack the capacity or resources to fill. the Makerspace Advisory Committee between October 2021 – January 2022. Staff
and partners met with stakeholders to solicit in-kind equipment and fiscal donations
5. Provide technical assistance for grant writing and administration and access to region wide demographic to the project. $80k of in-kind donations was received from the community. Lastly,
and statistical data we presented the Makerspace concept to stakeholders at the Greater Bemidji Board
meeting. The next benchmarks included identifying additional funding sources and
• Provide monthly updates on grant resources and regional statistics to regional partners
grants and a new site location.
• Maintain resource databases of grant sources

6. Work closely with the Economic Development Representative and EDA staff to develop future potential
economic development projects
Partnering directly with local community and
HRDC staff completed the following activities to reach the goals and objectives of the approved Partnership industry leaders, we are developing educational
Planning Grant scope of work. The following list of activities is not an exhaustive list of the activities HRDC has training and certification opportunities that directly
completed to meet the scope of work, but gives an overview of major initiatives undertaken this past year.
align and evolve with industry demands

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 ECONOMIC DEVELOPMENT
A C T I V I T I E S (Cont in u ed )
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White Earth Nation Integrated Resource Management Plan (IRMP)

As part of the EDA Partnership Planning Grant, it provides capacity for HRDC Staff to provide technical assistance
to communities throughout the Region. The White Earth Nation Natural Resource Department Integrated
Resource Management Plan is a great example of the technical assistance provided. Staff have been working on
the IRMP this past year to create a culturally grounded 10-year comprehensive plan.

Last year, White Earth Nation Natural Resource Department hired

HRDC to create a culturally grounded comprehensive natural
resource plan that includes more community input. Staff facilitated
community input and visioning meetings with Tribal Community
Council throughout White Earth Nation and with the Natural
Resource Department Staff. Information from these meetings was
incorporated into the Community Concerns & Issues Survey. Staff
also created GIS maps to reflect natural resource assets. The final
IRMP plan will be completed this summer and an interactive digital
GIS and story mapping platform will be available online.

City of Mahnomen Water

Infrastructure Resiliency Project

HRDC Staff are providing grant administration to the Economic Development Administration’s Economic Adjustment
Assistance Grant for Water Treatment Infrastructure Resiliency Project in the City of Mahnomen. The services
include direct administrative services to the City of Mahnomen to implement the grant, submit reporting, and post-
award closeout and Reporting. The city received the grant in to make improvements to the Water Treatments
Plant. The project would improve community resiliency with the new equipment and technology upgrades. The
infrastructure improvements are expected to be completed by Spring of 2023.

The project would improve community resiliency

with the new equipment and technology upgrades.

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 COMPREHENSIVE ECONOMIC Community Stakeholder Survey
DEVELOPMENT STRATEGY (CEDS) Highlights
In the preliminary planning stage, HRDC
Over the course of the last year, HRDC reached out
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staff selected the CEDS Strategy Committee

A New Vision for the Region members. The CEDS Strategy Committee is to community members and representatives from the
comprised of a broad ranges of community region’s top industries for input on what our stakeholders
The Headwaters Region will be a region that is inclusive, adaptive, innovative, and globally accessible. leaders that included both the public think about the local economy, workforce, quality of life,
Our region will have: and private-sector. They represent and other data. HRDC completed a survey of community
following industries: local government, stakeholders in March 2021 and qualitative interviews of
• Inclusive wealth building initiatives
tribal government, education/higher Ed, leaders from top industries in January 2022. While there
• Resources to support innovation, entrepreneurs, and start-up companies workforce development, manufacturing, was limited response overall, what data we were able
• Sustainable and equitable economic growth private business, tourism, healthcare, to collect was largely consistent and provides valuable
banking/financial services, and arts/culture. insight into community views and attitudes.
• Cultural and natural resource capacity growth
Also, diversity, equality, and inclusion were
• A Robust workforce of the future considered during the selection process In the survey we were able to get 56 respondents from
• Global accessibility for remote working of the committee. In total, twenty-six the around the region with each county representing
individuals serve on the committee. The at least 12% of the responses, and Beltrami and Lake
• A healthy and resilient natural environment
CEDS planning process and evaluation of the Woods Counties having the largest proportions
As the Federal Economic Development Administration’s (EDA) framework will be overseen and assisted by at 33% and 27% respectively. Most respondents were
designated Development District for the Region, the HRDC Strategy Committee Members. employed (59%) and the industries they were employed
develops a Comprehensive Economic Development Strategy in varied significantly, with Government/Public Service
(CEDS) every five years. The CEDS provides an economic roadmap to strengthen the regional economy. The CEDS To ensure public outreach and engagement being the largest single category at 26%; most of the
analyzes the strengths and weaknesses of the Region, establishes a vision for the economy of the Region, creates in CEDS process, a community stakeholder region’s top industries (Accommodations/Food Services,
goals, objectives, and offers useful benchmarks for evaluating progress. The primary goal of this development survey and stakeholder interviews were Construction, Education, Public Admin, Healthcare,
strategy is to create strategies for a new dynamic innovative economy that links the assets of the Region to generate conducted. The survey contains questions Retail) were represented with at least 1 response.
new knowledge, start new businesses, and transform existing businesses into thriving 21st century companies. formed around the Strengths, Weaknesses,
Opportunities, and Threats Analysis (SWOT). There was strong evidence in the survey that respondents
The CEDS uses the Minnesota Association of Development Organizations’, DevelopMN Plan as its organizing The survey will be used in the development recommend the region as a good place to visit (91%),
framework. DevelopMN provides a common outline for regional economic development, and identifies approaches of a new CEDS document. HRDC sent live (96%), and start a business (85%), although this is
to address the special challenges and opportunities of Greater Minnesota. DevelopMN identified the following the survey to clients, businesses, local tempered by views that opportunities are not equally
cornerstones as key components of strong regions and communities. When approached in a coordinated way, these government officials, and agency partners. accessible to all. On Diversity and Inclusiveness, 76% of
cornerstones will help create prosperity in Greater Minnesota through these four focus areas: New data software from Chmura Economics respondents gave the region a grade of “B” or lower and
was used in the inventory analysis to generate 67% of respondents disagreed or were neutral when
more details reports and more informed asked if “all residents have equal access to economic
Human Capital: Tracking the characteristics of the Community Resources: Assets
decisions about our region’s economy. opportunity.” Regarding education and careers, 52% of
labor market and needs of employers will enable us that improve the quality of
respondents either disagreed or were neutral about a
to create strategies for alignment. Long-term, this community life
Last steps to adopt the CEDS include a question asking if “education and job training are available
will mean that our rural communities continue to be
30-day public notice will be required for to residents who really need it” and 70% of respondents
desirable places to live, work, and play.
public comments. The CEDS will also be either disagreed or were neutral when asked if they
Foundational Assets: Above- agreed with the statement “I can advance in my chosen
presented to the Region’s 5-County Boards
ground and below-ground career.” In the other comments option, one respondent
Economic Competitiveness: Growth, income for approval and resolutions to adopt the
infrastructure such as summed it up with the statement “I feel like the rate of
levels and income growth, innovation, exports, plan and followed by the HRDC Commission.
transportation, utilities, and success is directly related to who you are.”
and GDP The final CEDS document will be completed
waters
by July 31, 2022.

TA L E N T A N
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DT PRROODSUPCETRIIOT N
 MAHNOMEN COUNTY EDA
Working Towards Capacity Building
Page 13 of 75

Mahnomen County consistently experiences higher The three governments approached the HRDC for
unemployment rates than the rest of Minnesota. help in creating an economic development entity to
Coinciding with high unemployment rates are serve the “greater Mahnomen County” area. They
high poverty rates and low incomes. Adding to the all saw a need for a local entity that could undertake
complexity of the issues, Mahnomen is the only multijurisdictional projects that encourage job Blandin Broadband Communities Program (BBC) - Mahnomen
county in Minnesota located entirely within the creation and business development in the area.
boundaries of an Indian Reservation. We can look The HRDC led a group of County, City, and Tribal HRDC staff wrote a grant for Mahnomen County EDA to receive $75,000 from the Blandin Broadband
at these economic distresses as a challenge or an stakeholders through a planning process focused on Communities Program. The purpose of the grant is to implement a variety of technology-based projects that are
opportunity. Because of these socioeconomical identifying opportunities for partnership, reflecting equitable and resilient in designed to increase capacity to support training, improve public access to broadband,
barriers, it allows an opportunity to quality for more on their mission, and outlining the organization’s and education. Staff served as the Project Organizer to lead locally developed projects that address community-
resources to improve the community. approach to its work. Stakeholders agreed that identified needs and opportunities around broadband. Staff formed an inclusive steering committee representing
there was a need to establish a county economic a broad range of individuals, facilitated community visioning meetings, and managed the project. The grant will
The City of Mahnomen, Mahnomen County, and the development authority, which could work at these support 8 broadband technology-based projects in Mahnomen County.
White Earth Reservation all have a stake in the future issues at a county level.
of the area and share the same challenges, yet there is
no entity working on behalf of all three stakeholders. Broadband projects include: Other projects staff provided
support on include:
• Mahnomen County Co-working Services Launch

• Youth Summer Asset Map GIS Project • Financing Your Business Panel

• White Earth Tribal Community College Digital • Manoomin Arts initiative

Building Staffing Capacity FY 22 Total Grant Funds
Marketing Geofencing Campaign
Received • NADO White Earth Nation Transportation
With the significant increase in economic • Mahnomen County EDA Website, logo & Laptops Workforce Technical Assistance
development activities in Mahnomen County this
• City Hall Conference Room Audio/Video Technology • MMCDC Housing Development
past year, the Mahnomen County EDA Board of
Directors have a high-priority in building capacity
$108,400 • HHDC Single-Family Housing
• Computers & Inventory Software Helping Hands
for the organization. The ultimate goal of MCEDA is Food shelf
to hired a full-time Director. To support short-term • Region 2 Arts Council Arts Project Grant
$75k • Digital Education for City of Mahnomen Library for Wild Rice Day
capacity gaps, HRDC staff helped increase staff to
Blandin Broadband Communities Program
support tourism marketing and broadband access • Wild Rice Day Arts & Cultural Festival
• White Earth Tribal Community College Digital
and development. These efforts collective will help Coordinator
$25k Bookstore
move the community forward to becoming more
resilient and sustainable. NADO White Earth Nation Transportation
Technical Assistance Grant
The service launch in
• Lead for America Host - Digital Equity
Waubun will include
Resiliency Coordinator free access for 2-years
$5,900 to the co-working space
• UofMN RSDP Grant for Marketing & Social
NW Rural Sustainable Development Partnership for White Earth Nation
Media Coordinator
tribal members and the
Mahnomen County EDA
$2,500 for entrepreneurs.
Region 2 Arts Council Arts Project Grant

TA L E N T A N
IN Y 22
DT PRROODSUPCETRIIOT N
 LIVABLE
Page 14 of 75

COMMUNITIES
HHDC

AKELEY PROJECT

B E LT R A M I H R A

CDBG – COVID GRANT

SUPPORTIVE HOUSING

H O U S I N G R E H A B I L I TAT I O N

M A H N O M E N S C D P A D M I N​​

B E M I D J I S C D P A D M I N​​

D O W N PAY M E N T A S S I S TA N C E

H O M E O W N E R E D U C A T I O N​​

100 CUPS OF COFFEE

NWRECB

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 HEADWATERS HOUSING AKELEY VACANT
DEVELOPMENT CORPORATION (HHDC) HOUSE PROJECT
Page 15 of 75

HHDC is HRDC’s nonprofit housing corporation. It is governed by HRDC staff began working with the Akeley HRA
a Board consisting of one member from each of the five counties; back in 2019. This collaboration began with a candid
the majority must be HRDC commission members and this year consulting meeting which provided the group with
all five are. Rick Rone represents Lake of the Woods county, Larry preliminary information and resources. The group
Olson represents Mahnomen, John Nelson represents Clearwater, Brian Mershman represents Beltrami, and Jay was highly motivated to pursue housing projects,
Pike represents Hubbard county. The mission of the group is to ensure quality and affordable housing options to but did not have the financial resources to pay for
moderate- and low-income households either independently or through strategic partnerships. a staffing contract. Eventually a grant opportunity
through the Rural Community Development
HHDC can act as Developer / Owner, construct Single-Family housing, apply for grants (such as those through Initiative (RCDI) arose which HRDC applied for and
Minnesota Housing Finance Agency), finance development through construction loans, provide consulting services, was awarded. This allowed staff to meet with Akeley
and Acquire / Rehab / Resale or rent out houses on the market. One of HHDC’s most rewarding projects is the HRA on an ongoing basis to discover their needs,
partnership with the Bemidji High School Construction Class which builds one or two homes each year under interests, and concerns. Through these discussions,
the guidance of licensed instructors and professionals. This initiative is successful due to the hard work of the staff and board identified a vacant home which
construction teacher championing the project. The Board believes that supporting student’s interest in pursing the needed to be put back into productive use. The tenant had unfortunately passed away and the house started to go
trades as a career path is important to the success of quality and affordable housing in the region. An addition to the into tax forfeiture. There were multiple households interested in acquiring the house, but there were multiple liens
project this year is that the student’s custom built all the cabinets throughout the house. resulting in a title nightmare and significant frustrations in the community. Staff worked with multiple agencies to
negotiate and pay off the liens and clear up the title issues.
The HHDC also developed two new Single-
Family homes in Park Rapids. These are set Below is a list of agencies staff worked with in order to accomplish this task.
to sell by the beginning of FY23. These homes
1. Greater Minnesota Housing Fund - Owner
were built on a tax forfeiture lot thereby
putting the land back into productive use. 2. Hubbard County – County Taxes
These homes were built on a slab with in- 3. Akeley city – City assessments for Water / Lawncare
floor heat, 3 bedrooms, 2 bathrooms, and an
4. Minnesota Housing Finance Agency (MHFA) – Rehab loan through Amerinat
attached double stall garage.
5. Lake-N-Woods Realty – Sale of home
HHDC High School Build Looking forward, the HHDC was awarded 6. Lakes & Leisure Realty – Brokers Price Opinion for MHFA
funding to build 2 more Single-Family homes
7. Bonded lock and Key – Change out the locks
in the region. The Board has acquired one lot
in Blackduck and is actively seeking a potential 8. Utility companies – Heating/Electrical vendors
location in Mahnomen county. 9. Leer title – Sale of house
10. Northwest Minnesota Foundation – Capacity building grant to work with AHRA
11. RCDI – Initial hours to work with AHRA
This initiative is successful 12. HHDC – Paid off rehab loan which was then repaid at closing
due to the hard work of
the construction teacher Once the house was listed for sale staff received more than 20 notifications of interest in the house and ultimately
received six offers with three above asking price. Upon sale, the Akeley HRA was able to pay back HHDC and retain
championing the project. a little less than $13,000 in profit to be used as seed funding for the first time in years. They plan to use these dollars
HHDC Park Rapids House
to reinvest in their community and build internal capacity.

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 B E LT R A M I C O U N T Y H R A CDBG NEW
Beltrami Housing & Redevelopment Authority DAY C E N T E R
RETROFIT
Page 16 of 75

The Beltrami County HRA (BHRA) contracts

with HRDC to provide services to meet their The City of Bemidji has historically had very limited
mission of providing quality and affordable services for homeless community members. In 2016,
housing options to low and moderate-income the Nameless Coalition for the Homeless (NCH)
households. The staffing package includes meeting administration, organizational development, financial opened the Wolfe Shelter as a seasonal overnight
shelter for single adults needing a warm, safe place to The building needs to be sprinkled. The carpeting is
management, construction oversight, property management, and down payment assistance.
sleep who are either in chronic homeless situations from the seventies and in need of replacement. There
or for those facing crisis situations who need shelter. are also likely asbestos tiles that need mitigation.
Board Members
The need for an additional day shelter continued to
The HRA is led by five Board Members. The current membership be discussed by the community and the need became Once the retrofit of this building is complete, the
consists of Travis Barnes, Orlando Alamano, Max Cloose, Jacky even more pronounced after COVID-19 began outdated and non-conforming building will be
Richter, and Jaime Niswander. sweeping through the community. modernized and ready to contribute another thirty
years of activity in Bemidji. The Day Center will not
Down Payment Assistance NCH formed a building subcommittee in May of only help prevent COVID-19 spread, staff will also
Kelliher 2020 with hopes for a day shelter. After months of be available to help someone who does contract the
As funds are available staff leads an entry cost assistance program
searching for a suitable building, Sanford Health virus to keep them and others safe. The Day Center
for home buyers in Beltrami County. These funds can be used for
of Bemidji offered to donate an unused building, will also serve as a safe haven for people as they
down payment assistance or closing costs and are repaid by the Blackduck and NCH was able to open the New Day Center in search for the services to help them find stability
borrower. Funds are recycled to keep the program going and allows
December of 2021. At 8,000 square feet, there is and happiness. The new space will also give area
eligible households to get into homeownership that may not have
ample room to allow people to safely spread out to service providers one more tool in their toolkit as
otherwise been possible. Bemidji they provide housing, healthcare, therapy and other
prevent the spread of the virus. The building also has
over twenty small offices, which are being offered to services for their clients.
Affordable Housing partner agencies as “satellite offices” to help them
The BHRA owns several rental homes in Beltrami County, including in Bemidji, Kelliher, and Blackduck. Some reach clients where they are, thereby eliminating To complete the retrofit, NCH partnered with HRDC
of these homes are managed as Transitional Housing by Bi-CAP and some are managed as rentals by HRDC a cumbersome hurdle of inadequate public and the City of Bemidji to apply for a competitive
staff. Additionally, the BHRA serves as the public owner for the Village of Hope (a family homeless shelter) and transportation. Along with provided office space for COVID-Related Community Development Block
Conifer Estates (a multi-family Supportive Housing Development). services, these rooms are available to quarantine Grant through the Department of Education and
guests showing any symptoms of COVID-19. The Economic Development. There was a very short
breadth of services offered at the New Day Center timeframe for the application, and HRDC worked
include a safe and warm space to be during the day, closely and quickly with Bemidji and NCH to write
laundry, space to clean up, wi-fi, and connections to and submit the grant. $570,000 was awarded in
mental health resources, health related services, 2021 to support the repairs. Since then, HRDC
community resources, housing support, life skills, and completed an environmental review and the project
employment opportunities. was approved for work to begin. Widseth was
selected as the architect/engineering firm and has
Unfortunately, the Day Center building has some completed design work, and contract bids are set to
deficiencies. It is split-level and a chair lift will need to be awarded in June 2022 so that construction work
be installed for universal access to either floor. ADA can be complete by the end of the year. HRDC will
compliant showers and toilets will be needed. The be with the project through completion to provide
roof is old, leaky and flat and will need to be replaced. administrative services for the grant and project.

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 SUPPORTIVE
HOUSING
Page 17 of 75

Homelessness and housing instability are ongoing challenges for many households in our Region. Availability of
affordable housing continues to be a critical issue with at least 25% of households paying more for housing than is
considered affordable. Nearly one-third of homeless adults are employed and a majority of the homeless population
has a chronic mental or physical health condition. Supportive housing links affordable housing units with services
that are tailored to meet the needs of the population being served. Services are designed to foster housing stability
and improve health and quality of life for the residents.

Conifer Villas
The second phase of the campus, Conifer Villas,
is owned by Conifer Villas LP and developed by
Conifer Villas GP LLC, which is governed by the
Headwaters Housing Development Corporation
(HHDC) and HRDC staff manage it. Construction
was completed in May of 2021 and was fully
occupied shortly after. This project consists of
4 buildings, each containing 8 townhome style
units, including one-, two- and three-bedroom
units. There is a community building located
on-site which is used by staff to provide the
supportive services that are needed by the East Conifer Estates
Conifer Estates residents to ensure successful outcomes for The third phase of the Supportive Housing campus
Recognizing the need to address rising local homelessness and the shortage of supportive housing, multiple the entire household. Services at Conifer Villas is East Conifer Estates. Construction began on East
organizations have collaborated to develop and operate the Conifer Campus in Bemidji. The Beltrami County Housing are provided by Housing Matters and Red Lake Conifer in August 2021 with occupancy expected in
and Redevelopment Authority, as owner, and Headwaters Housing Development Corporation, as developer, built Housing Authority. Rental assistance comes from August 2022. This project will provide an additional
Conifer Estates, a 20-unit complex which opened in 2012 and has been operating since. Red Lake Housing Authority Housing Supports through Beltrami County Social 24 supportive housing units. Construction financing is
and Leech Lake Housing Authority each master lease five units and provide support services, with the other rental Services, Section 8 Housing Choice Vouchers being provided by Minnesota Housing’s Infrastructure
assistance and support services provided by Bi-CAP and Section 8 Housing Choice Vouchers through the Bemidji through the Bemidji Housing & Redevelopment Bonds and Federal Home Loan Bank’s Affordable
Housing & Redevelopment Authority. Authority, and rental commitments from Red Lake Housing Program grant. Services will be provided by
Tribal Housing. This 32-unit project was financed Housing Matters with rental assistance being provided
mostly by Low Income Housing Tax Credits. A by Housing Supports, Red Lake Housing Authority,
ribbon cutting ceremony upon completion was and Section 8 Housing Choice Vouchers through the
Availability of affordable housing continues to be a critical issue with at least attended by Senator Tina Smith and Housing Bemidji Housing & Redevelopment Authority.
25% of households paying more for housing than is considered affordable. Commissioner Jennifer Ho.

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 MAHNOMEN & BEMIDJI
SCDP ADMIN
Small Cities Development Funding serves regional rehabilitation projects
Page 18 of 75

Housing programs that HRDC

is involved in can vary from
year to year, although the
ongoing goal is to help preserve
and maintain current housing
stock. HRDC is currently
working on two housing
projects in partnership with
the Minnesota Department
of Education and Economic
Development (DEED).

The Small Cities Development

REHABILITATION IN PARTNERSHIP Program helps cities and

counties with funding for

WITH MINNESOTA HOUSING housing, public infrastructure,

and commercial rehabilitation
New Tin Roof

projects. HRDC has administered the small cities program for a

Headwaters Regional Development Commission works with and is an administrator for Minnesota Housing’s number of years and currently has two active programs.
Rehabilitation Loan Program (RLP). This program reaches the extremely low-income households who cannot
access traditional forms of financing. This financing is made available to make necessary improvements that In 2020 the City of Bemidji was awarded a grant of $388,125 from
directly affect the safety, livability, or energy efficiency of owner-occupied homes and is a lifeline to home- DEED for the rehabilitation of single-family residences in the NW
owners. The funding is in the form of either a 10-year or 15-year forgivable loan. Minnesota Housing announced 12th St. area neighborhood of Bemidji. The award is to help 15
in Fall of 2021 they were increasing the funding available per household from $27,000 to $37,500. This has low- to moderate-income households make necessary repairs to
made a direct impact on what we are able to accomplish on individual projects. This continues to be a very their homes. The assistance is provided as a 10-year forgivable
popular program in our region. loan. If the household lives in the home for a period of 10 years the
amount borrowed is forgiven. HRDC administers the program for
HRDC also offers an Emergency / Accessibility Loan under the rehab loan umbrella. This program provides the city and projects are in all stages of the process at this time.
deferred financing to homeowners needing emergency assistance or crucial accessibility improvements to their
homes. Minnesota Housing also announced that they have increased the total funding available for the program HRDC also has an active small cities rental rehabilitation project
from $15,000 to $27,000. This is also exciting to extend the reach we are able to do on area projects. in process for the City of Mahnomen. The City of Mahnomen
was awarded $354,775 for the rehabilitation of 12 Single-Family
Due to the tight housing market and low inventory of homes both programs are essential to helping preserve rental homes, 1 Duplex rental unit, and 1 Multi-Family unit. Due to
existing owner-occupied housing stock and are a vital tool to help households who may have little or no other the Covid-19 pandemic, the grant was extended through summer New Flooring
options to keep their homes safe and habitable. HRDC continues to see demand for both the Rehabilitation and of 2022 and HRDC continues to administer the program to
Emergency Loan programs for households in our region. Mahnomen area residents.

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 H O M E O W N E R E D U C A T I O N​
HRDC offers Homestretch homebuyer classes
Page 19 of 75

In 2021-2022 HRDC continues to offer a homebuyer education workshop to area households. The current version
of the class is an eight-hour interactive virtual experience. The class is administered via Zoom and covers the home
buying process from start to finish. Areas covered and detailed in the program include but are not limited to:

• Advantages and disadvantages of home buying

• Real estate

• Developing a budget

• Mortgage loans

• Understanding credit

• The closing process

Students are able to listen to area realtors, bankers, insurance

agents and other professionals to gain real world knowledge
of the homeowner’s market in today’s real-world environment.
The class continues to get great reviews and the most common
response after taking the class is “I wish I would have taken it
sooner”!
D O W N PAY M E N T A S S I S TA N C E
The current virtual version of the class does extend the
HRDC offers entry cost assistance to potential homebuyers
geographic reach to customers and we hope to continue to
grow the program to the further stretches of our region.
Classes are offered monthly and registration information can In 2021-2022 HRDC worked in conjunction with the Beltrami HRA and the HHDC to offer down payment and/or
be found on hrdc.org/homestretch. closing cost assistance to area households. The funding helps close the gap between the cost to purchase the home
and the funding a household has to put forward toward a purchase. The program is available for Beltrami, Hubbard,
Mahnomen, Clearwater and Lake of the Woods counties. The assistance is in the form of a repayable loan, and in
many cases the financing is deferred for 5 years, giving new homeowners time to establish themselves. The entry
cost assistance program continues to be popular and has been a valuable resource to help potential homebuyers in
Students are able to listen to area our current housing market become homeowners.
realtors, bankers, insurance agents and
other professionals to gain real world knowledge of the
homeowner’s market in today’s real-world environment. The program is available for Beltrami, Hubbard, Mahnomen,
Clearwater and Lake of the Woods counties.

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 100 CUPS OF COFFEE RACIAL EQUITY
ACCOUNTABILITY PROJECT
The 100 Cups of Coffee project was launched in 2019 to expand
Page 20 of 75

the opportunity for new community voices to be brought

forward and provide input and ideas for improving the well- The Racial Equity Accountability Project (REAP) is a two-year initiative with a mission to “advance racial equity
being of residents and the resiliency of the community. This and reduce racial disparities in Minnesota’s homeless response system.” The initiative is hosted by the Minnesota
effort involved the creation of the Beltrami Area Resiliency Engagement on Shelter and Housing (MESH) and is being coordinated regionally by the Northwest Minnesota
Team (BART), which is coordinated by the Beltrami Area Service Foundation through the Northwest Continuum of Care. HRDC is supporting staff time to participate in this
Collaborative (BASC). The 100 Cups project is a new model of project.
connection and relationship-building in which interviewers have
one-on-one conversations (often over coffee) with 100 community members. Initial conversations centered The REAP initiative recognizes that structural and systemic barriers have created and continue to maintain
around community values, strengths, challenges, and hopes. Interviews were conducted in 2020 and findings racial disparities in the homeless response system and housing outcomes throughout our state and in our region.
were released in 2021. Key findings from the report indicated that Beltrami County is seen as a family-focused Through technical support, education, and group accountability the project participants will identify systemic
place with lots of resources, but that division (along racial, political, cultural, and economic lines) is the most changes that can be implemented to reduce racial disparities and will act to implement those changes and plan
commonly expressed challenge in our community, followed by substance use, isolation/disconnection, and high for ongoing measurement of improvements in the system.
needs for more mental health services, child care, education, and housing.

HRDC staff have been able to take part in this project and the Resiliency Team through financial support for
staff time from the Northwest Minnesota Foundation. Staff are also taking part in follow-up projects related to
the original findings. One such project includes HRDC staff participating in interviews as part of the Resiliency
Team’s collaboration with Sanford Health to conduct a 50 Cups of Coffee project to learn more about the
community’s needs for a Wellness Center. Other staff involvement includes participating in a new project on
emerging leadership/mentorship and seeking opportunities to expand this model around the Headwaters region.

More information can be found at: https://www.beltramiarearesiliencyteam.org/

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 NWRECB

The Headwaters Regional Development Commission (HRDC) has been providing staffing services to the
Page 21 of 75

NWRECB since 2012. The primary duties of this contract are to be the fiscal agent, meeting administrator, and
grants coordinator for the group. Staff has provided support for strategic planning, organizational development,
and supports forward momentum by attending statewide committee meetings and seeking legal counsel on
policy and procedures.

The NW ECB is one of seven regions in Minnesota. The state is divided into regions in order for each area to
retain autonomy and ensure local issues can be solved with local lead solutions. The seven regions report to the The NW ECB has a Joint Powers Agreement
Statewide Emergency Communications Board (SECB). The mission is to: that involves 14 counties, 2 tribes, and 1 city
as members in Northwestern Minnesota.
• Ensure advances in technology will be implemented to enhance the ability for all residents to call for help. The Board consists of elected officials who
govern policy and financial decisions, and are
• Provide confidence that responders in every corner of the state have the ability to communicate with each given recommendations from boots on the
other during an emergency. ground and technical personnel that make
up the Advisory Committee. The Advisory
• Enable all counties to effectively alert and warn residents and visitors of impending danger. committee meets monthly to have in-depth
conversations on technical details and the
Board meets every other month jointly with
their Advisory Committee. This year a new
workgroup has formed which is instrumental
in pushing forward initiatives in the region.
The PSAP managers workgroup meets every
other month to discuss new technology
advancements such as Rapid Deploy, agency
specific training needs such as Cross Border
Training, and hot topics like Telecommunicator
Reclassification for attracting and retaining
dispatching staff. HRDC staff has enjoyed
working with the group and providing support
that make steps towards fulfilling the goals of
their mission.

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 TRANSPORTATION
& H E A LT H
Page 22 of 75

MNDOT ACTIVITIES

CRP GROUP AND MN197 PROJECT

L A K E C O U N T R Y S C E N I C B Y WAY S

L O C A L H U M A N S E R V I C E / R T C C

SHIP

T R A N S P O R T AITNI O
T RNO&D U
HCEA
T ILO
TNH 40
 MNDOT ACTIVITIES

HRDC continues to build and maintain a strong In 2021, HRDC facilitated a Bike Rodeo in Mahnomen active living and how to build healthy and active the city bike plan, starting a Bike Rodeo for kids, and
Page 23 of 75

relationship with MnDOT providing support to as continued support for the SRTS Planning done in communities. Both of our community workshops had extending the Heartland Trail across Highway 71 to
the agency and representation to the region. Mahnomen in 2019. In 2022, HRDC was awarded a great turnouts for the two different sessions focused access the west side of town. This event was also
Minnesota Department of Transportation SRTS planning grant for Lake of the Woods Schools. on planning, education and listening to community covered by Lakeland TV; a reporter was present for
(MnDOT) contracts with the HRDC each year This project will start in July, however with the input. These workshops focused on raising awareness the classroom session, a video was taken from the
which supports transportation related activities excitement shown by the Lake of the Woods SRTS about bike safety and route safety for the population ride and they conducted interviews with some of the
and targeted projects to be implemented with a planning committee a kick-off meeting was scheduled who utilize bike transportation as their primary mode participants.
focus on improving overall health and wellbeing of for May. of transportation. We are grateful for wonderful
individuals in the communities HRDC serves. HRDC local partners who offered support for funding a
staff supports MnDOT Districts 2 and 4, providing lunch for these events. Our local SHIP (State Health
Bikeable Community Workshop
technical assistance for active living projects such Improvement Partnership) program supported the
as Bikeable Community Workshops, Walkable Working towards a more walkable and bicycle friendly funding for a lunch following the bike audit at a local
Community Workshops, Active Transportation community can create economic benefits in addition café in Park Rapids, while White Earth Public Safety
Grant Solicitations, Safe Routes to School Planning, to improving health and transportation options. The sponsored the lunch in Mahnomen. HRDC always
Statewide Health Improvement Partnership, Local pandemic has changed how communities view and values the team approach for getting things done and
Human Service Transportation Plans, and Community value transportation. As HRDC works to provide joining together to make something better together.
Outreach. support to our communities and rebuild systems,
making it convenient for people to continue to bike
HRDC works with MnDOT annually on conducting and walk is crucial for re-establishing healthy and
Virtual Walkable Community Workshop
solicitations for Transportation Alternative Projects resilient communities. This is one opportunity HRDC
(TAP). TAP Funds are available for construction has in partnership with MnDOT to develop safe, This past April, HRDC partnered with the Minnesota
projects in the communities we serve. This year, the healthy, and more resilient communities. Department of Health (MDH), Alta Design Team,
City of Bemidji submitted for and was awarded TA State Health Improvement Partnership (SHIP),
Funding. The proposed project is for construction Bemidji Joint Powers Board, and Bemidji State
of a nearly 1 mile long, 10-foot-wide multi-use paved University students to host a Virtual Bemidji
trail, which will connect the Downtown Bemidji area Walkable Community Workshop. HRDC, the Joint
to the roundabout at Jefferson Avenue & 5th Street Powers Board and Alta Design worked together with
NW in Bemidji, MN, which is scheduled for 2026 The City of Park Rapids workshop was attended by the BSU students to reach out to local businesses
construction season. Senator Paul Utke, who joined the second session of and community leaders. This workshop was a huge
the workshop. HRDC and partners were able to help success and offered encouragement and support
pull together a good mix of people including MnDOT, to the communities’ efforts to make walking a
Safe Routes to School
City of Park Rapids, Multiple Bike Clubs, BikeMN, practical, safe, comfortable, and enjoyable mode of
Headwaters Regional Development Commission MN Department of Health, and HRDC. After a transportation in South Bemidji.
has become a leader in Safe Route to School (SRTS) HRDC applied for and was selected to be a host one-hour classroom session focused on safety, bike
Planning for the five-county region. Safe Routes site for Bikeable Community Workshops in two maintenance, and bike law, we were off on a five- Prior to the Virtual Walkable Community Workshop,
to School encourages increased student physical of our communities, Mahnomen and Park Rapids. mile bike ride through the community. We utilized we encouraged everyone to watch a short virtual
activity through safe active transport to and from Bike Minnesota (BikeMN) came alongside and both city streets and the Heartland Trail during our training on walkability and go on a walk audit exploring
school. SRTS promote walking, biking, and other helped facilitate onsite bike community workshops ride. After the Ride we had a great lunch from The South Bemidji (there was an option to choose a virtual
forms of active transportation for students and their in partnership with community stakeholders and Good Life Café that our SHIP partners sponsored, experience or an independent in-person experience).
families to build lifelong healthy habits. community members. (see photos) These workshops which was then followed by an action planning The training, walk audit (see photo of walking route),
offered alignment for more conversations about session. During our time with this community, we and virtual meeting information was available on
discussed Updating Safe Routes to School Plans, HRDC’s website.
adding additional bike parking downtown, updating

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 COMMUNITY REVIEW PANEL (CRP)

One of HRDC’s transportation projects this past year was working in partnership with MnDOT to form a
Page 24 of 75

Community Review Panel (CRP) in Bemidji to receive helpful feedback for MnDOT on how to improve Hwy 197.
Bemidji is one of the most at-risk communities when addressing transportation infrastructure and equity. Within
the project area, poverty ranges from 27 percent to 65 percent and minority populations range from 14 percent
to 33 percent with a large American Indian population. It is important to have pedestrian, bicycle, and public
transportation options for these at-risk groups to allow residents to get safely to their places of employment,
school, and businesses since they may not have access to a private vehicle. (see map of study area)

HRDC staff facilitated and helped pull

together a diverse team of community
stakeholders, representatives, and
businesses along the Hwy 197 corridor.
L A K E C O U N T R Y S C E N I C B Y WAY S
The CRP shared how businesses and the
community viewed the existing corridor.
The Headwaters Regional Development Commission (HRDC) took on an additional role this year, helping
Through the study planning process, the
the Lake Country Scenic Byway (LCSB) update their Corridor Management Plan (CMP) and update the
panel prioritized business access, safety,
corridor management map. The CMP Update for the Lake Country Scenic Byway provides the future
and multimodal improvements to the
vision for the Byway and serves as a guide for management, future development, and enhancement
corridor. Over 12 meetings between
of the Byway’s intrinsic qualities. The CMP Update will specifically address safety, signage and visual
community and project stakeholders, alternatives were created to address the unsafe corridor cross section and
management, identifies current and updated intrinsic resources and viewsheds, and lists projects for
intersection improvements that fit these values. These alternatives were evaluated, prioritized, received public
future improvements.
feedback, and eventually lead to a CRP-recommended corridor alternative.
The Lake Country Scenic Byway Association is composed of members of the Park Rapids, Detroit Lakes,
Two alternatives were created with CRP
and Walker Chambers of Commerce, as well as individuals committed to preservation of the natural
input to consider intersection control
qualities of the byway. With this committee, bi-weekly and weekly meetings took place in order to
differences along the Hwy 197 corridor.
complete the steps that were needed in finishing the CMP. The ultimate goal for the Lake Country Scenic
Alternative 1 included 3 Roundabouts while
Byway is to be designated as a National Scenic Byway.
Alternative 2 included 1 Roundabout. Both
alternatives included a number of multimodal
and safety improvements throughout the
project area that maximized business access. To learn more about the Lake Country Scenic Byway and to view the corridor map visit
The main advantages of Alternative 1, which www.lakecountryscenicbyway.com.
was selected and voted to move forward on,
include:

• Total Crash Cost reduction of 30% ($660,000 / year)

• Reduction in Delay of 5% corridor wide
• Over 40% reduction at Menards Access and Hannah Avenue
• Improves Pedestrian Movements and Crossings of Hwy 197
• Minimizes queuing on Middle School Drive and Hannah Avenue south of Hwy 197 during the PM Peak.

HRDC is committed and dedicated to supporting meaningful public engagement over the next phases of this
project.

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 Health and White Earth Public Safety to put on another perspectives to be heard. This results in a much higher
LOCAL HUMAN SERVICE successful Bike Rodeo in Mahnomen with 28 students level of alignment, increases the effectiveness of each
in attendance. This event was open to all children living organization, and creates healthier communities in our
T R A N S P O RTAT I O N C O O R D I N AT I O N P L A N in the Mahnomen community, grades K-5th grade. region.
We also encouraged student’s parents, guardians, &
Page 25 of 75

Over the last year HRDC has partnered with MnDOT on updating the 2017 Local Human Service Plan. Working community members to participate in the Bike Parade HRDC staff is always looking for new creative ways
with a team of community stakeholders, this five-year plan sets forth the direction the community stakeholders after the rodeo led by the White Earth Public Safety, to work within our schools and partner with their
want to move, with the goal of improving transportation services to the community members who rely on the who also purchased the bike helmets for the event. The Wellness Committees on active living and healthy
region’s transportation network. HRDC facilitated conversations to create goals, strategies and initiatives that majority of the students who participated came from eating initiatives for our students and school staff. We
can be put into actionable activities to help improve the transportation resources in the region. The message of Mahnomen Elementary and St. Michaels School. HRDC will continue to offer resources for our schools in our
“Changing the Narrative” became the slogan as HRDC worked to create additional programs and enhancements enjoys being a part of events like this one which bring the region that support and enhance individual schools
to the existing transportation framework. entire community together. Bike rodeos become a way wellness initiatives and goals. For example, SHIP uses a
to connect with our communities and schools. Next year, short online assessment tool (School Health Index (SHI))
HRDC has been able to sit on panels, lead focus groups and workshops, and offer support on transportation our hope is to have this Bike Rodeo and parade be part that schools can complete to establish a focus area for
initiatives throughout our region through this planning process. One initiative to highlight comes from one of of the school day so more students will be able to attend. their wellness committees. We also have resources to
our Steering Committee organizations who recently piloted a transportation program called Wheels to Work: The photos show a few action shots of the different promote healthy eating and active living initiatives. Our
Fueling Opportunities to Thrive, which helps those who already own a vehicle with maintenance and needed activities throughout the Bike Rodeo. goal is to support our school’s wellness committee so
safety repairs. This program is one small solution to a much larger problem, as it only helps those who already that you can set your own goals for staying mentally and
have a vehicle. The Women’s United project for 2022 has been to assess the possibility of helping Village of Some other highlights from this year include partnering physically healthy throughout the school year.
Hope, a local family homeless shelter, with the creation of a new transportation program that will provide Village with The American Lung Association to offer Vaping
of Hope residents and other homeless individuals in the Bemidji area with a safe ride to get groceries and attend 101: E-Cig Training to schools in our region. This
court hearings and medical appointments. Programs like this are incredibly necessary, especially in the winter training offers education and space for teachers and
months in rural Minnesota. HRDC is excited to see how coming alongside organizations like the United Way in administration to discuss youth vaping and solutions,
our region can help bring transportation access to those who are in need. new vaping curriculum options, and free programs
available for students who are caught with electronic
nicotine products. SHIP also was able to offer a free
MoveMindfully Class to schools in March through
May 2022. This class was a 30-minute session twice a
“HRDC spearheading the transportation collaboration will make a big week which provided simple BREATHE-MOVE-REST
difference in the lives of the clients we work with at Village of Hope.” practices for school staffs own physical, emotional and
mental well-being. This class was focused on exploring
- SANDY HENNUM
ways to take care of ones wellbeing throughout the One final story to highlight from this year is that SHIP,
learning day. Working to reduce stress during the HRDC and Bemidji State University (BSU) started
work day was one of the key requests from our schools conversations around how we can partner together in
administration. our programs and projects with college course work and
offering real world experience with college students.
Over this past year, schools continued to request Collectively, we decided to work on the Walkable

SHIP ANNUAL REPORT us to come and serve as a member of their wellness

committees and assist them in working on initiatives
Community Workshop in Bemidji which was held in
April 2022. (for more information on this see Virtual
such as Healthy Eating, Active Living, and Well-Being. Walkable Community Workshop). We enjoyed working
HRDC continues to have a strong partnership with the North Country One example was working with Laporte School on a with Bemidji State University’s Human Performance
Health Alliance (NCHA) who contracts with us to lead the school Walk! Bike! Fun! Training to support their PE curriculum Sport and Health Department in on this project and
strategy for the Statewide Health Improvement Partnership (SHIP) for and more involvement with their Bike Fleet. Through the getting 17 of their students involved. This was an
schools in our region. SHIP school’s strategy, we can also work on SRTS (Safe exciting win for SHIP and we look forward to future
Routes to School), which aligns well with MNDOT’s work. years working with BSU and their students.
In October, HRDC partnered with SHIP, Norman-Mahnomen Public HRDC’s unique ability to work with MNDOT, SHIP, and
Health, Mahnomen Public Schools, MnDOT, White Earth Public local public health entities, allows for a wide variety of

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 HRDC
Page 26 of 75

2022

WELCOME INTERN

WELCOME NEW SPECIALISTS

S TA F F

F 48
I N T R O D U CS TT IAOFN
 W E LC O M E C L AY TO N B E C K WELCOME WELCOME
Bemidji State University Intern KRISTINA TURNER TONY KLAERS
New Business and Lending Specialist New Transportation Development
Clayton Beck started with HRDC in October 2021 as an intern with Bemidji
Page 27 of 75

Specialist at HRDC
State University. He worked on the White Earth Integrated Resource
Management Plan (White Earth IRMP), creating maps for both their water
Kristina Turner joined the Tony Klaers joined the HRDC team in
resources and vegetative land cover map. He also assisted Levi Haar with a
HRDC on March 28th April of 2022 as a Development Specialist
housing development site with creating maps that included: distance from
of 2022 as a Business with a focus on transportation. In his
the airport, surrounding wetlands, traffic/railroad noise, non-applicable
and Lending Specialist. short time with the organization, Tony
farmland, and proximity to toxic waste. Clayton started as a temporary full-
Kristina has a diverse has spearheaded the MnDOT contract
time employee with HRDC on January 1, 2022 as an Economic Development
professional background, as well as all of our transportation
Support Specialist. He worked alongside Antonio Franklin with Economic
having worked in the initiatives. Having a background in sales,
Development projects and Naomi Carlson with Transportation projects. He
public sector with a large he is focused on building community
continuously worked with Geographic Information Systems (GIS) to work on
public library system doing relationships, strengthening partnerships,
projects for both clients and through HRDC.
business outreach, and in and adding a well-rounded approach to
the private sector working in enterprise software sales, our transportation division. He believes
Projects he was involved in include:
talent management, and residential mortgage lending. that strong community relationships are
• White Earth IRMP She graduated from the University of Missouri, Kansas key to successful projects, and brings that
• Lake Country Scenic Byway Corridor Management Plan City with a Bachelor’s in Business Administration, energy into the office every day.
emphasizing in Entrepreneurship and Small Business
• Northern MN Entrepreneurial Academy Planning
Development. Originally a Minnesota native, she moved Some of the
• Makerspace to the Headwaters region in December 2021 to pursue projects Tony has
• CEDS her dream of homesteading and enjoys being close worked on in his
to her family. She believes that strong communities time at HRDC:
• HRDC monthly activity maps
build strong economies. She is passionate about • Bikeable
• Housing site maps entrepreneurship and looks forward to making sure Community
• Attended meetings for Mahnomen County EDA our business community within the region has the right Workshop-
foundations, resources, and sustainability to continue to Mahnomen
Clayton grew up in a small town called Appleton, Minnesota. He loves hunting, fishing, and anything related to the grow.
• Walkable
outdoors. He attended Bemidji State University in the Fall of 2018 and graduated in the Fall of 2021. He majored
Community Workshop- Bemidji
in Aquatic Biology with a fisheries management emphasis and minored in Geographic Information Systems (GIS). Some of the projects Kristina has started during her
short time with HRDC include: • Local Human Service Coordination
Plan
• Working with our RLFs
• Bikeable Community Workshop- Park
• Training in Commercial Loan Underwriting
“My time at HRDC gave me the opportunity to explore and expand Rapids
• Collecting and analyzing borrowers’ yearly financial
my growth in economic development, a field I did not know I would documents
• Active Transportation Grant-
Mahnomen
end up enjoying. It also strengthened my ability with GIS, where I • Lending and housing software conversion
was able to create my first ever published maps. The environment • NADO Technical Assistance for Rural
• Employee Policy Committee Transportation
and people around me really helped me never feel like I was never • Branding Committee
alone on a project.” • Staff gardening committee
- CLAYTON BECK • Overall morale booster
• Native Youth Entrepreneurship Grant submission

F 50
I N T R O D U CS TT IAOFN
 HRDC
Clayton Beck
Vicky Hetteen Nicole Ramsey
Economic Development
Business Loan Specialist Finance Director
Support Specialist

STAFF
nmckinnon@hrdc.org
vhetteen@hrdc.org cbeck@hrdc.org
218-333-6544
218-333-6538 218-444-4732
Page 28 of 75

Nicole joined the HRDC in December 2017. Her Clayton started as an intern is 2019 and is currently
Vicky joined the HRDC in August of 2020. Her role is to primary responsibility is to manage fiscal functions of working as a temporary full-time employee. He assists with
support the business lending activities of the Headwaters the Headwaters Regional Development Commission, multiple projects, focusing on Economic Development and
Regional Finance Corporation (HRFC) and its Revolving its subsidiaries and partner organizations. Transportation support.
Loan Funds. She is also responsible for the maintenance
Naomi Carlson of loan files and accurate data management.
Executive Director
ncarlson@hrdc.org
218-333-6539 Helen Mlady Kristina Turner
Marketing Intern Business Loan Specialist
Naomi has previously worked with the HRDC, hmlady@hrdc.org kturner@hrdc.org
returning in February 2021. Her focus is on Missy Malone 218-444-4732 218-333-6536
transportation and active living projects in the Financial Officer
region. As of March 28th, 2022, she has been selected
mmalone@hrdc.org Helen is the HRDC’s marketing intern for the summer Kristina joined HRDC in March 2022. She focuses on
to be the Executive Director. She is passionate about 218-333-6543 of 2022. She is attending Bemidji State University for managing the loan portfolio for the Headwaters Regional
the Region and how the HRDC can support our Business Administration with an emphasis in Marketing. Finance Corporation and aligning our lending capabilities
communities in creative and new ways. She’s planning to graduate in Spring of 2023. with other economic development initiatives.
Missy joined the staff team in December 2018. Her role
is to support the various accounting and administrative
Antonio Franklin activities of the HRDC.

Economic Development Nikki Miller

Tony Klaers
Planner Community Development
Specialist Development Specialist
afranklin@hrdc.org
tklaers@hrdc.org
218-333-6548 nmiller@hrdc.org
218-333-6541
Jackie Pierson 218-333-6542
Antonio joined the HRDC staff in September 2020.
Administrative Support Nikki joined HRDC in 2021 as a Community Development
He primarily focuses on regional economic recovery Tony joined the HRDC in April 2022, his primary focus is
Specialist Specialist. She supports the community through housing
and resiliency projects, while providing technical transportation and active transportation initiatives in the
jpierson@hrdc.org development, increasing equity and climate resiliency in the
assistance to businesses and entrepreneurs adversely Headwaters Region.
218-444-4732 region, and identifying and addressing other community
affected by the pandemic. He also provides support
on economic development projects for communities needs.
Jackie joined the staff team in July 2020. Her role is to
and non-profits in the region.
support the various administrative activities of the HRDC.

Vicki Ilstrup
Levi Haar Administrative Support
Sarah Wilcox Specialist
Lending and Accounting Development Specialist vilstrup@hrdc.org
Specialist swilcox@hrdc.org 218-444-4732
lhaar@hrdc.org 218-333-6533
218-333-6530 Vicki started work as a temporary worker through the
CEP program in spring of 2021. She helps out primarily
Sarah joined the HRDC in August 2018. She primarily
Levi joined the HRDC in March 2017. He primarily the Admin Team, taking on the time-consuming tasks,
focuses on Community and Housing Development. Sarah
focuses his time on administering a variety of owner- such as file scanning and organizing. She became an
also provides the lead staff services for the Northwest
occupied rehabilitation loan programs as well as as- HRDC part-time employee in June of 2022.
Regional Emergency Communications Board.
sisting with the day-to-day accounting activities.

F 52
I N T R O D U CS TT IAOFN
November 22, 2022

MEMO

TO: Hubbard County Board of Commissioners

FROM: Antonio Franklin Jr., Economic Development Planner

SUBJECT: 2022 - 2026 Regional Comprehensive Economic Development Strategy

The Headwaters Regional Development Commission serves as the Region's Development

District for the U.S. Economic Development Administration (EDA). Because of this, every
five years we are required to submit to the EDA a Comprehensive Economic
Development Strategy (CEDS). This Strategy is meant to serve as a planning tool which
will guide the Region in its Economic Development activities in the coming years.

To develop this Strategy, we spent several months gathering pertinent data, and also
met with a series of key businesses, lenders, loan administrators, economic developers
and others to gather additional information. Using that data and information, we
developed the regional economic development vision, goals and objectives for the
Strategy. We also identified key economic development priorities for the Region in the
coming years.

We will meet with the Hubbard County Board of Commissioners to discuss our findings,
and also to review our subsequent recommendations for the CEDS. At that time, we will
seek your approval of the strategic direction and action plan. In preparation for the
meeting, I have attached some the information for your review. This will provide you
with a chance to review the information before we meet if you choose.

Thank you,

Antonio Franklin Jr.

Page 29 of 75
 1
HEADWATE
Regional Development Commissio
'

Leadfn the Wa
Page 30 of 75

Affordable &
Quality
A
A 1

Skilled and Housing Broadband

Available Availability &
Workforce Access

-,,

Transportation -$1?‘ lmP"ove

_
& P Business
Infrastructure Climate 8‘
lm provements Access for
A % A

,' Startups
\
Care Mgre
ACCESS8: .-= Developable
Affordability Land
_ 19! 1
HEAi)WATE
RS
Page 31 of 75

RATEGIG Regional Development Commission

Leading the Way

20 —~ Gcomprehensive Economic
3% '
2'

I Development Strategy

I-'OUNDA'I'IONAL A§§E'I'§
HUMAN CAPITAL
- Five new state or federal infrastructure project investments by 2027
0 Increase the Labor Force Participation Rate by 2% by 2027
0 Increase the Per Capita Income by 4% by 2027 ROADBAND
- Increase the Region's broadband speed to 100 Mbps/ 20 Mbps by 2026
- Increase the number of households with computer and internet access
ECONOMIC COMPE'I'I'I'I\/ENI-I§§
0 Increase the Innovation Intelligence Index for the Headwaters Region

. to 115% by 2027
Increase the number of firms in the Headwaters Region by 60 by
8 ACTIVE 'I'RAN§POR'I'A'I'ION
'I'RAN§I'I'
- Increase access and availability of transportation options
2027
I-I0U§ING
- Increase the number of affordable housing units for low to moderate
COMMUNITY RlE§OURCIE§ ‘"°°"‘° '‘°"S°“°'°'S

.
- Tourism: Increase visitor spending 5% by 2027
Arts & Culture: Increase employment in arts and tourism 5% by
'
WA§TE‘WATER

Egggease the number

INIFRA§TRUCTURE

°f Communities °"t °f MPCA wmpnanceby

2027
- Equity & Inclusion: Increase cross-cultural collaboration and
diversity on community projects and initiatives
0 Energy & Environment: Promote the Region's quality of life through
natural amenities and recreation while supporting ecological
preservation
 3| HEADWATERS Regional Development Commission
Leading the Way
Page 32 of 75

STRATEGIC DIRECTION 2022 —

2026 Comprehensive Economic
Development Strategy
8: ACTION PLAN

HUMAN CAPITAL IFOUNATIONAL A§§lE'lI'§

0 Develop a target market campaign to promote career opportunities and quality of life to BROADBAND
attract and retain Workforce - Partner with broadband services providers to identify areas for investment in broadband
0 Increase the availability and affordability of childcare particularly in healthcare and infrastructure
manUt3CtUl’in8 0 Extend fiber and high-speed internet to key job creation sites and community institutions
- Collaborate with businesses, higher education institutions, workforce centers and local and ensure
government to develop Stronger recruitment and retention Strategies - Adapt to changes in teleworking for businesses and residents while promoting workforce
- Expand workforce development and training programs to all communities and these opportunities to new businesses and residents
underserved populations - Sun/ey businesses to understand broadband needs and issues
0 Share success stories from employers using innovative techniques to attract and retain o Promote the PC for People and the FCC Affordable Connectivity Program
Workforce - Partner with Blandin to expand the Blandin Broadband Communities Program
0 Facilitate digital training and education for communities and business owners

EC 0 N0 MHC C 0 MP TRANSIT G ACTIVE TRAN§|PORTATIION

0 Improve career pathway opportunities and high-quality jobs with a livable wage ' AS5iStC0Tn|nUniti€$ With tF3n5P0Vt3ti0n Planning
a support new startups and businesses with high growth potential to by providing - Create a regional transportation network to improve coordination and alignment
technical and financial assistance Work with state and local government to identify funding and service options to meet
Promote site-ready and redevelopment locations to entrepreneurs and business owners mobility and access needs of individuals
Increase BR&E,Succession Planning, and business development training programs Support safety, mitigation and transportation planning projects
Expand co-workings spaces and innovation hubs in the region Work with providers to increase geographical areas for transportation services
Expand small business opportunities and engagement in the ecosystem to historically Increase the vehicle stock for rural transit systems
underserved populations Increase the number of volunteer drivers
0 Highlight the value of the Canadian border to the regions business economy

IIIOU§ING
Increase the number of new and affordable housing units
COMMUNITY RI-I§OURCIE§ Increase investment in the number of units rehabilitated or preserved
Promote the development of transitional and permanent supportive housing
0 Identify new p|ace—making investment opportunities for main streets identify diverse, afiordabie‘and sustainabie housing options
- Promote new and emerging tourism, arts, and outdoors events to visitors increase access to soiar energy for 3” housing
- Increase cross—marketing and collaboration between businesses and vendors
- Increase business development and technical assistance for arts entrepreneurs
- Work with organizations to identify new investments in arts and culture WA§iiE_WAiiii_:iR iNii:iRA§ii-RUC-ii-UiRiE
' lnetease e°llat’°tatl°“ and et°55'eUltt'tal eetmeettens I“ eemmt-'”ltV plattnlng - Increase investments in municipal infrastructure that support affordable housing business
- Improve economic opportunities and address barriers affecting underserved populations deveiopmenty and indusuiai park expansion
° Market the natural te5°”"ee amenities t° tesltlents and Visitors - Encourage local government units to Improve the resiliency of municipal infrastructure
° Wetk Witt‘ leeal 8°Vetnme“t 0“ e”e"gV and e“Vtt°“me“tal planning 0 Work with local government units to align capital improvement plans with zoning/land
0 Encourage engagement in energy and environmental policy ordinances and Comprehensive pians
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 PAGE 10

Page 43 of 75
REGIONAL OVERVIEW

POPULATION
The population of the 5-county region was 85,515 as of 2019 (a 1.2% increase from 5 years prior).
At 46,403 residents, Beltrami County has approximately 54% of the region’s population, followed
by Hubbard County with 21,019 residents (25.7% of the region). Overall, the Headwaters Region
is experiencing annual population growth of .5%; if this trend continues as expected, the population
is expected to reach approximately 90,000 by 2030. Lake of the Woods is the only County in the
region experiencing negative population growth (approximately .7% annually). With only 13.8
people per square mile, and only two cities with more than 2,000 residents, the Headwaters Region
is one of the most sparsely populated regions in the State. [Appendix A]

PAGE 11

Page 44 of 75
 AGE

The Headwaters Region, compared to Minnesota and the Nation, has a slightly higher proportion
of the population under 24 years old and a higher proportion aged 55 and older. The proportion
of people in the Region in the prime working ages of 25-54 is smaller than in Minnesota and the
Nation. Within the Region, Hubbard and Lake of the Woods Counties have significantly higher
proportions of the population aged 55 and older, while Beltrami, Clearwater, and Mahnomen
Counties have the highest proportions of people younger than 24. Red Lake Nation in Beltrami
County is estimated to have the youngest population with a median age of only 22 years old, with
approximately 46% of the population aged 19 or younger. [8] As the baby boomer generation
retires and ages, this is expected to tighten the workforce and lead to growth in care-related
industries.

PAGE 12

Page 45 of 75
RACE
The Headwaters Region is home to three
American Indian Reservations, including all
of the Red Lake Reservation, the majority of
the White Earth Reservation, and a very
small portion of the Leech Lake Reservation.
This cluster of reservations with a large land
base and large American Indian population is
unique within the state.

Overall, the racial makeup of the Headwaters

Region is 79% white, 15% American Indian,
and 5% multi-racial (many of whom likely are
American Indian and white), leaving only
approximately 2% other races. This significant
proportion of American Indian residents is
much higher than the proportion of American
Indians in the rest of Minnesota (1%) and the
US (.8%).

These proportions vary significantly by county within the region. For example, Mahnomen
County is 47% white, 40% American Indian, and 12% multi-racial and Beltrami County is 73%
white, 20% American Indian, and 5% multi-racial, while Clearwater, Hubbard, and Lake of the
Woods Counties have significantly higher proportions of people who are white and smaller
proportions of American Indians or people of other or multiple races.

PAGE 13

Page 46 of 75
 EDUCATION

The Headwaters Region has lower rates of residents with Bachelor's and Postgraduate Degrees
than either Minnesota or the Nation. Within the Region, Beltrami and Hubbard Counties have the
highest rates of residents with Bachelor's and Postgraduate degrees. Leech Lake and White Earth
have similar high school graduation and degree rates as the counties in which they are located,
while Red Lake has the lowest rates of both.

This is consistent with findings from the Office of Higher Education 2020 Minnesota Measures
Report which found that the attainment rates for high school graduations and College Certificates
and Associates Degrees or higher varied significantly by race in the state. White Minnesotans
have the highest rates of high school graduation (89%) and the highest rates of certificate/degree
attainment (68%) while American Indian Minnesotans have the lowest rates of high school
graduation (51%) and the lowest rates of certificate/degree attainment (18%). These significant
disparities have far-reaching impacts due to the correlation between higher educational
attainment with increased earnings, lower unemployment, better health, and other social and
economic benefits. [2]

PAGE 14

Page 47 of 75
HOUSING
Across the Headwaters Region, housing costs are increasing and not enough housing units are being
built to keep up with the need. In all five counties, the values of owner-occupied homes are
increasing at significantly higher rates than the wages of people who are currently homeowners or
are looking to buy; this means that it is becoming increasingly difficult for families to purchase and
own homes. In four of the five counties (except Lake of the Woods), monthly rents are increasing by
23-36%, while wages of renters are increasing by less than 10% (or even decreasing by up to 5%).

Additionally, there is a significant gap between the number of extremely low-income households
and the total number of housing units that are affordable to these families, meaning that there is a
need for more affordable housing to be built. In Beltrami County the gap was 970 units needed,
while Hubbard needed 195 units, Clearwater needed 96 units, and Mahnomen needed 80 units;
Lake of the Woods was the only county that didn’t report a gap for extremely low-income units
needed. [3] These numbers don’t even account for the shortages in workforce affordable housing
for low to moderate income households.

The recommended percentage of a household’s income that can be spent on monthly housing costs
while being considered affordable is no more than 25-30% of their total monthly income. A
household (owner or renter) is considered “cost-burdened” if they spend 30-50% of their income on
housing and “severely cost-burdened” if their housing costs are more than 50% of income. Cost-
burdened households are less likely to be able to save money or get ahead financially, less likely to
be able to afford certifications or higher education in order to improve employment prospects, and
more likely to have to give up healthy food options, healthcare and medications, or other necessities
in order to afford to stay housed. In the Headwaters Region, every county has between 24-29% of
households classified as cost-burdened, and 10-14% of households classified as severely cost-
burdened. [3]

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LABOR FORCE
The “civilian labor force” is defined as all persons, both employed and unemployed, who are at
least 16 years old, and excludes armed forces personnel and those who are incarcerated or
institutionalized. The “labor force” does not include people who are retired, engaged in their own
housework, not working while attending school, unable to work due to long-term illness, or who
are discouraged from seeking work due to personal or job market factors.

The total labor force in the Headwaters Region is 41,046. Despite 1.2% growth in the overall
population of the region in the last 5 years, this is a .6% decrease in labor force in the same time
period. The labor force participation rate in the Region is 61.5%, which is lower than either
Minnesota or the Nation (at 70% and 63% respectively) and is also lower than it was in the Region
5 years ago at 62.6%.

As of December 2021, the unemployment rate for the Region was 4.1%, which was higher than
the national rate of 3.7%, but was lower than the Regional unemployment rate from one year
prior when it was 6.0% [Appendix A]. Unemployment rates vary significantly within the region by
county and by race. According to the MN Dept of Employment and Economic Development, as of
November, 2021 the unemployment rates for Beltrami, Clearwater, and Mahnomen Counties
were higher than the region at 7.2, 6.7, and 7.3% respectively, while Hubbard and Lake of the
Woods Counties were lower at 3.9 and 3.6%. The differences by race are even starker. Across
the region, unemployment rates for white people are 5% or lower. However, the rate for
Black/African American, American Indian, or those identifying with two or more races vary from
single-digits up to 100%, as seen in the chart above.

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LABOR FORCE
The current labor force challenge in the Region is that more vacant jobs exist than there are
unemployed people seeking to fill them. As of the second quarter of 2021, the number of
unemployed job seekers per job vacancy was only 0.7. This is the result of low unemployment
and the highest number of job vacancies ever recorded in the Region. Highest demand based
on number of job vacancies is for food and beverage serving and cooks/food prep workers. [5]
The other top sectors in high demand include retail, health-care & social assistance,
accommodation, manufacturing, and educational services. The majority of vacant jobs in these
industries are only offering part-time work (with the exception of manufacturing), the majority
of wages are at or below $15 per hour, and only 58% of available jobs offer health insurance
benefits. [6]

INCOME
Two traditional measures of economic well-being are the Per Capita Income and the Median
Household Income of residents in a region. Per Capita Income takes the sum of the personal
incomes of all residents and divides that by the resident population. Over time, this can inform
the progress of overall economic development, but does not reflect income disparities between
the highest and lowest income earners. The Median Household Income is the amount that
divides the income distribution into two groups, with half the population having income above
that amount and half having income below it. Every county and tribal nation in the Headwaters
Region has lower Per Capita Income and lower Median Household Income than either
Minnesota or the Nation. Wages play a significant role in income and poverty levels.

According to the MN Dept of Employment and Economic Development “At

$19.80 in 2021, wages were lower in Region 2 [Headwaters] than the state.
Overall, Region 2 had the 2nd lowest median hourly wage level of the 13
economic development regions in the state. Wages were highest for
management occupations ($42.62) and lowest for food preparation and
serving related jobs ($12.35) (see Table 11).” [4]

Lower wages in the Region are not offset by a lower Cost of Living Index. Annual average salary
in the Region is approximately 30% lower than the average annual salary of Minnesota, while
the Cost of Living in the Region is only approximately 6% lower [Appendix A]. Despite recent
increases in some wages, the Headwaters Region is still one of the poorest and most
economically distressed regions in the state, with all five counties and all three tribal nations
having higher rates of residents in poverty than Minnesota, and all except Hubbard and Lake of
the Woods having higher poverty rates than the Nation as a whole. The highest rates of
poverty in the Region occur in Beltrami County (19%), Leech Lake (21%), Mahnomen County
(23%), White Earth (24%), and Red Lake (31%).
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INNOVATION INDEX

The Innovation Intelligence Index is an analytic tool which measures key inputs and outputs of
an area to explore regional characteristics related to innovation and entrepreneurship. The key
inputs include Human Capital & Knowledge Creation, Business Dynamics, and Business
Profiles, and the key outputs are Employment & Productivity and Economic Well-Being. Each
region receives a score in each of these five indexes which are then aggregated with equal
weight into a single “headline” index which is the region’s overall Innovation Intelligence Index.
Indexes score the region or county relative to the United States on a continuous scale where
100.00 is the overall U.S. Index.

The Innovation Intelligence Index for the Headwaters Region is 104.2, a moderate score, which
puts it slightly above the overall US but below Minnesota’s score of 116.9. Scores are further
broken down by the key inputs and outputs. A Human Capital & Knowledge Creation score of
103.1, along with a Business Dynamics score of 141.5, indicates that patterns of establishment
formation and composition create a moderate level of business competitiveness. However,
with a Business Profile score of only 61.2, there is a relatively low availability of resources for
businesses and entrepreneurs in this Region. Employment & Productivity is slightly low at 99.3
which is an indicator of fewer positive outcomes from existing economic activity. Finally, the
Region’s Economic Well-Being score is 115.9, which indicates a moderate standard of living and
the higher score here is primarily driven by recent increases in average wage and salary
earnings per worker and increased broadband infrastructure. [7]

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 COMPOSITION OF REGIONAL
EMPLOYMENT
Over the next 10 years, employment in the Region is projected to expand by approximately
2,009 jobs, with the fastest growing sector expected to be Arts, Entertainment, and Recreation
at an expected 2.4 growth rate each year. Accommodation & Food Services and Health Care &
Social Assistance are also expected to have strong job growth (700-900 additional jobs each).
The three sectors with the highest average annual wages are Management of Companies,
Utilities, and Extraction are expected to decrease (Utilities by -1.1% and Management by -.4%) or
have minimal growth (Extraction by .4% or 1 job) over the next 10 years. [Appendix A]

HEALTH CARE & SOCIAL ASSISTANCE

Health Care and Social Assistance is the Region’s largest employment sector with 19% of jobs
generated in these fields and is projected to have annual growth of 1% per year over the next 10
years. Average annual wages are $57,072, which is 20% higher than the overall annual average
salary in the Region, although still lower than the State. [Appendix A] This annual average wage
doesn’t clearly show the disparity between the higher wage, usually full-time positions for Doctors,
Nurse Practitioners, and Registered Nurses and the lower wage, often part-time positions of
Personal Care Assistants, Certified Nursing Assistants, and other health-care and social assistance
support staff. Within the Region, $15.66 is the median hourly wage offer for vacant positions in
this sector and 53% of them are part-time. [6]

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RETAIL TRADE
Retail Trade constitutes 13% of the Region’s employment. Because of this sectors reliance on
low-wage and part-time employees, average wages of $29,068 are well below overall averages
for the Region and State. Over the past 10 years, employment in this sector has decreased by
.2% annually, and decreases are projected to continue over the next 10 years at .6% annually.
[Appendix A] Despite significant employment losses in 2020, this sector has come close to 97%
of it’s pre-pandemic employment levels. [5]

ACCOMMODATION AND FOOD SERVICES

Accommodation and Food Services makes up 11% of the Region’s employment. Like the Retail
Trade, this sector relies on low-wage and part-time employees, although average annual wages
are significantly lower at $19,581. This sector has been growing over the last 10 years at 2.8%
annually and is expected to continue growing over the next 10 years at 2.1% annually. [Appendix
A] Despite significant employment losses in 2020 due to COVID, these industries have bounced
back in 2021, reaching 90% of pre-pandemic employment levels. Demand for Food Services
workers is extremely high due to large numbers of job vacancies; in an effort to attract employees,
many employers have raised wages, although the median wage offer in this sector is still only
$12.00/hour and many of the positions are part-time. [5]

EDUCATION AND PUBLIC ADMINISTRATION

Educational Services and Public Administration each constitute approximately 9% of the Region’s
employment. Both are expected to grow over the next 10 years: .6% annually for Educational
Services and .3% for Public Administration. Both have slightly higher than average annual wages
at $48,011 for Education and $51,175 for Public Administration. [Appendix A]

CONSTRUCTION
The Construction sector makes up 8% of the Region’s employment. It has experienced strong
growth of 2.2% annually over the last 10 years and is expected to continue to grow over the next
10 years, although at a much slower rate of .2%. This sector has higher than average annual
wages of $56,918. [Appendix A]

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MANUFACTURING
Approximately 7% of employment in the Region is in the Manufacturing sector, which is
projected to stay relatively the same over the next 10 years. It has slightly higher than average
annual wages at $53,220. [Appendix A]

DISASTER PREPAREDNESS AND

RESILIENCE
Social Vulnerability refers to the resilience of a community when confronted with external
stresses on human health, such as natural or human-caused disasters or disease outbreaks.
Reducing social vulnerability can decrease both human suffering and economic loss when these
crises happen. The CDC/ATSDR Social Vulnerability Index is a tool that helps emergency
response planners and public health officials identify and plan support for communities that will
most likely need assistance before, during, and after a natural disaster or public health
emergency. The index is updated regularly (most recently in 2018) by linking 15 key social
factors to identify communities most at-risk in a crisis. These factors include socioeconomic
status (below poverty line, unemployment, income, no high school diploma), household
composition and disability (aged 65+, aged 17 or younger, older than age 5 with a disability,
single-parent households), minority status & language (minority, speak English “less than well”),
housing type (multi-unit structures, mobile homes, crowding, group quarters), and lack of
transportation. The community receives an SVI score between 0 and 1, with higher scores
indicating higher Social Vulnerability. [1]

In Minnesota, there are four counties ranked as having a high social vulnerability score and
three of these counties are in the Headwaters Region: Beltrami (.7771), Clearwater (.7917), and
Mahnomen (.8717). Mahnomen’s overall SVI score of .8717 is the highest in the state. With SVI
scores this high, these counties will struggle to cope with and rebound from disasters unless
significant assistance is provided. [1]

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REGIONAL LINKS

One of the clearest ways our region is

connected through northern Minnesota
and the Minneapolis metropolitan area is
through infrastructure. This includes
state highways and the Bemidji Regional
Airport (BRA). A section of Highway 2
runs east-to-west through Hubbard,
Beltrami, and Clearwater. It is a direct
route to the cities of Duluth (East) and
Grand Forks (West). The Reduced
Conflict Intersections (RCI) project,
funded by MN DOT, was completed on
Highway 2 between Beltrami CR 14 in
Wilton and Beltrami CR 9 in Bemidji to
reduce risk of fatal car crashes in the
months of May-July 2021 with an
estimated cost of $2,890,000.

Bemidji Regional Airport supports the

region through jobs and tourism.
Annually the airport receives 21,339
visitors per year and generates an
economic activity to the community of
$57. 7 Million. The airport is a direct
link to almost anywhere in the nation
but also a direct line to the Minneapolis
metro/airport. The region’s
infrastructure and connectivity with
the state and country is what keeps us
an important factor for the region’s
growing industry. Increased
infrastructure connections will also
assist in the supply of skilled workers –
a critical factor in business location
decisions and growth.
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SHARED LAND AND
ENVIRONMENTAL FEATURES

Beyond infrastructure connections, the

region shares many land use and
environmental concerns. Within the five-
county region of Beltrami, Hubbard,
Mahnomen, Clearwater, and Lake of the
Woods, there are three Native American
Reservations. Red Lake Reservation lies
within Beltrami, Lake of the Woods, and
Clearwater. White Earth Reservation lies
within Mahnomen and Clearwater Counties.
Leech Lake Reservation lies within Beltrami
and Hubbard Counties. This gives the region
a diverse outlook on projects that affect the
communities and the environment.

The region also shares three groundwater

provinces that are utilized through
agriculture and municipal use. The majority
of the Region is in the central province, the
northern part of the Region is part of the
western province, and a small portion of
Lake of the Woods has the
Arrowhead/shallow bedrock province
located in it. Beltrami County is working
towards management goals of the
groundwater that include; developing a local
groundwater quality database ($60,000),
reducing groundwater flooding ($165,000),
assisting in drinking water protection
($26,500), and assisting in well
abandonment, sealing, and monitoring
($30,000).

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DISTRESSED AREAS
While CEDS is largely focused on regional
economic development challenges, assets, and
initiatives, we felt that there should be special
effort made to ensure that economic growth is
spread across all parts of the region.
Economically distressed areas benefit greatly
from local and regional tactics and projects
outlined in this plan. Discussions, particularly
those around workforce, quality of life, and
redevelopment, are centered around place-
based economic development initiatives. Focus
on these areas also align with the EDA’s
commitment to distressed areas through target
investments.

EDA considers an area to be distressed if: 1.) the

most recently available per capita income is
80% or less of the national average; 2.) the
average unemployment rate over the most
recent 24-month period is at least one
percentage point greater than the national
average; or 3.) the area has a “special need” as
determined by EDA. Within our region, we
experience higher than average poverty and
unemployment. Shaded in green are the
townships within the five-county region that are
80% or lower than the national average of per
capita income. Unemployment rate was
generated on county levels and not township or
city levels. The two counties in our region that
experience at least a one percentage point
greater than the national average are
Mahnomen and Clearwater Counties. Distress
measures often play a key role in eligibility and
match proportions for funding under EDA Areas shaded in green represent Per Capita Income at
programs. 80% or less than the national average
Areas in blue represent the unemployment rate at least
one percentage point greater than the national average

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BROADBAND
Recommendations gathered at the Northwest Regional Conference and the others hosted across the
state were presented to the Governor’s Broadband Task Force, and some were reflected in the Task
Force’s final report, including:

Unserved areas of the state that are difficult to reach due to low density, tough geography, etc.
should receive a higher % of funding match from OBD to increase build out options for wireline
projects/solutions.
The legislature should require all future projects funded by OBD grant dollars be capable of 100
Mbps download and 100 Mbps upload at the time of deployment (irrespective of whether or not a
provider offers a service package of 100/100), and meet network reliability requirements in the
Infrastructure Investment and Jobs Act.
Strive to achieve ISP cooperation in producing address-level or ‘shapefile’ broadband maps (rather
than rely on current FCC census block data).
Minnesota broadband maps should include eligibility data related to the various federal programs
supporting broadband infrastructure development.
OBD is encouraged to incorporate, whenever possible, data from reliable 3rd party ‘crowd-sourced’
maps when determining eligibility for Border-to-Border grants.
The legislature should continue to make the investments from state general funds necessary to
ensure that all Minnesotans, regardless of zip code, have access to broadband at speeds that meet
state goals. Federal investments should not be seen as a substitute for ongoing state investment.
Provide funding to the Office of Broadband Development to promote broadband adoption and use to
redress digital inequity.
Given expressed needs from city & county leaders to expand the Lead for MN American Connection
Corp fellows program (Americorp/Vista), the state should provide supplemental funding of $225,000
to support work in Minnesota communities on broadband expansion projects (15 more fellows @
$15,000 per fellow).

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COMMUNITY & PRIVATE SECTOR
PARTICIPATION
In development of the Region’s Comprehensive Economic Development Strategy (CEDS), HRDC
staff ensured efforts made to include a diverse range of private sector and community
representatives. Initially, a Strategy Committee was formed to provide assist with the vision,
goals, and objectives of the CEDS. The committee was involved in providing recommendations
and insight from meetings and individual interviews.

The committee members represent folks the following private and public-sectors: financial
institutions/banks, economic development, higher education, tribal government, local
governments, arts and tourism, small business, non-profit community organizations,
manufacturing, natural resource, and healthcare. The committee is an equitable representation
of the Region’s industries and demographics. With “Equity” being a top investment priority for
the U.S. EDA, staff also included incorporated a community representative who specializes in
Diversity, Equity and Inclusion.

CEDS STEERING COMMITTEE

Ashley Charwood, High Ed & Diversity, Equity, Inclusion Monty Johnson, Education/Higher Ed, & Workforce
Bud Kaney, Private Business Nate Dorr, Economic Development
Calvin Larson, Clearwater County Nick McArthur, Banking & Financial Services
Eugene Sommers, Tribal Govt. & Economic Development Philip Knutson, Workforce Development
James "Buck" Nordlof, Manufacturing & LGU Reed Olson, Local Government & Private Business
Jason Funk, Banking & Financial Services Rob Aitken, Banking & Financial Services
Jay L. Pike, LGU, Financial Services, Education Ron Johnson, Local Government
Jeffry Stampohar, Healthcare Ryan Lechner, Local Government
Jorge Prince, LGU & Manufacturing Peter Buesseler, Natural Resources
Laura Seter, Arts & Culture Erika Bailey-Johnson, Natural Resources
Lorna Lague, Education/Higher Ed and Tribal Govt. Sharon James, Economic Development
Mary Thompson, Economic Development Thomas Bement, Economic Development
Mike Triplett, Tribal Govt. & Economic Development Tiffany Fettig, Workforce & Economic Development
Mitchell Berg, Economic Development

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COMMUNITY STAKEHOLDER SURVEY

Over the course of the last year, HRDC has reached out to community members and
representatives from the region’s top industries for input on what our stakeholders think about
the local economy, workforce, quality of life, and other data. HRDC completed a survey of
community stakeholders in March 2021 and qualitative interviews of leaders from top industries
in January 2022. While there was limited response overall, what data we were able to collect
was largely consistent and provides valuable insight into community views and attitudes.

In the survey we were able to get 56 respondents from the around the region with each county
representing at least 12% of the responses, and Beltrami and Lake of the Woods Counties having
the largest proportions at 33% and 27% respectively. Most respondents were employed (59%)
and the industries they were employed in varied significantly, with Government/Public Service
being the largest single category at 26%; most of the region’s top industries
(Accommodations/Food Services, Construction, Education, Public Admin, Healthcare, Retail)
were represented with at least 1 response.

Of the respondents to the survey, most were aged 41 or older (86%), were white (88%), and had
lived in the region 11 years or longer (82%). This indicates that HRDC could increase outreach to
younger, diverse groups in the population and people who have moved to the region more
recently.

The survey responses indicate that the Region is a good place to visit (91%), live (96%), and start
a business (85%), although this is tempered by views that opportunities are not equally
accessible to all. On Diversity and Inclusiveness, 76% of respondents gave the region a grade of
“B” or lower and 67% of respondents disagreed or were neutral when asked if “all residents have
equal access to economic opportunity.” Regarding education and careers, 52% of respondents
either disagreed or were neutral about a question asking if “education and job training are
available to residents who really need it” and 70% of respondents either disagreed or were
neutral when asked if they agreed with the statement “I can advance in my chosen career.” In the
other comments option, one respondent summed it up with the statement “I feel like the rate of
success is directly related to who you are.”

PAGE 27 Community Stakeholder Survey continued...

Page 60 of 75
Infrastructure availability and quality were largely rated with grades of “A” or “B,” with
Traffic/Congestion, Commute Times/Transportation Options, Water Supply/Resources, and
Availability of Broadband having the highest percent of people giving “A” grades.
Highways/Streets/Road Access & Quality, Biking & Pedestrian Infrastructure,
Telecommunications, and Services for the Aging & Disabled having the highest proportion rating
them with a “B” grade. Housing Availability and Affordability was the main outlier with 49% of
people giving it a “C” grade followed by 41% giving it a “B.” This poor housing grade is reflective
of the housing crisis in the region, as was discussed in the Regional Summary section of this
document. When asked about their top five concerns about the community’s future economy,
access to affordable and quality housing was the top response with 78% of respondents
including it in their top concerns. This was followed by availability of quality employees (72%),
overall business climate (44%), funding availability to start a new business (35%), and
transportation & infrastructure (33%).

TOP INDUSTRY INTERVIEWS

In the top industry interviews, HRDC got responses from individuals in healthcare, agriculture,
and manufacturing. All interviewees indicated that they are struggling to find enough
employees, with educational requirements, experience in specific skillsets, and barriers for
employees to maintain certifications being the biggest challenges they were experiencing for
finding qualified candidates. The top jobs that were indicated as being in demand right now and
in the next few years included: nurses, lab & radiology techs, physical/occupational/speech
therapists, truck drivers, and industrial mechanics (especially those with electronics
backgrounds). When asked what the community needs to improve in order for these businesses
to be able to attract employees, the top answers were to increase the supply of affordable
housing and to increase the availability of childcare (all shifts need increased childcare options,
but evening and overnight shifts were particularly in need for healthcare and manufacturing).

PAGE 28 Top Industry Interviews continued...

Page 61 of 75
TOP INDUSTRY INTERVIEWS

In the top industry

interviews, HRDC
got responses from
individuals in
healthcare,
agriculture, and
manufacturing. All
interviewees
indicated that they
are struggling to
find enough
employees,

PAGE 29

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SWOT ANALYSIS

PAGE 30

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SWOT ANALYSIS

PAGE 31

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 REGIONAL PRIORITIES
1. Affordable and Quality Housing
2. Skilled and Available Workforce
3. Broadband Availability and Access
4. Transportation & Infrastructure Improvements
5. Improve Business Climate & Access for Startups
6. Childcare Access and Affordability
7. More Developable Land

PAGE 32
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ECONOMIC RESILIENCE
Economic Resiliency is defined as an area's ability to prevent, withstand and quickly recover
from major disruptions to its economic base. It is a key element to ensuring and preserving
regional economic prosperity. Economic Resiliency is at the heart of the CEDS.

The U.S. Economic Development Administration has outlined new investment priorities for
their grant programs with 'Equity' being top priority. These priorities ensure that their grant
investment portfolio contributes to building, improving, and leveraging economic assets allow
businesses to succeed and regional economies to prosper. With Equity being a top priority, it
has be woven throughout the CEDS. The strategies of this plan focus around six economic
essentials to ensuring economic resiliency.

Economic resiliency essentials

Career Building and workforce and skills training
Broadband Access and Development
Childcare Access and Affordability
Building the Entrepreneurial Ecosystem
Housing Access and Affordable Housing Options
Connecting Community to Physical Assets
Supporting Main Streets and Community Hubs

PAGE 33

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 HUMAN CAPITAL
CORNERSTONE #1
GOALS & STRATEGIES

Summary
Over the last 5 years, the Region’s population was at 85,515 in 2019 (a 1.2% increase in the past
5 years).In comparison to Minnesota and the Nation, the region has a slightly higher proportion
of people under 24 years old and higher proportion aged 55 and older. The proportion of
people in the prime working age of 25-54 is smaller than Minnesota and the Nation. The total
labor force is down 2% over the last 5 years despite the 1.2% growth in overall population. The
labor force rate is currently at 61.5%. The Region and all tribal communities have lower Per
Capita Income than the State and Nation

SMART Goal
#1 Increase the Labor Force Participation Rate by 2% by 2027

#2 Increase the Per Capita Income by 4% by 2027

Action plan
Develop a target market campaign to promote career opportunities and quality of
life to attract and retain workforce
Increase the availability and affordability of childcare particularly in healthcare and
manufacturing
Collaborate with businesses, higher education institutions, workforce centers and
local government to develop stronger recruitment and retention strategies
Expand workforce development and training programs to all communities and
underserved populations
Share success stories from employers using innovative techniques to attract and
retain workforce

key Partners
Local Government Units
Chamber of Commerce
High Education Institutions Tribal Government
Economic Development Agencies Manufacturing/Healthcare Industries
MN DEED Northwest Minnesota Foundation
USDA Rural Development First Children's Finance
Workforce Development Centers
School Districts
PAGE 34

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 ECONOMIC
CORNERSTONE #2

COMPETITIVENESS
GOALS & ACTION PLAN

summary
Headwaters Region was home to 2,398 business establishments providing 30,683 covered
jobs through 2020. In terms of employment, Beltrami County is the largest economic
center with 19,365 jobs at 1,254 firms, accounting for 63% of all jobs in the region. Total
jobs have increased 1,738 over the past 10 years. In the last 5-years, jobs were down -365
which was due to the COVID-19 Pandemic, but the total number of firms increased by 40.

SMART Goals
#3 Increase the Innovation Intelligence Index for the Headwaters Region to 115% by 2027

#4 Increase the number of firms in the Headwaters Region by 60 by 2027

Action plan
Improve career pathway opportunities and high-quality jobs with a livable wage
Support new startups and businesses with high growth potential to by providing
technical and financial assistance
Promote site-ready and redevelopment locations to entrepreneurs and business
owners
Increase BR&E, Succession Planning, and business development training programs
Expand co-workings spaces and innovation hubs in the region
Expand small business opportunities and engagement in the ecosystem to
historically underserved populations
Highlight the value of the Canadian border to the regions business economy

key partners
Workforce Development Centers MN DEED
Economic Development Agencies Co-Working Spaces
Northwest Minnesota Foundation School Districts
U.S. EDA Higher Education Institutions
USDA Rural Development Local Businesses
Local & Tribal Government Convention and Visitor Bureau
UMN Extension Office PAGE 35

Page 68 of 75
 COMMUNITY RESOURCES
CORNERSTONE #3

GOALS & ACTION PLAN

Summary
Greater Minnesota communities seek to maintain rural values, their heritage and the
assets that support them. At the same time, we respectfully acknowledge that Greater
Minnesota was home to Native Americans long before new Americans settled it in the
19th Century. And we endeavor to welcome more new Americans as the 21st Century
unfolds. Community Resources includes topics that balance the preservation and
improvement of social, cultural and natural assets that are critical for the health and well-
being of everyone, now and in the future.

SMART Goal
#5 Tourism: Increase visitor spending 5% by 2027
#6 Arts & Culture: Increase employment in arts and tourism 5% by 2027
#7 Equity & Inclusion: Increase cross-cultural collaboration and diversity on community projects
and initiatives
#8 Energy & Environment: Promote the Region's quality of life through natural amenities and recreation
while supporting ecological preservation

Action plan
5.1 Identify new place-making investment opportunities for main streets
5.2 Promote new and emerging tourism, arts, and outdoors events to visitors
5.3 Increase cross-marketing and collaboration between businesses and vendors
6.1 Increase business development and technical assistance for arts entrepreneurs
6.2 Work with organizations to identify new investments in arts and culture
7.1 Increase collaboration and cross-cultural connections in community planning
7.2 Improve economic opportunities and address barriers affecting underserved populations
8.1 Market the natural resource amenities to residents and visitors
8.2 Work with local government on energy and environmental planning
8.3 Encourage engagement in energy and environmental policy

Chamber of Commerce key partners Local Economic Development

USDA Rural Development Explore MN
Convention & Visitor Bureau
Local Government Units MN DNR
Region 2 Arts Council
Tribal Government MN DEED
Community Non-profits
PAGE 36 UMN Extension
Page 69 of 75
 FOUNDATIONAL ASSETS
CORNERSTONE #4
GOALS

summary
Greater Minnesota communities require proactive and collaborative
approaches/strategies to address infrastructure needs in a cost-effective manner.
Managing the access to, maintenance, replacement and growth of these assets is key to
preserving and maintaining communities and providing for growth opportunities.
Foundational assets include above-ground and below-ground infrastructure such as
transportation, utilities, and water.

SMART Goals
#9.1 Five new state or federal infrastructure project investments by 2027

Broadband Goal
#9.2 Increase the Region's broadband speed to 100 Mbps/20 Mbps by 2026

#9.3 Increase the number of households with computer and internet access

transportation Goal
#9.4 Increase access and availability of transportation options

Housing Goal
#9.5 Increase the number of affordable housing units for low to moderate income households

Waste-water infrastructure Goal

#9.6 Decrease the number of communities out of MPCA compliance by 2030

key partners
Local Government Units HHDC
Tribal Government HRA's
Blandin Foundation MN DOT
MN Office of Broadband Development U.S. EDA
USDA Rural Development MN DEED
Minnesota Housing Partnership MPCA
MMCDC USDA Rural Development
Northwest Minnesota Foundation UMN Extension
PAGE 37 Foundational Assets continued......

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 FOUNDATIONAL ASSETS
BROADBAND/TRANSIT &
CORNERSTONE #4

ACTIVE TRANSPORATION
ACTION PLANS

Broadband
Partner with broadband services providers to identify areas for investment in
broadband infrastructure
Extend fiber and high-speed internet to key job creation sites and community
institutions and ensure
Adapt to changes in teleworking for businesses and residents while promoting
workforce these opportunities to new businesses and residents
Survey businesses to understand broadband needs and issues
Promote the PC for People and the FCC Affordable Connectivity Program
Partner with Blandin to expand the Blandin Broadband Communities Program
Facilitate digital training and education for communities and business owners

Transit & Active Transportation

Assist communities with transportation planning

Create a regional transportation network to improve coordination and alignment
Work with state and local government to identify funding and service options to meet
mobility and access needs of individuals
Support safety, mitigation and transportation planning projects
Work with providers to increase geographical areas for transportation services
Increase the vehicle stock for rural transit systems
Increase the number of volunteer drivers

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 FOUNDATIONAL ASSETS
CORNERSTONE #4
HOUSING/WASTE-WATER
INFRASTRUCTURE
ACTION PLANS

housing

Increase the number of new and affordable housing units

Increase investment in the number of units rehabilitated or preserved
Promote the development of transitional and permanent supportive housing
Identify diverse, affordable, and sustainable housing options
Increase access to solar energy for all housing

Waste-water infrastructure

Increase investments in municipal infrastructure that support affordable housing

business development, and industrial park expansion
Encourage local government units to Improve the resiliency of municipal
infrastructure
Work with local government units to align capital improvement plans with
zoning/land ordinances and comprehensive plans

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EVALUATION FRAMEWORK
The 2022-2026 Comprehensive Economic Development Strategy (CEDS) is a comprehensive
analysis of the current condition and perception of the region’s strengths, weaknesses,
opportunities and threats and outlines goals and strategies to build on current conditions.
Measurable performance metrics are essential to the document to ensure strategies are being
moved forward, project stories are being told and results are quantified. The purpose of this
section is to provide evaluation methods of the Headwaters Region's CEDS document and
ensure successful

HRDC staff will review the performance of the Region's vision and goals articulated in this CEDS
on an annual basis. To evaluate the progress of the CEDS, HRDC will meet annually with
stakeholders of the region. HRDC will encourage these representatives to engage other
interested individuals from the region to ensure a broad representation of interests. As we
prepare our regular reports on the CEDS, we will look at each cornerstone comprehensively,
taking into account the U.S. EDA's investment priorities, performance measures such as jobs and
tax base as well as the specific goals identified in this document.

The goals that are outlined in the CEDS will be measured over the next fiver years and report
annually to the CEDS Committee, community partners, and stakeholders. The following baseline
date will be use to measure each goal.

Baseline Evaluation Measurements

Human Capital Foundational Assets: Broadband
Per capita income Annual survey of MN providers
Growth in salary/wages per worker Service Provider data

Economic Competitiveness Transportation

Innovation Index rate Ridership change
Number of businesses Service Provider Survey
Business Surveys
Housing
Human Capital Number of available homes
Sales tax rate/sales rate Measure total housing units
Industry employment rate Survey stakeholders
DEI survey metrics
Track Environmental & Energy Plans Waste-Water Infrastructure
Explore MN Lodging Metrics Monitor the Clean Water Priority list
Monitor completion of LGU projects

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APPENDIX

Resources HRDC EXECUTIVE COMMITTEE

Cal Larson - Chair
Ron Johnson - Vice-Chair
A Chmura Regional Overview Report
John Nelson - Treasurer

Rick Rone - Secretary

B MN DEED Regional Profile Craig Gaasvig – Beltrami County
Ted Van Kempen– Hubbard County
C Develop MN CEDS

D Community Stakeholder Survey HRDC COMMISION

Ed Arneson, Lake of the Woods County
E CEDS Strategy Committee Allen Bedford, Higher Education
Peter Buesseler, Natural Resources
Randy Finn, Leech Lake Reservation
F HRDC Commission
Craig Gaasvig, Beltrami County
Grant Frenzel, Business
Theora Goodrich, Hubbard County Townships
Mike Harrom, Labor
Ron Johnson, City of Bemidji
Cal Larson , Clearwater County Small Cities
Deb McArthur, Mahnomen County Small Cities
Brian Merschman- Beltrami County Townships
John A. Nelson – Clearwater County
Michael Meuers – Red Lake Reservation
Buck Nordlof – Lake of the Woods County
Larry Olson – Mahnomen County
Jay Pike – School Districts
Rick Rone – Lake of the Woods County Small Cities
Nicholas Seitz – Beltrami County Small Cities
Todd Turner – Mahnomen County Townships
Ted Van Kempen– Hubbard County
Sarah Young – School Districts

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 CERTIFIED COPY OF RESOLUTION OF COUNTY BOARD
HUBBARD COUNTY, MINNESOTA

Commissioner ___________ moved the adoption of the following resolution:

RESOLUTION NO. 01032300X

Whereas, Hubbard County is recognized by the Economic Development Administration

as a redevelopment area with special needs for economic development assistance; and

Whereas, the Headwaters Regional Development Commission is an Economic

Development District by the Economic Development Administration to provide planning
and economic development assistance; and

Whereas, the Hubbard County Board of Commissioners actively supports and currently
participates in the economic development district activities of the Headwaters Regional
Development Commission; and

Whereas, the Headwaters Regional Development Commission has prepared a

Comprehensive Economic Development Strategy in cooperation with businesses,
communities, and economic development organizations in lieu of a separate county
Comprehensive Economic Development Strategy.

Now therefore be it resolved, that the Hubbard County Board of Commissioners approves
of the Comprehensive Economic Development Strategy as submitted on this date

By: ____________________________________________

Chair, Hubbard County Board of Commissioners

Date:______________________

Commissioner ________ seconded the motion for the adoption of the Resolution and it
was declared adopted upon the following vote:

Ayes: Nays

STATE OF MINNESOTA )
) ss.
County of Hubbard )
Office of the County Administrator

I, Jeff Cadwell, Hubbard County Administrator, certify the above is a full, true, and correct
copy of a Resolution duly adopted by the Hubbard County Board of Commissioners at its regular
meeting on January 3, 2023.

Jeff Cadwell
Hubbard County Administrator

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