guide to economic information and activity for the Minnesota coastal zone land use management plan

[From the U.S. Government Printing Office, www.gpo.gov]

A GUIDE TO
ECONOMIC INFORMATION
AND ACTIVITY FOR
THE MINNESOTA COASTAL
ZONE LAND USE
MANAGEMENT PLAN

By the

MINNESOTA
DEPARTMENT OF
ECONOMIC DEVELOPMENT

A GUIDE TO ECONOMIC INFORMATION AND ACTIVITY

FOR THE MINNESOTA COASTAL ZONE LAND USE MANAGEMENT PLAN

by the

MINNESOTA DEPARTMENT

OF ECONOMIC DEVELOPMENT

RESEARCH DIVISION

Funded by

National Oceanic and Atmospheric Administration

and The Minnesota State Planning Agency

A GUIDE TO ECONOMIC INFORMATION AND ACTIVITY
FOR THE MINNESOTA COASTAL ZONE
LAND USE MANAGEMENT PLAN
BY THE MINNESOTA DEPARTMENT OF ECONOMIC DEVELOPMENT
DIVISION OF RESEARCH

Introduction

The purpose of this report is to identify the organiza-

tional structure functioning within the economic aspects of

the Minnesota Coastal Zone Land Use Management Plan. Because

of the many influences and organizations operating on the

defined area, the first approach to understanding the complexity

of the organizational structures is to identify each in

relation to the major industrial classifications, including

Agriculture, Construction, Employment, Energy,-Finance, Forestry,

@Income and Revenue, manufacturing, mining, Retail/Wholesale

Sales, Services, Transportation, Touris m/Travel Recreation.

To accommodate the economi c information to the coastal

zone area definition, the scope has been broadened somewhat to

include the City of Duluth and all of Lake and Cook Counties.

Because of the limited amount of time and funding given

to the report, no attempt is made to be.exhaustive in the

analysis. The objective is to establish the main functional

lines of economic development effort being directed to the

area. With this limitation, the effort is still vast and

complex. Thus, the method of approach used is that of a

matrix design between the organizational effort andthe major

industrial classifications. The matrix is included at the

end of the report. Each organization will be presented in

the mode of its role in the coastal zone economic concern.

These roles will be given at the geographic level in which

they operate -- inter-state, statewide, regional and city-

county specific. Thus, the scope will descend from the

general to the specific.

The level of technicality is determined by the subject

matter but the effort,. in general, was to direct the content

of the re port to the interested lay person as well as the

technician.

This project is not to be construed as merely an orqani-

zational description or bibliography. It attempts to trace

the operational lines of organizational responsibility and

information capability. Although most subject matter is

directed to the defined area, the surrounding major economic

influences such as the copper-nickel mining implication,

regional tourist traffic and the Burlington-Northern Trans-

shipment facility on the Superior side of the harbor are

included because of their significance to the Coastal Zone

area economy.

Because of the vastly different character of the various

organizatiqns'included in the study, the method of treatment

varied in an attempt to catch the nature and operation of

the organization as it relates to the magnitude of its economic

impact on the Coastal Zone.

Detailed organizational structure was given only for

those.agencies whose scope of operation differed from con-

ventionally defined government agencies.

In addition to giving organizational responsibility and.

information capability; general statistics, projection,

objectives, goals and policies were cited where they were

important to establish some of the parameters for deeper and

more specific economic study of the area. This extension of

subject matter was included as a result of a request from

the State Planning Agency review of the proposal.

No attempt has been made to' deal with,human resource

or environmental issues because they will be treated in other

phases of the planning process by the appropriate agencies.

For example, population will be treated in the socio-economic

report of the Arrowhead Regional Development Commission.

Special note should be made of the fact that the University

of Minnesota portion of the study was prepared under subcontract

by Dr. Wilbur R. Maki, Professor of Resource Economics,

University of Minnesota-St. Paul.

TABLE OF CONTENTS

Page

Great Lakes Commission ................................... 1
Great Lakes Basin Commission .................... 8
Upper Great Lakes Regional Commission .................... 24
Arrowhead Regional Development Commission .................. 40
The Duluth-Superior Metropolitan
Interstate Committee ................................ 68
U. S. Department of Commerce,
Bureau Of The Census ................................ 73
Small Business Administration (SBA) .............. ....... 96.
U. S. Department of Labor,
Current Employment Analysis ......................... 127
Minnesota Department of Employment Services ......... 139
U. S. Department of Agriculture,
Forest Service ....................................... 145
Department of Economic Development ....................... 171
ARA-EDA ................................................... 188
Seaway Port Authority of Duluth .................... 198
U. S. Department of The Army,
Burlington Northern; Taconite transshipment
Facility Duluth-Superior Harbor ..................... 221
Minnesota State Planning Agency,
Grain Transportation ................................ 230
Department of Aeronautics, Economic Impact ............... 250
Minnesota Highway Department ............................. 257
Coastal Zone Traffic Data ........................... 257
Department of Natural Resources,
State Comprehensive Outdoor Recreation Plan ......... 288
U. S. Department of The interior ......................... 307
mineral Resources ................................... 307
The Economic Aspects of Copper-Nickel
Mining In Minnesota ................. o ............... 320
Northeastern Minnesota Development Association ........... 330
Minnesota Arrowhead Association .......................... 335
University of Minnesota ............................... - 339
Bibliography ............................................. 386

GREAT LAKES'COMMISSION

In 1954, at a Regional Conference of State Governments,

the Governors of the eight Great Lakes agreed to coordinate

their efforts for the betterment of the Great Lakes area. An

Interstate Committee was created to draw up a Compact for this

purpose. In 1955, the Great Lakes Commission was established

under the "Great Lakes Basin Compact". During the 1955 legis-

lative sessions, five states.-- Illinois, Indiana, Michigan,

Minnesota and Wisconsin -- ratified enabling legislation to

the Compact. Pennsylvania subsequently became a member of

the Commission in 1956, New York joined in 1960, and Ohio in

1963.

Congress was requested to give its formal consent to the

Interstate Compact, as is required by U. S. Constitution and

on July 24, 1968, the President signed P. L. 90-41 9 which

grants Congressional consent to the "Great Lakes Basin Compact".

Congressional approval withheld consent to any agreements by

party.states with Canadian Provinces. One of the principal

factors in the Commission's diligent efforts to obtain

Congressional consent was the fact that this entitles the

Commission to have official representation on the Great Lakes

Basin Commiss ion.

Pur20se

The purposes for the organizat ion of the Great Lakes

Commission are defined in the Great Lakes Basin compact as

follows:

To promote the orderly, integrated, and comprehensive
development, use, and conservation of the water resources
of the Great Lakes Basin (hereinafter called the Basin).

To plan for the welfare and development of the water
resources of the Basin as a whole, as well as for those
portions of the Basin that may have problems of special
concern,

To make it possible for the states of the Basin and
their people to derive the maximum benefit from util-
ization of public works, in the form of navigational
aids or otherwise, that may exist or which may be con-
structed from time to time.

To advise in securing and maintaining a proper balance
among industrial, commercial, agricultural, water
supply, residential, recreational and other legitimate
uses of the water resources of the Basin.

To establish and maintain an intergovernmental agency
to the end that the purposes of this Compact may be
accomplished more effectively. In addition, the
Commission advises the states and federal representatives
and departments on matters of regional water resources,
and maintains a central point of contact for the states
to provide and exchange information and to consider
matters of concern to its members.

The Commission also serves as secretary for the Great

Lakes Task Force and the action committee of the Great Lakes

Environmental Conference.

Commission Activities

Navigation and Commerce - The Commission played a major

4- T h
role in establisIL-ling the Garea%- ,alkes as America'-- Fourt,

Seacoast, and in pr omoting legislation aimed at improving

the competitive position of the Lakes and in achieving an

equity position for lakes' ports and shippers, particularly

with regard to eliminating discriminatory land freight rates

for export-import cargoes, extending the navigation season

throughout the Great.Lakes-St. Lawrence Seaway system, providing

U. S.Tlag vessel service into the Lakes system, reducing or

eliminating tolls in the Seaway, and urging fair and equitable

administration of the cargo preference laws.

Environmental Quality - The Commission has participated

in developing the various amendments to the Federal Water

Pollution Control Act, from 1955 to the present. Its aim is

to make existing legislation work and to insist on adequate

funding and reduced red tape to allow Congressionally mandated

programs to proceed. Through the Environmental Conference

the foundations for the U. S.-Canada Water Quality Agreement

were laid.

Shorelands Use - The Commission has developed a composite

program, in cooperation with the Great Lakes states, federal

agencies, local governments and various interested groups,

designed to guide the use of the shorelands to prevent, to

remedy or correct'. and.to provide.relief to persons and areas

from damage,s,dnd losses arising from fluctuating water levels,

flooding and erosion. Funding for erosion control, emergency

flood protection, and flood fighting has been sought; and

measures for flood plain zoning and use and federal income

tax relief have been proposed. The Commission successfully

supported the appropriation of funds for the Coastal Zone

Management Act.

Fisheries and Wildlife The Commission annually supports

and requests funding for the sea lamprey control program.

This highly successful program now being carried in the 5

Great Lakes has been responsible for the return of the Great

Lakes fishery. Associated with this, the Commission has

promoted the Great Lakes Anadromous Fish Act which led to

the coho, chinook. and Atlantic salmon stocking of the Lakes.

Washington Representation - Periodically as the occasion

affords and demands, the Commission appears before congressional

committees and presents written statements to support legisla-

tion of benefit to the Great Lakes region. The Commission

works closely with the Conference of Great Lakes Senators,

Conference of Great Lakes Congressmen and state offices in

Washington.

ORGANIZATIONAL STRUCTURE

Membership

The Great Lakes Commission is composed of not less than

three, nor'more than five commissioners from each party state.

The states reserve the right to determine how their Commissioners

are appointed. Each state receive's three votes that are cast

by its Commissioners or the Commissioner's duly-appointed

proxy.

Non-Voting Members

The By-Laws permit each state and the Great Lakes Commission

as a whole to select advisors and consultants who can provide

expert technical advice to the members. Provisions are also

made for a federal representative to be a non-voting member

of the Commission.

Committees

The Executive Committee is composed of the Chairman, Vice-

Chairman and one Commissioner from each state.

The Chairman is responsible for appointing three or more

Commissioners to the Standing Committees as follows:

Seaway, Navigation and Commerce Committee
Water Resources Committee
Shoreline Use and Recreation Committee
Fisheries and Wildlife Committee
Environmental Quality Committee

officers.

The Chairman and Vice-Chairman are elected from among the

Commission's members at the Annual Meeting and serve for a term

of one year. The Commission appoints an Executive Director

who serves at its pleasure and at a salary determined by the

Commission. His duties as listed in the By-Laws are as follows:

Carry out its policies.'
Serve as editor of any Commission'publication.

Coordinate the activities of 'all committees.
Arrange details and facilities, including secretarial
and other services, for all Commission and
committee meetings.
Serve as ex-officio member without vote for all committees.
Cause to be made a record of the proceedings of the
Commission and Executive Committee and preserve
the same in the headquarters office.

Give notice of all meetings.
Make recommendations on programs, policies and activities
. of the Commission.
Exercise general supervision under the direction of
the Commission of all th,e Commission programs and
activities.
Have immediate charge of the headquarters office and
personnel.

Staff

Staff members are employed by the Executive Director who

also establishes the level of compensation and delegates the

duties. According to the By-Laws, the Executive staff consists

-of the Executive Director and such other staff members as may

be designated by a majority vote of the Commission from time

to time.

Meetings

According to the By-Laws, Standing Committees meet at

,least once between regular Commission meetings. The Commission

must meet at least twice annually.

FUNDING

As the Great Lakes Commission is an agency of states,

its funds a re derived solely from contributions by member s-Eates.

Each state contributes annually an equa'l sufa, during the Fiscal-

'Year beginning July l.-

Publications of the Great Lakes Commission include:

Great Lakes Newsletter - bi-monthly
Great Lakes Research Checklist - semi-annually
Tonnage (Commerce) Statistics for Great Lakes Ports
monthly
Report to the States - biennually
Summary of State and Provincial Sport Fishing
. Regulations on. Great Lakes - annually
Minutes of Committee and.Commission Meetings
Water Quality Management Forum - special
Special Studies, Reviews and Reports as appropriate

GREAT LAKES BASIN COMMISSION

The Water Resources Planning Act (Act, 79 Stat. 224.42

U.S.C. 1962 et. seq.) of 1962 authorized the President of the

United States to establish commissions for River Basin Planning

when such a request is submitted to the Water Resources Council

by a Governor(s) of a state(s) in which a River Basin is

located.

Requests for establishing commissions for River Basin

Planning were presented to the Water Resources Council by the

Governors of Indiana, Michigan, Minnesota, Ohio, Wisconsin,

Illinois, New York and Pennsylvania. The Water Resources

Council concurred in this request, and on April 20,.1967,

President Lyndon B. Johnson, exercising his authority to issue

executive orders, established the Great Lakes Basin Commission

under Title II of the Water Resources Planning Act. (Executive

Order No. 11345, April 20, 1967)

The jurisdiction of the.Commission was specified as those

portions of the eight Great Lakes States that are drained by

the St. Lawrence River system, including the Great Lakes, their

tributaries and tributaries to the St. Lawrence River that reach

it within the United States.

PURPOSE

The purpose of the Great Lakes Basin Commission is

basically that of PLANNING. The Commission conducts water

and related land resource planning within those portions of

the eight Great Lakes States that are drained by,the St. Lawrence

River system and its tributaries and the Lakes and their

tributaries. A more precise statement of its duties is con-

tained in the Water Resources Planning Act (Title II, Section

201) as follows:

Engage in such activities and make such studies and-
investigations as are necessary and desirable to encourage
the conservation, development, and utilization of water
and related land resources of the Great Lakes on a
comprehensive and coordinated basis by the Pederal Govern-
ment, states, localities, and private enterprise with
@-the cooperation of all affected federal agencies, states,
local governments, individuals, corporations, business
enterprises, and others concerned.

Serve as the principal agency for the coordination of
federal, state, interstate, local and nongovernmental
plans for the development of water and related land resources
in its area, river basin, or group of river basins.

Prepare and keep up.to date, to,the extent practicable,
.a comprehensive, coordinated, joint plan for federal, state,
interstate, local and nongovernmental development of water
and related resources: Provided, that the plan shall
include an evaluation of all reasonable alternative means
of achieving optimum development of water and related
land resources of the Basin or Basins, and it may be
.prepared in stages, including recommendations with respect
to individual projects.

Recommend long-range schedule's of priorities for the
collection and analysis of basic data and for investi-
gation', planning, and construction of projects.

Foster and undertake such studies of water and related
land resources problems in its area, river basin, or
group of river basins as are necessary in the prepara-
tion of the plan described in clause (3) of this sub-
section.

Commission membership

The composition of the Great Lakes Basin Commission is

outlined in the Executive order in accordance with Section 202

of the Water Resources Planning Act.as follows.

A Chairman to be appointed by the President.

.One member from each of the following federal depart-
ments and agencies:

Department of Agriculture
Department of the Army
Department of Commerce
Department of Health, Education and Welfare
Department of Housing and Urban Development
Department of the Interior
Department of Justice
Department of Transportation
Federal Power Commission

The member is appointed to serve on the Commission by
the head of each department or independent agency he
represents.

one member from each of the following states:

Indiana
Illinois
Michigan
Minnesota
New York
Ohio
Pennsylvania
Wisconsin

one member from each interstate ag ency created by an
interstate compact to which the consent of Congress has

been given, and whose jurisdiction extends to the waters
of the area specified in Section 2. (Great Lakes Commission)

As the Commission members speak for their states and

represent their Governors on all resource di.scussions, they

are professionals in their fields. Significantly, the Governors

have chosen directors and secretaries of their Departments of

Natural Resources, Conservation, Forests and Waters, and the

Director of Water Resource Planning for the State of Minnesota.

Likewise, the nine federal departments and agencies that

are represented on the Commission have chosen persons with

authority. These are chief executives of the organization's

Great Lakes Basin operations. The Appendix to this section

provides information on their membership representation.

Staff

in order to carry out the work of the Commission, the

services of personnel may be obtained as follows:

By employing such personnel as the Commis Sion deems
advisable, including consultants, and by retaining such
professional or technical services as it deems advisable
on a contract basis.

By arranging for the services of personnel from and at
the expense of any state, or the United States, or any
subdivision or agency thereof, or any intergovernmental
agency.

By detail to temporary duty with the Commission on a
reimbursable basis from any state or the United States,
or any subdivision or agency thereof, or any inter-
governmental agency.

By voluntary help of individuals, corporations, business
enterprises, and.others concerned..

The Great Lakes Basin Commission has a staff of seven

professional-s and eight clerical members.

Work Groups

In order to carry out its functions the Great Lakes Basin

Commission has developed a structure whereby twenty-six Work

Groups are responsible for detailed work on the Framework

study.

Each of these Work Groups, with the exception of Work Group

No. 1 - Climate and Meteorology has on its membership one

or more fede ral representative. The federal representatives

are reimbursed for their work Group activities. Each state may

have representation on each Work Gr oup. However, the state

members are not reimbursed for expenses.

Meetings

Regular meetings of the Commission are held on the second

Thursday of January, April, July and October. These meetings

are to be held at various geographical locations, preferably

within the member states. Provisions are also made for holding.

special meetings at the request of at least six or more members

or upon the initiative of the Chairman and Vice-Chairman.

The Commission must make every reasonable endeavor to

arrive at a consensus.of all members on all issues. in the

event that.a consensus cannot be reached, provisions have

been made in the law for the recording of dissenting opinions.

(P.L. 89 -80, Sec. 203d)

Budget

The By Laws of the Great Lakes Basin Commission call for

an annual budget prepared by the Chairman in consultation with

the Vice-Chairman.

THE GREAT LAKES BASIN COMMISSION
GREAT LAKES BASIN PROGRAMS, FY '75-FY-'79

"The purpose of this report is to catalogue and briefly

describe the planning, research and data acquisition programs

that selected governmental agencies are conducting during

FY 75, or which they anticipate initiating during the next

five years (FY75 through FY79). Pertinent information was sought

not only from members of the Great Lakes Basin Commission, but

also from other governmental entities active in the Great Lakes

Basin ...

"This report was prepared through the combined@efforts of

these agencies and the staff of the Great Lakes Basin Commission.

Great Lakes States, appropriate federal agencies, and other

selected entities submitted their program elements during the

summer of 1974. The Commission staff coordinated the respec-

tive inputs, seeking to eliminate dupl ication of data and to

identify deficiencies. Nonetheless, some pertinent information

may be missing since this is'the first year that this document

has been compiled. The Commission intends to update the docu-

ment annually, refining and expanding coverage as needed.

"The Great Lakes Basin encompasses about 118,000 square

miles of land area and some 61,000 square miles of lake surface

within United States boundaries. In addition, another 116,000

square miles of land and water area are under Canadian juris-

diction. The Great Lakes system is about 2,000 miles long and

has a total lake surface area of some 95,000 square miles.

"The region under consideration by the Great Lakes Basin

commission covers about 4 percent of the land area of the United

States. It includes portions of eight States: MINNESOTA,

Michigan, Wisconsin, Illinois, Indiana, Ohio, Pennsylvania,

and New York. Some of the richest and most abundant natural

resources of the North American continent lie within the Basin.

The region, shown on Exhibit 1, is characterized by short streams,

small drainage basins, and thousands of inland lakes. Forest

and woodland, mainly concentrated in northern Minnesota,

Michigan, Wisconsin, and New York make up 48 percent of the

total land base. Cropland and pasture, covering 33 percent

and 6 percent, respectively, of the total land area, are located

pri marily in eastern Wisconsin, southern Michigan and northern

Indiana, Ohio, and New York. The remaining 13 percent of the

land area is nonagricultural and includes urban, commercial,

transportation, and industrial developments, as well as farm-

steads., idle lands, and wildlife and small water areas.

"The natural features of the Great Lakes region account,

in large part, for its population and economic growth. In

1970, more.than 29.3 million people lived in the United States

portion of the Great Lakes system, about 14.4 percent of the

national total in that year. Some 23.6 million persons in

-the Basin were classified as urban residents. Major urban-

industrial centers found in the region include Minneapolis/St.

Paul, Milwaukee, Chicago, Detr oit, Toledo, Cleveland, and

Buffalo. In general, the southern portion of the region

specializes in manufacturing and is heavily urbanized. Durable

good industries, especially those involving the production

and utilization of steel, are especially important. Approxi-

mately 50 percent of the nation's steel is produced in the

Basin, most of it in the southern portion. In contrast, much

of the northern, western, and eastern portions of the region

are devoted to dairy farming, lumbering, mining, and recreation

industries.

"The Great Lakes region is subject to a variety of demands

from within and without the Basin. Its abundant resources

provide a generally high quality, easily obtainable water

supply for all uses, raw materials for manufacturing, a waste

disposal medium, and diversified recreational opportunities.

The Great Lakes themselves provide an access route to national

and international markets, which transport 100 billion ton-

miles of freight 'each year. In addition they provide.an,

invaluable.resource for commercial and.recreational fishing

and navigation. The Great Lakes are the largest freshwater

system in the world. However, increasing population, urban

concentration and per capita demand for natural resources

continue to create great pressures in-the re gion. As a system,

the Great Lakes are unique. Storage and lake levels are

naturally well controlled, but variations are not ideal ...

"'While this report makes no attempt to rank the importance

of various program elements, it is designed to be an input into

future consideration of long-range schedules of priorities,

a duty which is assigned to the Great Lakes Basin Commission

by Section 201(b) of thd Water Resources Planning Act of 1965

(Publ. L. 89-80). In particular, clause (3) states that river

basin commissions shall "...recommend long-range schedules of

priorities for the collection and analysis of basic data and

forinvestigation, planning, and construction of*projects..."

This compilation will assist in that effort by providing an

information baseline on current and near-term programs. As

other information is collected and goals and objectives are

more clearly articulated, the scheduling of long-range priorities

will evolve as a continuing and iterative process.

"Although no specific analyses of the information contained

in this report have been made, a few general conclusions ,

emerged during the course of the effort. The following tables

reveal the most obvious one, namely, that programs in the Basin

are myriad-some of which overlap in content and geographi cal

coverage, most of which are related in one way or another to

other program or mission elements. The sec ond observation is

that the quantity and variety of research and data acquisition

programs are very significant. This became evident even though

the lack of time for preparation of this report made it

impractical to contact alll potential sources. Consideration

should be given to the potential.for further coordination here,

particularly from the point of view of ensuring that research

and data acquisition efforts are formulated with the plannerts

information requirements in mind, where appropriate. Finally,

almost all agencies showed a marked inability and/or unwilling-

ness to prolect their programs beyond a year or two. The

implications of this problem for setting long-range priorities

are evident and future annual compilations must strive to

refine the data in this respect. The new Congressional require-

ments for Federal agencies to present five-year programs along

with each year's budget requests should assist in the prepara-

tion of future reports."

Below are the specific programs from the Great Lakes Basin

general programs which name specific economic significance

and all the listed Minnesota programs important on the Coastal

Zone Area:

Name or Description of Progr am Element
Agency or Department
overall objective or Content

Federal Water Project Studies (excluding SCS work)
Bureau of Outdoor Recreation
To insure that authorized federal water projects
provide for outdoor recreation activities at a level
compatible with the'unmet demands or future demands,
for recreation.

Soil Conservation Water Service Projects
Bureau of Outdoor Recreation
To insure that authorized SCS reservoirs incorporated
outdoor recreation as an integral part of this project.

Applications of Remote Sensing to,Recreation Planning
Bureau of Outdoor Recreation
To determine the utility and applications of using
satellite scale photography in recreation planning.

Eastern U.S.---
Mine Map Repository
Bureau of Mines
A repository of mine maps containing microfilm records
of maps showing data on past and current mining operations.
Computer storage and retrieval of maps and pertinent
associated data, with a computer printout index of all
maps in the system.

Nationwide--Minerals
Availability System
Bureau,of Mines
Collect and compile qualitative and quantitative data
relative to critical mineral deposits. Analyze and
classify these deposits.according to classification and
coding standards for computer storage and retrieval.

National and Regional'
Water Assessment
Bureau of Mines
Make volumetric estimates of the withdrawal and consumptive
water needs of the mineral industry for base years 1975,
1985, and 2000, by prespecified geographic units.

National Water Assessment
Bureau.of Outdoor Recreation

A Study focusing on the cooperative identification and
description of location, extent, and magnitud e of the
Nation's severe water-related problems.

Public Perception of Research Priorities
Great Lakes Basin
To survey and analyze the research priorities as
detected by various informed publics.

Great Lakes Water Levels Study
U.S. Army Corps of Engineers, North Central-Division
Survey study to investigate factors affecting fluctuations
of Great Lakes water levels and determine feasibility of
a plan for regulation of the Lake Levels. Particular
reference is given to reduction of damage to shore properties,
improvement for navigation, power development and local
protection for shore areas and tributary streams subject
to flooding due to Lake Level fluctuations,
TEC = $3,480,000; Bal. = $1,250,000.

Land Drainage Study
(IJC Reference--WQ Agreement)
United States Environmental Protection Agency
To study pollution in the Great Lakes System from
agricultural, forestry and'other land-use activities.

Geo-Environmental &
Mineral Resources
University of Wisconsin Sea Grant Advisory Service
To develop a reliable underwater minerals exploration
techniques for both placer and lode deposits to relate
the nature of the deposit to ore grade economics; to
develop a pre-mining geo-environmental survey program;
and to continue applied research on sand dispersal (&
sand resources) around nuclear power plants.

Policy Studies
University.of Wisconsin Sea Grant Advisory Service
12 projects under this subprogram relate to legal and
social actions as inputs to the management process
affecting use of the Great Lakes and particularly the
CZ.
Subject include: coastal land use standards, legal
implications in CZM; power plant siting; impact of energy
shortage; process of decline in coastal communities;
scenic and cultural resources of the coastal communities;
& other studies in WQ and resource management.

Ports and Commerce
University of Wisconsin Sea Grant Advisory Service
To define problems facing Great Lakes area from changing
ocean transportation technology; estimate benefits or
losses from these changes; update containerization study;
recommend government policy for shipping and port industries;
and to study relationship of environmental and economic
considerations under CZ laws.

Marine Products and Technology
New York Sea Grant Institute
To provide assistance to marine-based industries.

Lake Trout Stocking in Lake Superior
United States Fish and Wildlife Service
Minnesota Department of Natural Resources
Reestablishment of lake trout broodstock in Lake, Superior.
If funds, facilities and manpower available, stock
additional fish to contribute to sport fishery.

Assessment of Lake Superior Fish Stocks
Great Lakes Fishery Commission
Assess Lake Superior fish populations in light of adverse
ecological changes; determi ne result of alewife-smelt
interactions; measure relative impact of lamprey predation
and fishing on salmonid and coregonid stocks; evaluate
salmonide stocking programs.

Improvement of Sport Fishing for Anadromous Fish
Minnesota Department of Natural Resources
To provide@fish passage to inaccessible portions of
streams tributary'to Lake Superior, to improve fish habitat
and to evaluate fish population dynamics in treated waters.
This is a 50-50 cost-sharing program through Anadromous
Fish Conservation Act with the USFWS.

French R. Trout Hatchery
Minnesota Department of Natural Resources
To construct a portion of a coldwater hatchery for the
annual production of 28,000 pounds of trout and salmon
for release into Lake Superior and tributaries. This is
a grant-in-aid program through the Federal Aid in Sport
Fish Restoration Program (Dingell-Johnson) and the
Anadromous Fish Conservation Act with the USFWS.

Heavy Industrial Sources Research
Grosse Ile Laboratory USEPA
Research projects.on treatment and handling of residuals
from heavy industrial processes.

Great Lakes & St. Lawrence Seaway Navigation Season
Extension
U. S. Army Corps of Engineers, North Central Division
Survey study to demonstrate practicability of extending
navigation season.
TEC = $12,500,000; Bal. = $5,238,000.

Great Lakes & St. Lawrence Seaway Navigation Season
Extension Demonstration Program (Environmental Evaluation
Work Group)
Bureau of Outdoor Recreation
U.S. Dept. of the Interior
To assess the effects of demonstration projects on
recreational shore areas, water based areas, and
recreational activities in the'demonstration project
area.

Navigation Season Extension: Great Lakes
Great Lakes Environmental Research Laboratory
National oceanic and Atmospheric Administration
Establish extent of ice cover, provide-short-term
information on ice cover for winter navigation. Provide
input for evaluation of shore erosion, structural
.damage, water losses. Prepare procedures.for short-
and long-term ice forecasting.

water Resources Appraisal of
Lake Superior Watershed
United States Geological Survey
U. S. Department of Interior
Minnesota Department of Natural Resources
General Water resources appraisal.

Lutsen Harbor
.U. S. Army Corps of Engineers, St. Paul District
Advanced engineering and design of recreational boat
harbor--harbor of refuge
TEG = $180,000; Bal. = $70,000.

Duluth-Supe rior Metropolitan Area Study
U. S. Army Corps of Engineers, St. Paul District
Urban study to survey the metropolitan area in regard
to problems and needs affecting WS, pollution abatement,
N, FC, hydroelectric power, and related water resources
development and control.
TEC ='$870,000; Bal. $250,000.

Beaver Bay Harbor
U. S. Army Corps of Engineers, St. Paul District
Advanced engineering and design of recreational boat
harbor--harbor of refuge.
TEC = $160,000; Bal. = $70,000.

National Portage National Monument
National Park Service
U. S. Department of the Interior
To complete the restoration of,a National Historic Site.

Superior Slope Streamflow Data
United States Geological Survey
U. S. Department of the Interior
3 daily gaging stations and 11 annual peak discharge stations.

St. Louis R. Basin Streamflow Data
United States Geological Survey
U. S. Department of the Interior
9 daily gaging stations, 1 monthly WQ station, and 2
annual peak discharge stations

Apostle Islands Streamflow Data
United States Geological Survey
U. S. Department of the Interior
3 annual peak discharge stations

UPPER GREAT LAKES REGIONTAL COMMISSION

On August 25, 1-965, Congress passed the Public Works and

Economic Development Act of 1965. This Act gave formal

recognition to the fact that some areas in the United States

are below the national averages in respect to employment,

income, and other economic aspects.. In order to alleviate

these distressing problems, and to prevent an-out-migration

of employees to more stable areas, Congress established an

agency for public works and economic development within the

Department of Commerce.

The Agency is responsible for providing federal financial

assistance to areas and regions that suffer from substantial

and persistent unemployment and under-employment. The oh-

jective is to enable them to take effective-steps in planning

and financing economic development.

The charter of the Upper Great Lakes Regional Commission

was signed April 11, 1967. The Act outlines. the program and

planning responsibilities of the Commission as follows:

To advise and assist the Secretary of Commerce in identifi-
cation of optimum boundaries for the Upper Great Lakes
Economic Development Region.

To initiate and coordinate the preparation of long-range
overall economic development programs for the Upper Great
Lakes Economic Development Region.

To foster surveys and studies to provide data required
for the preparation of specific plans and programs for
the development of the Upper Great Lakes Economic
Development Region.

To advise and assist the Secretary of Commerce and the
member states in the initiation and coordination of
economic development districts. The objective is to
promote maximum benefits from the expenditures of federal,
state and local funds.

To promote increased private investment in the Upper
Great Lakes Economic Development Region.

To prepare legislative and other recommendations with
respect to short-range and long-range programs and
projects for federal, state and local agencies.

To develop,, on a continuing basis, comprehensive and
coordinated plans and programs and establish priorities
thereunder. Due consideration should be given to other
federal'and local planning in the Upper Great,Lakes
Economic Development Region.

To conduct and sponsor investigations, research and
studies that include an inventory and analysis of the
resources of the Upper Great Lakes Economic Development
Region. S ponsor demonstration projects designed to
foster regional productivity and growth in cooperation
with federal, state and local agencies.

To review and study federal, state and local public
and private programs in cooperation with the'agency
involved. Where appropriate, recommend modifications
,or additions that will increase their effectiveness in
the Upper Great Lakes Economic Development Region.

To formulate and recommend, where appropriate, inter-
state compacts and other forms of interstate cooperation.
.The Commission will also work with federal, state and
local agencies in developing appropriate model legislation.

To provide a'forum for consideration of problems of the
Upper Great Lakes Economic Development Region. To propose
solutions and establishand utilize, as appropriate,
citizens and special Advisory Coun cils and Public Confer-
en.ces.

To make additional recommendations from time to time
to the Secretary of Commerce and to the State Governors
and appropriate local officials, with respect to:

The expenditure of funds by federal, state and local
departments and agencies in the Upper Great Lakes
Economic Development Region in the fields of natural
resources, agriculture, education, training, health and
welfare, transportation and other fields related to the
purposes of the Public Works and Economic Development
Act of 1965.

Such additional federal, state and local legislation
or administrative actions as the Commission deems
necessary to further the purposes of the Public Works
and Economic Development Act of 1965.

The Upper Great Lakes Regional Commission is composed

of the Governors of the party states, Michigan, Minnesota and

Wisconsin, and a Federal Co-chairman,'who are appointed by

the PreS4 dent by and with the advice and consent of the Senate.
L

The State Governors elect a Co-chairman from among their

number who rotates the duties of Presiding officer with the

Federal Co-Chairman. -The State Co-ch&irman serves a one year

term.

Each Governor must also have an alternate. The alternate

may be appointed by the Governor or in a manner designated

by the state. He will-have authority to vote for his state

in the event of the Governor's absence.

OPERATING PROCEDURE

meetings

According to the provisions of the Charter, the Upper

Great Lakes Regional Commission is-required to hold regular

meetings quarterly. There are also provisions for Special

Meetings that may be scheduled by either of the Co-chairman

at the request of any two Commission members. The Alternates

meet prior to each meeting of the Commissioners.

FUNDING

There are two budgets involved in implementing require-

ments of the Upper Great Lakes Regional Commission. One

budget, that consists of 100 percent federal funds, is used

to provide funds for the Federal Co-chairman and his supporting

staff. The number of personnel positions allocated to the

Federal Co-chairman are determin ed by -the Secretary of Commerce

and the office of Management,& Budget.

The second budget is used for administrative expenses of

the Commission. This budget is funded by 50 percent federal

funds and 50 percent state funds to which all three states

an equal amount.

Investments to date by the Upper Great Lakes Regional

Commission in Minnesota have helped make possible projects

whose total worth exceeds $67.8 million.

Since 1968, Minnesota has received 202 grants from the

Commission. In addition, Minnesota has shared the benefits of

more than $13.5 million in Technical Assistance Projects

which have been carried out in the thre-e UGLRC states.

Here are the Minnesota Supplemental grants received to

date which pertain to the Coastal Zone Area:

Grand Marais, Marina
Knife River, Coho Salmon Propagation
Duluth, Miller-Dwan Hospital
Lake County, Split Rock Lighthouse State Park
Ely; Municipal Airport
Duluth, Voc Tech School
Duluth, Airport Improvements
Lake County, Split Rock Lighthouse State Park
Duluth, Medical School
Lake County, Gooseberry Falls State - Park
Carlton-St. Louis Counties, Jay Cooke State Park
Knife River, Harbor & Marina
Lake County, Split Rock Lighthouse State Park
Duluth, Area Cultural and Research Center
Two Harbors, Industrial Park
Grand Portage Indian Reservation, Motel
Duluth, Voc Tech School
Duluth,'Voc Tech School
Duluth, Spirit Mountain Recreation Area
Duluth, Cultural Center
Duluth, Arena-Auditorium

TECHNICAL ASSISTANCE GRANTS

Public Investment-Planning
Duluth Airport
Lake States Forestry Cooperative at Duluth
Feasibility of Custom Pelletizing Plant
Feasibility Study of Producing Reduced iron Product
Demonstration of the Development of Tourism Credit Corporations
Lutsen/Silver Bay Study
Deicing Program, Duluth Harbor
Indian Pre-Employme 'nt Training
Individual Slotting
Center for Assistance to Small Business
Deep Portage Conservation Reserve
Devil Track Airport Improvement Study, Cook County
Water Supply Investigation, Grand Portage Indian Reservation
Federal Excess Property
Mobile Tourist information Van Demonstration
Pollution Control Demonstration, Duluth-Superior Harbor
Recreation Tourism Development Center
Solid Waste Management Systems Plan
Duluth/Superior-E.conomic Development Plan

Feasibility Study of Fo rest Access Roads, Cook County,
Minnesota
Mobile Vocational Career Guidance
Individual Job Slotting
metal Foundry Feasibility, Duluth
Model Recreation Vehicle Legislation
Duluth-Superior Port Study
Economic Development Operation, Duluth
Energy Conservation Information Program
Energy Planning and Information System
Regional Vocational Information System
Regional Tourism Energy Program
Beef Cow-Calf Enterprise Demonstrations on Northern
Minnesota farms
Feasibility Study for an Environmental-Plant Materials
Center
Assistance to Small Business and Recreation
Minnesota State Land Information System

A @65,000 program was initiated in 1974 to help the City

of Duluth open and support an ECONOMIC DEVELOPMENT OFFICE for

one year to create and guide a strategy to attract and retain

economic base industry. Duluth's population has dropped from

104,511 in 1950 to 100,578 in 1970 and the number of manufactur-

ing jobs has declined from 12,000 in 1950 to 5,950 in 1974.

The recent closing of the U. S. Steel plant with the loss of

2,000 jobs, the impending and precarious.condition of the

Reserve Mining Company (approximately 3,000 employment), and

the Universal Atlas Cement Company (150 to 225 employment) and

the negative economic aspects of possible water contamination

conditions have resulted in severe economic dislocation conditions.

The office is directly responsible to the Governor's Representa-

tive of the Upper Great Lakes Regional Commission and its

activities are closely coordinated with the State Department of

Economic Development. The project is focusing on providing

immediate impact on attracting new manufacturing industries

and helping to establish Duluth as a regional growth center

with assistance also extending to Silver Bay, Babbitt and Two

Harbors, the surrounding areas which also are greatly affected

by Reserve mining Co. employment.

A new Duluth tourist attraction is this historic railroad

depot which was built in 1892 and is considered to be the

best example of French-Norman architecture in the United States.

Two Upper Great, Lakes Regional Commission grants totaling

$200,000 are at work in Duluth in a project conservatively

estimated to draw 350,000 visitors annually.
The project, a three-phase'$3 million effort, is' trans-

forming a.historic downtown railroad depot into the St. Louis

County Heritage and Arts Center which will serve civic organ-

izations with a total membership of 4,500 persons.

UGLRC funds are involved in the second stage of the

project, along with $201,250 HUD preservation grant monies

and miscellaneous local foundation and individual contributions

for a total cost of $900,000.

The long-time landmark will provide permanent housing

for the A. M. Chisholm Museum, Duluth A-It Institute,' St. Louis

County Historical Society, Duluth-Superior Symphony, Duluth

.Playhouse, Duluth Ballet Company and School, and Matinee

musicale. some, of these organizations will move into the

facility this fall.

The @450,000 Museum of Transportation and industry was

the first phase of the total project and was funded partially

by an EDA-grant, along with $98,000 in local funds.

Third stage will require $1.6 million for construction

of a performing.arts building, including a 285-seat auditorium,

and a link between this and the main Center. This is currently

in the planning stage.

UGLRC funds were committed to the nine-year-old project

to help improve the area's ability to attract and hold tourist

interest.

INVESTMENT STRATEGY, FISCAL YEAR 1975

The overall goal of the Commission is to maintain, improve,

and-create an overall economic base to encourage growth and

protect existing jobs and industries. In more specific terms

to retain and create new jobs for the citizens of the Upper

Great Lakes Region.

In PY 1975 it is intended that this overall goal will be

pursued through the following investment strategies.

Industrial Development

Over the-past several years the Commission has and will

continue to make investments in industrial site facilities.

Because the Region has a large number of available areas for

industrial expansion, the Commission will continue to make

investments in this area only where there is identifiable

immediate job generation or retention capability. In addition,

the Commission will make investments in such facilities only

where there is evidence of a continuing community capability

and effort to attract additional expansion. Investments in

these facilities will be made as supplemental grants to basic

Federal grants from the'Economic Development Administration

and Farmers Home Administration.

The Commission will also continue its support of the

Centers for Assistance to small Business, whose primary role

is Assisting existing businesses in the Region to maintain

and expand their operations. In addition, the Commission will

support specific industrial development activities under its

Technical Assistance authority where the assistance promises

to provide new products, new facilitie s and economic growth

for the Region.

In keeping with the limited dollars available to the

Commission, program priorities have been and will continue to

be given to those projects with the greatest job impact for

the smallest number of dollars.

Recreation and Tourism

in FY 1-974 -the Commission ado-oted,'a new strategy based

on the projected negative impact of the energy crisis on the

Region s recreation and tourism business. This strategy,

which involves special assistance to State and local authorities

and promotion and transportation assistance to the recreation

industry,, will be continued in FY 1975. (This stra tegy is also

'discussed under Transportation, below.)

The Commission will continue its support and assistance

for the orderly development related to the "Network of Star

Attractions" which centers on the newly created National Parks

and Lakeshores.

The Recreation Assistance Centers now operating in each

of our States will be continued in FY 1975. These Centers

will be central to the energy re'lated strategy cited above.

Th e Commission will continue to support investments in

new facilities aimed at the"attraction of tourists and promotion

of the Region's recreation industry.

Trans ortation

With the continued energy problem, the transportation

strategy of the Commission has been expanded to include consider-

ations of new railroad services, Great Lakes ferry services,

and expansion of the Commission's investments in the promotion

of third level air service.

The commission will continue its investment program in-

the construction of recTiona-1 airport.facilities recognizing

however, that the increased funding authority of the Federal

Aviation Administration reduces the capability and need of the

Commission to supplement airport investments.

The Commission will continue its strategy to aid the

expansion and growth of traffic on the Great Lakes-St. Lawrence

Seaway System where Federal and State programs are inadequate.'

To the extent that the Commission's limited budget allows,

the Commission will continue its support of road and bridge

projects related to economic development.

Human Resources

The Commission will continue its strategy to provide

facilities and equipment for regional vocational education

facilities which are related to needed job skills and serve

the greatest number of regional residents.

The Commission will continue its support of guidance, place-

ment, and training programs which will aid in industrial growth

and the provision of greater opportunities for the citizens of

the Region. Special priority will continue to be given to

projec ts for the. Native American population.

Natural Resources

The Commission will continue to support investments-in

selected natural resource fields where,the potential for economic

growth and the preservation of the Region's environment are

indicated.. These a Ireas include assistance for the development

of land use information systems; mineral, agricultural, and

forestry investigations; and projects aimed at protecting and

enhancing the natural environment.

Energy

The new energy-related programs begun in 1974 will be

continued. The keystone to the Commission's Energy Program

will be the development and implementation of energy accounting

and management -systems undertaken in each of the States and

coordinated through this Commission.-

The Commission will assume selected investments in Trans-

portation and Recreation as des cribed above.

Other Programs

While the Commission has traditionally rejected major

programs in other areas, such as health services and housing,

due to lack.of funds, the Commiss ion will however support

selected investments in any area where a possible economic

impact is identified.

As funds permit, the Commission will support the efforts

of sub-state districts where these efforts or projects are

related to the overall goals and strategies of the Commission.

Finally, the Commission will undertake a review of its

regional development plan and five-year program during FY 1975

and an evaluation of past Commission investments with such

financial support as the Commission deems necessary and

appropriate.

NORTHEIZaN MIMqESOTA SMALL BUSINESS DEVELOPMENT CENTER

1. PROJECT IDENTIFICATION

To establish a Management and Technical Service Center in

the Upper Great Lakes Region,.State Of Minnesota providing

technical assistance to industry and recreation under

the policy guide lines approved by the Governor's

alternates July 17, 1970.

2. OBJECTIVE

a) The Center will provide a variety of services with

emphasis placed upon marketing, engineering, manage-

ment and business research relative to feasibility

for enterprises in their formative stages or expansion.

Small Business Center will be assisted in these

services by State Agencies, Junior Colleges, Uni-

versities and Private Consultants.

b) The over all objective of Small Business Center is

to assist economic development and expansion of the

region and to assist lending agencies to set priorities

to the creation of new employment.

3. PROJECT LOCATION

The office of Small Business Center will continue to be

located in Duluth, Minnesota and will service the entire

Upper Great Lakes Region.

4. WORK TO BE DONE

a) Small Business Cent er will provide consulting in

the fields of marketing, engineering" Production,

business research and feasibility.

b) Small-Business Center when, necessary will contract

with consultants to provide skills not available

within the Center staff for specific problems.

C) Feasibility studies may be conducted by the Center

as required.

d) Additional technical services will be provided by

the Minnesota Department of Economic Development on

an "in kind" basis with existing field staff. Other

departments of State Government and State Educational

systems will also provide "in kind" services.

5. PERFORMANCE POTENTIAL

Small Business Center will.be directly responsible to the

Governor's Representatives of the Upper Great Lakes

Regional Commission and shall coordinate through the

commissioners of the Department of Economic Development

or his designate.

6. TIME SCHEDULE

The Program Year 2 will be operative in the fiscal 1972-1973

and shall commence Augus t 15, 1973. Annual reports on

the project will be made at the end of each fiscal year with

interim reports where required.

7. PREVIOUS WORK ON THE SUBJECT

Previous work includes State Economic Development Program

and programs and projects of the Upper Great Lakes Regional

Commission. However, none of this has been directed

towards management skills or other such technical aids as

proposed in this project. Therefore, this proposal

endeavors to augment previous and on going programs by

providing additional skills.

8. COSTS AND SOURCES OF FUNDS

"See Budget".

9. ENABLING ACTIONS REQUIRED

The State Department of Economic Development currently has.

the enabling legislation to carry the terms of this proposal.

10. AREA AFFECTED

This program would have a high local impact because of

its direct improvement of individual industry in a specific

locale. individual successes would provide a total employ-

ment increase plus indirect benefits of other segments of

the economy both private and public.

PROJECT REPORT

Complete records of project activi ties will be kept by the

Center with the financial accounts being done by a

private accountant funded and monitored by representatives

of the Upper Great Lakes Regional Commission. At the

end of each program year, an annual report comprised of

the'quantity reports of summarization will be compiled

thus indicating the total impact of the year's activities.

THE ARROWHEAD REGIONAL DEVELOPMENT COMMISSION

The most direct introduction to the purpose and function

of this commission is presented in its By-Laws:

The Commission shall be known as the Arrowhead Regional

Development Commission. it is a regional development commission

established under and pursuant to 1969 Laws of Minnesota, Ch.

1122 (Minnesota Statutes, 1969, Sec. 462.381 et seq.) establish-

ing Regional Commissions.

The Commission shall maintain its principal office in

the City of Duluth, St. Louis County, Minnesota, and may establish

such,other offices in such other locations as it may deem

appropriate.

The development region within which this Commission shall

function shall include that area within the boundaries of the

following counties of the State of Minnesota: Aitkin, Carlton,

Co ok, Itasca, Koochiching, Lak-e and St. Louis, and such

additional counties or areas as may be specified by executive

order pursuant to law.

The Commiss ion has.been established to promote inter-

governmental cooperation on a regional basis to meet common

problems of governmental units located within this region.

Further, it is recognized that coordination of State, Federal

and local planning and development programs is essential to

the orderly and cohesive development and progress ofthe

region.

The Commission shall be active in the general field of

coordination and development which shall inc lude but not be

limited to multi-county planning and development, serve as

the authorized agency to receive State and Federal grants

authoriz ed by law, preparation and adoption of comprehensive

development plans for the region, research, review and develop-

ment of data pertinent to regional development and the issuance

of reports and studies thereon; the Commission shall review

and comment upon proposals and plans which may be submitted

to it as req uired by law and assist wherever possible the

various local units of government within the region.

The Arrowhead Regional Development Commission shall consist

of the following:

(a) 1 member from each County Board of every County in

the Development Region.

(b) 1 additional County Board member from each County in

the Development Region having a population over

100,000 persons.

ship located in the Development Region and selected

as hereinafter provided..

(d) 1 mayor or councilman from a municipality of under

10,000 population from each county, selected by

the mayors of all such municipalities in the Develop-

ment Region, as hereinafter provided.

(e) 1 mayor or councilman from each mu nicipality of

over 10,000 persons in each county.

(f) 2 school board members selected as hereinafter pro"

vided. A school board for these purposes shall be

defined as the school board of an independent school

district.

(g) 1 member from each council of governments located

in the Development Region.

(h) 1member representing special districts located with-

in the Development Region. A special district shall

be defined as meaning a governmental unit other than

a county, city, village, borough, town" or school

district established by law and possessing-substantially

all of the powers of a municipal corporation.

citizens representing public interests within the Region

(including members of minority groups) shall serve as members

of the Commission. Each such member must be a person residing in

the Development Region. It is recognized that public interests

within the Region will change from time to time. To permit

proper representation of such interests, the Commission shall

-periodically review these By-Laws to provide for the addition

or deletion (as the case may be) of special.interests

entitled to representation on the Commission. Addition.or

deletion shall be carried out by amendment of these By-Laws
in the'manner hereinafter set fort .h.. In no event, however,

shall the representation of minority groups be eliminated.

The following public interests within the Development Region

shall be entitled to representation by one member upon the

commission:

(1) Health
(2) Human Welfare
(3) Crime Prevention
(4) Labor
(5) Commerce and Industry
(6) Mining
(7) Minorities
(8) Indian Reservations
(9) Tourism and Recreation
(10) Environmental Quality
(11) Agriculture and'Forestry
(12) Transportation and Communication
(13) Community Action Boards (two merdbers)

It is recognized that the Commission is authorized to

engage in a continuous program of research and study.into various

matters affecting the economic,, environmental, social and

financial status of the Region. The Commission is authorized

to establish advisory committees consisting of Commission

members and interested and affected citizens to inquire into

and report on such matters, which may include but need not be

limited to the following:

(a) Acquisition and financing of park areas and open

spaces;

(b) Coordination with Federal and State laws and regula-

tions on control and prevention of water and air

pollution;

and fiscal disparities;

(d) Consolidation of local governmental services;

(e) Regional capital improvement program;

(f) Indian and other minority group problems;

(g) Law enforcement activities, including court systems

and police and correctional programs;

(h) Problems of low-income groups and the aged;

(i) Coordination with representatives of all Federal

agencies, managing, directing, supervising or

coordinating Federal programs in the area served

by the Commission.

The Executive Director shall prepare and submit to the

Commissio n not later than its regular January meeting a report

as required by Minnesota law. This report shall be considered

and shall be the basis for the report required to be issued

by the Commission. It shall be directed to the governmental

units and the public within the region served by the Commission

and to the Legislature and the Governor of the State of

Minnesota. The report shall include but not be limited to

the specific items listed in Minnesota Statutes, Sec. 462.393,

which may be briefly summarized as follows:

(a) Summary of receipts and disbursements for the

preceding year;

(b) Budget for the year in which the report is filed and

for the following year. At the time the budget for

the next year is submitted, the Executive Director

shall submit a general work program showing the

relationship of the proposed budget to the anticipated

program to be carried out by the Commission;

whole or in part for the Region,-

(d) Summaries of studies and resulting recommendations

made for the Region;

(e) Schedule of applications for Federal grants or

loans made by all governmental units within the

Region, together with the action taken by the

Commission in relation to such applications;

(f) Schedule of plans submitted to the Commission by

local government units and actions taken by the

Commission regarding such plans;

Commission recommendations regarding Federal and

State programpt coope ration, funding and legislative

needs.

The Executive Director shall first submit said report

to the Board of Directors for approval prior to its filing

with the Commission.

COOPERATIVE AGENCIES AND ORGANIZATIONS

Federal

Economic Development Administration (EDA)
Bureau of Mines (Department of Interior)
Upper Great Lakes Regional Commission
U. S. Department of Labor
Environmental Protection Agency (EPA)
Small Business Administration (SBA).
Community Services Administration (SRS, HEW)
Housing and Urban Developemtn (HUD)
Farmers Hom e Administration (FHA)
Soil Conservation Service
Agriculture Stabilization and Conservation Service

State.of Minnesota

Minnesota Department of Natural Resources
Minnesota Department of Highways
Minnesota Department of Education
Minnesota State Department of Economic Development
Iron Range Resources & Rehabilitation Commission
-State Planning Agency
Upper Great Lakes Regional Commission
Minnesota Department of Employment Services
Minnesota Area Development Administration (ARA/EDA)
Minnesota Department of Corrections
Minnesota Pollution Control Agency

Local

Private and Civic:
Chambers of Commerce
Duluth Industrial Bureau
Northeastern Minnesota Development Association (NEMDA)
13 industrial Development Corporations
Earl Ruble and Associates, Duluth
Duluth Architectural Resources, Inc.
Range Regional Planning Commission
Range municipalities and Civic Association
The.Educational Research and Development Council for
N. E. Minn. (RAND)
Arrowhead Region Planning Council for Health Facilities
and.-Services (ARCH)
Northeastern Minnesota Organization (NEMO)
County_Government:
7 County Planning Advisory Commissions
County Agents
County Land Commissioners

City of Duluth (Government)
Seaway Port Authority of Duluth (SPAD)
City of Duluth, Planning:
Duluth Housing and Redevelopment Authority
Community Development Administration

other

Western Lake Superior Sanitary District (WLSSD)
University of Minnesota - Consultants

ECONOMIC DEVELOPMENT PLANNING

WORK PROGRAM

The work efforts of the ARDC economic development program

for the June 30, 1974 - June 30, 1975 period will involve a

continuation of the current program elements to insure adequate

follow-through on previous activities in addition to an

expansion of industrial promotion efforts. Previous work

programs and the current planning effort by necessity had to

address a wide variety of physical, social and economic concerns.

The ARDC due to the expanded responsibilities it has assumed

under the Minnesota Regional Development Act has had to orient

much of its economic dev elopment program towards the formation

of structures or systems that could allow "comprehensive

development" to occur. By comprehensive it is meant that

plans and policies be developed for areas such as land use,

water quality, forest resources, education, housing, law systems

and general delivery of human services. While these are

just a few of the elements of a "comprehensive development

plan" they indicate the diversity of conditions-that must be

addressed. The ARDC presently feels that sufficient programs

or systems have been developed to cope with the diverse

factors of a regional comprehensive development program and

that an environment is present for expanded'economic develop-

ment to occur. The following elements constitute the ARDC

work plan for 1974-75:

ELEMENT 1. A. Technical Assistance B. Information Systems
C. Research D. Policy Develo2ment

The above are areas of activity addressed in previous

and the current economic development program.. These are

important functions and are work elements that must remain

on a continuing basis.

A. Technical assistance will continue to be extended to

local communities on the process of obtaining funding for

public facilities or programs; assistance on industrial develop-

ment and bond programs;.tourism development'and organizing

for development.

B. The development of the Regional Management Information

System has experienced significant gains during the past

program.year. Currently the system is in the process of

accessing into the State Computer System and will be able to

code information for the purpose of mapping and planning down

to such scales as 0-2 acre parcels of land, if necessary, to

facilitate the storage and handling of the vast amounts of

data needed for development planning.. One new area that will

be explored through the MIS during the 1974 program year

will be the feasibility of a "development simulation and

predictive model." Sometime in the future when the regional

input-output economic model is completed the two systems

will prove to be an invaluable tool for guiding the develop-

ment process. The MIS program will require continued work

effort.

C. Research is an on-going function of the ARDC economic

development program. The efforts of the research division

are an integral part of all ARDC efforts. Continued effort.

will be directed towards analysis of business and economic

trends; population trends; wage data; census breakouts;

industrial prospect listing and a variety of other data

areas.

Expanded emphasis on the part of the research division

will be pla ced on obtaining of funding'sources and conduct

of a program to develop a seven county inter-industry input-

output model. This will be a valuable tool for analyzing

weaknesses in the economic base of the district and for

predicting the impact of such things as new industry or the

closing of plants.

A,regional policy plan has been developed; however,

policy again is a continuing effort. During the 1974 program

year it is-anticipated that effort will be extended to develop

more specific regional policy on various subject areas. As

an example it is planned that through citizen agency partici-

pation programs, that detailed policy will be developed on

items such as forest production in the peripheral areas of

the Voyageur National Park or in the portal zone of the

Boundary Waters Canoe Area.

ELEMENT II A. Industrial Develo2ment B. Tourism

A. The Growth.Center of the Arrowhead Region during the

past few years has suffered economic set-backs in air defense

operations and economy moves or pull-outs of other national

based companies. Many of the lost jobs have been regained

through industrial expansion7 however, considerable more

emphasis must be placed on industrial development prospecting.

Currently an industrial development team or association is

being formed consisting of ARDC,.NEMDA, Port Authority, Upper

Great Lakes Regional Commission, State'Economic Development,

City of Duluth and others. it is planned that semi-monthly

meetings be held to exchange information and coordinate

industrial prospecting activity. The ARDC will be actively

involved in the formation of this program.

NEMDA, ARDC, the regional chambers of commerce and the

local develoiDment corporations will coordinate and promote

industrial development activity in the.reytiainina areas of the
region. 50

B. Tourism development is another area of prime economic

consideration of ARDC. With the advent of the Voyageur

National Park in the Arrowhead Region approximately one million

vacationers will be visiting the area in the future. Presently

the resort and other accommodations facilities are inadequate

to handle the anticipated volumes and ma ny are just plain

inadequate. Probably the prime reasons for the down-graded

situation of some of the accommodations are:

(1) the.lack of capital investment

(2) inadequate promotional programs and

(3) lack of a coordinated system of controls relative

to resale standards, facility standards and

operational standards.

Efforts will be extended by ARDC to work with tourism

development agencies and the State Department of Economic

Development to develop programs to address the above conditions.

Other factors affecting tourism such as gas allocations will

be addressed in cooperation with other agencies of the State.

ELEMENT III Planning and Coordination

ARDC has been actively involved in coordinative efforts

for development of the district through the EDA program in

past program years. This experience will be helpful in

addressing-a new problem situation that is occurring as a

result of economic expansion in the Iron Range area of the

Region. Taconite and wood fiber expansions are currently

being planned that total nearly one billion dollars during

the next five to ten years. While this is a much welcomed

investment it also creates numerous physical and social

problem situations. Housing, social services, transportation

systems, environmental control, law enforcement and so on

will need to be.coordinated to enable orderly development.

This effort is expected to require a significant portion of

ARDC staff time.

A preliminary draft of an Iron Range Action Plan has

been prepared by ARDC staff, which'identifies specific

problem elements and the extent of effort required to deal

with these problems. The five major elements which have

been identified are Transportation Systems, Economic Develop-

ment, Housing and Community Facilities, Environmental and

Energy Resources, and Human resources. ARDC has recommended

working closely with a new organization called the. Iron Range

Council, whose members are representative of most communities

in the Range area. The Action Plan proposal also includes

specific recommendations for intergovernmental cooperation

and channeling of resources for maximum impact.

The ARDC role of a catalyst is currently directed at

bringing housing development corporations, mo rtgage financiers,

property owners, and local officials together on a concerted

effort to meet severe housing needs in the range area. The

primary objective; however, is to achieve orderly develop-

ment in suitable locations which will utilize existing

community facilities, such as sewer and water systems, school

facilities, etc.

FOREST MANAGEMENT

In 1974, the Forestry Committee, representing various

interests within the forestry and land management field,

was organized as a working, advisory committee to the Arrow-

head Regional Development-Commission. The creation of this

committee was a result of the recognition of how imp ortant

forest resources and forest industries are to the present and

future well-being of the Arrowhead Region.

The Committee is comprised of county land commissioners

and representatives from private industry, state and federal

foresters and research.

In recognition of the need for a forester on staff at

ARDC, three of the Region's major forest industries -- Blandin

Paper Company, Boise Cascade Corporation-and Potlatch

incorporated -- through the Northeast Minnesota Development

Association (NEMDA) contributed funds to employ a forester

staff consultant.

The report, "Arrowhead Region Timber Resources," was

prepared in may as a working document and compiled from,exis-t-
'ing forestry inventory information, adj.usted for land with-

drawals and for economic operability. The need for up-to-date

information on timber supply and demand has been given strong-

emphasis by the ARDC. The Forestry Committee and ARDC are

actively working for adequate funding for this purpose by

both the state and federal government.

Timber cover maps and data on acreage of commercial

forest land for the Voyageurs National Park Planning Area

have been compiled. The Forestry Committee has submitted

revised goals and policies for the natural res ource section

of the Plan for the Vo'yageurs Park Planning Area.

The Committee is working toward strengthening the manage-

ment of county-owned tax-forfeit land. As a result of this

interest; the Duluth Unit of the U. S. Forest Service, North

Central Forest Experiment Station is making a study to analyze

marketing and management trends of forest resources on

Minnesota county lands to provide information for future

policy and management direction.

In addition, staff support has been provided ARDC in

natural resource management and planning;,in reviewing

Environmental impact Statements; evaluation of forestry data

in the Minnesota Land Management Information System (MLMIS)

and in working with state and federal agencies.

The forestry program at ARDC was basically developed to

-coordinate forest related activities and to provide a regional

forum for representatives of industry, government and private

citizens with interests in forest management.

ARDC established a Forestry Advisory Committee and

maintains' a staff expertise in Forest Management.

The goals of the forestry program are detailed as follows:

(1) To act as a coordinating body for forestry activities

carried out by public agencies and private and

industrial forest land owners.

(2) To monitor forest management and utilization

practices in the Region and promote sound, sus-

tained use of forest lands.

(3) To keep abreast of forest industry's use of timber

resources and production of wood products.

(4) To provide expertise in forest related matters

that have potential adverse impacts on long-range

goals for the forest lands in the Region.

(5) To establish forest management and use goals for

the Region.

(6) To promote adequat& and current inventories of the

timber resources in the state and the Region.

HOUSING

Funding of government housing programs for elderly and

low-income families has been virtually non-existent for two

years.

All programs were suspended under the moratorium in

January, 1973, until March, 1974.

In March, the St. Paul Area office of the Department

of Housing and Urban Development (HUD) advised only

the Itasca and Koochiching County housing authorities

to apply for Section 23 leased housing program funds.

Applications and substantial other documents were sub-

mitted to HUD prior to the June 30th deadline resulting

in reservation for 106 units.

The Housing and Community Development Act of 1974 passed

on August 22nd. The only major provision for elderly

and low income housing is Section 8 (formerly Section 23)

leasing housing, not for construction of units, but

actually a housing allowance system for eligible families.

The HUD regulations were finally published in November,

applications received as of December lst, but no funding

will be authorized until after Ja nuary 1, 1975 ... thus

2 years have passed without any federal housing assistance

to the non-metro Arrowhead Region.

Any government subsidized housing activity during the

past two years was the result of contracts negotiated prior

to January, 1973. However, the Minnesota Housing Finance

Agency has provided some interim construction funding for

projects in Virginia, Internation al Falls and Dulu-Uh.

The Arrowhead Regional Development Commission has been

monitoring the development of federal legislation, policies

and regulations in efforts to develop a comprehensive strategy

for elderly and low-income housing programs in the Region.

Coordination of several agencies is essential to

accomplish any development in the Region. Plans are being

developed with the following agencies: HUD, Farmers Home

Administration (FHmA), Minnesota Housing Finance Agency,

Minnesota Rural Development Council (RDC), Housing Assistance

Coun cil, Washington, D. C. and local housing and redevelop-

pent authorities..

meanwhile, the substantial expansion of taconite plants

across the Iron Range, plus related economic activity, has

precipitated a housing crisis that will become worse before

housing construction can catch up.

Four major problems are involved in the Range housing

crisis:

..a severe shortage of mortgage credit

. apparent inability of developers to provide housing units

at costs which affected families can afford

. lack of coordination throughout communities to channel.

suitable,types of development into desirable locations

. lack of-variety in development of alternative housing

types

ARDC is working as a catalyst to bring mortgage lending

agencies, developers, land owners and local government officials

together for planning of desirable projects which will reduce

,costs for everyone, particularly the home owner. A major policy

has been"to encourage high quality standards for residential

development areas which will be an asset to communities instead

of a Hability.

ARDC's planning activities for housing are funded under

a HUD 701 planning grant. Technical assistance to county and

municipal housing and redevelopment authorities will be.sub-

stantially increased in 1975 for development of elderly and

low-income family housing.

INFORMATION SYSTEMS

systematic approach to the colle ction, storage and

retrieval of information has the potential of becoming a

valuable tool to all levels of government as well as the

planning efforts of the Arrowhead Regional Development Commission,

A regional data base and information management system that

is usable across governmental lines can provide a communication

link that will allow decision makers at the various levels

.to view problems from common grounds. Significant progress

was made toward these goals through the development of a

Regional information System in 1974.

One focus of the information system in the past year

has been continued cooperation with the State-Planning Agency

and the Minnesota Land Management Information System (MLMIS)

in the development of a land resource information system for

the Arrowhead Region. The system is based on information

for each 40 acre parcel of land within the Region and is
'composbd of land-use, soils, forest cover, ownership and

geologic information. The development of this system has

involved some new concepts in analysis and computer mapping.

The data base is complete and will be available for users in

1975.

With the extensive MLMIS data base and 1970 Census

information on computer tapes at the University of Minnesota,

Minneapolis, it has been necessary to p rocess data through

the University of Minne sota, Duluth computer facilitie s.

Funding has been secured from the Intergovernmental Information

Services Advisory Council (IISAC) for the lease of a Remote

Batch Terminal that will allow ARDC to access these data bases

directly from its offices and will allow the use of other

computers as they become available locally and nation-wide.

Another area of considerable effort was in the Voyageurs

Park Planning Area. Six areas that have the potential for

high impact. from the development of the.Voyag eurs National

Park were identified. Resource data was then collected for

:hese areas and computerized by 2 1/2 acre cells. The six

areas ranged in size from 14,200 acres to 45,000 acres. A

computer analysis system called the Environmental Planning

and Programming Language (EPPL) was then used for analysis

of these sites for recreational purposes from formulas

developed by the Department of Natural Resources-(DNR).

Work has also continued in cooperation with the Center

for Urban and Regional Affairs (CURA) of the University of

Minnesota on an update of lakeshore information for the

Region. The information that was collected in 1973 has been

merged with the 1967 computer files of CURA. An analytical

report of the data is forthcoming.

The zoning pilot project saw continued progress as new

zoning and variance permit applicat ion forms with a computer

coding format as an integral part were completed and instituted,

in St. Louis, Lake and Koochiching Counties for testing. The

forms will be reviewed and improved, the system expanded to

provide a method by which development within the Region can

be monitored. This project has involved cooperation with

the DNR, MLMIS, State Planning Agency, St. Louis, Lake and

Koochiching Counties.

A regional data base is materializing, filling gaps in

information collection and storage that have existed in the

past. The availability of the computerized information system

will become a significant planning tool in-1975.
60

ECONOMIC-PLANNING

During 1974, ARDC continued to perform its long established

role of supplying economic data to the countless agencies and

organizations.requesting it, and technical assistance to,

applicants and potential applicants for federal economic

development funds. This year assistance also included

applications for state rural development funds..

In additionto these responsibilities., major developments

throughout the Region dictated that ARDC explore new.avenues

of economic planning. In the case of the possible shutdown

of Reserve Mining, this planning took the form of an employ-

ment impact analysis, the first of a four-part study being

conducted by the University of Minnesota, Duluth, for ARDC.

Potential copper/nickel development in northeastern Minnesota

has afforded ARDC the opportunity to become involved in a

thorough program of economic impact analysis and socio-economic

research. Coastal Zone Management activities and taconite

expansion on the Iron Rangewill further increase the

responsibilities of ARDC in the area of long-range economic

planning.

Increased planning responsibilities require increased

policy decisions. Consequently, an Economic Policy Committee

has been formed to serve as an ARDC advisory committee that

will provide direction to these new planning endeavors.

Initially, this direction will be used to guidethe revision

and updating of the overall Economic Development Program (OEDP),

originally written in 1967, and con taining the economic goals

policies, and programs for the Arrowhead Region.

on a technical basis, ARDC's planning capabilities will

be greatly improved through the development of a computerized

economic information system, which will expedite the collection,

storage, and retrieval of economic data.

TECHNICAL ASSISTANCE

The Arrowhead Regional Development Commission has been

providing technical assistance regarding the comprehensive

planning process to local units of government. With increasing

state and federal requirements and programs dealing with land

use, the effectiveness of local governments is JiM4ted due to

the lack of professional staffs.

The technical assistance program has resulted in a

complete reworking of the Koochiching County zoning ordinance

and providing support at regular county meetings.

The draft of a county-wi de zoning ordinance is being

prepared for Lake County with the prospect that an ordinance

may be adopted by the 1975 building season. St. Louis County

is being assisted in the revision of its sub-division control

ordinance and general zoning matters.

Assistance to municipalities is bein g provided in much

the same manner as to the counties. Coaffriunities being assisted

in the comprehensive plannin g proce ss are Big Falls, Cook,

International Falls, island View, Littlefork, Northome and Orr.

Planning commissions have been organized with technical

assistance from ARDC.

Major elements of the technical assistance program are:

to provide technical assistance in the adoption of a

comprehensive plan and controls to implement the plan

to assist counties/municipalities in land use enforce-

ment programs, i.e. zoning ordinance, sub-division

controlst sanitary controls, building and housing controls

� to improve the coordination between communities and

counties

� to assist municipalities and counties in the standardi-

zation of planning and zoning methods to be compatible

with regional and state standards.

COASTAL ZONE MANAGEMENT

The Coastal Zone Management Act of 1972 au thorized annual

grants to coastal states for.the purpose of assisting in the

development of a management program.for land and water resources.

The coastal zone program in Minnesota includes the North Shore

area along Lake Superior.

In 1974 the State Planning Agency received its first

grant'under this program and the Coastal Zone Management planning

proces's was inlti;'ate@d.

The Arrowhead Regional Development Commi ssion is actively

participating in this process by means of a contractual

relationship with the State Planning Agency. Initially this

involvement included participation on the Coastal Zone Manage-

ment Work Group that is composed of representatives from the

State Planning Agency, Pollution Control Agency, and the

Departments of Natural Resources, Highways, Health and Economic

Development.

Late this year, the Work Group was expanded to include

representatives from Lake, St. Louis and Cook Counties. Beyond

the interagency coordination activities, the Arrowhead

Commission will be inventorying land ownership along the

coa stal zone, the boundaries of which have been initially

defined as the Lake Superior Watershed, precipitating an

extensive public involvement program. ARDC will also be pre-

paring numerous working reports on goals and objectives7 zoning

regulations; socio-economic conditions; historic, natural,

cultural and scientific resources; and sewage treatment con.-

ditions along the North Shore of Lake Superior.

SUB-REGIONAL PLANNING

The Arrowhead Region can be analyzed by sub-areas wh ich

have distinct characteristics and'contrasts with other areas.

The geological, vegetative, social and economic characteristics

differ in sJignificant proportions.

Five major sub-areas consist of,the northern wilderness

border area (Voyageurs National Park-, Boundary Waters Canoe

Area, etc.); the North Shore of Lake Superior (Coastal Zone

Management Area); the Iron Range, (Grand Rapids to Ely); the

southern'rural area (Aitkin, Carlton, South St. Louis counties)

and the Duluth metropolitan area.

The major purposes of commitments by the Arrowhead

Regional Development Commission to comprehensive sub-regional

planning is to insure better results from accelerated develop-

ment, cost-effective solutions and maximization of effort by

all affected communities and government agencies.
c

Across the Iron Range sub-region, over one billion

dollars of capital investment for industrial expansion

(taconite plants and related industries) is committed to

construction. These current and immediate future developments

are creating conditions which are different than any period

in past Range history. Some existing or future conditions

may be viewed as problems and other conditions as tasks which.

must be accomplished.

A. report was published in May, 1974, entitled "Assessment

of Growth impacts on the Iron Range,"-which -identified

numerous elemen,ts'for action planning.

The basic premises underlying the.proposed Action Plan
-are fou r-fold:

that this particular point in'lron Range history offers

a unique opportunity to capitalize on massive industrial

expansion by which affected communities can grow and improve

the quality of life.

that the Arrowhead Regional Development Commission is

charged by state law with the responsibility for-regional

planning, technical assistance and should play a substantial

role in the Action Planning Program.

that the scope of work necessitates substantial involve-

ment by local units of government in the planning process,

as well as state and federal agencies.

that action or implementation. ofthe plan components

will require identification of resources, both monetary and

organizational, by which concrete results can be achieved.

The intent of this Action Plan scope is to utilize and

maximize existing efforts, capabilities and programs within

ARDC, local governments and other agencies. The results of

"spin-offs" from current programs and activities can be

harnessed to produce subs tantial benefits for Iron Range

communities. The key includes organization, coordination

and communication.

Numerous meetings with mayors from nearly every community

on the Range have brought out the need to coordinate planning

-efforts. Local officials have indicated -their desire to

utilize the Range Municipalities and Civic Association (RmCA)

as a policy coordination organization and to.,work.with ARDC

in developing a planning program that will.address the problems

of rapid growth on the Iron Range.

REPORTS 1974

Arrowhead Regional Criminal Justice Plan, 1975

Status Offense Study for the Arrowhead Region, June, 1974

Area Plan on Aging, 1975

Interim Planning Report for the Human Services Board
Pilot Project, October, 1974

Final Planning Report for the Human Services Board Pilot
Project, December, 1974

Northwestern Minnesota Union Wage's Rates and Other
Selective.Wage Data, November, 1974

Personal Income in the Arrowhead Region - 1972, December,
1974; New & Expanded Industries in the Arrowhead Region
during 1973, December,1974
Arrowhead Region Timber Resources, may, 1974

Assessment of Growth Impacts on the Iron Range, May, 1974

Housing Program Nee ds Analysis, June, 1974

An Interim Housing Action Plan, June, 1974

Population Trends and Forecasts, April, 1974

Functional Plans for HUD APJs of Virginia, Hibbing and
Chisholm, May, 1974

Project Completion Report 701 Planning Assistance
Program, FY 1974

Water Quality Management Plan, June, 1974:
Planning Process,.Goals and Objec'tives
Bibliography of Water, Land and-Socio-Economic Information
Inventory of Wastewater Sources

Hydrology and Wat er Quality

An Appraisal of the Federal Water Pollution Control
Act of 1972
Sewer System Evaluation
Population, Economy and Land Use
Alternatives and Strategy for Water Quality Management
An Appraisal of organizations and Procedures
Water Quality management plan for the Lake Superior Basin-
Summary Report

THE DULUTH-SUPERIOR
METROPOLITAN INTERSTATE COMMITTEE

Purpose

The purpose of the Duluth-Superior Metropolitan Inter-

state Committee, hereinafter called the "MIC", shall be to

promote, coordinate, develop and implement a planning process

and the development of goals and objectives relating to matters

of economic, environmental and'social concern to the citizens

residing within the Duluth-Superior Metropolitan Area of

St. Louis County, Minnesota and Douglas County, Wisconsin. This

committee reflects and recognizes the responsibilities and

concern.for such citizens which exist with various lo cal units

of government in this Metropolitan Area and with the Arrowhead

Regional Development Commissi on (ARDC) in Minnesota and the

Northwest Wisconsin Regional Planning and Development Commission

(NWRP&Dc) in Wisconsin. The committee and its procedures

are to perform in such manner as will develop and maintain to

the greatest extent possible eligibility for the metropolitan

area for participation in federal, state and local planning

programs.

Duties and Powers

The MIC shall have the following goals and objectives:

When intermunicipal and interstate considerations are

involved, to undertake comprehensive planning for the

Duluth-Superior area of St. Louis County, Minnesota,

and Douglas County, Wisconsin, and other urban and

urbanizing.areas as may be determined by the parties.

2. To stimulate and assist local governmental units in the

above me ntioned urban and urbanizing areas in conducting

comprehensive and functional planning within their

jurisdiction and to provide a mechanism for local govern-

mentsto participate in a planning process on an inter-

municipal and interstate basis.

3. To provide an interstate organization of representative

capacity which can deal with common planning problems

on interstate and intermunicipal bases.

4. To develop programs and procedures which will result in

effective intermunicipal and interstate plans.

5. To develop goals for intermunicipal and interstate plans

and to assist in and promote development of such plans.

6. To serve as an information center and clearinghouse

for such interstate and intermunicipal.planning efforts,

including thoseconducted on behalf of the federal

government, state governments and any private or public

institution.

7. To carry out such functions and perform such duties as

will result in continuing elig ibility for federal and

state funding of programs affecting the metropolitan

area.

8. To coordinate and promote the enactment of compatible

and consistent federal, state and local legislation

affecting matters of common concern to the citizens

within the metropolitan area.

The MIC shall have the following powers to perform its

duties and functions:

1. To direct and oversee research studies, collection and

analysis of data, the preparation of plans to guide the

harmonious physical, economic and soc ial development of

the Duluth-Superior Metropolitan Area and provide technical

assistance to local units of government within the urban

and urbanizing metropolitan area. Program responsibilities

will be specified in the work programs adopted by MIC

and contractual obligations established by NWRP&DC and

ARDC. All policies and,plans of the MIC will be subject

to review and comment by NWRP&DC and ARDC pursuant to

the Regional Development Act of Minnesota and, the Regional

Planning Commission Law of Wisconsin and appropriate

.federal regulations.

2. To perform the federal grant review and coordinating

function for NWRP&DC and ARDC for the Duluth-Superior

area pursuant to the designations held by ARDC and NWRP&DC

as Regional Clearlinghouses under the office of Manage-

ment and Budget Circular A-95. The regional commissions,

however, will retain the option of reviewing grant

proposals that have regional as well as metropolitan

significance.

3. To review and comment upon all policies and plans pro-

vided to the MIC by local units of government that have

jurisdiction in the metropolitan area.

4. To adopt plans which have been developed for the Duluth-.

Superior Metropolitan Area by any planning agency

recogni'zed by either Wisconsin or Minnesota or by any

agency,or department of the' United States Government

having authority to do so.

Metropolitan plans developed by MIC to carry out the

above goals and objectives shall be submitted to the respective

units of local government for review and comment as required

by Minnesota and-Wisconsin state statutes and specific time

shall be provided for their review and comment before such

actions are to be deemed the official acts of MIC. Such

metropolitan plans shall also be submitted to the Arrowhead

Regional Development Commission (ARDC) and Northwe st Wisconsin

Regional Planning and Development (NWRP&DC) for their review

and comment prior to submission to federal or state authorities

or prior to adoption by local units of government as part

of such comprehensive plan development. In Minnesota, review

and comment of metropolitan and local plans by ARDC shall be

only that required by the Minnesota Regional Development Act

(as amended), and in Wisconsin only that required by the

Wisconsin Regional Commission Law (Wisconsin Statute 66.945).

MIC shall serve as the appropriate advisory committee to ARDC

and NINTRP&DC in the development of any review and comment

for the metropolitan area as required hereunder or otherwise

required by law or regulation.

U.-S. DEPARTMENT OF COMMERCE BUREAU OF THE CENSUS

POPULATION

A census of population has been taken every 10 years since

1790, the nineteenth being conducted as of Aprdl 1, 1970. The

publi@ation program for the 1970 census was completed in

December 1973, with the exception of supplementary reports

issued occasionally to present data from previously published

large reports and special-use statistics of public interest. A

list of the 1970 census reports appears in this issue of the

Catalog.

The Current Population Survey is conducted monthly. Inter-

viewers visit a scientifically selected sample of the population

to obtain current information on the personal and family char-

acteristics of the population, mobility of the population,

income, consumer buying indicators, school enrollment, and

other subje cts. Also derived from this survey are estimates

of employment, unemployment, hours of.work, occupation and

earnings. These labor.force data are turned over to the Bureau

of Labor Statistics, U. S. Department of Labor, for analysis

and publication. That agency assumed responsibility for these

functions effective July 1, 1959.

Estimates of population for post-censal and intercensal

dates, as well as projections of the population, are prepared

from time to time. Special censuses of local areas are taken

at the request and expense of the 1ocal governments involved.

Reports providing estimates and projections of the population

of various foreign countries also are published periodically.

1970 CENSUS OF POPULATION

Results of the 1970 Census of Population were made avail-

able as they were tabulated and assembled. The first prelim-

inary figures were issued beginning in May 1970; advance final

figures were issued beginning in September 1970; and detailed

final figures were issued beginning .in Octobex 1970. Final

data from the 1970 Census of Population have been assembled

and issued in two volumes. A list of final published reports

from the 1970 Census of Population appears in this issue of

the Catalog.

Publications programs and descriptive order forms for the

various series of reports published as a result of the 1970

Census of Population and for current population reports may

be obtained on request from any U. S. Department of Commerce

District office or from the Subscriber Services Section, Social

and Economic Statistics Administration (SESA), Washington, D. C.

20233.

1969 CENSUS OF AGRICULTURE

The 1969 Census of Agriculture provides selected items

of general information for all farms and more detailed data

for the farms with gross sales of $2,500 or more in 1969.

Results for counties and States have been published under the

general title, Volume 1, Area Reports. This volume was issued

for each State and island area.

Statistics by subject for each state, geographic division,

region, and the United States were issued in Volume II, U. S.

Summary. Each of the nine chapters in this volume was published

separately. Other volumes of the 1969 Census of Agriculture

cover agricultural services, irrigation, and drainage of farm

lands. 'A census of horticultural specialties and a sample

survey of farm finance were taken.for the year 1970. In general,.

the farm finance items are comparable to those for which

financ ial data were collected in the 1960 and 1965 sample surveys

of agriculture, i.e., the horticultural data to data collected

in the 1959 Census of Horticultural Specialties.

A survey of specialized agricultural operations was

conducted for the first time, covering the year 1971. The

results were published in nine separate reports. Each report

describes a major type of agricultural product and presents

data for the principal producing counties, States, and the

United States.. These reports, along with reports on forms

and procedures, a procedural history, a graphic summary, and

an evaluation of coverage, will comprise Volume V, Special

Reports.

The definition of a farm, as used in 1959 and 1964,

remained the same in the 1969 Census, so that 1969 data are

generally comparable to those of earlier censuses.

MANUFACTURING AND MINERAL INDUSTRIES

The census of Manufacturers, first taken for 1809, provides

data on manufacturing activities for small geographic areas,

individual industries, products shipped,. and materials consumed.
This'census was taken decennially for 1809-1899, except for

theyear 1829 for which no canvass was made; quinquennially

1899-1919; and biennially thereafter through 1939. After dis-

ruption of this schedule by data collection vital to World War

I! activities, the manufactures,census was conducted for -,the

years 1947, 1954, 1958, 19630 and 1967. Under legislation

enacted in 1964, the census of manufactures will be taken in

the future covering the years ending in 2 and 7.- The results

of the 1972 Census of Manufactures are now being published.

The census of mineral industries, first taken for 1839,

was conducted at about 10-year intervals during the next century.

It was taken for the years 1.954, 1958, 1963, and 1967. Under

legislation enacted in 1964, the census of mineral industries

will also be taken in the future covering the years ending in

2 and 7. The results of the 1972 Census of mineral Industries

are now being published.

A census of commercial fisheries was conducted'for the

calendar year 1963 and was the first such census undertaken

since 1908. Prior to the 1908 census, there were two census

surveys of commercial fisheries, one in 1889 and the other in

1880. This census is conducted by the Bureau of the'Census in

cooperation with the Bureau of Commercial Fisheries, Depart-

ment of th e interior. The results of the 1967 Census'of

Commercial Fisheries were published during 1970.

The Annual Survey of Manufactures was conducted.for each

year 1949-53, 1955-57, 1959-62, 1964-66, and 1968-71. These

surveys are based on a scientific sample of manufacturing

establishments and provide annual statistics for intercensal

years on employment, payrolls, man-hours, value added by

manufacture, inventories, new capital expenditures, and value

of products shipped--data which are shown in more detail in

the census of manufactures reports.

Current statistics on commodity production and shipments

are issued in the Current Industrial Reports series. This

series of reports makes available to manufacturers, trade

groups, and other users of industrial data, current figures

for use in their day-to-day operations and forward planning.

The current reports also present a picture of industrial

production trends over a period of time.

1972 CENSUS OF MANUFACTURES

The 1972 Census of Manufactures conducted during 1973

as part of the Economic Censuses, is an enumeration of establish-

ments engaged in manufacturing activities in the United States.

The results of the census of manufactures are being presented

in a series of reports on industries, geographic-areas, and

subjects (employmentz size of the establishment,,ty'pe of organi-

zation, etc.). Two types of statistics are provided: (1) General

statistics (number of establishments, employment, payroll,

man-hours, cost of materials, value of shipments,.capital

expenditures, and inventories) and (2) quantity and value of

materials consumed and products shipped.

Advance and preliminary reports furnishing summary results

have been issued and are being superseded by more detailed

paperbound reports. These paperbound reports will be incor-

porated and issued in final hard bound volumes which may con-

tain additional explanatory materials and graphics not previously

published. Concurrent with the publication of the volumes,

selected aggregate data included in the final reports will be

available on computer tapes. For further information on the

computer tape program, see the corresponding section, Manufacturing

and Mineral,Industries, in Part II of this Catalog.

Publication order forms for the variou s reDorts issued as

a result of the 1972 Census of Manufactures and Mineral Industries

are issued-as soon as the report becomes available and may

be obtained on request from any U. S. Department of Commerce

District office (see back cover of this Catalog) or from

the Subscriber Services Section (Publications), Social and

Economic Statistics Administration (@ESA), Washington, D. C@.

20233. Descriptive order forms for the 1971 and 1970 Annual

Survey of Manufactures and the Current Industrial-,Reports

may be obtained from the above offices on'-request. A consolidated

list.of reports from the 1967 Census of Manufactures, Mineral

industries, and Commercial Fisheries appears in the 1972 issue

of U. S. Department of Commerce Catalog.

ANNUAL SURVEY OF MANUFACTURES

The Annual Survey of Manufactures was initiated in 1949

and has been conducted since that time for years not covered

by the census of manufactures. The Annual Survey provides

up-to-date basic statistics on the key measures of manufacturing

activity for industry groups, important individual industries,

and for geographic divisions, States, large standard metro-

politan statistical areas (SMSA's). and large industrial

counties and cities. The survey currently covers approximately

65,000 plants out of a total ofabout 300,000. Included in

the sample are all large manufacturing plants, which account

for more than two-thirds of total employment of all manufacturing

establishments in the United States, and a sample of the more

numerous medium-and-small-sized establishments.

The Annual Survey program is designed to provide estimates

of general statistics (employment, payroll, man-hours, value

added by manufacture, etc.) for industry groups and industries;

general statistics for geographic divisions, States, SMSA's,

and cities, cross-classified by major industry group and large

industrial counties value of shipments for classes of products;

expenditures for new plant and equipment for industries and

industry groups., and for States and large SMSA's; value of

manufacturers' inventories for industry groups and industries;

fuels and electric energy data by industry groups and States,-

and gross book value of fixed assets and rental payments. The

1960 Annual Survey of Manufactures was the first to provide

general statistics for large industrial counties. The 1956

Annual Survey was the first to provide these data for SMSA's,

and 1969 for cities.

1972 CENSUS OF MINERALINDUSTRIES

The 1972 Census of Mineral Industries, conducted during

1973 as part of the economic censuses, is an enumeration of

establishments primarily engaged in the extraction of minerals

in the United States. The results of the census of mineral

industries are being presented in a series of reports on

industries, geographic areas, and subjects (employment size

of establishments, typ-- of organiza-tion, etc.). Two types of'

-80

statistics-are provided (1) general statistics (number of

establishments, employment, payroll, man-hours, cost of

materials, value of shipments', and capital expenditures) and

(2) quantityand value of materials consumed and products

shipped.

Advance and preliminary reports furnishing summary results

have been issued and are being superseded by more detailed

paperbound reports. These paperbound reports will subsequently

be assembled and reissue'd in final hardbound.volumes which may

contain additional explanatory materials and graphics not

previously published. Concurrent with the publication of the

volumes; selected aggregate data included in the final reports

will be available on computer tapes.

1972 CENSUS OF RETAIL TRADE

The 1972 Census of Retail Trade,'conducted during 1973

as part of the economic censuses, is an enumeration of retail

establishme nts in the United States. The 1972 census is the

10th census of retail trade of the United States., Preliminary

data from the census of retail trade have been issued in a

series of press releases for each State and the District of

Columbia on number of establishments with employees, employ-

ment, payroll, and sales. mote detailed area data are being

issued in final paperbound Area Statistics Reports. Final

series, of-SWIDject and Major Retail Centers paperbound reports

are also being issued and Retail Merchandise Line Sales will be

issued. These paperbound reports will be assembled and reissued

in hardbound volumes which may contain additional explanatory

materials and graphics not previously published. Concurrent

with the publication of the volumes, selected aggregate data

included in the final reports will be available on computer tapes.

1972 CENSUS OF WHOLESALE TRADE

The 1972 Census of Wholesale Trade, conducted during 1973

as part of the economic censuses, is an enumpration of whole-

sale trade establishments with employees in the United States.

The 1972 census is the 10th census of wholesale trade. Prelim-

inary data from this census have been issued in a series of

press releases for each State and the District of Columbia on

number of establishments, employment,-payroll, and sales. More

detailed area data are being issued in final paperbound Area

Statistics reports. Final series of Subject and Wholesale

Commodity Lines Sales paperbound reports will also be issued.

These paperbound reports will be assembled and reissued in hard-

bound volumes.

1972 CENSUS OF SELECTED SERVICE INDUSTRIES

The 1972 Census of Selected Service Industries, conducted

during 1973 as part of the economic censuses, is an enumeration

of selected service establishments in the United States.

The 1972 census is the ninth census of selected service

industries of the United States. Preliminary data from this

census have been issued in a series of press releases for

each State and the District of Columbia on'number of establish-

ments with employees, employment, payroll, and receipts. More

detailed area data.is being issued in paperbound Area Statistics

reports. A finalseries of Subject paperbound reports will

also be issued. These p@aperbound reports will be assembled

and reissued in hardbound volumes which may contain additional

explanatory materials and graphics not previously published.

Concurrent with the publication of the volumes, selected

aggregate data included in the'final reports will be available

on computer tapes.

CONSTRUCTION AND HOUSING

The first U.S. Census of the construction industry was

taken in 19 30 (covering the year 1929)-in conjunction with the

Fifteenth Decennial Census and as part of the census of business.

Census data for the construction industry were again collected

for 1935 and 1939 and published as.a part of the 1935 and 1939

Census of Business Reports. Collection-of census data for the

construction industry was disrupted by data collection vital to

world war II activities. Following World War II the censuses

of business were reinstated but coverage of the construction

industry was not included. Data for the construction industry

were again collected for 1967 and 1972 as a part of the 1967

an d 1972 Economic Censuses. The final data from the 1967 census

have been reissued in volume form. The results of the 1972

Census of Construction Industries are now being published. A

1967 census of construction industry of Puerto Rico was

conducted in conjunction with the Commonwealth of Puerto Rico

and the 1967 Census of Business. A 1972 census of construction

industry of Puerto Rico was conducted as part of the 1972

Economic Censuses.

Statistics on construction activity include current monthly

data on housing starts and sales, housing completions and under

construction value of new construction.put in place, construction.

prices, public construction contract awards, and new housing

units authorized by building permits and housing units authorized

for demolition. Quarterly statistics are compiled on expenditures

for alternations and repairs to residential properties. Most

of these series were formerly issued jointly by the Bureau of

Labor Statistics,and the Bureau of Domestic Commerce (formerly

Bureau of Competitive Assessment and Business Policy), The

Bureau of the Census assumed responsibility for collecting and

publishing construction statistics effective July 1, 1959.

A census of housing was taken,as part of the decennial

censuses of 1940, 1950, 1960, and 1970. As a part of the 1960

Census of Housing, the Survey of Components of Inventory

Change and Residential Finance (SCARP) was taken starting in

late 1959 and extending into 1960. The Components of Inventory

Change portion measured gains and losses in the housing

inventor y through new construction, conversion, demolition,

and the like, after 1950, and changes after December 1956 when

the National Housing Inventory was conducted..

The Residential Finance portion obtained data on method

of financing the purchase of property,, the size of the outstand-

ing mortgage*debt, and detailed tabulations on such mortgage

characteristics as amount of loan, interest rate, Government

insurance status, method of amount of mortgage payments and

type of lender.

Current statistics on housing include quarterly data on

vacancy rates and condition and characteristics of available

housing vacancies for the country as a whole, for geographic

regions, and inside and outside standard metropolitan statistical

areas. Data on television sets for the Nation, regions, and

geographic divisions have been obtained from a series of-,

supplements to the Current Population Surveys.

A publications program statement describing the contents

and timing of the reports from the 1972 Census of Construction

3-ndustrieS 4s availzable. Descriptive order forms for the

various series of reports from -this census,,from the 1970

Census of Housing, and from current construction and current

housing surveys may be obtained upon request from any U. S.

Department of Commerce District Office.

1972 CENSUS OF CONSTRUCTION INDUSTRIES

The 1972 Census of Construction Industriest conducted

by the Bureau of the Census in 1973 as part of the 1972 Economic

Censuses, is an enumeration of construction establishments in

the United States operating as general contractors, operative

builders, special trade contractors, or land subdividers and.

developers. The 1972 estimates of establishments with payroll

in all the construction industries are based on reports from

a probability sample of about 145,000 construction establish-

ments. The sample included all large and medium size construction

establishments (10 employees or more) and a sample of small

construction establishments (1 to 9 employees) Limited data

for establishments with no payroll are derived from administrative

records of the Federal Government.

The results of the census of construction industries are

be ing presented in a series of reports on each of the 27

industries. Preliminary and final industry series reports show

data on: Number of construction establishments; receipts;

employment; payrolls; payments to sbbcontractors; payments

for materials, components, and supplies; payments for the

rental of machinery and equipment; value added; capital

expenditures during the year; and-depreciable assets. More

detailed data are shown on construction receipts relating to

new construction as compared with maintenance and repair work,

ownership (public vs. private) of construction,jocation of

Work, and type of work (single-family houses, industrial

buildings, streets and roads, etc.).

Preliminary industry reports presenting data for establish-

ments with payroll are now available. These reports will be

superseded and supplemented by final industry reports. Final

area reports presenting data similar to the indust ry report.

series will be published for each of the 50 States and the

District of Columbia. Final special reports presenting selected

data by type of operation and legal form of organization and

data on specialization in primary types of construction will be

published at a later date. A separate report will be issued

on the construction industry in Puerto Rico.

All final report s will be assembled and reissued in cloth-

'bound volumes. These volumes may contain additional explanatory

materials and graphics not previously published. Selected data

included in the final reports will be available on computer

tapes.

TRANSPORTATION

The 1972 Census of Transportation is the third census

of this type ever to be taken in this country. The first

census of transportation was taken in 1963. Prior to 1963,

some information on transportation was compiled and published

in connection with the decennial censuses of 1880 and 1890.

Reports on certain aspects of transportation were published

at intervals by the Bureau of the C ensus during the early

part of this century. Under legislation enacted in 1964, the

census of transportation is now taken at 5-year intervals (for

years ending in 2 and 7), coinciding w ith the other economic

censuses of business, manufacturers, and mineral industries.

The 1972 Census of Transportation consists of three major

phases: (1) National Travel Survey; (2) Truck Inventory and

Use Survey; and (3) Commodity Transportation Survey.,

The publication program of the 1972 Census of Transportatio n

presents revised benchmark data on personal travel, the use of

trucks, and the shipment of commodities, and it makes possible

the measurement of changes over a period of time (1-972 compared

with 1967 and 1963). A list of publications from the 1967

Census of Transportation appears in the 1971 annual issue of

the Department of Commerce Catalog..

Descriptive order forms for the various series of reports

published as a result of the 1972 Cens-us of Transportation inay

be obtained on request from any U.'S. Department of Commerce

District office.

1972 CENSUS OF TRANSPORTATION

Final Reports

Volume I National-Travel SurveV

This volume contains the three reports published for the

1972 National Travel Survey. One report presents data for

the full year 1972; another is a spring report covering trips

ending in January through May of 1972; and the third is a summer

report covering trips ending in June through,September 1972.
The survey is based'on information obtained from a probability

sample of households repre senting the total civilian, non-

institutional population of the United States.

For travel during 1972, additional information is presented

on an origin/destination basis. Included are tables for each

destination travel region showing: Number of households taking

trips; trips taken; person-trips; person-miles; person-nights;

and type of destination used by origin travel region. The same

data sets are presented for travel to destinations outside the

United States by origin [email protected]. Additionally', for the

first time, travel to a "visited State" is provided for selected

States. The 1972 Survey includes somewhat more detail-by type

of transport, as well as type o f lodging (overnight accommodations

used), by State, by trip. Traveler, household, and trip

characteristics are shown such as: Size of household,,race

of head, sex of traveler, ownership of residence@ type of'-

dwelling unit of residence, weekend trips, vacationing

de stination-area type, means of transport, purpose of trip,

fami ly in'come, occupation of household head, round-trip

distance, duration,of trip, number of trips, age of traveler,

education of traveler, etc.

The appendixes provide a glossary of terms, facsimiles

of questionnaires, and a description of the available public-'

use tapes.

VOLUME II TRUCK INVENTORY AND USE SURVEY*

This volume presents data based on the 1972 Truck Inventory

and.Use Survey and contains the data previously issued in the

individual State reports (TC72-T-1 to 52) listed in the 1973

issue of this Catalog.

The volume contains data on the characteristics and use of

the Nation's truck resources, other than vehicles owned by

Federal, State and Local government agencies. The data

presented in this volume are based on a probability sample of

private and commercial trucks registered (or licensed) in each

State during 1972.

The tabular presentation in the volume has been arranged

into three broad sections. The first section deals with

various cross-classifications mostly at.the national level.

It also is divided into three subsections, based on number of

trucks, truck-miles, and specialized.trucks,(such as pickup

and panel trucks). The second section provides comparative.,

data on-the number of trucks, truck-miles, and average miles

per truck in each of the 50 States and the Nation as a whole..

This section is.further divided into three subsections based

on size of truck, major occupation use, and,range of operation.

The third section presents tabulations for each of the 50

States and the District of Columbia. Data include trucks,

truck-miles, and average miles per truck for each State and

cross-classifications by vehicle and operational characteristics

based on the total truck registrations for each State.

The appendixes provide a facsimile of the census

questionnaire and information on expected sample size and

distributions of trucks by State, size, classification of tr ucks,

revised Federal Highway Administration total truck inventory

by state, and public-use computer tape contents.

This series presents data on the shipments of commodities

from manufacturing plants, by geographic division for

approximately 80 three-digit Transportation Commodity Classi-

fication (TCC) groups. Each of the 14 reports shows data for

-the three-digit commodities comprising one two-digit major

group or more. Tables show the flow of commodities at the

three-digit TCC level for tons and.ton-7--miles of shipments

by means of transport, distance and weight of shipment, and

origin and destination. These reports will be issued as part

of Vol. 111, 1972 Census, of Transportation.

1. Textile Mill Products, Including Apparel. 62 pp. $1.70

2. Lumber and Wood Products Except Furniture; Furniture

and Fixtures; Pulp, Paper, and Allied Products.

104 pp. $2.30.

3. Rubber and Miscellaneous Plastics Products. 36 pp-

$1.20..

4. Stone, Clay, Glass, and Concrete Products. 66 pp.

@1.75.

5. Primary Metal Products. 59 pp. $1.60.

6. Leather and Leather Products. 33 pp. $1.15.

FOREIGN TRADE

Statistical data of United States exports and imports are

collectea from Shippers' Export Declarations and import entries.

These forms are filed by exporters and importers with Customs

officials and transmitted to the Bureau of the Census. The

statistics compiled include information on the dollar value and

net quantity (pounds, gallons, square yards, etc.) of U. S. imports

and exports of commodities by all methods of transportation

combined, and shipping weight and value of shipments made by

vessel and by air. Data are shown'by country of origin and

destination, and Customs districts through which merchandise

enters and leaves the United States. Separate statistics are

presented on trade with Puerto Rico and U. S possessions and

on trade of the Virgin Islands with foreign countries. Begin-

ning with January 1948--statistics, data are available on

exports (excluding military shipme nts) and general imports

adjusted for working-day and seasonal variations.

The export statistics are compiled in accordance with the

classification in Schedule B, Statistical Classifications of

Domestic and Foreign Commodities Exported from the United

States. Import data are initially compiled in-terms of Tariff

Schedules of the United States Annotated (TSUSA). These data

are arranged and presented in month ly published reports in

terms of commodity classifications contained in Schedule A,

Statistical Classification of Commodities Imported Into the

United States. Introductory sections of report FT 135, FT 410,

and other statistical publications contain discussions of the

presentation of the statistics.

Any changes of a substantial nature affecting the coverage

or presentation of the statistics are announced in the appropri-

ate publication. Detailed information concerning the foreign

trade program is presented in a brochure entitled Guide to Foreign

-Trade Statistics for the current year.

STATISTICAL ABSTPACT OF THE UNITED
STATES: 1974, (95th Annual Edition)
1, 048 pp.._.._ July 1974

This one-volume basic reference source, issued annually

since 1878, is the standard summary of statistics on the social,

political, and economic organization of the United States. It

presents a comprehensive selection of statistics from the

publications and records of governmental and private agencies.

This edition contains more than 1,400 tables and charts

and an extensive guide to sources of additional data. Although

emphasis is given primarily to national data, many tables

present data for regions and a smaller number for cities.

Sections 33 and 34, respectively present comprehensive data

for States and for the 157 largest standard metropolitan

statistical areas. Statistics for the Commonwealth of Puerto

Rico and for outlying areas of the United States are included

in -the State tables whenever available. Additional information

for cities counties, metropolitan areas, congressional

districts, and other small units, as well as more historical

data, are available in various supplements to the Abstract.

There are 66 entirely new tables in this edition covering

such topics as job vacancies in manufacturingf election campaign

costs for national offices, U. S. multinational companies,

prices of new one-family houses sold, mortgage status of

homeowner properties, violent crimes in citie s, suicide rates

for selected countr ie@s,', and salt water sporting fishing. Seven

new tables are.included in the section called "Energy", along

with three new tables concerned with fuel and energy use in

the section entitled "Manufactures."

In addition, continuing series have been brought up to

date, and less timely data have been curtailed or eliminated.

Text not'es have been revised to reflect changes in definitions

and source references.

CBP-73 COUNTY BUSINESS PATTERNS 1973

This series presents data for 1973 and 1972 on employment,

number and employment size, of reporting units, and taxable

payrolls. The individual State reports present the principal

data items by detailed industry--4-digit level of the Standard

Industrial Classification (SIC) for States and counties and

by major industry group (2-digit SIC)'for standard metropolitan

statistical areas (SMSA's). Also included, by major industry

group, are data on: Number of employees and reporting units,

by employmen,t-size.class; and employees and taxable payrolls

of administrative and auxiliary units.

The U. S. summary includes data by detailed industry

(4-digit SIX) for the United States and by major group (2-digit

SIC) for each State. Also included are totals of the principal

data items for each county and SMSA.

SMALL BUSINESS ADYLINISTRATION (SBA)

"The Small Business Aaministration is a permanent,

independent government Agency created by Congress in 1953 to

encourage, assist and protect the interests of small businesses.

"Congress has directed SBA to take the lead in identifying

and analyzing small business problems, to be the voice and

advocate of small business, to foster and.coordinate research

and organization of significant data and to initiate ideas-and

innovations that will widen opportunities for small business to

get started and compete on an equitable basis.

"The Agency strives to carry out this mandate by insuring

that small business concerns receive a fair proportion of

government purchases, contracts and subcontracts, as well as

of the sales of government property; making loans to small

'business concerns, State and local development companies,.and

victims of floods or other catastrophe s; licensing, regulating

and lending to small business investment companies; improving

the management skills of small business owners, potential

owners and managers; and conducting studies of the economic

environment.

WHO IS ELIGIBLE?

"Most small independent businesses except speculative

firms, newspapers, televisi on, radio stations, other forms of

__96

media, and, normally, gambling.

For purposes of making loans, SBA defines a small busi-

ness as one that meets these general size standards:

Wholesale -- annual recelpts from $5 million to $15

million depending on the industry.

. Retail or Service -_ annual receipts from $1 million

to $5 rhillion, depending on the industry.

. Construction -- annual receipts of from $1 million to

$5 million, depending on industry. (Separate and lower size

standards have been adopted for the special trades (construction)

industries.)

Manufacturing from 250 to 1,500 employees depending

on the industry.

Detailed definitions are set forth in Section 121.3-10

of Part 121, Chapter I, Title 13 of the Code of Federal Regula-

tions.

FINANCIAL ASSISTANCE

BUSINESS LOANS

"When a small businessman with a financial problem comes

to SBA for advice and assistance, Agency loan officers review

his problem and suggest possible courses of action. If he

needs money,and cannot borrow it on reasonable terms, SBA often

can help'. The Agency will consider either participating with

a bank in a loan or guaranteeing up to 90 percent of the

loan. If a bank or other lending institution cannot provide

the funds, SBA will consider lending.the entire amount as a

direct government loan if funds are available. liowever, most

of SBA's -loans are made in cooperation with banks.

"SBA looks at past earnings records and.future prospects.

of a small businessman to determine whether he has the ability

to repay a loan, and any other fixed debts, out of business

profits. SBA loans may be used for:

.Business construction, expansion or conversion

.Purchase of machinery, equipment, facilities, supplies

or materials

Working capital

DIRECT AND IMMEDIATE PARTI CIPATION LOANS

"SBA, at present, can make a direct loan up to $100,000

unless funds are not available. In participation loans, the

SBA and the private lending institution each put up part of

the funds immediately. The maximum interest rates on SBA's

share is 5 1/2 percent. The bank may set a legal and reason-

able rate, but SBA's share may not be in excess of $150,000

in any immediate participation loan at this time.

LOAN GUARAN TY PLAN

"SBA can guarantee up to 0.0 percent.(or $35.0,000) which-

-98

over is less of a bank loan to a small firm for the'same

purposes.-as direct and participation loans. The interest rate

is set by the bank, within certain limits set by SB A from time

to time.

POOL LOANS

"SBA makes loans to.corporations formed and capitalized

by groups of small business companies for purchasing raw
materials,.equipment, inv'entory or supplies.to use in their

individual businesses. These loans may also be made to obtain

the benefits of research and development or to establish R&D

facilities.

"The Agency, alone or with a'bank, may lend as much as

$250,000 for each pool member., The SBA interest rate is 5 per-

cent, and the maturity may be up to 10 years. However, when

these loans are used for construction, maximum maturity may

be 'for as long as 20 years.

ECONOMIC OPPORTUNITY LOANS (EOL)

"Economic Opportunity Loans make it possible for the

disadvantaged businessman or woman who has the capability and

the desire, to own their own businesses. Both prospective

and established small businesses may receive assistance under

this program.

"The Economic opportunity Loan program provides both

financial and manaqement assistance. The maximum amount

is $50,000 for up to 15 years.

"Any resident of the United States, Puerto Rico, and

Guam may apply for an EOL, if:

l.- Total family income from all sources (other than

welfare) is not sufficient for the basic.needs of

that family; or

2. Due to social or economic disadvantage he or she has
D
- been denied the opportunity to acquire adequate busi-

ness financing through normal lending channels on,'

reasonable terms. This includes honorably discharged

Vietnam-era veterans.

J'Every applicant must show'that he has the ability to

operate a business successfully and that the loan can be repaid

from the earnings of the business.

"Although character and ability are more important than

collateral under this program, every applicant is expected to

have some of his own money or other assets invested in the

business.

HANDICAPPED ASSISTANCE LOANS

."Under this program, the Small Business Administration

is authorized to make loans in two categories: Handicapped

Assistance Loans to non-profit organizations (HAL-1) and

Flan.dicapped Assistance Loans to small business concerns

owned, or to be owned, by handicapped individuals (HA-L-2).

"HAL-1 financial assistance is available to public or

private non-profit sheltered workshops, or any similar organi"

zation which employsbandicapped individuals for not less

than 75 percent of the manhours required, to enable them to

produce and provide, marketable goods and services. HAL-2

financial assistance-is available for the establishment,

acquisition, or operation of a small business concern owned by

handicapped persons.

DEVELOPMENT COMPAhZ LOANS

"SBA believes that a vigorous national economy depends

on the ability of each local community to develop its own

economy. Throughout the nation, local communities are finding

that they can increase job opportunities, boost individual

income and local tax revenues by helping business concerns to

get started diversify -- expand their operations and modernize

their facilities. This Agenc y has two development company

lending programs.

STATE DEVELOPMENT COMPANIES

"A State Development Company is a corporation organized

by a special Act of the State Legislature, to operate statewide

to assist the growth and development of business concerns,

including small businesses in its area.

"SBA makes loans to State Deve lopment Companies to

supply long-term loans and equity capital to small business

concerns. The SBA may lend a State Development Company as

much as the company's total outstanding borrowing from all other

sources. These loans may be for as long as 20 years at vari-

able interest rates.

LOCAJ.j DEVELOPMENT COMPANIES

"This program works exclusively through a Local Develop-

ment Company made up of local citizens whose primary purpose

is to improve their economy. They assist in the planned

economic growth of the community by promoting.and assisting

development of small business concerns in the area.

"To be eligible for this kind of loan, citizens must put

up their own personal dollars. As a corporation with at least

75 percent of its ownership vested in persons living or doing

business in the community, local people assume responsibility

for projects they sponsor. A Local Development Company (LDC).

may be organized as a profit or non-profit corporation and must

have a minimum of 25 st ockholders or members.

"A Local Development Company must provide a reasonable

share of the cost of the project, generally 20 percent of the

total amount. A maximum of $350,000 may be borrowed from SBA

102

for each identifiable small business to be assisted for as

long as-25 yearsi.

"Development Company loans may help to. buy land; build

a new factory; acquire machinery and equipment;-,expand or

convert e@xisting facilities., provided the project will assist

a specific small business.

".The Agency participates wi th banks, insurance companies,

pension fund groups, other agencies, State authorities,

commissions and others, when making loans to Local Development

Companies.

DISASTER LOANS

"In cases of:disasters- storms,- floods,.earthquakes,....

or other catastrophes, the Small Business Administration can.

help vi ctims repair physical.damage or overcome economic injury.

The agency.makes loans to individuals, business concerns of

all-bizes, and non-profit organizations, to repair or-replace

damaged structures, lost or damaged furnishings, business

machinery,-equipment and inventory.

PHYSICAL DAMAGE LOANS

"The agency may make a disaster loan with a bank or other

private lending institution or entirely on its own. The,amount

of a loan is-determined generally by the loss, the needs of

the applicant, and other factors. Under a physical disaster,

103

the amount may not exceed $50,000 for homes,.@10,000 for

furniture and fixtures, but not to exceed $55,00.0 repair or

replacement of homes and household goods; and up to $500 .,000

for rehabilitation of businesses. Loans may be for as long

as 30 years..

"W-hen a bank-SBA loan-is made, the bank may charge its

regular interest rates within certain limits set by SBA from

time to time. However, the Agency sets its share at a lower

interest rate set by statute.

"The SBA works closely with the American Red Cross in

disaster areas, coordinating its loan program with the Red

Cross grant program.

ECONOMIC INJURY LOANS

"In areas hit by major or natural disasters, determined

by the President or the Secretary of Agriculture, small.firms

suffering economic losses are eligible for SBA loans.

."SBA funds may be used to provide working capital and pay

financial obligations that the borrower would have been able

to meet if not for the disaster.

"The interest rate on SBA's share of a bank-SBA loan or

a loan made entirely by the Agency is set by the Secretary

,of the Treasury. A participating'bank may set the rate on its

sharewithin limits set by SBA from time to time.

104

PRODUCT DISASTERS

"SBA-alsb makes loans to small firms that have suffered

substantial economic injury because they cannot process or

market a product for'human consumption because of disease or@

toxicity'resulting from either natural or undetermined causes'.

"The interest rate is set by@the Secretary of the

Treasury on SBA's share of a bank-SBA loan, or a loan made'

entirel y by the Agency. A participating bank may place the

rate on its own share within limits set@ by SBA from time'to
time'.

DISPLACED BUSINESS LOANS

"Small firms with substanti al economic injury as a result

of being displaced by or being near Federally' aided urban

renewal and other c onstruction projects are eligible to apply

for SBA loans to help relocate or reestablish. Reasonable

upgrading of the business while reestablishing is permitted.

"The interest rate is established yearly according@ to

statutory formula.' A Bank may set the interest rate on its

share within reasonable limits.

"SBA may make a loan to any small business concern that

must'make changes in its equipment, facilities, or operation

in order' -to meet the requirements of the Egg.Produc-ts Act, the

Wholesome Poultry Products Act, and the Wholes:ome Meat Act"of.

1-05

1967, if the SBA determines-that such,a concern is likely to

suffer substantial economic injury without the loan. The U.S.

Department of Agriculture or the appropriate State authority

will issue a list of required changes based on its inspection

of the premises to determine the amount an d use of the.necessary

loan.

OCCUPATIONAL SAFETY AND HEALTH

"A loan may be made to assist a small business firm that

must make changes in its equipment, facilities or operations

in order to comply with Federal standards under the Occupational

Safety and Health Act of 1970, or State standards adopted

pursuant to this.legislation, if SBA determines.that the firm,

is likely to suffer substantial economic injury without a loan.

A loan applicant may be considered under either of the following:

Voluntary Compliance Procedure -- when a small business.

concern independently initiates changes in order to comply

with Federal standards.

Cited Violation Procedure when a small business concern

is required by OSH Administration to undertake action in

order to meet Federal or State Standards.

STRATEGIC ARMS ECONOMIC INJURY LOANS

"The Sma 11 Business Administration'is authorized to make

loans to assist, or to refinance the existing indebtedness

of, any small business concern directly and seriously affected

by the significant reduction of the scope or amount of'Federal

support for any project as a result of any international

agreement'limiting the devdlopment of strategic arms or the

installation of strategic arms facilities.

BASE CLOSING ECONOMIC INJURY LOANS

"A loan.may be made to assist any small business concern

that has suffered, or will suffer, substantial'economic injury

as a result of.the closing by the Federal Government of a

major military installation, or as a result of a severe

reduction in the scope and size of operations at a'major

military installation.- Loans ar e-made to help the-small'busi-

.ness continue in business at its existing location, reestablish

its business, purchase a new business, or establish a.new

business. Maximum maturity is 30 years and interest rates

are established annually. In-most instances, the maximum

amount of a loan cannot exceed $500,000.

REGULATORY DISASTER LOANS

"In addition to Coal Mine Health and Safety Loans, consumer

Protection Loans, and occupational Safety and Health Loans,

SBA provides similar financial assistance to help small concerns

meetrequirements imposed by any Federal law, any State law

enacted as a result of the Federal law or any regulation of

107

a Federal law. The small business concern must show that

it is likely to suffer substantial economic injury without

this assistance before a loan may be approved. The interest

rates will be @he same as under the Displaced Business Loan

Program, and maximum loan amounts and terms are the same as

for Base Closing Economic Injury Loans.

LEASE GUARANTEE PROGRAM

"Small businessmen often ar e unableto lease good locations

because they do not have top credit ratings required by land-

lords. SBA, in certain cases, will issue an- insurance policy

or reinsure a policy issued by a private insurance company

whicly Quarantees the rent for a smal-1 businessman-. -When the-

private insurance participation is not available, SBA may

guarantee the leases directly. The guarantee may extend for

a minimum of 5 years to a maximum of 2'0 years on a parti.ci-

pating basis, and 10 to 20 years on a direct basis.

'Premiums are based on actuarial studies and are payable

in advance with no refunds. Although the small businessman

is required to pay three months' rent in advance to be held

in escrow in case of rent defaults, it will be returned to

him when his lease is up, with 4 percent interest, if there are

no defaults. In some cases, the landlord may agree to a three

month deductible clause in the policy in lieu of the escrowed

rent.

108

"Applicants for lease guarantee policies are.evaluated

under a risk analysis system devised specifically for this

SBA*program. Under@this system, the applicant's management

skills his financial position, the location in which he wishes

to rent, and his business are analyzed.

"The Agency is seeking to widen small business participation

in thi8 program,. which can be valuable to small firms trying

to relocate or trying to obtain prime space.

SURETY BOND PROGRAM

"The Small Business Administration is committed to help

make the bonding process more accessible to small and emerging

contractors who,- for-whatever reasons, might have found,bonding.

previously unavailable to them. SBA is authorized to guarantee

to a qualified surety up to 90 percent of losses incurred under

bid, payment, or performance bonds issued to contractors on

contracts valued up to $500,000. The contracts may be for

construction, supplies or services provided by either a prime

or subcontractor for governmental or non-governmental work.

"Applications for this assistance are available from-any

SBA field office. They are forwarded to the surety underwriters

by an insurance agent with whatever credit, fin ancial and

experience data is required by the surety company. After the

surety's decision that the bond can be issued, subject to

109

SBA's guarantee, a single-page agreement form is forwarded

to the nearest SBA regional office by the surety company.

The contractor pays SBA a small fee for this assistance,.and

the surety pays SBA a portion of its bond fee for the

guarantee.

"In order to be eligible for this program, the contractual

situation must be included in the Contract Section of the

Rating Manual of the Surety Association of America.

MINORITY ENTERPRISE PROGRAM

"SBA has combined its efforts with those of private

industry, banks, local communities and the Federal Government

to si@bstantiallv increase the number of minority-owned, operated

and managed businesses. For the first time in SBA history,

the Minority Enterprise Program brings all the Agency's services

together in a coordinated thrust to make more sound business

opportunities available to minority individuals.

"Since minorities comprise 17 percent of the NTation's

population, yet own 34 percent of the country's more than 8

million small businesses, the main objective of the minority

enterprise Program is to help close the gap in business own-

ership between minority individuals and other Americans.

"The Minority Enterprise Program consists of an overview

,staff in SBA's,Washington Headquarters office. ME field

110

representatives are stationed in all regional and in many

district offices. These representatives, cooperating with

local business development organizations, explain to potential

minority entrepreneurs how all the services and programs of

SBA are available to help them become successful business

operators.
11SBA' tries to match minority individuals, who indicate

a desire for business ownership and have some management

aptitude, with sound business opportunities. The ME field

representative then becomes the applicant's "advocate",

.advising and helping wit h financial statements, business

projections, and any related material.. Assistance is also

given, if needed, in preparing a formal loan application.

.
The package service indicates the extent and.type of
1

management or technical assistance offered the applicant to

help assure his business can be operated successfully. This

phase of the program is emphasized because private surveys

have shown consistently that faulty or inadequate management

is responsible for more than 90 percent of new business failures.

"ME loans are made under all the Agency's lending programs.

In regard to the regular business loan program (7a) they are

made under standard criteria. But under the Economic Opportunity

Loan (EOL) program, relaxed eligibility criteria are used,

with emphasis on the applicant's character and his ability to

repay the loan and other obligations from the profits of the

business.

The average ME loan is for approximately $39,000.

"Most opportunities for minority businesses -- both new

or established -- are in the retailing, distributing, franchising

and serV4 ce industries. Opportunities in these categories are

not only greater in numbers, but usually require less equity

capital on the part of the would-be owner.

"SBA does, however, encourage and help minorityand

disadvantaged individuals become owners of manufacturing firms,'

nursing homes, processing plants and similar businesses,

whenever possible.

"The Agency counsels andf in many ways, assists minority

groups in forming Local Development Companies and specialized

Small Business Investment Companies. Local Development

Companies are formed by groups interested in stimulating-the

planned economic growth of their community by aiding small

concerns in the local area. Specialized SBICs provide equity

fundsi long-term loans and management assistance to small

business concerns owned by socially or economically disadvantaged

persons..

"The Minority Enterprise Program also has an active plan

to help minority contractors locat-e and coordinate available

-help at all levels from public and private sources in order

112

tG grow and improve their productive capabilities.

"Minority-owned or managed fir ms interested in per-forming

government contracts,are helped.through Section 8(a) of the

Small Business Act, under which SBA is authorized to act as

prime contractor. for certain types of goods and services and

subcontract orders to individual small firms. The goal of

the program is to open the doors of government contracting

opportunities to minority businesses unable, or unlikely to

get a chance, to bid on 'competitive contracts..

"Surety bond guarantees are made on construction contracts

up to $500,000. The revolving line-of-,credit program, designed

to aid minority contractors, is now available to any small

business with an assignable contract.

"Based on SBA's experiences with the.8(a)- program, the

Agency has developed a system called the Minority Vendors-.

Program, whereby major private corporations are provided a

service which will match their procurement needs with minority

vendors qualified to satisfy those needs.

"In all its ME activiti6s,, SBA works closely with other

governmental agenciest trade associations, larger businesses,

franchisors, and local civic and business organizations.

"SCORE counselors, as well as SBA Advisory Council members

across the country, also play an active role in supporting

minority enterprise activities.

11-3

SMALL BUSINESS INVESTMENT COMPANIES (SBICs)

"The SBA helps finance small firms through privately

owned small business investment companies. SBICs are SBA-

licensed companies which supply venture capital and long-term

financing to small firms for expansion, modernization, and

sound financing of their operations. They may also provide

management assistance.

"SBICs must operate within SBA regulations but-their

transactions with small companies are private arrangements

and have no connection with SBA.

"Initial.minimum private investment required in an SBIC

may vary from $150,000 to as much as $1 million, depending on

the area to be served, the prospects for sound, profitable

operation, and whether or not businesses to be fin anced will

be largely owned by persons'whose participation -in the free

enterprise system is hampered because of social or economic

disadvantages.

"SBA may make loans, or guarantee 100 percent of the loans

of private lending institutions, to SBICs to add to their

funds for financing small firms. Such loans may be subordinated,

with up to 15-year terms. maximum loan to an SBIC is basically

$15 million or twice the SBIC's private paid-in capital and

paid-in surplus, whichever is smaller.

"SBICs that specialize in venture capital financing and

1,14

are capitalized at $500,000 or more may qualify for SBA

direct or.SBA-guaranteed loans aggregating up to $20 million..

congress has authorized certain tax incentives to encourage

more investment in SBICs.

SBA, in cooperation with the Department of Commerce,

has instituted a specialized application of the SBIC'principle

wherein SBICs dedicated solely to assisting small business

concerns owned and managed by socially or economically

disadvantaged persons are organized uhder'Section 301(a) of

the Small Business Investment Act of 1958, as amended.

"These S.BICs are owned'and operated by established indus-

trial or financial concerns, community or business-oriented

economic development organizations, or private or public

investors to combine money and management resources for,

assistance-to socially or economically disadvantaged entre-

preneurs.

HOW SBICs FINANCE SMALL FIRMS

"SBICs may make long-term loans, purchase stock or debt

securities, or combine equity and loan financing. minimum

term of SBIC financing is 5 years, except that an SBIC may

maintain up to one-half of its portfolio in investments in

disadvantaged.firms with minimum investment periods of 30

months.

115

ELIGIBILITY FOR FINANCING

"For SBIC financing, a concern is small if its assets

do not exceed $V2- million, its net worth is not more than

@2.5 million, and its 2-year average annual profit.s after

Federal income taxes did not exceed $250,000. A concern may

also qualify under the regular business loan size standards.

PROCUREMENT ASSISTANCE

"Each year, the Federal Government contracts for billions

of dollars with private companies. SBA helps small businessmen

obtain a share of this government business by.providing

several forms of assistance to small firms that want to obtain

government pr4me contracts and related subcontracts.

"Specialists in SBA field offices counsellsmall businessmen

on prime contracting and subcontracting. They direct them to

government agencies that buy the products or services they

supply; help to get their names placed on bidders' lists; assist

in obtaining drawings and specifications for proposed purchases

and offer many other related services, which include supplying

leads on research and development projects.

Prime Contracts Program

11major government 'purchasing agencies "set-aside" contracts

or portions of contracts for small business bidd ing. SBA has

its own Procurement Representatives-stationed in major.military

116

and civilian procurement installations. They recommend

additional "set-asides", provide small business sources to

contracting officers, assist small concerns with contracting

problems and recommend relaxation of unduly restrictive

specifications. SBA also checks the effectiveness of small

business programs administered by procurement installations.-

Certificates of Competency Program

"if a small firm is low bidder,on a Federal contract and

its ability to perform the contract is questioned by the con-

tracting officer, the company May ask SBA for a "Certificate

of Competency" (COC)

"If the firm applies, SBA industrial specialists'make an'

on-site study of its facilities, management, performance

record and financial status. If SBA concludes that the

company has, or can obtain, the necessary credit and pro-

duction capacity to perform the contract successfully, it

issues a certificate (COC) attesting to that fact. A.COC

is valid only for the specific contract for which it is issued

and is binding on the contracting officer.

Subcontracting Program

"The SBA develops subcontract opportunities for-small

business by' maintaining close contact with prime contractors

@and referring qualif ied small firms to the'Department of

Defense, General Services Administration, National Aeronautics

117

and Space Agency and the Atomic Energy Commission, and some-

times others. Under regulations established by -these agencies,

government prime contractors must give small concerns an,

adequate opportunity to compete for their subcontracts.

Property Sales Program

"Each year, the Federal Government sells large amounts

of real and personal property and natural resources surplus to

its programs. SBA cooperates with the General Services

Administration, Department of Agriculture, Department of

Interior, the Department of Defense and other government

agencies to channel a fair share of this surplus property and

resources to small business.

Contract Opportunity Meetings

"In cooperation with local business groups and other

government agencies, SBA participates in meetings where small

businessmen can learn of prime contract and subcontract

opportunities. Government contracting agencies and prime

contractors present their needs and requirements, and discuss

bidding opportun ities. SBA field offices can provide infor-

mation about scheduled meetings.

Locating Additional Suppliers

"'SBA representatives are particula rly watchful for

purchases on whj.Qh few small firms have bid in the past. If

the representatives believe small firms can perform these

contracts, SBA offices locate smaLl companies that would be

interested in@bidding;

"Another source of information and guidance to those,

who want to buy and sell to the government is "The U. S.

Government Purchasing and Sales Directory." It lists principal

goods and services bought by military and civilian agencies

and the purchasing offices which buy them. It also tells

where to obtain copies of the specifications used in govern-

ment purchasing and provides helpful information on govern-

ment sales of property. The Directory is sold by the

Superintendent of Documents, U. S. Government Printing office,

Washington, D. C., 20402.

"Se lling to the U. S. Government,'.' another SBA publication,

(OPI-12), explains the government's buying methods and suggests
-steps to take in selling to it and to prime contractors. The

leaflet is available free from all SBA offices.

Technology Uti lization

"This service program puts all.small companies in prompt

contact with technological assistance consistent with company

needs for production techniques, modernization processes and

new product development.

"Technical specialists in SBA offices will help any small

119

company identify its technological-'needs and supply immediate

assistance.

MANAGEMENT ASSISTANCE

"Most businesses fail for lack of good management. For

this reason, SBA offers a diversified program of management

and technical assistance to strengthen small firms and to

improve their operations. Under SBA's program of management

assistance, conferences, problem clinics and individual

counseling are offered so that the management ability of

increasing numbers of small business owner-managers can be

improved. The program is executed by Management Assistance

officers in the field offices, who pinpoint problems in

operating, develop solutions and help with planning.

Courses

"Business management courses, co-sponsored by SBA with

public and private educational institutions and business

associations are generally evening classes which deal with

planning, organizing and controlling a business, as distinguished

from day-to-day operating activities.

Conferences, Workshops, Clinics

"Conferences usually run one day and cover subjects such

as working capital, business forecasting and diversification

.of markets; whereas workshops usually deal with capital

120

requirements, sources of financing,,, types of businesses,_

organization, and choice of location for prospective owners.

"Clinics go into specific problems of small businessmen

in a particular industry.

"This Agency plans these classes, and provides speakers,

outlines, visual aids, sound movies, and case studies for

instructors, as well as publications to be used by.the student,

A small fee is charged enrollees.

Counseling

"SBA furnishes individual assistance to small businessmen

with management problems, and also will counsel prospective

small businessmen who want management assistance, or informa-

tion on specific types of business enterprises.

"In addition to staff professionals, smal 1 businessmen

can benefit from the services of SCORE .(Service corps of

Retired Executives), and ACE (Active Corps of Executives),

together with other national associations who lend individual

help.

"SBA draws from this pool of talent to match the need of

the small busin essman with the expertise of its volunteers.

Thent an assigned counselor visits the small businessman in

his establishment. Through carefulobservation, he makes a

detailed analysis of the business and its problems. If it is

121

a complex problem, he may call on other volunteer experts

to assist. Finally, he will offer a plan to remedy the trouble,

and help the businessm an through his critical period. This

service is free, except for out-of-pocket expenses.

Small Business Institute

"In the Small Business Institute (SBI) Program, with the

cooperation of faculty, senior and graduate students of the

nation's leading schools of business, personal counseling is

given to small business owners.

"Although participation in the'SBI program is, at present,

14
J-mited to SBA clients (loan recipients and holders of 8(a)

contracts) in most localities, business owners who are interested

in this service should contact the nearest SBA office. It will

be able to determine their eligibility-

The "406 Program"

"The 406 Program provides management and technical

assistance to firms and individuals qualifying under Section

402 of the Equal opportunity Act. The kind of assistance

provided ranges from such categories as Junior and senior

accounting to complex engineering, according to the specific

needs of the individual recipient, and is offered without charge.

."To determine eligibility Ito participate in the 406 Program,

either as a recipient of counseling or as a consultant, the

122

nearest SBA office should be contacted.

Foreign Trade

"The Agency works closely with the Department of Commerce,

and other agencies, to help generate export activity and

furnish information on export opportunities.

ADVISORY COUNCIL PROGRAM

"Small business Advisory Councils throughout the country

provide communication between the Agency and citizens in their area.

"Each of the 65 district offices has a District Advisory

Council. These Councils make a total of 2,000 men and women who

represent small businesses, lending institutions, newspapers,

broadcast media, labor, professions, education, and virtually

every segment of commerce.

"Council members serve the Agency by reporting on the small

business climate, its needs and the effects of SBA programs in

their communities, as well as nationally. They also make sugges-

tions and recommendations which enable the SBA to serve small

businesses better.

"They visit banks to discuss SBA's cooperation with private

lenders, opening doors to public investment funds for small

business assistance.

"Council members speak*to civic, service, and business

-organizat ions making use of the broadcast and printed media

123

to tell SBA's story.

"The National Advisory Council is composed of a

representative from each of the 65 District Councils and

members-at-large. Its chairman, appointed by the Administrator,

serves for one year.

"Both District and National Advisory Council members

are appointed to two-year'terms, and serve without compensa-

tion.

SBA Publications

".SBA issues several series of management, technical and

marketing publications which have proved to be valuable aids

.to established or prospective managers of small firms. Some

are available from the SBA without charge and others are sold
by the Superintendent of Documents, U. S. Government @rinting

Office, Washington, D. C., 20402.

"Among the free publications are:

MANAGEMENT AIDS FOR SMALL MANUFACTURERS dis-

cussions of the various phases of managing a small

manufacturing business including accounting, financial

management, personnel management, purchasing and

market research.

TECHNICAL AIDS FOR SMALL MANUFACTURERS facts on

s ignificant development in fi elds such as mater ials,

124

processes, equipment and maintenance,

SMALL BUSINESS BIBLIOGRAPHIES reference sources

for business owners, managers and prospective

small businessmen.

SMALL MARKETERS AIDS -- discussions of the-various

phases of-managing a small retail, service, or

wholesale business including advertising, competitive

strategy, controlling, and selling.

Among the for-sale publications are:

SMALL BUSINESS NIANAGEMIENT SERIES booklets on

spec4fic,mdnagement subjects by recognized authorities

in their fields.

STARTING AND MANAGING SERIES pamphlets on general

good practices in starting and managing a business

and others on starting and managing specific kinds

of businesses, such as restaurants, service stations,

etc.

@"In addition to these management aids., pamphlets describing

the Agency's programs of assist ance are available without

charge to persons interested in SBA's services to small busi-

nessmen.

1-25

"For information on specific SBA publications in.each

of the above categories, please contact your nearest SBA field

office or write to the SMALL BUSINESS ADMINISTRATION, 12 south

Sixth Street, Minneapolis, Minnesota 55402.11

126

U. S.:DEPARTMENT OF LABOR, BUREAU OF LABOR STATISTICS
MAJOR PROGRAMS

Current Employment Analysis

The Bureau's program on Current Employment Analysis

provides for the analysis and 'publication of data on the labor

force, employment, unemployment, hours and earnings, job

vacancies, and labor turnover. Data are.obtained from two

major surveys, the Current Population Survey and the survey

of no.nagricultural payrolls.

The survey provides the only data available on a regular

basis which covers the entire civilian noninstitutional popu-

ation' and identifies those who are in the labor force, either

working (employed) or looking for work (unemployed), and

those who are not in the labor force. Data on employed

persons are collected and published monthly, arrayed by a

wide variety of characteristics including age, sex, color,@

marital status, household relationship, full-and part-time

status, and occupation. Annually, Current Population Survey

data are published separately for all metropolitan and non-

metropolitan areas combined; 4 regions and 9 subregions; 10

large states; and 20 of the largest Standard Metropolitan

Statistical Areas and 14 of their central cities.
The ind@stry employment statistics program is designed

to provide detailed information on rion-agricultural wage and

127

salary employment for the Nation, States, and major labor

areas. The industry employment s-La tistics program also

provides detailed information on average weekly earnings,

average hourly earnings, and average weekly hours. Data

relate to production workers in mining and manufacturing,

construction workers in contract.construction, and nonsuper-

visory workers in privatenon-manufacturing industries.

The job openings--labor turnover statistics program--

is designed to provide information on: (1) the current

stock of unfilled job openings as of the last business day

of the month and vacancies which have continued unfilled for

a. month (long-term) or more and (2) the gross movement of

wage and salary workers into and out of employment status

(labor turnover) for individual establishments.

Each year a historical volume is published for the Nation

containing employment, hours,.earnings, and labor turnover.

The annual compendium for States and areas includes data on

employment, hours, and earnings only.

MANPOWER STRUCTURE AND TRENDS

In its program on Manpower Structure and Trends, the

Bureau collects, analyzes, and publishes data on the labor

force; employment by occupation; and projections of occu-

pational and industrial manpower requirements. Two major

programs of research and analysis provide studies of the labor

force and long-range projections of labor force supply,
- 1.28 - I

including tables of work-life expectancy.

Analytical studies cover emerging trends'and changes ift

workers' marital and family status, work experience, education,

and other characteristics. Special studies deal with topics

suchas the employment experience of youth, recent college

graduates, Vietnam veterans, and working women with children@

Projections of the labor force extend 10 to 15 years into-the

future; they indicate anticipated changes in characteristics

and composition for program formulation and evaluation,

vocational guidance, and other lon'g-range,planning.

Mail surveys of,employment by occupation are conducte d',

in non-agricultural industries. Data are analyzed to determine

trends'in industries, and are used along with other information

to update occupational patterns in the industry-occupational

matrix. Information on future oc,cupational and industrial

manpower requirements and resources is published biennially

in theoccupational outlook Handbook. The occupational outlook

Quarterly furnishes additional information for those who help

young people choose a vocation and kee' abreast of new develop-
P

ments in education and training programs.

The office also prepares data about the changing industrial

structure and occupational composition of American industries.

Special studies provide more technical'information and project

quantitative manpower requirements and resources in certain

129

occupations. Techniques for projecting State and local man-

power require ments are-developed within the context of national

manpower projections. Aid is given to State and local agenci'es

in using these techniques.

PRICES AND LIVING CONDITIONS

Each month, through the Bureau's program on Prices and

Living-Condition.s, price changes are estimated at two levels--

the final purchase by the consumer and the first (primary

market) of commercial transaction. The Consumer Price Index

(CPI) for urban wage earners and clerical workers has been

available as a continuous.series for over 50 years. The CPI

is used extensively to measure changes in purchasing power

of the consumer dollar. As the basis for most estimates of

changes in real earnings of labor, the CPI figures signifi-

cantly in wage adjustments and collective bargaining negoti-

ations. It is estimated that over 7 million workers are.

covered by contracts which provide for wage increases based

on changes in the index. Recent revision of the food store

and rent samples, continu ing research into techniques of

adjustment for quality changes, and strengthening of weak

areas, e.g., hospital service charges and home purchase prices.

should-improve the precision of the index as a measure of

actual price changes.

.Measurement of,price change at the primary market level

130

is centered largely in the-Wholesal e Price Index (WPI).*

Summary indexes are published month ly for groups of products

and for most of the individual commodities. The commodities'

are grouped according to a commodity classification which

takes account of market structures and products having related

uses. Using essentially these same data, price indexes are
compiled and published monthly for se'lected manufacturing and

mining industries. The WPI is used'widely for market analyses,

escalation of long-term'purchase and sales contracts formulation

of economic policies, and as an indicator of,price and other

economic trends. In 1967, the measurement-of wholesale price

changes was improved; weights and the classification system

were revised and new commodities and a number of industry

indexes were added. The WPI has long been calculated by

electronic processing.

Conceptual and technical research is conducted on the

measurement.of price change. New indexes are developed such

as measures of international price competitiveness. The

Bureau also carries on continuing analyses and interpretations

of price-developments, including subjects such as linkage's

between the WPI and CPI.

From time to.time, surveys of consumer expenditures

are made to provide information on variations in spending

patterns, income, and assets and liabilities among families

131

grouped by different characteristics. Such survey data are

used in studies of consumer expenditures and also form the

basis for revision of th e pricing lists and weighting patte.rns

for the periodic revisions of the CPI.

WAGES AND INDUSTRIAL RELATIONS

Four major types of employee earnings surveys are

conducted in the Bureau's Wage and industrial Relations program

to provide the information on straight-time earnings by occu-

pation and on establishment practices and supplementary wage

provisions: (1) area surveys in. selected metropolitan and,

on a more limited scope, nonmetropolitan areas related to

occupations common to a variety of manufacturing and nonmanu-

facturing industries; (2) industry surveys in selected manu-

facturing and nonmanufacturing industries cover occupations

peculiar to the particular industry; (3) national salary

surveys cover selected professional, administrative, technical,

and clerical occupations.in private employment; and (4) surveys

of union wage rates and hours cover selected journeymen,

helper, and laborer classifications in four highly unionized

industries in cities of 100,000 population or more. Other

studies provide information on the occupational earnings and

benefits of municipal government workers.

On a nonoccupation.al basis, studies are made of annual

.earnings and employment patterns of all employment in th.e

132

private non-agricultural sector. These studies provide

information for all workers and for those employed al 1 four

quarters of the'year. Some data are presented by sex and

race. Also on a nonoccupatiofia'l basis, national information`

is developed on the distribution of earnings and weekly hours

of work of nonsupervisory employees.

In addition to the studies of straight-time earnings by

occupation, another group of surveys are conducted to measure

employer's total expenditures for employee compensation,

includiftg, individually, the major supplements to straight'-

time pay for hours worked. Data are presented for all

employees, office employees, and nonoffice employees. The

total priv ate nonfarm'economy is surveyed bien nially; separ ate

data are provided for manufacturing and nonmanufacturing

industries. in-the intervening years, selected individual

manufacturing and non-manufacturing industries are surveyed.'

Digests and detailed analyses are made of the provisions

of major types of empl-oyee benefit plans, e.g., health, in-

surance and pensions,, that supplement straight-time pay in

American industry. Information is developed on the nature

and prevalence of the pla ns.

In studies of the trend in wages, a monthly report on

current wage-dev'elopm.ents present's information on general
wage r'ate changes'and changes in related benefits in major

collective bargaining situations. The data are identified

133

by the individual companies and unions affected. information

for nonunion and small union, situations in manufacturing is

included in quarterly and annual statistical summaries of the

general wage change data.

Detailed histories of negotiated changes in wage rates

and related economic benefits are traced in wage chronologies

covering about 35 key collective bargaining situations.

Wage indexes are prepared to provide further insight

into the trend of employee earnings. These studies cover,

nationally, salaries of selected public occupational groups;,

and the earnings of production and nonsupervisory workers,

exclusive of the effects of overtime (in manufacturing only)

and interindustry employment shifts. Othe r-national, regional,

and.selected city indexes are derived from the area and industry

wage surveys.

The Bureau maintains a public file, of approximately

5,000 collective bargaining agreements in all industries

except railroads and airlines. The file includes all agreements

covering 1,000 workers or more and forms the basis for the

Bureau's studies of the whole range of subjects and practices

dealt with in collective bargaining agreements.

The Bureau's oldest continuing statistical series

provides monthly estimates and detailed annual analyses of

work stoppages.

134

A directory of national and international labor unions,

in the United States is published biennially. The directory

includes information on union membership, its structure,

functions, and geographic and industrial dis tribution.

The provisions of union constitutions are analyzed,with

reference to union government and internal administration.

PRODUCTIVITY AND.TECHNOLOGY

The Bureau's program on'Productivity and Technology has

two major thrusts; it measures productivity trends-in the

economy, major sectors, and individual industries;.and it.

investigates the nature and'effect of technological.change'',

within industries and across industry.lines. In support of

these two*goalsi the program also provides relevant inter-

national comparisons as well as studies of changing labor and

materials requirements in major types of construction.

The Division of Productivity Research prepares-indexes

of output per man-hour both quarterly and annually for the

private economy as well as the farm, nonfarm, and manufacturing

sectors. -Included with these series are related measures of

hourly compensation and unit labor costs, along with correspond-

ing series on unit-nonlabor payments per unit of output. Ini

addition, the Division.prepares annual measures for broad

sectors of the economy, such as mining, manufacturing, trade,

and utilities.

13 5

The Division of Productivity Research also has responsi-

bility for the Construction Labor Requirements Program, which

measures the total effect on employment of,various types, of

construction. Man-hours-are measured not only for direct

employment at the construction site, but also for the indirect

employment required to manufacture, sell, and transport

construction materials. These studies also indicate changes

in productivity in that repeated surveys of the same type of

construction reveal changes in overall unit labor requirements.

The Division of Industry Productivity Studies investigates

productivity trends in individual industries such as steel,

motor vehicles, and petroleum refining. Annually it publishes

indexes for about 40 industries; several new industries are

added each year. In addition to providing the measures, the

Division studies the factors underlying productivity movements,

which in turn can serve as a basis for projecting industry

productivity growth.

'The Division of Technological Studies examines technological

changes and their manpower implications. One type of study

reviews the evolution of significant technological innovations,

such as computers., throughout industry in general. Another

study involves an-intensive investigation of a selected major

industry, such as coal or transportation, in which far-reaching

changes are taking place on a large scale.

The Division of Foreigh Labor Statistics and Trade prepares

136

labor economic indicators for major foreign countries for

comparison with the United'States. The foreign data are

adjusted for comparability to similar U. S. measures where

feasible. Comparisons are made of levels and trends in

productivity, hourly compensation, unit labor costs, prices,

employment and unemployment, and other selected measures.

In addition, the Division conduc ts studies on the effect of

trade on employment in various U. S'. industries.

ECONOMIC TRENDS AND LABOR CONDITIONS

The Divisi on of Economic Growth is responsible for

medium-'and long-range projections by the Bureau. Recently

the Bureau.published estimates of potential demand, industrial

output, and employment in 1980.'

The Economic Growth staff is responsible-also for major.,

research for the Interagency Economic Growth Project. The

Departments of Commerce and Labor and the Office of Management

and Budget,.under the general guidance of the Council of

Economic Advisors, are involved. This research provides a

comprehensive and integrated framework for analyzing some of
-the implications of long--@run economic growth for employment

and other problems. Projections to 1975 and 1980 have been

made and published for about 80 industries. Based on relation-

ships between projections of output and employment and

projections of the GNP, consumption, investment, government

137

expenditures, and exports, (interindustry or input-output,

analysis) this work aids th e government-in manpower planning

and businessmen in developing long-term economic and market

forecasts.

The Division of Economic Studies monitors the general

condition of the economy; provides special current reports,

charts, and tabulations; assesses the short-term economic

outlook; develops social indicators related to employment and

earnings; and conducts studies of family structure, work,

and income.

Short-run assessments, and analyses.of economic develop-

ments are made regularly for top policy-making units of the

government. A quarterly review of cur rent price, wage, and

productivity data is published.

This division represents the Bureau in a government-wide

program to produce social indicators. Speci alized research

on the social aspects of.emplo.yment and earnings is conducted

to measure the quality of the social environment and some

social aspects of governmental policies.

Data from the Current Population Survey and other sources

are cross-tabulated to provide detailed information on house-

holds and on the personal, social, economic, and occupational

characteristics of select groups of people.

This information is used to develop social indicators

138

and evaluate proposed or ongoing governmental programs, such

as manpower training in re lation to the Family Assistance

Plan.

MINNESOTA DEPARTMENT OF EMPLOYMENT SERVICES

In addition to the availability of the above information

sources, the State Department of Employment Services offers

the following publicationa:

Monthly Supplement to the Review of Labor and Economic
Conditions

Minnesota Work Force Data, January 1958 - December 1973
(April 1974)

Annual Economic Outlook (This is issued usually in
January'for the ensuing Calendar Year.)

Selected Work Force,.Population and Income Data., United
States and Minnesota, 1940 - (August 1974)

Minnesota Employment Projections, 1960 -,,1980 (March-1974)

Minnesota County Work Force Data, 1966 through 1972
(November 1973)

Minnesota County Work Force Data Supplement, 1972 through
1973 (May 1974)

Manpower Information of Affirmative Action Programs

1974 Minnesota.Salary Survey

1974 Minnesota Salary-Survey, Hospitals and Nursing,Homes

1974 Salary Survey by County (October 1974)

1974 Salary Survey by Industry and by'Size of Firm
(September 1974)

The employment condition of the Coastal Zone Area can be

capsulized from the "Employment Gap" report of the Duluth office

-139

of the Minnesota Department of Employment Services.

"The term "employment gap" is used to denote the difference

between the actual level of employment and that level that

would have existed in an area for a specific time period if

the area enjoyed an economic classification of "full employ-

ment.

"For the purposes of this report "full employment" is

considered to exist where a labor market area has at least

96.5% of its labor force employed and 3.5% or less classified

as unemployed. This figure of 96.5% is not without some

weakness, however. The percentage figure alone does not reveal

the number of persons who are working part-time or how many

persons are working below their skill level at a reduced salary.

Since both of these factors play a part in determining annual

income totals for a.given area,-it is well to be informed of

this factor if job trends are to be utilized in other analyse.s.

Additionally it should be recognized that the maximum un-

employment rate of 3.5% allowable in the concept of "full employ-

ment",is based on a set of national conditions and that minor

deviations from this level may be appropriate for some smaller

areas based on a different set of economic.assumptions.

"Some economists are now looking more closely at the 3.5%

level of unemployment.as being too,low. Proponents of the

concept that current labor market conditions suggest a need

to revise upward the allowable rate of unemployment in t-be

140

"full employment" formula are thinking in terms of a 4.5

5.0% unemployment'rate as the cutoff point.

"Their rationale for advancing the cutoff point@of un-

employment to around 5.0% is as follows: the growing weight

of married women and young people in labor market statistics

(they traditionally have relatively high unemployment rates')'

makes it much harder now to reach a lower rate of joblessness,

In addition, some economists feel that with the present level

of unemployment benefits, a period of joblessness is not

quite the disaster it used to be.

"Proponents of the concept that a 3.5% rate of unemploy-

ment is the maximum rate of joblessness allowable in the

definition,of "full employment" suggest that this percentage

is not unrealistic. They would argue that definitions should

not be changed just because of year-to-year variations in the

mix of types of employment and unemployment or the-composition

of the labor force. Also, to use 'a given rate of unemploy-

ment (e.g. 3-.5%) of the labor force presumes-that all who are

able and willing-,to work are in the labor force. Actually,

at any one time a sizeable number of persons may not be in

the labor force,.but would still be avail able for work if they

felt that.jobs were available. In-this context, a 3.5% un-

employment rate may Imore nearly represent a 4.0% rate for

-purpo'ses of measuring full employment. In addition they can

141

point to post-war years in European countries where the rate

of unemployment dropped below 1% (when adjusted to conform

to U. S. definitions.)

"Until the guidelines of the Department of Labor and the

Department of Commerce officially revise the unemployment

cutoff rate of 3.5%, this percentage will be used as the

determining factor in showing the level of "full employment"

for the areas covered in this report.

"It is felt that by presenting the material in the manner

shown in the attached tables the observer can more readily

grasp the actual condition of labor market in comparison with

the desired job level that would have existed had the area

enjoyed "full employment".

"Too often the singular presentation of the rate of un-

employment for an area leaves unanswered'such pertinent questions

as just how good or bad is the current level of employment,

how far off from an accepted norm is the job market, or is

the current deviation of employment from a desirable 1 evel

one of short-term or long-term duration. Although the term

"full employment" may actually exist by definition in an area,

it is still possible that some categories or classes of persons

may.find employment prospects very poor.

I$It is hoped that the material presented in this analysis

will, when considered along with other economic barometers,

142

enable the-analyst to'grasp the ove rall economic p@cture a

little more clearly than otherwise would be the case. . . .

Data shown in the various tables for the various counties

covers the period from 1966 to 1974, Whereas the data for

the City of Duluth covers the years 1960-1974. Information'

by county is not available for the years prior to 1966.

CITY OF DULUTH

Full Actual
Year Empl. Empl.

1960 46,031 44,400
1961 44,390
1962 44,390 41,900
1963 43,715 42,000
1964 434,425 42, 100
1965 44,197 43,500
1966 44."583 44,300
1967 45,162 44,900
1968 46,127 45,900
1969 461,996 .46,800
1970 46,802 46,300
1971 47,285 46,200
46,706 45,000
1972
1973 46,600 45,700
1974* 45,800 44,200

@*Prelimiriary data

COOK COUNTY

Full Actual
Year 1. Em]2 1.

1966 1 409 1,390
1967 1:341 1,300.
1968 1,293 1,260
1969 1,322 1,300-
1970 1,341 1,310
1971 1,361 1,330
1972 1,399 1,350
1973 1,573 1,530
1974* 1,669 1,590
*Preliminary- data.

LAKE COUNTY

Full Actual
Year Empl.

1966 4,536 .4,500
1967 4,246 4,100
1968 4,150 4,100
1969 4,053 4,000
1970 3,957 3,900
1971 4,053 3,900
1972 4,053 3,900
1973 4,343 4,200
1974* 4,439 4,200

*Preliminary data.

144

U. S. DEPARTMENT-OF AGRICULTURE

Forest Service

The 75 million acre Lake States Planning Area encompasses
portions'of three States--Minnesota, Wisconsin and Michigan.

The population of the area is classified rural. In 1970,

population density in the Lake States was about 28 people to

a square mile--just about half of the-National average. The

largest urban center within the planning area is Duluth-Superior,

with a population of about 150,000 people. The total population.

in 1970 within the Lake States area was 3.1 million people.

This. population is expected to increase to 3.3-million by 1990-

and 3.4 million by the year 2000 (an increase of 9 percent

from 1970). This is about one-third of the National increase

(204 million to 264 million). While the area is classified

rural, population densities along the southern boundary of the

area are much higher.

Population centers adjacent: to the planning area will

produce much of.the population impacts upon the'area. The

metropolitan areas of Minneapolis-St. Paul, Milwaukee, Chicago,

and Detroit are the areas which will provide many of the people

who will be using the National Forests.

Populations of those cities adjacent to the planning area

145

will grow more rapidly than those within the planning area.

Consequently, pressures on the area s resources are going to

increase more rapidly than could be expected from residential

population alone.

The average age of area residents is significantly above

the National average. The unusual population distribution is

largely the result of,the area's economic conditions.

once, almost nothing but forest, the Lake States suffered

heavy logging in the 60 'years following the Civil War. Land

clearing operations for agriculture reached their peak during

the early part of the twentieth century. However, in the

interval between 1925-1950, it became evident that much of

the cleared land was submarginal for agriculture and had begun

to revert back to forest. It was during this period of time

that the major portions of the National, State and county

Forests were established. At present there are about 36 million

acres of forested lands. The other 37 million acres are in

agriculture, urban areas, etc.

The economy of the Lake'States Area is primarily resource

based. Forest based industries employ the largest number of

people; agriculture and mining are the other major employers.

The fourth major industry, recreation, also employs a large

number of people, particularly on a part-time basis.

146

Historically, such resource based economies tend to be

less energetic than-the National economy is@as a whole. Except

for a few local areas closely .associated with mining, the

Lake States Area is no exception. The area generally has a

long history of economic depression. This has resulted in a

constantly decreasing population, out-migration of young people

to large urban areas, and persistent high unemployment. Medium

family income is one-third less, and unemployment is one-third

higher than for families living adjacent to the Lake States

Area. Recently, these trends have slowed and in some cases

reversed- Increased National population, affluence, and

leisure time resulted in an upsurge in demand for the amenities

that the Lake States can provide--a relatively undisturbed,

natural environment, low population. density, easy access for

population centers, and so forth. This caused a rapid increase

in land Values and signific ant opportunities-for year-round

recreation industries.

Employment and medium family income prosp cts for the area

are brighter--large investments in the mining industry are in

the offering, particularly in Minnesota. The demand for wood

products is accelerating, and new mills 'are being constructed.

Because of its proximity t6 the'large population centers, there

will be continuing increases in the demand7for recreation.

147

Ethnic minority groups make up about 5 percent of the

population, which is less than the National average. The

largest minority is the American Indian. There are 20 reserva-

tions in the Lake States Area with a combined resident population

of 15,OOG. Nine of these reservations are located on or

adjacent to National Forest land. Forest.Service planning

and management activities must consider the needs and objectives

of this minority population.

There are eight National Forests in the Lake States Area

with two, the Huron and the Manistee, being managed jointly

by one Forest Supervisor. Thev are a diverse group rangina

from the 2 million acres of National Forest land on the Superior

National Forest wi th its Nationally famous Boundary waters

Canoe Area, to the 500,000 acre Manistee National Forest with

its sand dunes. Total National Forest acreage within the area

is 7 million acres.

THE PLANNING PROCESS

The Forest Service has developed a three-phase planning

procedure that is designed to be dynamic and responsive to

current and changing legislation, budget levels, National

objectives, and public needs and concerns. The three phases

are: an AREA GUIDE,a FOREST PLAN, and a UNIT PLAN.

The feedback process is an integral component of the

148

planning process in all phases. It provides stimulus for

plan modification as changes occur within the scope of each

planning document.

It is essential.that the process be viewed in its.

entirety. Each subsequent phase, although becoming more

specific, is not independent of the others. The components

of the process and the objectives.of each phase follow.

AREA GUIDE

Th is document is the first step in the planning process.

The basic objective of the GUIDE is to establish broad

direction for planning and management of the natural resour ces

present within the National Forests in the planning area. It

defines latitudes of ma nagement for individual programs as

well as establishes long-range resource output levels.

FOREST PIAN

This document, the second step in the planning process',

is written within the framework of the GUIDE. The objective

is to refine and appl y broad management direction consistent

with the characteristics and situation on each individual

National Forest. This wi 11 include establishment of.specific

standards for Forest-wi de practices, allocation of the Forest

land to -the various classifications of management outlined in

the GUIDE, and establishment of boundaries for homogeneous

-149

units within the Forest.

UNIT PLAN

This document represents the final step in the planning

process. A UNIT PLAN will be written for each homogeneous

unit established in the FOREST PLAN.' The UNIT PLAN will tell

what, where, and how,things will be done on that particular

unit. It will incorporate the specific standards and direction

given in the FOREST PLAN and will be based on a detailed

resource inventory, including land capability. The plan will

emphasize interdisciplinary planning and willt.include manage-

ment activity schedules, financial needs, and manpower require-

ments.

FUNCTIONAL PLANS

Functional plans, such as timber management, wildlife,

and recreation plans, will be coordinated with the overall

direction of Forest.Plans. Functional plans help establish

current production and potential goals for planning units, yet

functional plans are-dependent upon land use plans for planning

direction and basic land use allocations. Ordinarily, functional

plans will cover individual National Forests, but fish and,

wildlife habitat management plans developed in cooperation with

the individual States (as specified by P.L. 93-452) are

coordinated at the State level.'

150

Although the integration of functional plans into the

land use planning process,-as outlined above, is specified

in Forest Service policies, it is recognized that there will

be a transition phase to assure orderly integration. By

the end of this planning period, it is expected the transition

will be complete. Any provision of an approved functional

plan which is inconsistent with a provision of a subsequently

approved land use plan will s-imultaneously be modified at

the time the land use plan is approved. The revised provision

will'become effective at the time of the land use plan

approval.

TIMBER

situation

Although the Lake States will be supplying a large@portion

of the Nation's timber in the year 2000, predictions based on

existing t echnological practices show demands for sawtimber

and oth6r.forest products will exceed the supply.

New industries are moving into the Lake State"s, and more
are expected to do so as'old-growth.timber supplies decline in

the West- Just how much industry will shift to the Lake States

is difficult to predict. However, based on an-estimate of-new

industries recently established or being built, this increase.

is expected t-o total approximately 21 percent from 1572 to 1977.

In addition, existing pulpwood mill capacity is being...

151

expanded, and saw, ch'1p, and veneer mills are being modernized

to use wood from small trees for lumber, plywood, and other

products. These new@developments are leading to increased

demand, which will make wood costs higher for all industries.

Aspen is classified and utilized as a softwood in the

construction industry. Recently implemented technology for

the production of aspendimension stock and plywood indicate

this species will help meet future softwood demand.

The largest anticipated shortage will be of softwoods,

especially sawtimber. Producers of hardwood lumber and ply-

wood that are dependent on the higher grades of preferred

species (red and white oaks, yellow birch and maples) face

supply problems and prospective incre ases in pr ices. However,

supplies of low quality timber could be made available for

pallets, construction timber, railroad ties, or hardwood pulps

if placed on the market.

Areas presently on National Forest lands that are either

poorly stocked or are producing small quantities of low value

material could be replanted to forestall the shortage. If

this is done, the impact on other resources may be beneficial

or detrimental depending on location and/or species.

The current uncertainty regarding future use of clear-

cutting, certain site preparation techniques, and herbicides

poses a dilemma for managers. However, timber management

152

activities provide opportunities to.manipulate-vegetation

on forest lands to accomplish other resource objectives.

The present surplus of overmature aspen in Minnesota

also poses a problem...If it isn'.t harvested in.time to prevent

its loss to decay, a substantial volume and growth loss of

aspen will occur, as this type is changed in,many areas to

more tolerant northern hardwoods, balsam, fir, and brush types.

Assumptions

a. By the year 2000, demand for timber products in the Lake

States will exceed growth.

b. Demand for wood products will accelerate over the long-

term, because wood is a renewable resource.

C. Environmental protection will significantly increase

timber management costs and/or reduce harvest.

d. The amount of land available for timber production in

Wisconsin, Michigant and Minnesota will decrease by 3

million acres (6,percent) by the year 2000. Timber

production lands on the seven National Forests in those

States will diminish by at least 50,000 acres.

e. There will be significant improvements in logging technology.

f. Public concern with the visual aspects of timber manage-

ment practices will increase.

Objectives

a. Provide for the production of large, high quality veneer

-.153

and lumber.products..

b. Provide a sustained yield of forest products consistent

with the capability of the land and other resource values.

C. improve utilization practices, both in the woods and

in the mill.

.Policies

a. Explore viable alternatives for sites that-require

special management constraints to obtain adequate timber

production.

b. Modify silvicultural practices to assist in achieving

other resource objectives.

C. Following approved silvicultural guides, provide for

regeneration and growth of'a good mixture of hardwood

species consistent with other resource considerations.

d. Soil suitability data will be a major factor in making

decisions concerning species management on specific sites.

e. Soil inventory and interpretative data are prerequisites

for species conversion decisions.

f. Encourage and/or specify logging methods that will best

achieve the management objectives for a stand, yet are

.compatible with the protection needs of the site and

residual vegetation.

9- Encourage full-tree logging to accomplish site preparation

for regeneration, reduce fire hazard, improve aesthetics

154

where-feasible, and improve utilization; except where

significant damage will occur to the soil or water-

resources or to the residual stand of trees.

h. Develop and use improved planting stock to@improve growth

characteristics and other benefits such as resistance

to insects and diseases.

i. Herbicides will be used as management tools only where

there ar e reasonable environmental safeguards.

j. Surplus nursery stock will be used to grow plant materials

for wildlife, erosion control, and aesthetics.

k. Nonstocked and poorly stocked"lan d will be-brought into

full productior@ in coordination-with other resource needs.

MINERALS

Situation

Historically, mining has been a significant industry in

the Lake States Area. The iron ore mining done in the area

accounts for 98 percent of iron ore produced in the United

States.

Nearly every National Forest already has a known potential

for significant mineral activity impinging on it. Furthermore,

there are intensive mineral surveys underway, and their effects

on the National Forests pose an even greater potential.

Much of the lands in the Lake States National Forests,

155

were purchased from private-individuals who reserved their

mineral rights. Consequently, most of the significant mineral

deposits in these National Forests are owned by private

individuals. The rights the Forest Service has to affect

mineral development on such areas depends directly on the

wording of deeds with thes e individuals. Each case is unique.

There also are tracts of non-Federal lands within or adjacent

to the National Forests that have mineral potential.

In recent years, development of domestic mineral resources

has not kept pace with national demand. The increasing gap

in production has been met by increasing imports. However,

rising prices and improved technology have caused the mining

industry to again examine the la'rge reserves of copper-nickel

ore that lie within the Lake States. They are the largest

known in the United States and lie entirely within or adjacent

to National Forests.

The expected upsurge in minerals and energy activity will

require intensive effort to protect the environment of the

Lake States and its Natio nal Forests.

Assumptions

a. mineral development will increase at an accelerating

pace, which will increase the potential for severe local

problems in water supply, environmental degradation, etiz!.

b. A majority of the. public will expebt a maximum effort on

156

environmental protection measures relative to.all

mining operations.,

C. New mineral developments will open in areas that currently

have no activity.

d. Mineral sources previously considered to be submarginal

will become marketable.

objectives

a. Within existing laws, integrate the development and use

of mineral.resources with full consideration of all other

-resource values.

b. Concurrently with mineral extraction, restore the site

to a condition which either closely resembles its-...

original state or which has a productive capacity that

contributes to resource objectives-for the area.

.Policies

a. Where mineral rights are recorded to a third party,except

for special management areas, cooperate with and encourage

the party to consider other resource values to the fullest

extent possible when developing the mineral.resource.

b. Where minerals are reserved subject to Rules and Regulations

of the Secretary of Agriculture, apply these rules and

regulations to permit the com plete and'satisfactory.

development of the mineral resource while at the same time

minimizing any adverse impact-on the environment.

-.157

C. Where-the Forest Service controls,the mineral rights,

recommendations to the Bureau of Land Management for issuance

of a prospecting and/or mining permit will be contingent

upon receipt from the permittee of an operating and-

rehabilitation plan which provides for full, orderly

development of the mineral-resource and, upon its completion,

satisfactory restoration of site.

d. Sand and gravel will be made available to local, State

and other Federal units of government except where these

materials are in short supply and they are needed for

National Forest purposes.

e. Sand and gravel will be made available for private

purposes only after governmental needs are met.

f. An operating plan for mineral development will be required.

9- Priorities for the restoration of existing depleted

mineral sites will be commensurate with the degree of

environmental degradation.

h. mineral rights will-be purchased when costs are commensurate

with administrative values.

OUTDOOR RECREATION

Situation

Minnesota, Michigan and Wisconsin offer a broad spectrum

of recreation activities. Within these States is found an

.158

abundance of surface water, wilderriess, .Great Lakes shoreline,

scenic beauty, a variety of plants and animals, and the

beauties o-f,changing seasons.

Private industry traditionally assumed a signifcant role

in the development of outdoor recreational facilities in these

States. These include family owned and operated-cabins and

resorts, corporation managed hotel chains, providers of'

recreation'facilities, manufacturers of recreation equipment

and winter sports areas. Private campgrounds are increasing

at a rapid rate, and franchised systems of campgrounds are

widespread. These developments represent a-great economic

factor in the Lake States Area.

An important recreation attractio n of the Lake States

National Forests is the multitude of lakes of all sizes.7 All

three of the Lake States have legislated wild and scenic

river systems which complement the National Wild and Scenic

Rivers Act (P.L. 90-542). Several rivers mentioned in both

kinds of legislation are near or in the National Forests. The

Boundary Waters Canoe Are a is unique in the National Wilderness

Preservation System because it is the only National canoe

area within the system.

The National Trail System Act helped focus attention on

the values of trails and the need for increased action in

making trail opportunities available. The proposed North

159.

Country Trail. passes through-Minnesota, Wisconsin, and

Michigan. This trail begins in*Vermont-and connects w ith

the Lewis and Clark Trail in North Dakota. Trails are in

great demand'by a variety of both motorized and nonmotorized

users.

Assumptions

a. Demand for all types of outdoor recreation will increase.

b. The greatest increase in outdoor recreation demand will

.be dispersed recreation.

C., 'Recreation facilities requiring intensive development

can be operated at a profit by private industry if proper

si4L---es are available.

d. National Forests within the planning area are expected

to experience an increase in recreation visitor days

(RVD's) from 10,160,000 RVD's in 1970 to 13,025,000 RVD's

in 1985.

objective

a. Provide outdoor recreation opportunities that are not

likely to be accommodated through private developments.

Policies

a. The National Forests will encourage, cooperate, and avoid

competing with private industry or other public agencies

in providing highly developed recreation facilities.

160

b. Existing National Forest highly developed recreational

facilities will be completed so as to fully utili ze

their site.s.

C. Lakeshore development should be restricted t-o those lakes

that can support facilities with acceptable environmental

impact.

d. Low-use, high-cost recreation facilities which do not

offer a better than average recreation experience, should
be evaluated for closure.' Forest Supervisors will perform

indicated closure(s).

e. Forest Plans will establish criteria for"the protection

of undeveloped lakes.'
f. Forest or Unit Plans will.designate'lakes for whi .ch motor

vehicle access will not be provided across National Forest

land.

g. The design of facilities (roads, trails, buildings, etc.)

should be coordinated with the recreation experience

level selected for the particular area.

h. New downhill skiing facilities on National Fore'st land

may be constructed if Forest or Unit Plans and an environ-

mental impact statement support the project.

i. Trail development should be designed to allow compatible*

uses on the same trail (for example, horses during the

summer, snowshoeing dur ing the winter).

A limited number of bicycle trails should be constructed

to test the demand for this type of forest recreation.

k. National Forest frontage on the Great Lakes will be

managed in close coordination with the'States to insure

consistency with their coastal zone policies.

1. Each Forest within the Lakes State will provide trails

and/or areas where off-road vehicles are allowed.

M. Where refuse facilities are not provided, a carry-in/

carry-out policy should be considered.

n.' Visitor information services should be provided in a

fashion which responds to the forest users' interest in,

and desires for, interpretation of the local environment

and to their need for knowledge about n-earby recreation

opportunities.

WATER

Situation

The Lake States Area earn s its name because a substantial

volu me of area is surface water. Excluding the Great Lakes,

about 1 acre in 17 is surface water in the Lake States compared

to 1 acre in 46 for the conterminous United States. On a volume

basis, this amounts to between 10 and 15 acre-feet of surface

water per each 16 acres of land. Again, excluding the Great

Lakes, 6 of the 10 largest freshwater lakes in the United States

lie within the Lake States Planning Area.

162

Surface runoff, known as streams, is.also plentiful

within the Lake States Area. While daily runoff from the

area averages 40 billion gallons per day, present daily

utilization is only 1.2 billion gallons. By the year 2000,

daily utilization is expected to reach 1.4 billion gallons.

Ground water supplies in the Lake States Area.are highly.

variable yielding several hundred gallons per minute in.areas

of deep permeable glacial drift to less than 10gallons per

minute where bedrock lies near the surface. Since mining and

mineral concentration facilities are usually associated with

bedrock deposits, this implies a necessary impace on surface

waters in these areas. Thus, despite the differences between
surface runoff and consumption@noted above, ext'ensive, local

water development may be needed to handle mini ng related

installations.

Similarly, the energy crisis may pose significant future

impacts on the abundant surface water supplies of the Lake

States Area. These impacts would occur locally, where large

amounts of water might be exported from the planning area for

coal gasification or oil shale development elsewhere.

water quality within the Lake States Area is generally

high and only infrequently reflects significant impacts from

cultural activities. Except for the eastern portion of the
area, surfa'ce waters tend to be soft (low in total dissolve.d

163

matter) reflecting the absence of inputs from ground water

supplies which are typically hard (high in total dissolved

matter). Turbidity and sediment loads of streams are generally

low, but both streams and lakes are often stained brown by

drainage from organic wetlands. where ground water supplies.

have been developed, water is of suitable quality for.domestic

and industrial uses..

When high quality surface water resources are abundant,

the potential for degradation through cultural activities is

great. This is especially true in areas having impermeable

watershed (bedrock, clay, consolidated drift) where impacts

from land use activities (logging, mining, shoreline develop-

ment) are most readily reflected in alteration of water

quality. Although the impacts of such activities will be

lessened through increasingly stringent water protection

standards, they can never be entirely divorced from the water-

shed.

Assum2tions
A
a Accelerated private and public development of both lake

and stream shorelines will pose an increasing threat to

surface water'qua lity.

b. There will be increased demands for water in mining

operations.

C. Except for local situationst principally in northeastern

Minnesota-, there appear to be adequate water supplies

through the planning period.

d. The use of small inland lakes for'commercial protein

production will be minimal during the pla'nning-period.

objectives

a. Protect the surface and ground water resources of the

National Forests through the application of'sound land

management techniques.

b. Rehabilitat'e significant surface or ground water pr6b!e*m'

areas through sound watershed management techniques.

Policies

a. Loading criteria will be used to.assess the impacts of

land use practices on water quality. Such a concept

provides a conceptual framework from which the planner

can assess the total impact of activities within a

given watershed on either lake or stream water quality.

b. The trophic character or state of lakes, as determined

utilizing available nutrient loading models, will not be

altered. This concept permits cultural loading flexibility

within each trophic state, while at the same ti me

encourages the prior selection of a lake of a given

trophic character when contemplating certain types of uses.

C. Vegetation will not be manipulated for the purpose of

increasing water yields.

-165

NATIONAL-DIRECTION

The establishment and manageme n4,-- of the National Forests

are based on:

THE CREATIVE ACT OF 1891, which authorized the President

to establish forest reserves from the public domain. President

Harrison set aside 13 million acres unde@r this Act, but there

was no provision for administration. THE ORGANIC ADMINISTRATION

ACTOF 1897 provided for protection, management, and use of

the forest reserves. THE TRANSFER ACT OF 1905 transferred

th6 forest reserves from the Department of-Interior to the

Department of Agriculture. THE ACT OF MARCH 4, 1907, renamed

the forest reserves National Forests.

THE WEEKS LAW, ACT OF 14ARCH 1, 1911, authorized the

purchase of lands for timber production and regulation of the

flow of navigable streams. Most of the National Forests in

the South and East were established under this law. This Act

also provided for a program of Federal -State cooperation in

fire protection.

THE MULTIPLE USE-SUSTAINED YIELD ACT OF'1960, which

confirmed longstanding Forest Service policy to administer

the National Forests for outdoor recreation, range, timber,

watershed, wildlife, and fish, purposes. It stressed that

consideration be given relative values of resources in-

particular areas.

1.66

THE WILDERNESS ACT OF-SEPTEMBER 3, 1964, declared the

policy.of Congress.to secure for th e American people of present

and future generations the benefits of an enduring resource

of.wilderne,ss...

THE LAND AND-WATER CONSERVATION FUND ACT OF SEPTEMBER 3,

1964. The purposes of-this Act are to preserve, develop,,and

assure accessibility to quality and quantity of outdoor

recreation resources as may be available and are necessary..

and desirable for individual active participation in such

recreation and to strengthen the health and vitality of the

citizens of the-United States.

THE NATIONAL ENVIRONMENTAL.POLICY.ACT OF 1969 declared

a National policy to encourage productive and enjoyable harmony

between man and his environment. It provides a continuing

policy for the Federal Government to cooperate with State and

local governments and other concerned public agencies.to

promote the.general-welfare and to ach ieve a balance between

population and resource use which will permit high standards.

of living and a wide sharing,'of life's amenities.

THE FOREST AND.RANGELAND RENEWABLE,RESOURCES.PLANN.ING

ACT-OF 1974 provides an orderly framework for assessing the,

supply of, and demand for, the Nation's,forest,and related

resources. It also provides for the development of long-range

plans to assure that the American people enjoy adequate

16 7

supplies of water, recreation, forage, timber, and wildlife

from the National Forest System and private forest lands in

the decades ahead.

In addition to other laws, executive orders, and.

regulatiohs which apply to the National Forests, direction

from the Congress and President is expressed through the

appropriation process. As elected representatives of the

people, the President and Congress provide guidance to the

Forest Service by authorization of funds, public hearings,

and 'committee reports.

Forest Service basic considerations as stated in the

"Framework for the Future" are:

THE FOREST SERVICE HAS THE FEDERAL RESPONSIBILITY FOR NATIONAL

LEADERSHIP IN FORESTRY.

National leadership includes top-level participati on

in setting National priorities, formulating programs,

and establishing the pattern of Federal policies that

relate to man and his natural environment. Effective

leadership in forestry is an all-inclusive objective.

of the Forest Service.

FOREST SERVICE RESPONSIBILITIES AND INTERESTS GO BEYOND FOREST

LANDS.

Forests and forest-related rangeland, grassland, brush-

168

land, alpine areas, minerals, water-areas,. and wild-.-.

life habitat illustrate the variety-of natural resources.

involved in the scope of forestry. Forestry also involves

less tangible values such as scenery, air.and water,

qua lity, recreation, open space, environmental quality,

economic strength, and social-well-being. In the follow-

ing objective and policy statements.the-terms "forest.s"

and "forestry" are used in this broad sense.

IN OUR COMPLEX SOCIET Y THERE MUST BE AN INTERRELATIONSHIP.

AMONG OBJECTIVES, POLICIES, AND GOALS.

Listed here are those objectives and illustrative policies

and goals at each major level-of the Forest Service.

organizational structure. The interrelati onships among

various objectives and policies must be an integral part

of decisionmaking at all-organizational levels, ranging

from the most all-encompassing, long-range planning, to

identification of specified targets of immediate concern.

The following objectives identify the general scope and

character of the role the Forest Service should play in the

society of today and tomorrow. It provides a new "framework"

to help guide our-thinking and decisionmaking through the

Service.

PROMOTE AND ACHIEVE A PATTERN OF NATURAL RESOURCE USES THAT
WILL BEST MEET THE NEEDS OF PEOPLE NOW AND IN THE FUTURE.

169

PROTECT AND IMPROVE THE QUALITY OF*AIR, WATER,-SOIL AND
NATURAL BEAUTY.

HELP PROTECT AND IMPROVE THE QUALITY OF THE OPEN SPACE ENVIRON-
MENT IN URBAN AND COMMUNITY AREAS.

GENERATE FORESTRY OPPORTUNITIES TO ACCELERATE RURAL COMMUNITY
GROWTH.

ENCOURAGE THE GROWTH AND DEVELOPMENT OF FORESTRY-BASED ENTER-
PRISES THAT READILY RESPOND TO CONSUMERS' CHANGING NEEDS.

SEEK OPTIMUM FOREST LANDOWNERSHIP PATTERNS.

IMPROVE THE WELFARE OF UNDERPRIVILEGED MEMBERS OF SOCIETY.

INVOLVE THE PUBLIC IN FORESTRY POLICY AND PROGRAM FORMULATION.

ENCOURAGE THE DEVELOPMENT OF FORESTRY THROUGHOUT THE WORLD.

EXPAND PUBLIC UNDERSTANDING OF ENVIRONMENTAL CONSERVATION.

DEVELOP AND MAKE AVAILABLE A FIRM SCIENTIFIC BASE FOR THE
ADVANCEMENT OF FORESTRY.

1-7

THE DEPARTMENT OF ECONOMIC DEVELOPMENT

The purpose of the Department of Economic Development is

generally defined as the major state agency that directly, or through

liaison with the private sector and all levels of government, de-

velops, promotes and stimulates optimum economic growth for the

State of Minnesota. This purpose is based on the'department's

various pow ers and duties.

POWERS AND DUTIES

The powers and duties of the Department of Economic Develop-

ment, as defined by statutes, are:

A. Investigate, study, and undertake ways and means of pro-

and encouraging the prosperous development'and

protection of the legitimate interest and welfare of

Minnesota business, industry,. and commerce, within and

outside the state.

B. Locate markets for manufacturers and processors and aid

merchants in locating and contacting markets.

C. Investigate and study conditions affecting Minnesota

business, industry, and commerce and collect and dissemin-

ate information and engage in technical studied,

scientific investigationst and statistical research and

educational activities necessary or useful for the proper

execution of the powers and duties of the Department in

promoting and developing Minnesota business, industry,

171

and commerce, both within and outside the state.

D. Plan and develop an effective business information service

both for the direct assistance of business and industry of

the state and for the encouragement of business and

industry outside the state to use economic facilities with-

in the state.

E. Compile, collect and develop periodically, or otherwise

make available, information relating to current business

conditions.

F. Conduct or encourage research designed to further new and.

more extensive uses of the natural and other resources of

the state and designed to develop new products and in-

dustr@-l process.

G. Study trends and developments in the industries of the.

state and analyze the.reasons underlying such trends;

study costs and other factors affecting successful oper-

ation of businesses within the state; and make recommend-

ations regarding circumstances promoting or hampering

business and industrial.development.

H. Serve as a clearing house for business and industrial

problems of the state; and advise small business enter-

prise regarding-improved methods of-accounting and book-

keeping.

172

Encourage and develop-commerce with other states and

foreign countries and devise,means of removing trade

barriers hampering the free,flow of commerce between this

and other states.

J. Cooperate with inter-state commissions engaged in formul-

ating and promoting the adopti on of inter-state compacts

and agreement s helpful to business, industry, and

commerce.

K. Cooperate with other state departments, and with boards,

commissions, and other state agencies, in the preparation.

and coordination of plans and policies for the develop-

ment of the state and for the..use and conservation of its

resource S 4nsofar as such use, conserva- 1-ion,. andde-vel-p-
L

ment may be appropriately directed or influenced by state

agencies..

L. Assemble and coordinate information relative to the status,

scope -, cost, and employment possibilities and the

availability of materials, equipment, and labor in connect-

ion with public work projects', state, county, and

municipal; recommended limitations on said public works;

gather current progress information with reference to

public conditions of employment; inquire into and report
to the Governor, when requested by him,with respect'to any

program of public state improvements and the financing

thereof; and request and obtain 'information from other

state departments or agencies as may be needed properly

1 '7 -4

to report thereon.

M. Study changes in population and current trends and prepare

p014
plans and suggested Lcies for the development and con-

servation of the resources of the state.

N. Confer and cooperate with the executive, legislative, or

planning authorities of the United States and neighboring

states and of the counties and municipalities of such

neighboring states, for the purpose of bringing about a

coordination between the development of such neighboring

states, counties, and municipalities and the development

of this state.

0. Generally, gather, compile, and make available statistical

lating to business, trade, corm-nerce, industr
_Lnformatior, re Y'.

transportation, communications, natural resources,'and

other like subjects in this state, with authority to call

upon other departments of the state for statistical data

and results obtained by them and to arrange and compile

that statistical information in such manner as may seem

wise.

The Department of Economic Development is comprised of the

following divisions:

1. Administrative
2. Industrial Development
3. Tourism
4. International Trade and Finance
5. Research
6. Publicity and Promotion

174

INDUSTRIAL DEVELOPMENT

Two significant go als the Department's Industrial Development

Division is seeking are the promotion of the State of Minnesota as

a choice location for industry, and the assistance to local

communitiesand their industries in realizing their economic potential.

The division encourages rural growth and maintains liaison

with local communities, chambers of commerce, industrial corporations

and local, regional, state and federal government agencies. The

Department has a full time field representative in Region 3

(Arrowhead).

The Industrial Development Division is concerned with the

following points:

Industry Attraction and Expansion

Consult with industry regarding expansion needs, and prepare

information relating to sites, taxes, labor availability, trans-

portation, utilities, environmental requirements and financial

assistance.

Compile and publish economic data for industry planning--

available industrial buildings list, tax comparison studies, In-

dustrial Development News, and labor training for industry programs.

Maintain liaison between industry and industrial realtors,

railroads, utilities, developers, chambers of commerce, development
f corporations and'other commercial and civic orga nizations.

Maintain contact with and disseminate information to major

companies throughout the world to acquaint them with economic facts

175

about Minnesotal its advantages to industry and the services of the

Department of the Economic Development.

Advertise nationally the advantages of Minnesota and its

business and industrial opportunities.

Conduct jo4nt business trips with business leaders and

members of economic development organizations to call on business

and industry in other areas to encourage expansion of their

facilities to Minnesota.

CommunitV Economic Development Counseling

Assist in developing comprehensive community economic and

industrial promotion expansion programs and guide communities in

preparing, publishing, and presenting economic data for promotional

purposes.

Help form community industrial development corporations and

industrial sales teams to properly promote marketable community

assets.

Aid communities in selecting, developing and promoting in-

dustrial sites and parks, and assist in attracting and screening

industrial prospects.

Conduct economic and industrial development seminars for

specific communites, development groups or other interested agencies

and individuals.

Help individual communities maintain a stable economic base

through local industry promotion.

176

Business Community/State Government Liaison

. Serve as industry's prime contact with state government.

. Assist in channeliAg state, federal and local governme ntal

programs, projects and policies to aid the business community,

The ultimate objective of the division is the development 'of

an ongoing system for coordinating state and local'capabilities

wi th industry needs by committing specific services to attract new

industry and hold expansion within the state.

A number of new plant locations and industrial expansions

have taken place in Duluth in recent years. More specifically,

from 1968 through 1974, seventy-four (74). new or expanded industries

have augmented the Duluth economy. Ten new or expanding industries

have been established on the North Shore from 1969 through 1974.

A listing of the Duluth and North Shore developments consist

of the following:

DULUTH (1968) INVESTMENT

A & E Supply Co. $225,000
Chroma-Glo, Inc. 472,000
Duluth Filter Co. 72,000
Duluth Herald & News Tribune 150,417
Duluth Laundry, Inc. 40,000
industrial Welders & Mach., Inc. 54,000
Jeno's Inc. 1,000,000
Minnesota Power & Light Co. 1,500,000
Neal Bort Co. 10,000
North Shore Mfg. Co. 200,000.
O'Brien Oil Co. 120,000
Zinsmaster Hol-Ry Co., Inc. 31,000

177

C)
TN"VESTMENT
American Paint Corporation $ 57,500
Barko Hydraulics, Inc. 120,000
Coca-Cola Bottling Co. 650,000
Crystal Distributing Co. 250,000
Cutler-Magner Co. 135,297
E.S. Ekman-Transfer Co., Inc. 32,400
Elliott Packing Co. 200,000
Halvorson,Equipment Co. 150,000
Ironmasters, Inc. 120,000
Jeno's Inc. 2,000,000
Dale Johnson Co. 25,000
Art Massie Co. , Inc. 20,000
Mid-Continent Warehouse, Inc. 500,000
Minn. & Wisc. Packaging Corp.
Modern Constructors, Inc. 25,000
John Morell & Co. 150,000
Reach-All Mfg. Co. 35,000
Road Machinery & Supplies 300,000
Silea, Inc. 6,500
L. J. Walsh Co. 25,000
World Wide Homes, Inc. 150,000

DULUTH (1970
Katzmarek Iron Works, Inc. 27,000
Minnesota Woolen Fashion Wagon 50,0010
T-@-in Town Box Corp. 50,oon
Western Iron Foundry Co. 20,000
Zenith Steel Co. 75,000

DULUTH (1971)
Arrowhead Equipment Co. 50,000
Duluth Herald & News Tribune 600,000
Electric Construction NA
.Glendenning Motor Freight 14,000
Gundersen-Carlson Equipment, Inc. 26,180
11arcourt, Brace, Jovanovich
Publications 30,000
Minnesota Woolen Fashion Wagon 200,000
Polaris Wilbert Vault Corp. 3_60,000
Rainducker, Inc. 6,000
Snoline, Inc. 15,000

DULUTH (1222
J_
Coca Cola Bottling Co., Inc. 400,000
Hallet Dock Co. 218,000
International Organics, Inc. 2,300,000
Jeno's Inc. NA
Lakehead Alloys, Inc. 400,000
Z
@me
Ba,rl
Cocz

Rainducker Mfg. Co. 150,000
Superwood Corp. NA

DULUTH (1973) INVESTMENT
Bombardier Corp. $1,400,000
Cargill, Inc. 15,000,000
Elliott Packing Co. 900,600
Gardener-Denver Co. 140,000
Hal let Dock Co. 450,000
Int'l,Organics, Inc. NA
National Iron Co. 400,000
Porky's Bldg. Supply 21,000
Thermal Co., Inc. NA
Twin Town Box Corp. 500,000

DULUTH-(1974
American Hoist & Derrick 5,500,000
Bort, Neal Co. 50,000
Del Zolto Mfg. Co. 4,000
Jeno's Inc. NA
Globe Duluth Enterprises, Inc. NA
Hallet Wire Products NA
Premiere Mfg. Inc. Leased
Zalk-Josephs Co. Leased

GRAND MARAIS (1971)
K. P. & L. Forest Products 20,000

TWO HARBORS (1969)
Industrial Rubber Applicators, Inc. 160,000
J. C. Campbell Co. 250,000
Husky Hydraulics, Inc. 200,000

TWO HARBORS (1971)
Husky Hydraulics 300,000

TWO HARBORS (1972)
Abec Corp. 110,000
Husky Hydraulics 100,000

TWO HARBORS (1973)
Hahn Mfg. Co., Inc. 75,000
Husky Hydraulics, Inc. 440,000
Northshore Steel, Inc. NA

TWO HARBORS (1974)
J. C. Campbell Co. 60,000

Manufacturing also plays a significant role in the coastal zone

area. There are nearly 150 manufacturers in the Duluth, Two Harbors,

1.79

Grand Marais,-and Silver Bay areas. A majority of these are

located in the Duluth area.

TOURISM

The primary objective of the Division of Tourism is marketing

Minnesota as a tourism destination, that is to encourage out-of-

state travelers to come to Minnesota an d to induce Minnesota residents

to enjoy the vacation endowments of their own state.

In order to satisfy the above objective, it is necessary to

carry out a planned advertising cam-paign. This.includes a number

of programs geared toward reaching a primary market in a 1,000 mile

radius of Minnesota. Various media used to reach this market in-

cludes out-of-state newspapers, Twin City newspapers, regional

television and occasionally Nat
_L _L _L _ioI-,,a'L Trade magazines.

A prominent feature that the Tourism Division offers is the

Minnetour. There are eleven mapped Minnetours covering various

regions of the state. They include visits to historic sites,

museums, state parks, natural or man-made attractions, interesting

communities, and scenic areas. The promotion of these Minnetours

are concentrated on Minnesota residents and those in the Chicago

area. The Chicago Metropolitan Area is the second largest market

for Minnesota tourism, ranking after the State of Minnesota itself.

The popularity of the Minnetours became evident when the Tourism

Division received over 140,000 requests in 1974 for Minnetour

brochures. The Minnetours are a contributing factor to Minnesota's

ranking as the n.inth largest tourism revenue producers among the

50 states. 180

As the number of tourists increase in Minnesota, the production

and expansion of new facilities are also on the upswing. There seems

to be a positive correlation between the two. The industry growth

planned for the future in Minnesota will undoubtedly have a

satisfying affect on the future of tourism in Minnesota.

The "Superior Trek" Minnetour is directed along the North.

Shore region. Duluth is a good starting point for this tour. It

provides a wide variety of exploring opportunities. The visitor

can watch ships pass under the faraous aerial lift bridge from the

big picture window in the Marine Museum, or drive the 30-mile

Skyline Drive for a spectacular view of the city and harbor.

The new Lake Superior Transportation and Industrial Museum is

located in the Area Cultural Center.in the old Union Depot.

Spirit Mountain, one of the largest ski areas in the Midwest, is

a new year-round recreational area.

At Two Harbors, ore 1 oading operations exist easily viewed

from Paul Van Hoven Park or frora Fisherman's Point. Two Harbors

is also the home of the Lake County Historical Society Museum.

Two locomotives "Three Spot", the first-locomotive to carry-ore

from Soudan Mine and the 20th Century mallet", the most po wer-

ful locomotive in the world - are on display.

Continuing north on highway 61, Gooseberry Falls and Split

Rock Lighthouse State Parks are encountered. These historic parks-

are located outside of Two Harbors just before reaching Silver Bay.

At Silver Bay, the Palisade Baptist Church is a good landmark to

watch for before turning off to the 350-foot rock cliff providing

an awesome view of Lake Superior, and, inland, the jagged Sawtooth

Mountains. The Baptism River State Park sports a scenic foot trail
which leads to the*Baptism waterfall.

In addition to the above sites, additional points of interest

include sites that were studied by two local citizens. John and

Janet Green recently listed sites they have explored and found to

be of interest. These sites,located near the North Shore and

Arrowhead Region include the following:

High Falls Pigeon River Susie Islands
Mt. Josephine Area Hollow Rock
Deconda Bay Area Blueberry & Pancake Island
Big Bay Area Brule River
Paradise Beach Area Kaducie Creek
Five Mile (Guano) Rock Area Devil Track River
Grand-14arais "The Point" Good Harbor Bay
Cascade River 'Sawtooth Mountains
Onron River Valley Tofte Town Park
Carlton Peak Temperence River
Gull Island/Bear Island Heartbreak Ridge
Sugar Loaf Caribou River
Manitou River Crystal Bay
Palisade Head Tetagouche Highlands
Bud Hill Silver Cliff
Flood Bay Knife River Knife Island

1.82

Listed below are some Tourist-Travel Indicators which are

applicable to the Arrowhead Coastal Zone:.

ARROWHrAD COASTAL ZONE REGION
TRAFFIC COUNTS AT AUTOMATIC COUNTER STATIONS

Counter Annual June-August
Route Location Total Total
TH 61 St. Louis/Lake 1973 1,317,650 421,491
County Line 1974 1,255,600 414,312

1-35 27th Ave. W. 1973 7,557,690 2,043,929
Duluth 1974 7,332,850 2,012,002

1-35 Garfield Ave. 1973 9,327,575 2,774,767
Duluth 1974 10,486,085 3',136,444

1-35 63rd Ave. W. 1973 5,018,020 1,492,073
Duluth 1974 4,470,520 1,341,195
Totals 1973 23,221,036 6,732,260
1974 23,545, 055 6,903,953

TRAFFIC COUNTS ON FEEDER ROUTES TO ARROWHEAD
COASTAL ZONE

TH 53 S of Eveleth 1973 1,846,900 621,512
1974 1,796,875 596,627

1-35 N County Line 1973 3,866,515 1,261,878
Chisago Co. 1974 3,595,250 1,178,465

TH 1 NW of Finland 1973 132,495 48,243
1974 132,860 50,112

TH 73 N of Floodwood 1973 142,350 44,549
1974 148,920 45,346
Totals 1973 5,988,260 1,976,182
1974 5,673,905 1,870,550

SOURCE: MINNESOTA DEPARTMENT OF HIGHWAYS. OFFICE OF PROGRAM
PLANNING

183

STATE PARK ACTIVITY IN THE
ARROWHEAD REGION
Total Park Visitors Tourist Camping Guests
State Park 1974 1973 1974 1973

Banning 24,927 25,338 4,519 4,193
Bear Head 32,351 31,872 16,462 16,078
Cascade River 51,568 66,142 1,347 6,947
Gooseberry Palls 403,975 428,291 42,215 42,895
George Crosby,
Manitou 4,442 4,918 1,183 1,456
Interstate 396,651 383,151 17,817 19,857
Jay Cooke 306,109 308,078 24,179 23,505
Judge C.R. Magney 24,089 21,440 6,581 7,480
McCarthy Beach 89,364 96,924 18,599 20,248
Savanna Portage 52,442 55,241 8,508 8,604
Scenic 47,250 54,981 21, 056 23,743
Split Rock
Lighthouse 190,219 196,921 ---
St. Croix 262,123* N.C. 56,909* N.C.
Tem-oerance River 109,905 95,904 11,681 10,052
Tower Soudan - 81,166 62,822 --- ---
Regional Totals 1,814,458 11832,023 174,147 195,058

Percent Change -1.0% -- -10.7%
*Not included in Regional Totals

SOURCE: Minnesota Department of Natural Resources, Parks and
Recreation Division

GRAND PORTAGE BORDER CROSSINGS
INCOMING

1974 1973
April 16,751 18,456
May 30,117 30,119
June 55,489 52,000
July 75,751 73,849
August 77,427 82,325
September 43,075 43,627
6 Month
Total 298,610 300,376

SOURCE: U. S. IMMIGRATION SERVICE

184

FINANCE AND INTERNATIONAL TRADE

Minnesota's growing role in international trade is the focus

of work performed by the Finance and International Trade (FIT)

Division. The division's chief duty is to promote Minnesota

export sales and attract foreign industrial investment as a means

of creating new jobs and contributing to the overall economic growth

of the State.

Although it is important to attract foreign industry to

Minnesota, it is equally important to Minnesota industry to export

abroad. Basically, the division aids exporters in three ways:

providing a technical counseling and referral service for new and

established exporters; trouble-shooting problems.of export ers

and providing marketing information including trade leads for

exporters.

The division also works directly with exporters by assisting

them in reaching their foreign markets. In addition to providing

information and advice through personal contact, the division

sponsors seminars and workshops to aid new exporters desiring to

enter the international marketing field and to keep the business

community informed of new trade opportunities and procedures. Many

of these seminars have been co-sponsored by the U. S. Department

of Commerce as.a means of maximizing the use of state funds and in-

cluding federal participation. The division also puts out publi-

cations to guide the exporter.

185

RESEARCH

The primary purpose of the Research Division is to collect,

compile, interpret and publish economic information on the State

of Minnesota. It does this through developing economic barometers,

analyses of industrial and tourism activities and potentials,

industrial market analyses, specific indepth research on many

subjects related to th e development of the.state's economy, and

also maintains a library of business and economic information.

As an indication of th.e scope of the Research Division's

involvement in matters of concern to Minnesota, the division pro-

vides input to numerous task forces, committees and commissions.

The following list is some of those task forces pertaining to the

Coastal Zone!

Great Lakes Basin Project
Copper-Nickel
Voyageurs National Park
Forestry and Timber
Coastal Zone Land Use Management Study Group
Transportation and Recreation

Most of the division's research is conducted to fulfill a

specific need. When it is evident, however, that a given proj.ect

is of more widespread interest, it receives general distribution.

The following is a list of existing general distribution research

papers pertaining to the study area:

Minnesota Profile
New and Expanded Industries
Minnesota Director of Manufacturers
Recreation and Open Spaces
Review of Duluth Area Manufacturing Industries
copper-Nickel
Taconite
Minnesota Tourist-Travel Industry

PUBLICITY AND PROMOTION

The Publicity and Promotion Division is charged with the

responsibility of supporting the Tourism, Industrial Development,

and Finance and International Trade Divisions in the areas of public

relations and advertising.

For the Industrial Development Divisio n, the Publicity and

Promotion.Division.puts out the following publications:

Industrial Development News
Industrial Park Profiles
Community Profiles
Industrial Development Service Brochure

In the tourism support area, the division puts out several

publications including:

Guide to Skiing in Minnesota
Calendar of Events
Camping Guide
Tourism News
Shell Brochure
Minnetours

The Finance and International Trade receives major emphasi s in

its publications program. The Publicity Division produced such

publications as:

Exporters Assistance Guide
Export Survey Summary
Minnesota Profile (3 languages)
International Trade and Investment News
International Trade Directory
Minnesota Role in International Trade

The Publicity and Promotion Division prepares news releases

covering a wide variety of information. Speech writing for the de-

partment personnel is another imnortant function of the division.

187

ARA EDA

Area Redevelopment Administration (State) and Economic

Development Administration (Federal) programs provide a grass

roots lev el approach on the part of government to aid areas

of high unemployment throughout the state.

The local community, the State.andthe Federal govern-

ments join together in their efforts to attain a common goal

in the creation of new permanent job opportunities. ARA makes

favorable loans for business investment on the part of both

the Federal 'and State governments.

Minnesota, through legislative action, is-the only state

that participates in ARA loans up to 20% of the cost of an

ARA project at a low interest rate.

Effective April 1 through the end of the fiscal year on

June 30, the EDA public works loan rate is V2-/o. The agency's

business development loan rate is 7-3/4%. For most of this

year, the rates had been 6-3/4%'for public works and V-4% for

business development loans. An interim reduction in mid-March

lowered these rates to 5-5/8% and 63-40%, respectively.

Historically EDA's interest rates have been set once a

year, and the reduction was the first rate change during a

fiscal year. The agency.has instituted a quarterly review of

interest rates because of fluctuations in the private money

market.

188

EDA public works loans to states or their subdivisions

are made to help build facilities that will attract private

industry. These include industrial parks, water and sewer

systems, access roads, and vocational-technical schools. The

loans can run for up to 40 years.

Business development loans are made directly to individu-

als, partnerships, and corporations as well as to public or

nonprofit organizations to help build or expand industrial or

commercial facilities and to create jobs. These loans are

limited to 25 years maximum. This is a powerful inducement

for new industry to locate,.or to expand, in the distressed

areas of Minnesota.

In the State of Minnesota,'Chapter 629 - 1961 Session Laws

there is a provision that any local subdivision of govern-

ment in the designated areas of high unemployment, may organize

an Area Redevelopment Agency composed of five (5) members.

Through these local agencies which are found in each of the

25 ARA counties, applicants interested in the development of

new industries or expansion of existing industries can proceed

to take advantage of the ARA program., All applications for

such presented to the State and Federal offices must be

recommended by the local agency.

ARA does not provide working capital and an applicant must

.show that he is able to provide a minimal 10 per cent of the

189

total cost of the project proposal'. These State and Federal

loans are mainly for land, buildings and equipment. In the

case of the local Development Corporation, the requirement is

5% - State 20% - Federal 65%.

In the State of Minnesota, Chapter 629 1961 Session

Laws provide that the Executive Council administers the State

ARA prog ram. The members of the Executive Council are:

1. The Governor
2. The Attorney General
3. The Secretary of State
4. The State Auditor
5. The State Treasurer
6. Lieutenant Governor

They have delegated the responsibility of administering

the State ARA program to the Department of Economic Develop-

ment.

In 1965 the title ARA under the U. S. Department of

Commerce was changed to Economic Development Administration.

The State of Minnesota, however, to date has not changed its

title to conform with the Federal title, but functionst under

the same authority, were originally authorized in 1961.

Therefore, all references to ARA of the State of Minnesota is

actually the EDA of the Department of Economic Development

of the State of Minnesota.

The Area Redevelopment Act of 1961, passed by the U. S.

-Congress, created an Area Redevelopment Administration under

190

the Department of Commerce. Field officers are located in

Duluth and Bemidji. Their responsi bility is that of carrying

out the EDA (ARA) program by working together with other

federal agencies such as the Small Business Administration,

Department of Agriculture, Department of the Interior and

others. They also coordinate their efforts with the Federal

EDA Regional office located in Chicago, State ARA office in

St. Paul and various local development agencies.

Generally, those wh o want to establish a new industry

or expand an existing industry, first apply to th eir local

agency in the county in which the new industry is proposed.

ARA does not allow funds for the relocation of existing

industries.

Contact should be made with the local agency where

explanation of project proposal is first made. Upon prelimin-

ary approval by the local agency, the applicant can obtain

project proposal forms from:

1) Area Coordinator, Ec onomic Development Administration,
405 Sellwood Building, Duluth 55802

2) Economic Development Representative, EDA
409 Federal Building, Bemidji 56601

3) The State Agency, ARA, Department of Economic Development

Upon submitting the project proposal application for

approval by the local agency the applicant should make arrange-

ments for a minimum 10 percent participation in the total

1.91

cost of the project exclusive of the.applicant's 5 percent

and operatinq capital.

After approval of the project proposal application by

the local agency, the application is submitted to the Federal

EDA coordinators.

The Federal EDA coordinator plays a major role in the

processing of the project proposal application. Since the

Federal government participates up to 65 percent of the loan

in land, buildings, machinery and equipment at an interest

rate of 4 percent that can run as long as 25years, the Federal

coordinator must establish such things as (1) location of the

project and its relationship to the Overall Economic Develop-

ment Program, (2) number of perm-anent jobs that it will create,

(3) indirect employment generated by the project, (4) cost of

project for land, buildings, machinery, equipment, etc., (5) how

it is to be financed: percentage of Federal, State and.equity

capital in loan participation and working capital, and (6) co-

ordination with the Small Business Administration and other

Federal agencies to determine,the financial soundness of

proposed project, managerial ability of applicants, marketability

of product or service and the like. After the project proposal

application has met the requirements of the Federal coordinator's

office it is transmitted to the State ARA director.

Upon receipt of the project proposal application from

1-92

the Federal coordinator, the State ARA determines the follow-

ing:

1. Applicant has ability to secure the required 10

percent equity capital as provided in both state

and federal laws.

2. That the 5 percent local loan participation will

be available upon project approval from some local

public or semi-public agency.

3. Sufficient working capital will be provided by the

applicant for his proposed project.

4. An adequate market analysis has been made for

potential new.or expanded industry.

5. Satisfactory evidence has been provided as to the

managerial ability for the applicant's proposed

project.

After these conditions have been met to the satisfaction

of the State administrator, the project proposal application

is then submitted to the Federal EDA and other Federal agencies

responsible for the program in Washington, D.C., for their

findings, approval or disapproval as to a loan authorizati on.

if the Washington, D.C. EDA grants a loan authorization

to applicant, the*Executive Council of the State of Minnesota

must then ascertain that the applicant has a firm commitment

for all their funds other th an State and Federal funds which

193

shall be necessary to secure completion and operation of the

plant, enterprise or facility proposed. The Executive Council

must also determine that the applicant himself has expended

or has funds on hand equal to 5 percent of the.total cost of

the project. 'The Executive Council can then, after determining

that the project for which the State loan is requested fulfills

the public purpose of the Minnesota Area Redevelopment Act,

allocate funds from the Department of Economic Development to

enter into a contract with the local Redevelopment Agency for

a loan to cover up to 20 percent of the capital investment

required for the particular project proposed. This contract

will set forth the terms and conditions of the proposed loan.

It will provide-terms and conditions such as pr ivate lending

institutions and other governmental loan agencies require.

The interest rate will be determined by the Federal EDA contract

for a term not to exceed 25 years.

The Public Works and Economic Development Act of 1965

prohibits EDA from making loan grants which will have the

effect of assisting an employer in moving jobs from one area

to another. An expansion of an existing business.to a new

location may be assisted-if such an expansion will not cause

unemployment in other areas where the business conducts

operations, or will not enable contractors or subcontractors

to undertake contracts or subcontracts heretofore performed

194

elsewhere, the performance of which would result in an -increase

of unemployment at the previous location of such work..

Execution of the following Certificate is neceasary for EDA

to determine the eligibility of the subject project in this

regard.

Although this is in outline form,as to the various steps

taken for ARA loans there is complete coordination and

cooperation with the local, state and federal agencies. Much

of the work is done simultaneously by all agencies involved

in order to expedite the loan authorization-as quickly as

possible.

These guidelines are provided to all applicants, local,.

ARA agencies, industrial foundations, county agents and other

interested groups for the purpose-of familiarizing them with

the ARA program and how to make application for such loans.

The Federal EDA coordinator and the State ARA administrator,,

are at all times ready to provide any additional information

or direction regarding the ARA loan program or the related -

programs such as those for federal technical assistance, federal

public facility loans and grants and the federal technical

training and retraining programs carried out by State and

Federal agencies.

LAWS OF MINNESOTA 1961, CHAPTER 629 established the Area

Redevelopment Agency. The purpos Ie was --

195

"To eliminate chronic unemployment in depressed areas
within the State; provi ding for the establishment of
industrial development projects in such areas; providing
for the establishment of area redevelopment agencies
to promote and assist economic redevelopment by private
enterprise, and appropriating money therefor."

The Legislature appropriated $1,500,000 for the State's

share of participating funds in cooperation with the Federal

ARA projects. The 1963 Legislature appropriated an additional

$750,000 making $2,250,000 available.

In the 1969.Session, according to Chapter 1139 Section 4

Subdivision 1, $125,000 was transferred to State Planning to

be used for assistance in organizing regional commissions. In

.1971 $150,000 was transferred for the same purpose.

196

STATE OF MINNESOTA
-ECONOMIC DEVELOPMENT ADMINISTRATION COUNTIES
(As of Feb. 1, 1975)
TITLE IV
(Qualified for full financial assistance)

1. Aitkin 21. Meeker
2. Becker 22. Mille Lacs
3. Beltrami 23. Morrison
4. Carlt on 24. Mower -
5. Cass 25. Norman
6. Chippewa 26. otter Tail
7. Clearwater 27. Pennington
8. Cook 28. Pine
9. Crow Wing 29. Polk
10. Douglas 30. Pope
11. Duluth, City of (certain parts) 31. Red Lake
12. Freeborn 32. Roseau
13. Hubbard 33. St. Louis
14. Itasca 34. South St. Paul, City of
15. Kanabec 35. Todd
16. Kittson 36. Wadena
17. Lake 37. Wright
18. Lake of the Woods
19. Mahnomen
20. Marshall

Qualified but not designated

1. Benton 8. Murray
2. Chisago 9. Renville
3. Isanti 10. Sherburne
4. Kandihohi 11. Sibley
5. LeSueur 12. Stearns
6. Lincoln 13. Stevens
7. Lyon 14. Yellow Medicine

Indian Reservations

1. Fond du Lac 5@ Net Lake
2. Grand Portage 6. Red,Lake
3. Leech Lake 7. White Earth
4. Mille Lacs

197

THE SEAWAY PORT AUTHORITY OF DULUTH

The structure and function of this organization can best

be set fort h in excerpts for its enabling legislation:

458.09 PORT AUTHORITY COMMISSION, APPLICATION To SEAWAY

PORT AUTHORITIES. Subdivision 1. A commission to be known
as "Port Authority of ............ I is hereby established in

and for every city of the state which has, or shall have over

50,000 inhabitants and which is or sh-all be situated upon, or

adjacent to, or which embraces or shall embrace within its

boundaries, in whole or in part, a port or harbor located on

a navigable lake or stream. Sections 458.09 to 458.19 are

expressly declared to be applicable to all such cities. Those

port authorities now or hereafter having jurisdiction over

harbors located on the Great Ldkes-St; Lawrence seaway system

shall be known and are referred to in sections 458.09 to 458.19

as seaway p ort authorities. A port authority shall be a body

politic and corporate in the state of Minnesota with the right

to sue and be.sued-.in the names above designated. A port

authority shall also be considered a governmental. subdivi sion

within the meaning of Minnesota Statutes, Section 282.01. The

exercise by any such authority or commission of any of its

powers shall be deemed and held to be essential 9-over nmental

functions of the state of- Minnesota, but any such authority

198

shall. not be immune from liability by reason thereof.

Subd. 2. Any port authority, created and existing

pursuant to this section, the membership of which has been

appointed under section 458.10, subdivisions I or 2, shall

have jurisdiction and shall be empowered to exercise and

apply any and all of its powers and duties, as defined in

sections 458.09 to 458.1991, at any place or places within

the entire geographical area included within the boundary

limits of the city of the first class in which said port

authority is located, and said area of operations shall be

known and described as the port district. The power to lease,

property which the port.authority, in its discretion, believes

suitable and proper to be put to use by the port authority

in the execution of its duties and responsib ilities is not to

be deemed limited to said port district, but the port authority

-shall have the power to lease such property either within or

without said port district for such pu rpose.

Subd. 3. The term "port authority" when used in those

sections shall be deemed to include seaway port authori ties.

(1929 c 61 s 1; 1931 c 132 s 1; 1955 c 685 s 1; 1957 c

812 s 1; 1957 c 831 s 1; 1959 c 316 s 1; 1961 c 357 s 1; 1965

c 45 s 61; 1969 c 731 s 1, 2) (1372-71-2)

458.10 MEMBERSHIP. Subdivision 1. Such port authority
for,any city shall consist of three commissioners who shall

199

be appointed by the council of each city in and for which

such port authority is hereby created. The first commissioners

of any such port authority shall be appointed for terms as

follows: one for two years; one for four years; and one for

six years.

Upon passage of a formal resolution of the governing body

of any, city having a port authority created under the terms

of this subdivision and now existing, the port authority of

such city shall be increased to seven commissioners, two of

whom shall be members of the governing body of such city. The

members of such port authority shall be chosen by the mayor

with the approval and consent of the governing body of such
city and shall serve for a period of six years,' provided

that the members of any such port authority now existing shall

be appointed for the remainder of their unexpired terms to

such port authority.

The members of the governing body of the city appointed

to such port authority shall hold such office for a period of

six years, provided that they are, at all times of such service

on the, port auth ority, members of the governing body of such

city. When such members are no longer members of the governing

body of such city-, their terms on such port authority shall

terminate, and the mayor of such city w ith the approval and

consent of the governing body of such city shall then fill such

vacancies.

200

458.16 POWERS AND DUTIES. SubdivisionCl. it shall be

the general duty of any such port authority to promote the

general welfare of the port district, and of the port as a

whole; to endeavor to increase the volume of the commerce

thereof;-to promote the efficient, safe and economical handling

of such commerce, and to provide or promote adequate docks,

railrQad and terminal facilities open to all upon reasonable

and equal terms for the handling, storage, care and shipment

of freight and passengers to, from and through the port.

Subd. 2. It shall further be the special duty of such

port authority:

(1) To confer with any similar body created under laws

of any state embracing within its boundaries any part of any

port or harbor of which the port district forms a part, and

in so far as agreement shall be possible to adopt in conjunction

with said similar body a comprehensive plan fo r the regulation

and future development and improvement of the entire harbor

and port;

(2) To consider and adopt detailed and comprehensive

plans for the regulation, future development. and improv ement

of the port district, which plans shall, so far as,may be be

consistent with the general plan above referred to;

(3) To.confer from time to time with any such similar

body and, so far as may be, to agree therewith upon legislation

and regulations needed for the regulation and control of the

201

port as a whole, and to recommend the adoption of such legisla-

tion and regulations to the appropri ate councils, legislatures

or. other legislative and regulatory bodies;

(4) To determine upon legislation and.regulations

needed for the regulation and improvement of the conduct of

navigation and commerce within the port district and to

similarly recommend the same;

(5) Either jointly with a similar body, or separately.,

to recommend to the proper departments of the government of

the United States, or any state or subdivision of either,

or to any other body, the carrying out of any public improve-

ment for the. benefit of the port or part district;

(6) To investigate the Practices, rates and conduct of

privately owned or operated dock, terminal and port facilities

within the port district, and to institute such proceedings

and take such steps to remedy any abuses as may seem in the

public interest; in connection with any such investigation,

the port authority shall have power, by subpoena issued out

of the district court "of the county where the port author ity

is situated, to require the attendance of witnesses and the

production of books and documents, and to examine witnesses

under oath;

(7) Annually by April 1 of each year to make written

report to the council of such city, giving a detailed account

202

of its activities and of its receipts and expenditures during

the preceding calendar year, together with such further

matters and recommendations as it shall deem advisable for

the advancement of the commerce and welfare of the port

district.

The frequently used phrase for the Duluth Port - "Minnesota's

World Port" - is in some,respects, a misnomer. 'For, the

importance of the economic activity.gen erated by internati onal

commerce at the Port of Duluth, not only transcends the
immediate' geographic boundaries of the Duluth-Superior harbor

area, but transcends the boundaries of the State of' Minnesota

as well

Farmers, grain terminal operators, and truck drivers

from Montana, North and South Dakota, as well as similar people

in states as far away from the tip of Lake Superior as Kansas

and Nebraska depend on shipping activity at the Head of the

Lakes. Steelworkers in Iowa, tire manufacturers in Wisconsin,

a manufacturer in Nebraska, a jobber in Colorado, or a

Cooperative in Canada--the list of those dependent on a

healthy viable world port some 2400 miles deep in the American

and Canadian heartlands grows on a daily basis.

To provide these people with the services they expect

from a first-class world port, increased growth and expansion

have be come the by-words of the Seaway Port Authority of

Duluth. With over $120 million in new port improvements either

203

underway oi@ scheduled for completion within the next two years,

the Head of the Lakes is moving rapidly to meet the cha llenge

of the Seaway Seventies.

Traditionally a leader among Lakes Ports, the Port of

Duluth will be the first on the U. S. side of the Great Lakes

to offer a full-service container facility, when the construction

of a new Paceco 30 Long Ton capacity Economy Portainer crane

is completed this fall at the Clure Public Marine Terminal in

Duluth.

Presently served by over 15 international shipp ing lines,

as well as a myriad of domestic and Canadian lake carriers,

the Port of Duluth with its sister Port of Superior,

continuously ranks high among the top 30 United States ports

on the basis of tonnage.

The figures below are from the U. S. Corps of Engineers,

1973, the latest available. International and Domestic

totals also shown. Tons are Short Ton s of 2000#.

Total Import/
Port Export Domestic

1 New York,'N. Y. .216,896,434 79,369,121 137,527,313
21 New Orleans, La. 136,104,315 4.6,472,162 89,632,153
3 Houston, Tx. 88,517,992 33,429,192 55,088,800
4 Philadelphia, Pa. 54,629,926 33,238,868 21,391,058
5 Baltimore, Md. 53,786,715 31,344,564 22,442,151
6 Baton Rouge, La. 53,568,530 17,441,933 36,126,597
7 Norfolk, Va. 521333,200 38,309,467 14,023,733
8 Duluth/Superior 48,158,190 10,563,929 37,594,261
9 Chicago, Ill. 47,381,242 6,840,289 40,540,953
10 Tampa, Fla 41,923,222 18,979,488 22,943,734

204

Total import/
Port Cargo Export Domes-tic

11 Beaumont, Tex. 34,490,769 9,618,459 24,872,310
12 Detroit, Mich. 31,541,566 4,921,762 26,619,804
13 Mobile, Ala. 30,518,422 11,766,026 18,752,396
14 Portland, me. 28,844,110 24,093,475 4,750,635
15 Paulsboro, U.J. 28,296,140 14,016,586 14,279,554
16 Long Beach, Calif. 27,133,022 17,863,182 9,269,840
17 Boston, Mass. 27,056,868 1,005,441 16,051,427
18 Los Angeles, Calif. 25,977,491 13,608,742 12,368,749
19 Marcus Hook, Pa. 25,024,409 10,809,484 14,214,925
20 Port Arthur, Tex. 24,931,373 6,474,892 18,456,481
21 Toledo, Ohio 24,921,753 7,030,882 17,890,871
22 Cleveland, Ohio 24,828,323 6,646,000 18,182,323
23 Corpus Christi, Tex. 24,794,711 13,067,489 11,727,222
24 Portland, Ore. 20,077,043 7,903,519 12,173,524
25 Texas City, Tex. 19,959,038 3,279,171 16,679,867
26 Richmond, Calif. 18,259,836 5,859,452 12,400,384
27 Indiana Harbor 17,897,777 3,531,944 14,275,833
28 Conneaut Harbor, Oh. 16,731,912 7,029,674 9,702,238
29 Lake Charles, La. 16,505,262 2,757,581 13,747,681
30 Jacksonville, Fla. 15,513,590 8,069,.,803 7,443,787

A showpiece of Great Lakes port development, the Arthur

M. Clure Public marine Terminal in Duluth offers shippers and

ship operators the ultimate in general cargo handling facilities.

Commonly known as "the Port Terminal," the complex

features two 90-ton Clyde gantry cranes,.fully-heated, fire-

proof warehouse space totaling 234,000 square feet; vast open

storage yards; direct access, all-weather loading docks for

motor carriers and rail cars, and accommodations for loading

and/or unloading five general cargo ships at one time.

Twenty- and 40-foot containers also move through the

facility in ever-increasing numbers. The big boxes are shuttled

efficiently and swiftly between ship and shore by the gantry

cranes, jumbo forklift trucks and other specialized equipment.

205

The terminal's location in the heart of the waterfront

assures fast.cargo movement in. and out of port. It's less

than a mile to Interstate Highway 35 and rail service is.

available via six major lines.

In addition to the general cargo operation, the terminal.

is the site of a U. S. Customs-bonded warehouse, a tank farm

and a.refrigerated cargo facility.

Built at a cost of $10 million, the complex.was opened

in 1959 in conjunction with the opening of the St. Lawrence

Seaw ay. over-all activities are directed by the Seaway Port

Authority of Duluth. Stevedoring and warehousing operations

in the general cargo section are handled by Ceres Incorporated,

the Port Authority's managing agent.

Altogether, the terminal encompasses more than 120.acres

of excellent waterfront property. Many choice,sites are still

available through the Seaway Port Authority of Duluth, which

offers complete industrial development financing and is the

city's industrial development agent.

Privately owned terminals in the expansive Duluth-Superior

Harbor handle a wide variety of export-import cargoes, ranging

from general cargo to scrap iron, bentonite clay to steel

products.

All operated by widely-known,,Iong-established firms,

these terminals offer excellent dock, and, storage facilities

206

with quicl-, access to rail and freeway routes. They play an

important role in keeping the port's rates and services

keenly competitive, a distinct advantage to the port-user.

As the list of the port's commodities has grown both in

size and'scope, the exporters, importers and ship operators

have come to know they will be served by modern techniques

and experienced.hands.

Great Lakes Storage and Contracting Co. operates two

general cargo facilities, one on each side of the harbor:

Northern Pacific Dock No. 2 in Duluth, and Great Lakes Storage

and Contracting Dockin Superior. The Duluth dock can

accommodate two oceangoing ships at one time adjacent to a

transit shed with warehouse space for up to 10, 000 tons'of

general cargo. The Superior dock is equipped with two over-

head cranes and has spacious open and closed storage areas.

Hallett Dock Co. operates three large bulk and general

cargo facilities in Duluth. Each is equipped with bridge

cranes and has open storage space for more than 500,000 tons

of bulk cargo or steel products. Hallett's Dock No. 6 also

features a 175-acre tract available for industrial develop-

ment.

Scrap iron exports move primarily,via a 1,700-foot dock

operated by the Duluth Iron & Metal Division of Hyman-Michaels

Co. Four mobile cranes are kept'active as part of this round-

207

the-clock waterfront operation.

Oceangoing tankers have provided service to the Port

of Duluth-Superior for more than a decade with scheduled calls

at the Clure Public marine Terminal's tank farm.

Opened in 1961, the facility has become one of the

Great Lakes leaders for storage and shipment of edible and

commercial grade fats and oils.

More than a score of mid-American and Canadian meat

packing and grain companies regularly route their liquid by-

products through Minnesota's World Port. Cargoes most

commonly shipped include edible lard, choice white grease,

tallow, safflour, linseed oil and soybean oil.

The tank farm's dockside location promotes rapid ship-

ment of fats and oils from either the huge storage tanks or

directly from tank cars, or both. Further, because it is

located in the terminal complex, it has the capability of

providing simultaneous deep-tank loading in dry cargo ships

with general cargo loading/unloading operations..

At peak deliveryl tankers and conventional deep-tanks

can be loaded at a rate of about 250 tons an hour.

Refrigerated cargoes began moving through Minnesota's

World Port in 1970, further enhancing Duluth-Superior's repu-

tation as a full-service port.

Entry into the "reefer" trade was a-.natural for Duluth-

208

Superior in view o'f its proximity.to the.many regional

companies engaged in production and distribution of meat and

poultry products.

The cargoes are routed through an ultramodern public.

dry and refrigerated warehouse built by Mid-Continent

Warehouse Co. on property leased from the Seaway.Port Authority

of Duluth. The Mid-Continent facility, part of-the Clure

Public Marine Terminal complex is only a forklift trip away

from shipside, less than a mile from Interstate Highway 35

and has a direct link to all six railroads serving the port.

Storage space for refrigerated products totals 440,000

cubic feet (there's also more than 650,000 cubic feet in

the adjoining dry cargo warehouse). The loading-unloading

dock can accommodate five rail cars@and 10 semi-trailers at

one time.

Altogether, Mid-Continent offers exporters, importers

and domestic firms refrigerated storage, general storage,-

cargo consolidation and cargo distribution services.

Duluth-Superior is THE bulk port of the Great Lakes-

St. Lawrence Seaway system. Its cargoes have been building

a better United States and Canada for nearly a century; now

they're helping to shape a better world.

Since the opening of the Seaway in 1959, Duluth-Superior
has handled a wide variety of new cargoes, but has not lost'

209

its identity as a bulk port.

Located near the foot of Minnesota's famous iron ore

rangest it is the largest ore-shipping port-in the world,

supplying the major natural resource for North America's

largest steel-producing companies. its six gravity-fed ore

docks, capable of handling up to 24 bulk carriers simultane-

ously, have for decades shipped between 30 and 50 million

tons during a nine-month navigation season. They often load

ships in the 700-foot class with 25,000 tons of cargo in

less than four hours.

In keeping up with trends in the iron mining and steel

industries, millions of dollars.have been invested in

modernizing these facilities to handle taconite pellets as

well as the traditional natural ores. While ore shipments

have customarily been consigned to the blast furnaces in the

lower Great Lakes area, they are now beginning to move to

transhipment ports on the St. Lawrence River for export.

Coal, another major bulk commodity, has a rich history

and an exciting future. Six,modern unloading terminals receive

coal from the eastern Great Lakes for use by industrial and

the Upper Midwest. And a rapidly
power plants throughout

growing market for low-sulph-ur coal mined in-Montana and

Wyoming gives promise that Duluth-Superior may reverse its

longtime status as a coal-receiving port.. Thus,,coal docks

210

are being transformed into serving'a dual ro-le as load3-ng

and unloading facilities.

Sharing the port's harbor skyline with the famous iron

ore docks and grain elevators are bulk terminals handling

large quantities of limestone, salt, bentonite, potash and

finished cement. Three other docks exclusively handle in-

bound and outbound, shipments of petroleum products.

More than 2,000 ships in the bulk trades call at Duluth-

Superior every year, a figure which underlines the port's

prominence in the Great Lakes-Seaway region.

Grain is Duluth-Superior's principal export and the

port annually ranks among the nation's leaders as a grain

shipping center.

Ten elevator systems--all privately operated--handle

virtually all commodities: There's spring wheat, durum,

wheat, corn, barley, oats, soybeans, flaxseed 'and rye, plus

an expanding assortment of grain and vegetable by-products

shipped in the form of meals and pellets.

The elevator systems serving the port's 14 grain loading

berths have a total storage capacity of more than 70 million

bushels. More@than 170 million bushes are shipped in an

average year by U. S. flag freighters to other Great Lakes

ports, by king-sized Canadian lakers to St. Lawrence River-

ports for tranbhipment over-s eas and by oceangoing ships'to

211

ports throughout the world.

The face of "Elevator Row" has changed substantially

since the 1-959 opening of the St. Lawrence Seaway, the

result of major expenditures by the grain-companies. one

new elevator was constructed in the mid-1960's and the

existing facilities have undergone extensive alteration and

remodeling. New automated equipment has been installed

at most-elevators, the slips are dredged to Seaway depth

and, in short, the port continues to fill the needs of the

nation's grain ship pers.

AIRPARK is a new 240-ACRE INDUSTRIAL PARK adjoining

Duluth International Airport. It is being DEVELOPED BY THE

SEAWAY PORT AUTHORITY of Duluth to complement HARBORPARK

the Authority's waterfront industrial park for businesses

requiring both ship and rail cargo service. AIRPARK is for

LIGHT INDUSTRY, industry which favors air and highway cargo

t is at the center of
service. Duluth International Airpor

the North American continent; it features a 10,000 foot runway

and modern air traffic control facilities; it is STRATEGICALLY

LOCATED for international flights as well as domestic

distribution. AIR CARGO TERMINAL, conveniently located for

AIRPAR1< industries, is also AIRPAM@-managed. AIRPARK is-

served by a.four-land highway which links Duluth and Mesabi

Iron Range Cities, and connects to INTERSTATE HIGHWAY 1-35

212

for traffic to the Twin Cities and beyond.

AIRPARK SITES are tailored to your busi ness in*size,

shape, growth potential, and relationship to other commerce,

in and near the Park. All are SERVED by 36-foot paved

roadway with concrete curb and gutter, natural gas, under-

ground electric service, sewer to city of Duluth treatment

systent, and Lake Superior water. Physical development of

AIRPARK is FINANCED by the process of $1,670,000 in bonds

issued by the Seaway Port Authority of Duluth in 1971. A

companion issue by the Duluth Airport-Authority will be used.,

in construction of the new Duluth international Airport

TERMINAL. Industries wishing to locate in AIRPARK may

choose'from a variety of ways@ to acquire property and

construct buildings. Land may be PURCHASED OR LEASED.

Minnesota Statutes (Chapters 458 and 474 MSA) permit the

Seaway Port Authority to provide REVENUE BOND FINANCING

for plant construction. Revenue bond financing allows lessee

to move into a new, efficient, one.-story building for.vir-

tually NO CAPITAL OUTLAY. This allows AIRPARK t6nantsto

shift capital from plant expansion to operations expansion.

STEP-LEASES are available, allowing orderly growth of lessee's

business. SUB-LEASING is permitted, providing space for-

business expansion and contraction. Rental fees run for
duration of' LONG-TERM AGREEMENT,-and'do not increase with

213

inflationary spiral. Rental fees continue as constant, while

plant investment appreciates. Each original lease agreement

includes assurance that additional REVENUE BOND FINANCING

for future growth,will be provided on reques t of tenant.

SITES AND OPTIONS are available.

Other scheduled harbor improvements reflect.the diversity

of cargo handled by the Twin Ports:

A new $40 million taconite-handling facility joins

six large gravity-fed ore docks to more efficiently handle

this traditional Head of the Lakes cargo which originates on

Minnesota's Iron Range.

A $12 million investment by Lakehead Pipeline Co. of

Superior is scheduled for the construction of storage tanks

handling petroleum products and renovation of its marine

terminal for modern Great Lakes tankers.

A $6 million program by Incan Marine, Ltd. has intro-

duced roll-on, roll-off service between Superior and Thunder

Bay, Ontario.

* A $5.5 million investment by American Hoist & Derrick

Co. in a new hydraulic backhoe manufacturing plant at the

Clure Public Marine Terminal is designed to utilize convenient

waterfront access for the inbound shipping of steel and the

outbound shipment of products.

A $2.2 million expansion of the grain elevator c omplex

214

in Superior operated by M'& 0 Elevators, Inc.,'Minneapolis,

will incorporate meal and grain by-product handling facilities.

All of these investmonts--and countless lesser ones in

deeper berths, dust control systems, truck and rail facilities

and dock improvements--express confidence in the future.. They

also represent welcomed news to the over 2000 people who

directly depend on a strong and viable waterfront economy in

the Twin Ports for their livelihood.

An extended navigation season on the Great Lakes to a

ten-month international shipping season and a year-round

domestic shipping season could become a reality within the

next five years.

The positive results achieved in experiments by the

U. S. Army Corps of Engineers in the St. Lawrence River with

new winter navigational aids indicate there is a feasibility

for a ten-month international shipping season. This extended

shipping season is viewed as a real key to the continued

growth and economic stability of Great Lakes Ports.

Among the dozens of techniques being utilized in the

demonstration program to aid ship transits ofice-covered

waters are new ice navigation concepts and systems, advanced

weather forecasting systems, new ice control techniques,
intensified ice-breakbr assistance and the use*of bubbler

systems, which bring warmer below-surface water to the sur-

215

face to minimize ice coverage.

All of these factors are involved in the extension

options discussed in the special report. Operational features,

information systems and remedial measure elements are, in fact,

identical for all season extensions, except that the year-

round alternative requires the more extensive use of ice

control devices.

Great Lakes shipping is an obviously indispensible link

in the industrial and the agricultural economy of the mid-

continent. When we consider that the Great Lakes area contains

26% of the nation's population (80% classified as urban), is

responsible for 36% of the nation's value-added-thru-manu-

facturing; 47% of the nation's'steel producti on, (as well,

the Great Lakes hinterland produces over 80% of the raw

materials required for steel production in the United States);.

12% of the nation's'mining, (71% of the nation's iron ore and

40% of its-limestone) and 37% of the nation's grain, it is

abundantly clear how dependent the economies of the Great

Lake states are on low-cost transportation.

The extension of the presently restricted shipping is

vital to the nation in its efforts to expand the capacities

of our national transportation network and at the same time,

reduce transportation costs and conserve transportation fuels.

What is @Che next step?

Federal agencies involved in the effort to extend the

216

navigational season should take immediate steps -to implement

the programs which have been successfully demonstrated to

date on an on-going basis on the four upper Great Lakes.

The Coast Guard should step up planning for replacement of

obsolescent general purpose tugs with vessels of greater

icebreaking capability. Congressional support is urged for

a permanent extension of the navigation season on the four

upper Great Lakes. Finally, an intensification of effort

for the development of an extended season for the balance of,

the system -- Lake Ontario and the St. Lawrence River System

coordinated with the Government of Canada is necessary

so that the entire system might achieve, at some early future

date, an extended navigation season.

Demonstration Program technical activities and preliminary

economic analyses indicate that an extended season is feasible

both economically and technically. The national interest

now requires that we move to implement material and procedural

improvements and provide funds necessary to extend the

navigation season.

While international trade and a myriad of maritime

activities dominate much of the efforts of the Seaway Port

Authority of Duluth, another one of its major and increasingly

important functions is that of chief industrial development

agent for the City of Duluth.

217

Since assuming that role, at the request of the Duluth

City Council-in 1970, efforts aimed at increasing and diver-

sifying Duluth's industrial base have made considerable.

strides.

During the past two and one-half years alone, the Port

Authority's Board of Commissioners has authorized the

issuan-ce of over $51 million in industrial revenue bonds

for some 1-9 job-generating projects. As a result of these

efforts and with the cooperation of other local industrial

development agencies, 1,615 jobs have either been added or

retained to strengthen the Duluth economy.

one of the most recent and more significant projects

aided by Port Authority financing is the new $5.5 million

American Hoist and Derrick plant now under construction at

the.Clure Public Marine Terminal. When completed early this

fall, the plant will engage approximately 300 highly-skilled

workers in the construction of hydraulic backhoes for both

international and domestic consumption. Completion of a

proposed second phase of'production within the next five years

could bring that total to a level of 600.or more.

..From a numbers standpoint, the 500 new jobs to be created

by Jeno"s, Inc., through the issuance of $1 million in

industrial revenue bonds to-finance the rejuvenation of the

former Chun King plant, makes it the largest number of people

218

to be employed'by a single bond issue.

A Port-aided $4 million expansion of Duluth's Clyde Iroft

Works will add 100 new, well-paid employees to its workforce.

bringing total employment at the plant up to 500 people.

What started out as a $15 million project aided by Port

Authority bonds and EDA participation, has since grown to

some $*33 million as Cargill, Inc. of Minneapolis continues

work on its new meal and grain handling facility along Duluth's

famed "elevator row." it will employ approximately 60 new

people.

A $4 million bond issue will mean new jobs for between

30 and 60 people when North Star Steel Company of St. Paul

completes its grinding ball facility during the coming year

in the Twin Ports, while a $400,000 expansion by National

iron will mean another 50 new jobs for the community.

one-hundred and ten jobs for the City were retained with

the construction of a new $1.3 million building in the Oneota

Industrial Park for Bombardier Limited. Port Authority

industrial revenue bonds were used to finance the project.

The other Port Authority-assisted projects represent a

broad cross-section of industrial diversity as well: @700,000

for a urea facility at Hallett Dock -- 30 new jobs; $700,000'

for remodeling and expanding Elliott Packing Company -- saving

175 jobs; an $800,000 truck service and maintenance center

for Arrowhead Equipment Company -- 30 new jobs; location

219

assi stance to North Country Equipment Company 10 jobs;

'win Town Box Corpo-
land acquisition and staff assistance to a 0 1
ration -- a new $500,000 facility and 35 new jobs; building

location for Ziegler, Inc. 15 jobs,- an Airpark location

for Gardner-Denver Company 20 new jobs; a $150,000 structure

for Medi Associates -- 20 jobs; and $250,000 in industrial

revenue bond financing for Kemp Fisheries to aid in the

expansion of its frozen fish business.,

220

U. S. DEPARTMENT OF THE ARMY
BURLINGTON NORTHERN
TACONITE TRANSSHIPMENT FACILITY
DULUTH-SUPERIOR HARBOR

PROJECT DESCRIPTION

,."Project Location... The proposed expansion would be

located immediately adjacent,to the existing facility in the

western Lake Superior port of Duluth-Superior. The proposed

site for the new dock would be on the bayward end of.the existing

C. Reiss Coal Dock located to the east of the present Burlington

Northern ore docks. The stockpile expansion would be immediately

southwest of the existing stockpiling.area. The general local-

ity is bounded by the Nemadji River on the northwest and by

Bluff Creek to the southeast. Neither the stockpiles nor the

construction site will affect the banks of the two streams.

Project Purposes. A number of taconite producers including

Butler Taconite, The National Steel Company, and the Bethlehem

Steel Company have indicated that they will increase taconite

production in the Mesabi Iron Range near Hibbing, Minnesota. In

order to accommodate the increased rail and ship traffic

generated by this increased production, Burlington Northern

proposes an expansion and modification of its existing taconite

transshipment facility in Superior, Wisconsin.

221

Existinq Project. The existing transshipment facility'

handles a throughput of five million long tons (5 m1t) annually.

The ore is.delivered by unit train to a car dumping facility

where it is unloaded at the rate of 3,000 lo ng tons per hours.

Currently an average of one train per day passes through

the facility. Trains are comprised of 200 bottom dump hopper

cars, each having a capacity of 70 long tons. The cars are

unloaded, automatically two at a time, in an unloading shed.

From the unloading shed, the ore travels by conveyor belt,

either to the ship loading facility or to the ground storage

area.

During the non-navigational season, (approximately January

through March) the conveyor belt delivers taconite directly

to the stockpile via atrack-mounted stacker system. At the

commencement of navigation, the taconite in the stockpile is

reclaimed by means of a cra wler-mounted bucket-wheel reclaimer

at the rate of 3,000 long tons per hour and deposited on the

conveyor system which runs to the shiploading facilities.

The existing conveyor system is a series of belts approxi-

mately 5,000 ft. in total length. Each change of direction

requires a "transfer point" where the taconite pellets are

transferred from one belt to another. Exhibit 2 shows these

"transfer points" for both the existing and proposed facilities.

222

Since-the delivery of taconite*to the facility is

conducted on a year-round basis, substantial stockpiling takes

place during the non-navigational season. At the existing

taconite facility, approximately 1,600,000 long tons are stock-

piled annually. This stockpile would be reduced to approximately

800,000 long tons if the new facility is constructed. With the

possibility of year-round navigation on Lake Superior, the

stockpile could be reduced substantially and might even be un-

necessary.

A portable conveyor will be used in conjunction with the

stacker boom to stockpile and reclaim the storage piles beyond

the reach of the stacker boom.

on the existing facility, the shiploading operation consists

of a pocket dock, whose pockets are so positioned that taconite

can be loaded directly into the holds on the lake vessels by

-means of chutes.

Proposed Project. Expansion of the total operation to

handle the projected 17.5 mlt in 1976 and 22.9 mlt in 1980 would

be accomplished by building a new 100-acre stockpiling area,

a new loop unloading track, a new car-unloading facility, an

additional conveyor system, and a shiploading facility on an

existing dock.

Taconite handled by the expanded system would originate

at pelletizing plants operated by The-Hanna Mining Company and

223

Pickands Mather and Company in the Mesabi iron Range. The

ore would be rail hauled to the Allo uez transshipment facility.

After transshipment, transportation of ore from the terminal

to the Lower Great Lakes ports would be in vessels of approxi-

mately 21,000-ton capacity. Use of vessels with 58,000-ton

capacity is planned to begin by 1978. Primary consumers of

the taconite handled through the facility would be Inland Steel

Company, V1heeling-Pittsburgh Steel Company, National Steel

Company., and Bethlehem Steel Company at their steel mills in

the Lower Great Lakes Region.

At the new facility, two stockpiles are proposed, one 25

feet high, 4,700 feet long and 365 feet wide at the base and

one 25 feet high, 4,700 feet long and 220 feet wide at the base,

when throughput is 12.5 mlt. At 17.9 throughput, the stockpile

widths would be increased to 400 feet. Initially, both stock-

piles would hold approximately 3.5 mlt with maximum capacity

of approximately 5 mlt when the facility handles 17.9 mlt

throughput. Thus, the final tonnage available as stockpile

would be about 5.8 million long tons for the existing and

proposed facility. The site of the 100-acre stockpile expansion

is immediately southwest of the existing stockpiles, which

cover 39 acres.

.Improvement of the C. Reiss Coal Dock includes the dredging

of approximately 150,000 cubic yards of material from the

224

existing slip.' The permit application by Burling-ton Northern

designated a diked containment area across the foot of the

existing Burlington Northern and C. Reiss Coal Docks for the

disposal of the dredged materials. This is the preferred

dredge material disposal area, and would be the least costly

as compared to the alternative methods.

Ship Loading Facility. The new shiploading system would

consist of 36 storage bins and shuttle conveyors. The capacity

of each storage bin would be 2,000 long tons; each shuttle

conveyor would deliver approximately 182 long tons per hour.

Thus, the total delivery capacity of the shuttle conveyor system

would be 13,000 long tons per hour.
.-Although designed for loading a wide range of ships, the

loading system for the new facility is.specifically designed

for vessels of the maximum size permitted through the Sault Ste.

Marie Locks. Vessels in this class, such as the Roger Blough

and the Stewart J. Cort, are capable of transporting 50,000 to

60,000 net long tons of ore.

Permits and Approvals. To obtain approval to construct

and operate proposed taconite terminal, Burlington Northern.

must apply for? submit, and receive review of permits from

federal, state, and local agencies.

At the federal level, a U. S. Army Corps of Engineers
application' for a permit to construct in navigable waters is

225

required. Dock construction and modification taking place

in the waterway below.the normal high water mark fall under

regulations stated in Section 10 of the River and Harbors

Act of 1899. Outfalls, settling pond discharges, and similar

water pollution control activities are regulated by the pro-

visions of Section 404 of the Federal Wa ter Pollution Control

Act Am.endments of 1972.

Operation Related Impacts -'Socio-Economic

Economics. Continued favorable economic impacts both

direct and spinoff, can be expected if the transshipment facility

expansion becomes operational. These impacts would be long-

term. Employees would spend portions of their disposal
incomes within the local economy. Spinoff or secondary impacts'

would occur as wages are passed from labore r to storekeeper

along the economic chain. Taxes on earnings would benefit the

communities in which the workers reside. Supplies and

maintenance materials purchased locally would also contribute

dollars to the local economy.

The projected level of employment-for the operational

phase of the proposed taconite transshipment facility expansion

is approximately 60 new positions, with employees to be hired

from the local labor force. These positions would, for the

inost part, be-year round, full-time employment opportunities.

Non-navigational employment levels would be approximately

226

50- 55 and -this would increase to 6b or 70 during -the shipping

season when ship loading operations are taking place. There

would be three shifts with approximately one third of the

work'force working each shift.

1P in addition to those 60 jobs directly related to the

daily operations of the facility, there would be-secondary or
fr@ service jobs created in other segments of the economic

community. Using the economic multiplier 1.90 can be antic-

ipated that approximately fifty-four service jobs would also
f be created bringing the total to 114 new employment opportunities
27
to the area. This amounts to nearly 2.85 percent of the annual

average unemployed in the area.

Annual payroll for direct employment at the 17.9 million

ton throughput level would be approximately $1,400,000. This
f

money would be spent by these 60 wage earners and it would
f
change hands many times within the community until an estimated

total dollar impact (using the 1.90 multiplier) resultant from

wages along would approach $2,660,000.

In addition to the economic impact of increased employment

and the flow of dollars for wages, would be the additional

taxes paid with respect to the assets being used at the expanded

facility. it seems reasonable to assume that the central

assessment for the expanded operations by the State of Wisconsin

would increase by 1977. While it is impossible to estimate

227

MINNESOTA STATE PLANNING AGENCY

Grain Transportation

The 3-973 legislature directed the State Planning Agency to

study the movement of grain from northwestern Minnesota to

Duluth, and from Minneapolis-St. Paul down the Mississippi to

the Gulf of Mexico. Because*these specific corridors are

important links in the grain transportation system, they are

affected by all aspects of grain movement in Minnesota. There-

fore, it is important to evaluate these corridors as part of

the entire system.

The purpose of this study is to describe the grain trans-

portation system in Minnesota including an identification of

the characteristics and problems of the system. Within this

framework the movement of grain across northern Minnesota and

down the Mississippi can be analyzed. Options for the future

development of the transportation system in Minnesota are also

included.

Several factors must be examined in analyzing the effective-

ness of the transportation system in handling grain.

GRAIN PRODUCTION AND MARKETING - Historical trends of grain

production show past and present demands on the transportation.

system and allow the projection of probable demand ranges

through 1980. Marketing patterns indicate how grain production

230

is expressed as a demand oft the transportation system.

GRAIN MOVEMENT PATTERNS - A survey taken from a sample of

country elevators was used to analyze the way Minnesota shippers

move their grain. Elevator operators were asked what kinds of

grain they handled, how much grain they handled, where it was

shipped, and whether it was-shipped by truck or rail.

HIGHWAY SYSTEM - A description of the present highway system

and analysis of current grain truck traffic provides a measure

with which to determine the ability of the highway network to

absorb the anticipated grain traffic.

RAILROAD SYSTEM - A description of historic trends and recent

,developments in railroad service provides basic information

needed to analyze the changing pattern of grain transportation

in the state. Freight car service shortages and rail branch-

line abandonments are two of the majorproblems in Minnesota

and the nation.

WATER TRANSPORTATION - The Mississippi River and the.Great Lakes

are major routes for grain movements from Minnesota. An

examination of these waterways indicates the continuing impor-

tance of the Dul uth-Superior and the Twin Cities-Savage ports

as grain export centers.

HOLDING AND TRANSFER FACILITIES Historically, both country

elevators and,port terminals have played major roles in the

movement of grain. Examining their continued role as well as

the rapid growth of sub-terminal elevators will indicate

231

projected changes in shipping patterns.

POTENTIAL NEW METHODS OF TRANSPORTI NG GRAIN In addition to

the traditional methods of transporting grain, two other

methods of moving grain have been suggested: pipeline and

conveyor belt.

COMPARISON OF MODAL CHARACTERISTICS Each method of moving

grain-has advantages and disadvantages. A comparison of these

factors indicates which methods of transportation are most

suitable for the movement of grain in Minnesota.

Time restraints and the lack- of available information

required that some subjects be.given less attention. Subjects

such as carrier regulation., crop prices, freight rates and

the foreign export market are extremely complicated. Also,

state government has little control over them. Because of this,

these subjects will be treated as independent constants. These

effects are expressed in grain shipment patterns and modal

choice making.

CONCLUSIONS

l., Minnesota's transportation system will likely be called

upon again to move at least as much grain as was moved

through Minnesota,in 1973. At that time the demand was

met and the grain was moved, but it was done at an extra

cost to the farmer, the elevator operator, and the buyer.

If the transportation system is going to be able to

232

efficiently handl e these expected large grain volumes.in

the fu ture, there will have to be an increase in the

efficiency and capacity of the grain transportation system.

2. Traditional shipping patterns are beginning to chang,e-with

the advent of the sub-terminal facilities and the unit

train. T hese more efficient uses of the railroad system

along with greater capacity freight cars are indicators

of the type of rail system that is coming. While these

innovations will do much to increase the capacity of the

transportation system, it will put great stress on those

shippers and buyers who do not have access to-the more

efficient loading and transporting facilities. The

governmental regulatory agencies should encourage the

development of the more efficient loading and shipping

methods among all shippers throughout Minnesota.

3. The Minnesota Highway Department's "Backbone System".was

developed because of lack of funds, to priorities among

the needs of the highway system. The criteria used to

identify that system included: traffic volumes,

recreational travel and the promotion of outstate econom-

.ic development. These criteria do not give sufficient

attention to grain and other commodity movements. One

priority of the State Trunk Highway System should be the

provision of highway facilities for commodity movement.

233

4. Truck movements of grain from the farm to elevators and

to the ports are important elements of the grain trans-

portation system. Some of the highways and highway,

bridges in rural Minnesota are substandard to the point

of impeding the movement of grain truck traffic. If

truck movements of grain are to continue, and be efficient,

some improvements must be made to these substandard

facilities.

5. The movement of grain by truck across Northern Minnesota

primarily originates in North Dakota. Any solution or

reduction in that traffic will require the cooperation

of the State of North Dakota.

6. Rail line abandonments will continue unles s some level of

government or private institution purchases, subsidizes

or otherwise assists those lines which are presently

unprofitable. The answer to the rail abandonment problem

in Minnesota is not necessarily to oppose all abandonments,

@but for the state to determine the importance of each

individual line to Minnesota and to the affected region

of the state.

7. The movement of grain on our waterways is important to

Minnesota and Minnes ota's farmers. The potential for

increased exporting of grain from Minnesota by water is

dependent on the number and size of the barges and vessels

234

that come into Minnesot a ports. The number of ships

and barges available for grain shipments is limited by

the amount of commodities imported and the capacity of

the navigation systems serving the ports in Duluth-Superior

and the Minneapolis-St. Paul area. Any efforts toward

major increases in barge and ship movements of grain will

need to deal with these problems.

8. There is a need for government to control and regulate

transportation carriers. There must be enough regulation

to maintain the sensitive balance between the maintenance

of competition and the need for increased efficiency of

operation. It appears that there is currently too much

regulation unevenly enforced between the modes. A

reevaluation of present regulations is needed to identify

these effects on the efficiency, cost and level of service.

provided byeach mode.

9. It does not appear likely that pipelines or conveyor belts

will play a major role in the long distance movement of

grains in the near future. Truck, rail and water movements

of grain have risen to their present position of

importance because of their adaptability to the movement

of grain. It is unlikely that the importance of these

modes will change.

10. in the conduct of this study, it-became apparent that there

235

was a lack of accurate data on rate structures, modal

operating costs and a total lack of information on

commodity movements in Minnesota. This kind of infor-

mation is necessary to appraise and evaluate the

effectiveness of the transportation system.

RECOMMENDATIONS

HIGHWAYS

1. Because of the need to include commodity movements in

the criteria for the Minnesota Highway Department's "Back-

bone System", the "Backbone System" should be reevaluated.

This reevaluation should be based in part on the results

of a complete commodities movement study in Minnesota.

2. The Minnesota Highway Department should continue its

efforts in making a detailed analysis of all roads with

spring road restrictions. If the analysis reveals that

some highways would not be adversely affected by anti-cipated

truck traffic durin g the current restricted periods, the

restrictions should be raised on those highways.-

3. The State of Minnesota should provide increased highway

revenu,es for both the state and state-aid highway funds,

so needed improvements can be made to the highway system.

4. Minnesota should attempt to work closely with North Dakota

to divert more of North Dakota's grain off the highway-

and onto the rails,

236

RAILROADS

5. There is a serious lack of information available concern-

ing the rail system in Minnesota. Detailed information

should be collected and analyzed concerning all aspects

of the economics and operation of the rail industry. Based

on that analysis, a policy should be identified as to

the state's role in maintaining rail service with

particular emphasis on proposals for rail abandonments.

some alternative approaches that the state could imple-

-ment are:

a. oppose abandonment of needed lines.

b. subsidize unprofitable rail line operations.

C. Provide bonding or loans for the upgrading of sub-

standard rail trackage.
d. Buy rail trackage and bring up to minimum s'tandards,

then lease the trackage to a management organization.

e. Aid local municipalities in buying and operating

the line.

f. Seek Federal assistance for rail abandonments.

9- Allow unnecessary trackage to be abandoned and

dismantled.

Each individual proposed abandonment should be subject to

a detailed analysis to identify the best approach for the state

to take concerning that particular line.

237

WATERWAYS

6. The size and efficiency of the locks on the Mississippi

and St. Lawrence Seaway are extremely important to the

level of service and cost of shipping that Minnesotans

experience. At the present time, the Mississippi River

waterway has a bottleneck in Lock and Dam 26. If Minnesota

is going to continue to have good accessibility to the

Gulf Coast, Lock and Dam 26 in Afton, Illinois will have

to be improved. The State of Minnesota should consider

the passage of a resolution supporting the rebuilding of

Lock and Dam 26 with proper attention given to safeguards

for the environment.

ORGANI ZATI ON

7. Recommendations 4 and 5 identify major tasks which

presently are not the responsibility of any agency of

state government. They suggest the need for liaison and

coordination with North Dakota and other states, the

Interstate Commerce Commission and the railroads on an

ongoing basis and they indicate studies which would result

in state.legislative action., Because'of the need for

an ongoing expertise and involvement, there should be

a group in state government with responsibility for the

performance of these functions. If a Department of Trans-

portation is formed, this function should be placed there.

238

However, if a Department of Transportation is not formed,

or until one is formed, the responsibility for the

performance of this function should rest with the Inter-

governmental Transportation Task Force.

On the following pages is an outline of the Table of

Contents and a listing of the illustrations and tables used

to give an idea of the scope of the report:

239

CONTENTS

I. INTRODUCTION

conclusions
Recommendations
Highways
Railroads
Waterways
organization

Ii. GRAIN PRODUCTION AND MARKETING

Grain Production
Marketing Patterns
Grain Production Projections

III. GRAIN MOVEMENT PATTERNS

IV. HIGHWAYS

Major Grain Truck Routes
Rural Grain Routes
Highway Bridges
"Backbone System"

V. RAILROADS

Freight Service Shortages
Rail Line Abandonment
Rail Service Improvements
Grain Movement by Railroad
Rail Service and Capacity

VI. WATERBORNE TRANSPORTATION OF GRAIN

Grain Shipments From the Duluth-Superior Port
Grain Shipments From Ports In The Minneapolis-St. Paul Area

VII. HOLDING AND TRANSFER FACILITIES

Country Elevators
Sub-Terminals
Termina-Is
Capacities

240

VIII. POTENTIAL NEW METHODS OF TRANSPQRTING GRAIN

Pipelines
Conveyor Belt

IX. COMPARISON OF MODAL CHARACTERISTICS

Rates
Regulation
Investment
Operational Costs
Energy
Availability
Range
Vehicle Capacities

241

FIGURES

Minnesota Average Production and Disposition, 1968-72
Percentage of Four State Cash Crop Produced by Each State
Breakdown of Major Crop Production in Minnesota, 1968-73
Corn Harvested for All Purposes, 1969
Oats Harvested, 1969
Wheat Harvested, 1969
Soybeans Harvested for Beans, 1969
Barley Harvested, 1969
Total Crops Sold Per County, 1973
Primary Method of Marketing Minnesota Grain
Percentage of Yearly Crop Marketed Each Month in Minnesota
Grain Sold Yearly, 1968-73
Cash Crops Projections for Minnesota to 1980
Total Cash Crops Projections for all Grains in Minnesota
to 1980
Grain Shipment Destinations in Minnesota
Truck Shipments to Twin Cities and Savage
Rail Shipments to Twin Cities and Savage
Truck Shipments to Duluth-Superior
Rail Shipments to Duluth-Superior
Truck Shipments to Other Locations
Rail Shipments to Other Locations
Amount of Grain Shipped by Truck from Minnesota Regions
Major Grain Truck Routes
-Springtime Load Restrictions and Surface Width
Minnesota Highway Department's "Backbone Sy stem"
Railroads: A Declining Share of Freight Traffic
Availability of Equipment for the Movement of Grain
Minnesota's Railroad Network
Rail Line Abandonments
Total Carrying Capacity
Amount of Grain Shipped by Rail from Minnesota Regions
Shipments of Grain from Duluth-Superior Ports 1968-1973
Grain Shipped from Duluth-Superior Ports for Export
1969-1973
Shipments of Grain by Barge from the Minneapolis-St. Paul
Area Ports 1968-1973
Sub-Terminals
Characteristics of Truck, Rail and Waterway Transportation
of Grain
Energy Intensiveness (BTU's ton/mile)

242

To round the national grain movement picture, following

are excerpts from an Interregional analysis of U. S. Domestic

Grain Transportation.

Written by: Jerry A. Fedeler
Earl 0. Heady
Won W. Koo

Center for Agricultural and Rural Development
Iowa State University
Card Report 54T
February, 1975

."The grain industry in the United States has expanded

rapidly since World War II. Concurrent with this expansion
-has been an increase in the demand for grain transportation

services. There have been periods of excess demand.forgrain

hauling equipment and grain handling facilities. This excess

demand distorts the normal grain price-space relationships and

results in the usual problems and inefficiencies which corre-

spond to such distortions. Associated with the expansion of

the grain distribution industry has been a greater degree of

production specialization among farms, an expansion of the

domestic waterways, the near completion of the Federal inter-

state Highway System, difficult financial conditions for some

railroads, and the partial abandonment of the railroad system.

In 1973 the United States faced a new problem, an energy

crisis, which brought about new problems for the transportation

243

industry. -The energy crisis was especially intense because

all modes of transportation depend heavily on gasoline and

diesel fuels which were in especially short supply because of

the depletion of domestic oil supplies and restricted oil

imports.

"The research reported is directed towards these 2eneral

problems in transportation and the interrelationships between

efficient grain transportation networks and the location of

grain production and demand. This study is the result of a

contract between the Federal Railroad Administration of the

Department of Transportation and Iowa State University. It is

designed to project the 1@80 domestic flows of wheat, feed

grains, and soybeans under alternative tra nsportation cost

structures and export demands. The analysis includes projecting

the domestic and export demands for grain and finding the least.

cost location for producing each grain. Problems of grain

transportation can be avoided only if the supply, trans-

portation, and demand sectors of the grain industry are each

mutually aware of the potentials and limitations of the other

sectors in the industry. This.research coordinates these three

sectors within 10 mathematical optimization models.

"Although parts of sections II, VI, and VII contain

information inessential to the models or discuss issues that

may be familiar to some readers, they-are included in the

244

spirit of snythesizing the supply and demand of grain with

its transportation. Readers familiar with analyzing grain sales

may be unfamiliar with transportation and vice versa. Sections

IV and V illustrate that many details about transportation can

be obtained from national models

Following is an outline of the Table of Contents which

give the scope of the material contained in the full report:

245

OUTLINE OF CONTENTS

SUMMARY

methodology

Results

A transport system with single-car rail units

A transport system with 50-car rail units

A transportation sy stem with higher rail costs

A transportation system with higher barge costs

A transportation system with alternative single-car
costs

A shift in demand for exports from the Gulf to
Northwest ports

An increase in grain exports

A probable increase in rail traffic

A comparison of railroads and barges

The cost disadvantage for trucks

The cost of loading and unloading grain

The location of grain production

A consideration of fuel costs

THE GRAIN TRANSPORTATION PROBLEM

objectives of the Study

Historical Perspectives

.Grain production, farm sales, and exports

Domestic grain transportation

The 1972-73 grain transportation crisis

246

Ill. METHODOLOGY

Mathematical Representation of the Models

producing Regions

Consuming Regions

Transportation Costs

Rail

Water

Highway

Regional Crop Production Costs and Yields

Demands for Grain and Cotton in 1980

IV. IMPACTS OF TRANSPORTATION COST AND EXPORT DEMAND CHANGES

ON GRAIN PRODUCTION AND PRICES

Grain Production, Exports, and P rices

Feed-grains

Soybeans

Wheat

Cotton

Summary

Location of Grain and Cotton Production

Summary

V. INTERREGIONAL GRAIN TRANSPORTATION

Interregional Transportation Costs and Quantities
Hauled by Transportation Mode

Grain

247

Feed Grains

soybeans

Wheat

Shipping and Handling Costs

Interregional Shipments-Measured in Ton-miles

Average Distances of Interregional Grain Shipments'

Interregional Flows of Grain Within Each Model

model I: Single-car rail costs

model II: 50-car rail costs

.Model 111: 10 percent increase in rail costs

Model IV: 20 percent increase in rail costs

Model V: 10 percent increase in barge costs
model VI: 20 per'cent increase in barge costs

model VII: alternative single-car rail costs

model VIII: reassignment of 10 percent of the
Gulf export demand to Seattle"

Model IX: reassignment of 25 percent of the
Gulf export demand to Seattle

Summary of models VIII and IX

Model X: 25 percent increase in grain exports

Intraregional Grain Shipments

Trends in Interregional Grain Transportation.

Rail

Water

Truck

248

Vi. GRAIN TRANSPORTATION AND THE LEVEL OF FUEL PRICES
Ve
Fuel Costs for Grain Transportation

Implications of Higher Fuel Prices

VII. POLICY IMPLICATIONS

Exports and Transportation

Multiple-car Rail Shipments

Expansion of Rail Services

Rail and Barge.Competition

Loading and Unloading Costs

Implications for Production

Suggesti ons for Further Research

249

DEPARTMENT OF AERONAUTICS

ECONOMIC IMPACT

PURPOSE OF THE STUDY

An investigation of the economic and social impact of

aviation at three selected communities in Minnesota, Duluth,

Austin and Thief Ri ver Falls, was undertaken to provide an

understanding of the relationship of aviation to the economy

of each community. It was,anticipated that if the results

proved tenable, a method for the examination of other

communities throughout the State would be thus established.

USEFUL DEFINITIONS

Economic impact may be either direct or indirect. Direct

impact is measured by primary wages and expenditures of air-

port and aviation related businesses,.and by secondary income

generated through the regional multipliers. Indirect impact

is measured*by other related or ancillary income which is

generated because of the existence of aviation service to the

community. Medical, educational, cultural and other services

provided through air transportation account for social impact.

The social and economic impacts herein derived may be considered

as part of the benefits in a generalized benefit/cost analysis

for community airport needs. Socio-economic variables used in

this study are industry mix, unemployment, and per capita income.

250

SELECTION OF AIRPORTS.

Airports at three communities in diversified economic

regions of the State were selected as typical of facilities

within Minnesota.

Thief River Falls in the Northwestern Region and Duluth

in the Arrowhead Region both have scheduled air service. They

differ in that the former serves as a market center in a

primarily agricultural region while Duluth is in a Standard

Metropolitan Statistical Area. Austin in the Southeastern

Region is served only by general aviation.

Aircraft movements for 1973 at the three airports are

given below.

Total Percent Percent
Airport 02erations Air carrier Military

Austin 18,500 0 0

Thief River Falls 21,000 14 0

Duluth 79,916 15 30

STUDY CONCEPTS

Air passenger surveys were distributed to boarding passen-

-gers for one and two week periods. General aviation survey

techniques varied for the three airports and yielded a 55 percent

response at Duluth. Major industrial and institutional users

of aviation were interviewed to define the role of this mode of

251

transportation in company location and operations.

interindustry transaction tables were constructed as

part of the regional input/output@model for the smallest

independent economic region in which each community is located.

These tables indicate the distribution of industry sales and

purchases within and outside of each region. Employment

trends have been examined through excess employment and shift/

share analysis. Excess employment is that percentage of

employment in a specific sector which is above the national

employment average for that sector. Shift/share analysis is

a measure of the relative growth of a specific economic

sector compared to the growth of that same sector on a national

level.

Regional socio-economic characteristics have been estab-

lished from census data and data from Minnesota State agencies..

industry mix, employment, and per capita income are used as

measures of.the socio-economic well-being of a region. Medical

and educational services, as well as cultural and sports

activities, are also considered to be part of the social well-

being of a community, as is access to large metropolitan areas,

where such services@-may be obtained.

RELATIONSHIP TO OTHER ECONOMIC IMPACT STUDIES

A study for the New Yor3,, Port Authority in 1961 indicated

that the direct income from aviation r.elated activities 'Ln the

2.52

New York Metropolitan Area amounted to $1.1. billion in 1959.

A more recent study showed this'figure has increased [email protected]

billion. Results of the Minnesota study revealed.direct

impacts ranging from $500,000 at Austin to,*$7.2 million at

Duluth, including both primary. and secondary incomes. This

does not include airport related military pay and procurement

of $23 million in the Duluth area.

A comparison of the percentage of gross regional output

of the direct dollar impact from the smaller communities

studied and larger metropolitan hubs indicates that the role

(percentage) of direct dollar impact from aviation activities

.increases as the regional output increases. This may be

attributed to the additional service and ancillary industries

which are associated with increased aircraft operations. This

percentage varies from .1 percent at small airports to 4 per-

cent at large hubs.

In other studies, indirect income from industries has

been attributed to*the existence of an airport. This income

may also be attributed, however, to the existence of labor

supply,.utilities, or highways. Thus it may be concluded that

the airport is a necessary part of the overall regional

economic structure but is not in and of itself solely responsible

or sufficient for the attraction of many industries.

Stu.dies dealing with aviation at'the national level have

253

assumed that the redistribution of economic activity and

employment does not play a role in the economic well-being

of the Nation. For communities with high levels of

unemployment, high rates of out-migration, and low per capita

income, such redistribution may be important. These studies

also did not address the important role of access to other

services and amenities for small non-metropolitan communities.

SUMMARY OF FINDINGS FOR SELECTED MINNESOTA AIRPORTS

Summaries of the principal findings for the three air-

ports are presented below.

DULUTH

SUMMARY OF FINDINGS

� Duluth International Airport and av iation-related activities

contribute $7,200,000 directly to the economy of the Arrow-

head Region, which amounts to .4 percent of the regional

gross industry output. This increases to .6 percent when

the impact for all airports within the region is considered.

� Airport related military pay and procurement in the

immediate Duluth area contribute an additional $23 million

to the economy.

� Business-travel accounts for 60 percent of the scheduled

air passenger tri ps and 70 percent of the general aviation

trips.

254

Non-residents arriving in Duluth by commercial aircraft

and remaining overnight spend an average of $31.29 per

day, with an average stay-of 3.4 days. The respective

figures for general aviation are $22.81 and a one-half

day'stay. These figures account for indirect expendi-

tures of $8,200,000 annually in Duluth.

If no airport facilities were available, business

conducted in Duluth would be reduced 24 percent by those

persons presently utilizing scheduled air service and 41

percent by those utilizing general aviation. of the

$8.2 million in indirect income, approximately $2.7

million in indirect income, approximately.$2.7 million

would be lost.

Sixty-six percent of those presently using the airport

would make alternate arrangements if the airport were

not available, travelling an estimated 5.7 'hours for

,each one-way trip. Assuming a value of $10 per hour for

these travellers, the additional cost would equal $2,900,000

annually.

HIGHLIGHTS

In small,communities, one or two trips per day of

larger corporate aircraft may mean more in indirect

255

economic impact than a large number of operations of

smaller aircraft, depending upon trip purpose.

The direct economic impact of airports.in small

communities comprises a smaller percentage of the gross

regional output than it does for larger hubs. This may

be attributed to the increased interrelationships of

primary and secondary support-industries associated

with aircraft operations at larger hubs.

An airport is necessary, but not solely sufficient, for

attracting many industries into a community. Other

essential economic factors are an adequate labor force,

utilities, a favorable tax structure and the availability

of other transportation modes.

From the point of view of an individual community,

relocation or redistribution of industry is important,

especially if the community has unemployment higher than

the national level, a high rate of outmigration, and a

low per capita income.

256

MINNESOTA HIGHWAY DEPARTMENT

Coastal Zone Traffic Data

Present (1974) Traffic Volumes

Existing traffic volumes on the state trunk.highways and

county state aid (CSAH) routes shown on the accompanying maps

were compiled based upon traffic counts taken on county roads

at 5-year in@ervals and on traffic counts taken on the state

trunk highway system at 2-year intervals. In cases where the

most recent county traffic counts were made several years agof

the data was factored up to attain a 1974 estimate based upon

past growth rates in the county'. In the case of Cook and Lake

Counties base.data was from 1973 and in the case of St. Louis

and Carlton Counties 1969 and 1970, respectively.

Heavy commercial truck volumes on the state trunk high-

way system were estimated based upon annual vehicle classifica-

tion counts made at automatic traffic recorder stations and

upon additional vehicle classification counts made at other

locations periodically.

Projected 1995 Traffic Volumes

Projected 1995 traffic volumes on the state trunk high-

way system are based upon a computerized statewide travel

forecasting model. The model projects future travel through-

257

out the state based upon relationships between a city's pro-

jected population and the number of trips of various lengths

it generates. The population-trip length and population-trip

generation relationships were developed based upon field data

collected at roadside interviews conducted throughout the state

in 1966. Trip volumes at state line boundaries, such as the

Pigeon River crossing, are projected based upon historical

trends at the location.

Travel volumes on the county state aid road system were

projected based upon historical trends on each specific route.

it should be noted that the forecasted volumes do nol---

reflect additional traffic which would develop should extensive

copper-nickel development take,place in th e Coastal Zone.

AUTOMATIC TRAFFIC RECORDER DATA

Automatic traffic recorders (ATR's) are automated devices

which record hourly traffic volumes throughout the year at

selected locations throughout the state. Such automatic traffic

recorders are located on T.H. 61 near French River (ATR 213)

and on T.H. I near Finland (ATR 214). in the Lake Superior

coastal zone.

Annual Average Daily Traffic (AADT)

Graph No. 1 presents long term trends in traffic volume

at both locations. It should be noted that while data is
available since 3.946 (28 years) at tiie.T.H. 61 locations, data

258

is available for a much shorter period of time (since 1970)

at the T.H. 1 location. It should also be noted that a dis-

ruption in the continuity of data occurred at the T.H. 61

location during construction of the 4-lane expressway which

replaced old T.H. 61 in 1966. During 1966 and 1967 an ATR

was in operation on both old and new T.H. 61 (see Graph 1).

It should be noted that while traffic volumes increased

sharply on T.H. 61 in the immediate post W.W. II period,

from 1946 through 1955, traffic has remained rather stable.

since that time. Not until 1971 and 1972 did volumes again

reach the levels established in 1955 and 1956. The year

1974 recorded a decline probably due to the energy situation,

from the record high volume achieved in 1973.

Very slow growth in average annual daily traffic has

been recorded at the ATR on T.H. 1 near Finland and traffic

volume remains at a very low level here.

Monthly And Weekday-Weekend Variations In Travel

Graph'No. 2 depicts monthly and weekday-weekend variation

in travel at the French River location on T.H. 61 from 1970

through 1973. It should be noted that travel reaches a high

point during the summer months, generally July and August,

at this location. The graph also indicates that travel during

the winter months is substantially below the annual average,

falling about 70-80 percent below the'summer peaks. It should

259

also be noted that while weekend traffic is substantially

higher than weekday traffic during the spring, summer and

fall, the difference between weekday and weekend travel

during the winter is not great.

The-third graph shows data similar to that contained on

Graph 2, but for the T.H. I location near Finland. Seasonal

variation at this location is even greater than at the T.H. 61

location, which also has a high seasonal variation. An item

of some interest however, is that the seasonal variation

seems to have decreased significantly over the 4-yea r time

span shown on the graph. The reason for this decrease is not

obvious, and would require further study to evaluate properly.

Although weekend traffic appears to be higher'than weekday

traffic throughout the year at the T.H. I location, the

difference is greatest'during the summer months.

Heavy Commercial Truck Traffic

Heavy Commercial Average Daily T raffic (HCADT) is deter-

mined annually at ATR locations based upon manual vehicle

typ e classification counts made at each ATR. Heavy commercial

vehicles include all types of trucks and buses except panel

and pickup (2 axle, 4 tire) vehicles.

.It should be-noted that at the T.H. 61 location where

long, term trend data is available, except for 5 axle semi-
trailers, heavy commercial traffic showed-a ge'neral decline

260

between 1963 and 1971 as a percentage of total traffic.. A

sharp reversal took place between 1971 and 1973. During this

2-year time period truck volumes as a percentage of total

traffic increased markedly for virtually all truck types (see

Graph No.. 4). Since total traffic volume at the location

increased during this period, (see Graph 1) th e jump in

percentage heavy commercial represents a sizeable increase

in actual truck volumes.

Heavy commercial truck volumes at the ATR on T.H. 1

near'Finland also showed a substantial increase as a percentage

of total traffic between 1971 and 1973. Since the growth in

total traffic volume at this location was small however,the

sizeable percentage increase in truck traffic r eflects only

a small increase in actual truck volume.

Traffic Volume During the Highest 100 Hours

Graph No. 5 shows traffic volumes at the T.H. 61 and T.H.

1 ATR locations during the 100 highest volume hours of the

year,. expressed as a percentage of annual average daily traffic

volume at these locations.

Roads are generally designed soas to accommodate traffic

volume during the 30th highest hour without unreasonable

delay and congestion. This design criterion is based on,the

assumption that hourly traffic volumes declinevery slowly
beyond the '30 highest hours. Based upon the data presented

261-

in Graph No. 5, traffic volumes at-the ATR locations on T.H.

61 and T.H. 1 would seem to reflect "typical" conditions in

that beyond the 30th highest hour, hourly volumes decline

slowly.

Highway Scenic Easements In the Coastal Zone

The Minnesota Highway Departm ent has obtained a number

of scenic easements adjacent to T.H. 61 in the Lake Superior

Coastal Zone. These scenic easements are in perpetuity and

include the following stipulations:

"(The State) may cause to be removed from the scenic area

any unauthorized materials or advertising devices, except:

(1) signs, displays, and devices advertising the sale or lease

of the property and (2) signs, displays and devices advertising

activities conducted on the property. The State shall also

have the right to cut and remove brush, undergrowth, and dead

or diseased trees from the scenic area, and also may enhance

or perpetuate the scenic.area by planting additional trees

and perform selective tree cutting and trimming in the scenic

area. Any material so cut, if not diseased, may at grantors'

option be retained by grantors.

No rights are hereby granted to the general public to

enter upon the scenic area for any purpose.

"The grantors for themselves, their heirs, executors, and

.assigns, do hereby covenant that:

262

No use or occupation other than as herein specified

shall be made established or maintained within or upon said

scenic area.

112. No dumping of ashes, trash, junk, rubbish, sawdust,

garbage or offal, shall hereafter be allowed upon the scenic

area. Existing use for any such purpose shall be terminated,

and any such materials shall be removed within 120 days of

the date of this instrument or as hereinafter set forth.

"3. No trees or shrubs shall be destroyed, cut or re-

moved from the scenic area except as may be required for

reasons of sanitation and disease control and except for

selective cutting of timber as specifically authorized by

written permit from the Commissioner of Highways.

4. No new installation of any public or privately owned

utility line shall be made upon or within the scenic area

except pursuant to a written permit from the Commis sioner'of

Highways.

.5. No advertising devices in any form or size shall

be constructed, placed or permitted to be constructed or

placed upon the scenic area except: (1) signs, displays

and devices advertising the sale or lease of the property and

(2) signs, displays and devices advertising activities con-

ducted on the'property, which are approved by the Commissioner

of Highways. No structures other,than those in existence

263

on the date first written below shall be constructed, erected

or placed upon the scenic area without a written authorization

from the Commissioner of Highways."

264

s9z

L.L

o::

N0110flYISNOO N0110ndiSNOO

cza
-_j
tA->
-z'

Cl.
C>
L- C>

S3101113A JO AHMN

gge -

zxz ---z::
I--

Z:z =z

t@j kAj

At-
LL
LL
<

ui
57

Z)
L.LJ Z C)
C.D Z U

w
< a.
CC <

cli 00 Nr
C-P)
IN30 83d

z2p- :ZE

L'i LU

U-
UL
<

------ - -------

L
L
d I-
> 0

LU - ------
o Z

z
0

CL ------

0 - -- ---

.AZ
Q.

IN33 83d

0 x

ol
LL ><

Or-
0 LLJ

\ 0

LL
Ld 0
@E

0 w

> W

Kz
vll@

INIO H3d

0 x
0 x
0 x
0 x
0 X
0 X
x
x
0 x
x
0 x
0 x
LLJ 0 x
0 x
0 x
0 x
Ld 0 x
0 X
0 x
0- X
0 x
0 x
0 x
> Cj= 0 x
-C 0 x
LLJ 0 x
Q 0 x
0 x
LL 0 x
0 x
0 x
0 x
_j cr- 0 x
0 x
0
0 x
> 0 x
RI: 0 x
0 x
:w_- 0 x
O-X Co
U- zi; 0 x
Lj- 0 0 x
0 x
< 0 x
LLI 0 x
0 x
0 x
0 x 0 x (41
Ck: 0 x 0 x
W 0 x 0 x U'j
0 x 0 x
> 0 x 0 x
0 x
0 x
0 0 x
3: 0 x
0 x
0 x
00) 0 x
O-X
LL x
0 x
0 0 x
0
0 x
0 x
Lli 0 x
3: z x
ui 0 x
2 C-) 0 . x
0 x
0 x
0 x
LLJ 0
0
0 x
0 x
x
0 x
O-x
C@j
0 x
0 x
0 x
x
x
x

x
x
0 x
0 x
0 x
0 x
0 x
0 x
0 x
Jz 0 0 X
0 x
1 1

<=. U".) Lill
cli C"i

.MINNESOTA HIGHWAY DEPARTMENT
.Trunk Highway 61 Northshore
Two Harbors to Illgen,City

The introduction to this study consists of four parts; PURPOSE

(what the study was intended to do), BACKGROUND (why the study was

done), REGIONAL SETTING, and APPROACH (how the study was done).

PURPOSE

The purpose of this report is to provide District 1, Duluth

with information for use in accord with the improvement, upgrade,

or re-alignment of Trunk Highway 61. As requested by the District

in November, 1971, (see Appendix A) this report documents the social,

economic, environmental, and engineering factors that influence the

Trunk Highway 61 location. The District Office pointed out two

considerations in their request. First, the study would be of value

in determining the eventual proper highway alignment. And second,

the study would then provide a basis for the required documentation

of the environmental impacts. This North Shore study fulfills the

first phase of their request in assessing the resources of the

scenic corridor.

BACKGROUND

The North Shore Study was initiated in 1972 to examine the

sensitive social and environmental areas of a scenic region.of

Minnesota to provide information for the improvement of Trunk High-

way 61. It follows a 1972 r eport by Edwards and Kelsey, titled

270

"Compatibility of Leisure and High Mobility Traffic in a Scenic

corridor, Minnesota, Northshore - U.S. 61." The-Edwards and

Kelsey report primarily considered the economic aspects of the

North Shore.of Lake Superior and the potential for development of

a major highway. This study focuses on a specific area and the

specific issues of the social and environmental factors.

The study area consists of a corridor, approximately four

miles wide, which stretches from the city of Two Harbors to the

intersection with Trunk Highway 1 at Illgen City. A new four-

lane divided highway has been constructed from Duluth to Two

Harbors, and the inplace route from Two Harbors to the Canadian

Border has been up-graded with turn lanes, additional traffic

lanes, and overlays.

Because of the Department's and other citizens interests and

other concerns about Trunk Highway 61 along the North Shore, this

ig4
study was or -Lnally requested when a high construction priority

was given to this project. After data was collected and analyzed,

the Back-bone Plan of the Highway Department revised priorities

more realistic with present funding capabilities for the next 20

years. Because of this, Trunk Highway 61 was rated near the end

of the 20 year program. With this lower construction priority,

this project also received a lower planning status. For these

reasons, on the
this study completes only Phasel as indicated

Planning Approach diagram on page

271

REGIONAL SETTING

The study a*rea itself is characteristic of the North Shore.

Within its approximate four mile width and thirty-@even mile length,

the natural features vary from lakes and rivers to forests, bluffs,

cliffs, and.rock out-croppings such as palisade head. This vari-

ation in scenery, along withother desirable features, attracts

many tour.ists and vacationers to the area. They are served by

numerous state parks, along with public and-private campgrounds.

The transient business is an important part of this region's rural

economy but not essential to the two major urban centers. The

cities of Two Harbors and Silver Bay are primarily oriented toward

the mining and logging activities found on the North Shore.

rreSerl'U-JU, t1ne only major route paralleling
the North Shore

is Trunk Highway 61 connects Northeast from Duluth to Thunder Bay,

Ontario, In addition to being an International linkin Eastern

Minnesota, this highway serves the population centers of Two

Harbors, Silver Bay, Little Marais, Grand Marais, and Grand Portage,

as wellas major, seasonal, all-season and seasonal vacation and

recreation centers.

PLANNING APPROACH

This section explains the computer process as well as the

planning approach diagram on the adjacent page. The steps on the

diagram in Phase-1 are discussed, including data, analysis and

assessment. A succeeding phase may include the resource evaluation.,

identification of alternatives and route location evaluation.

THE COMPUTER PROCESS

The planning approach is based on a computer program. termed

Environmental Planning and Programming Language" (EPPL). EPPL

is a "packaged" computer data storage and manipulation program,

developed by the Department of Landscapte Architecture at the

University of Minnesota.

The EPPL program does a number of things many programs can not

do, and it does them very efficiently,.saving time and money. The

program handles large amounts of data and liberates the planner

and engineer from purely mechanical tasks. The University of

Minnesota Cyber,74 System was used to run the EPPL program.

Essentially, the computer output maps reveal the locations

most sensitive to a highway location shown by the darkest tones or.

the areas most desirable in the lightest tones. The planning

approach illustrated contains three major steps including 1) the

data, 2) analysis, and 3) assessment contained in Phase 1 and

documented in this report.

THE DATA

The planning approach begins with a collection of information

about the resources of the study area. The first step in the North
Shore Study was to define the study area and establish a grid' system

for the data base. The grid consisted of rectangular cells 264 x 440

feet which contain 2.67 acres. The adjacent diagram entitled "the

273

cell" shows the relationship of the computer cell to a 40 acre parcel

as well as the one mile section and the six mile township. Once

the grid was established, data was collected, then coded and stored

in the computer. The data consisted of two types, physical

characteristics of the.land and land use.

All data that could influence the suitability of the site for

a highway location was collected for each cell. The information

collected for this study includes all'those listed under Data on

the Planning Approach Diagram.

THE ANALYSIS

The next step in the Approach was the analysis of data. This

combined the various data categories to determine the suitability

S4 1- 4 t 4 4
of thle L-4L--.e for a11-LghLway route loca Lon. For _nst-ance, formulas

were developed to illustrate wildlife habitat areas based.on

characteristics of slopes, aspect (slope orientation) and elevation

data. The computer then searches the study area to see which areas

qualify. Similarly areas susceptible to potential erosion were

determined by soil types, percentage of slope, as well as the aspect.

The maps shown in the Analysis part are based on the social,

economic, and environmental effects suggested in Policy and Pro-

cedure Memorandum 20-8 from the Federal Highway Administration.

THE ASSESSMENT

After the data has been analyzed and the best uses of the

study area determined, the information is combined into sensitive

land uses called the assessment. The maps shown in the assessment

274

are based oninformation required in Instructional Memorandum 20-4-72

from the Federal Highway Administration. While the computer indicates

the best location for the highway route as well as other activities

within the study area, it is necessary to use human judgment in

blending the uses into a cohesive solution.

The future pha se of work may carry on from the assessment, in-

cluding resource evaluation, identifying alternatives and route lo-

cation evaluation. The assessment maps may be used to show

opportunities and constraints and to identify route location

possibi lities. The route locations may then be tested and impacts

quantified to evaluate the possible options.

The data section is an inventory of the basic information re-

quired for a computer aided site evaluation. The data maps display

the physical characteristics of the study area along with the

present land uses. Each data available has been mapped separately

as a unique symbol (Data Level) which represents the condition of

each respective cell. Raw data variables must be studied in-

dividually and in detail before they can be analyzed; therefore,

tones have been applied to the data variables to assist in the

interpretation of the condition existing in each cell of the

computer map. This application of tones does not indicate a

series of ascending or descending values. Values are only assigned

in the analysisand assessment status.

275

U. S. Highway 61is a primary, heavy duty route which serves

as the main traffic artery through the study area as well as for

the entire North Shore. Highway 61, from Duluth, enters the study

area at Two Harbors and runs along the shore of Lake Superior to

Illgen City where it leaves the study area and continues to the

Canadian Border.

Four other routes intersect Highway 61, providing access to

inland area s. Minnesota Trunk Highway 1 begins at'Illgen City

and bears northwest toward Ely and is the only other primary road

in the area. In addition to these two routes, secondary roads

such as Lake County Highways 2, 3, and 4 provide circulation

through the entire region.

utilities serving the study area are; telephones., electric

power, and railroads. These are generally confined to specific
two
corridors such as highway rights-of-way and to the major urban

centers.

Telephone service throughoLit the area is provided-by the

Gopher State Telephone Company. Transmission lines are usually

located within public rights-of-way as over head lines, but some

are being relocated underground.

Electric power for the study area is provided by three

distributors. The city of Two Harbors is supplied by Two Harbors

Public Utilities which purchases power from other sources while

Silver Bay is supplied by Minnesota Power and Light. The rural.

areas and essentially the remainder of Lake County receives

electric service from the Lake County Co-operative Power Associ-

276

ation located in Two Harbors. Reserve Mining Company, located in

Silver Bay, produces its own electric power.

Railroads in this region primarily serve industrial - ex-

tractive activities. Two Harbors is served by the Duluth, Mesabi,

and iron Range Railroad which transports processed taconite to the

United States Steel Docks at Agate Bay. Silver Bay has the

Reserve Mining Company Railroad which transports taconite ore to

Reserve's processing plant located on Lake Superior.

Another major utility in the area is Northern Natural Gas

Company, which owns a 16 inch underground line that serves Two

Harbors and Silver Bav. It is primarily located outside of the

area under study except in the immediate vicinity at the respect-

ive communities.

Lands within the study area are subjected to many diverse

uses. These range from agricultural, resi dential, commercial and

industrial use to recreation and tourism.

Agriculture along the North Shore is primarily devoted to

livestock production with only minimal areas devoted to small

grain crops. Vegetable production.is mostly on a family garden

basis.

Commercial land use within the r egion varies with location.

The urban centers do not specifically cater to tourist or vacation

trade but are oriented towards the respective communities. Along
Highway 61 establ'ishments oriented towards. transient trade are

common. These include the businesses affording lodging, service

stations, restau rants and novelty shops.

- 277 -

Industrial land use is somewhat varied in Two Harbors but

is primarily process oriented within Silver Bay. This is evidenced

by the large Reserve Mining facility there. In outlying areas

lumbering and pulpwood harvesting are common land use activities.

Due to.its fine natural features, the North Shore provides a

great deal of attraction for recreation, vacation and tourism.

The study area, itself primarily serves a seasonal, transient

tourist trade, with numerous motels and res-orts along Highway 61

and around the lake in the area of Silver Bay.

Property values within the study area are generally highest

along the shore of Lake Superior and decrease as view of the lake

or access to the lake is lost. A few exceptions to this are found

w,he-C 4nl_-nd wate-r-s or @cerjC make parcels desirable for
V4 a+-=k a

recreational use, transient tourist trade, and vacation retreats.

At greater distances.from. the shoreline, property values be-

come dependent upon suitability of the land for recreation, forest

crop application or agricultural production.

The estimation of Land Value was done by the Dlistrict 1 office

in Duluth. Samplings were taken throughout the study area and

values were assigned to individual cells based on present market

value.

The panoramic vistas, sheer cliffs, rugged hills, magnificent

forests, cascading streams, crystal clear waters of Lake Superior

and access provide the prerequisites necessary to make the study

area suitable for-recreation.

278

Some recreational uses of North Shore lands and waters include

camping,, bicycling, horseback riding, swimming, boating, picnicingp

snowshoeing, skiing, sno,@%,mobiling, hiking, sightseeing, and

photography. Fishing, hunting and trapping provide many hours of

recreational enjoyment, and in the case of trapping, a source of

supplemental income. North Shore streams abound with trout, both

native and stocked. Hunters may pursue deer, ruffed and spruce

grouse, moose, and black bear when these are in season. Trappers

harvest beaver primarily but may also take fox, coyote, lynx,

bobcat, mink, weasel, and muskrat.

Camping and related activities are provided by numerous

public and private facilities within the area.

1 4 1 4 C S
Data collected on existing recreat.Lonal fa c i I L. iare

summarized in the map below.

Unique features are those sites that are of a local or region-

al significance due to present use, past history, or visual quality.

These features can be divided into cultural or natural features.

Cultural features are those sites which have historical or

archeological value or are of socialsignificance due to current

usage. Historic sites include Indian burial sites, pioneer settle-

ment s, early industrial sites,and the existing county historical

society. The areas previously mentioned were identified by the

Minnesota Historical Society and the Department of Highways in

order to prevent possible conflicts with highway alignments.

279

Natural features within the study area include geologic for-

mations, cascades, virgin timber stands, exceptional tro ut habitat,

and scenic views or vistas. Features considered to be scenic in-

clude islands, bluffs, cliffs, shoreline, and dominant geologic

formations inland from Lake Superior. There are two reasons for

identifying the natural features of the study area; some-areas

such as scientific or natural areas should be preserved while

areas such as scenic views have been identified for their aesthetic

appeal and should be utilized.

This analysis was carried out in order to forecas& possible

development within the study area. Access is dependent upon

existing transportation routes through the corridor but also in-

.dicates isolated land uses. The criteria for@transportationxe-

lated access was established as one-half mile,on each side of

existing roadways.

Accessibility is essential to the North Shore region. Due to

the distance between urban centers good roads are necessary to

serve the rural residents. Also, resource development relies upon

the highway system for commercial transportation and to serve the

tourist industry. Access to the vast forest areas is an important

factor in suppressing and fighting forest fires.

Existing access influences the development and economy of the

study area; improved accessibility for transportation facilities

generally increases land use possibilities with resulting increases

in land value.

280

Lake Superior's North Shore has a great diversification of
recreational activities for the visitor as well as the local resident.
Three state parks which are located within the study area are:
Gooseberry Falls, Split Rock Lighthouse and Baptism River. En-
compassed within each state park are many unique natural features.
Out-of-door activities such as: fishing, hiking, snowmobiling,
camping, bicycling, and picnicing are provided for at the state
parks. There are also private campgrounds which offer some of the
same recreational activities and facilities as the publicly-owned
parks. A large number of private resorts serve as jump-off points
for the many recreational activities that exist in the area. Winter
snow ski runs and tows operate at Two Harbors and Silver Bay.
Hunting and trapping occur throughout the area on both public and
private lands. Two golf courses exist; one at Two Harbors and
the other at Silver Bay. With the wide range in recreational
activities, the individual user may find excitement year-round.
The map below illustrates State Parks and other designated
recreation areas. These areas should be given special consider-
ation when T.H. 61 is upgraded. They are all dependent on access,
but increased traffic or realignment could have adverse affects
in the form of congestion, or vehicular oriented pollution.
For the purposes of this report, local centers are those
areas which provide seasonal commercial services. These include
park concessions, motels, cabins, vacation retreats and tourist
related facilities that cater to the summer vacation trade.

-281-

The local centers have been identified because they are de-

pendent on highway oriented businesses. They should continue to

be easily accessible by persons using T.H. 61 for business and

pleasure. Bypass of these areas would be undesirable because of

the detrimental economic impact upon such businesses.

The two major urban centers in the study area are Two

Harbors (population 4, 437) and Silver Bay .(population 3,504).

Together they represent approximately '-2 of the total population

of Lake County.

Two Harbors is the county seat forLake County and is the

major commercial center within the area. It is alsothe location

for various industries and serves as a shipping point for processed

-eel
a-1-es St
L-aconite 'or TUT)n Ji -It---ed S4

The economy of Silver Bay is almost entirely dependent upon

Reserve Mining. This firm is the major employer within the

community and accounts for a large share of the tax base. Other

businesses are service oriented and'provide the basic services for

the people of the Silver Bay Area.

In addition to the two urban areas previously mentioned,

Beaver Bay contains a significant number of peopleand businesses.

The population of this community is three hundred sixty two persons.

It is located on U.S. Highway 61 southeast of Silver Bay.

Highway 61 serves as the major transportati on route between

Two Harbors and Silver Bay through.Beaver Bay and the various,

tourist dependent, local centers.

282

The local communities, and the recreation facilites in the

study area are served by state, county, city, and township roads.

These roads provide access for local residents and vacationers, as

well as access to the natural resources of the study area.

Township roads are an extension of the county road system.

They provide service to residents, vacation. homes, and commercial

operations located in more rural areas.

The 'county roads within the study area link rural areas with

Two Harbors., Silver Bay, and T.H. 61 which serves as the main

circulation routes.

Within the urban centers, city streets yield access to

commercial establishments which pro vide services to the respective

communities, vacationers and tourists.

The cost of maintaining a roadway it directly proportionate

to the number of man hours, equipment and the materials expdnded

in keeping the road in good, safe driving condition. It is an

additional function of soils, slopes, grades and vegetation. The

darkest tones on the map below represent cells that have combin-

ations of the most severe factors of each. They.should be avoided

to keep maintenance costs to a minimum in the future.

During the summer, time and money must b e spent mowing and

spraying the right of way, collecting litter and maintaining signs

and markings.

Winter months, time and money is spent keeping road and bridge

surfaces free of ice, snow and debris.

283

In addition',.major repairs may be necessary throughout the

year on the road, shoulders, ditches, and related appurtenances

such as signs, guard rails, and drainage structures.

Certain physical features such as steep slopes, streams, easily

erodible soils and poorly drained soils, make it more difficult to

keep the road in good condition thus increasing the cost of

maintenance.

The right-of-way costs expressed here are relative costs.
No attempt has been made to fix an exact dollar and cent@' value to

the land in question. The factors used to determine right-of-way

costs are; existing land use, recreational land use, land values

and utilities which have been estimated by District 1, Duluth.

Each of these has been further divided into specific uses,. value

ranges and type of utility. These are the factors which add to

the value of a specific parcel of land.

For example, a lake shore development with existing public

services would have a relatively high cost and an undeveloped

area inland from the lake would have a relatively low cost.

284.

Highway construction costs a're dependent on several

variables. Those included in this report are soil type, percent

of slope, erosion potential, the type of vegetation, and the

watershed in which the highway is constructed.

The variables given may influence highway construction

costs in many ways. An example for each case follows-.

1.) Soil type is an important factor in stability of the

highway and the ease of construction. It is important,

because the availability of borrow and gravel, along

with the presence of rock and peat affect construction

costs. Soil type will also effect the type of equip-

ment needed by the construction-contractor. The more

expensive it is to operate specialized equipment, the

higher the overall cost of construction.

2.) Percent slope determines the amount of cut or fill

required.

3.) Erosion potential'determines degree of slope on back

slopes and type of soil stabilization required. Con-

struction costs will be influenced by the amount of

soil and rock that must be movedor disposed of when

cutting back slopes. Also, the stability of the soil

will determine the type of vegetative and mechanical

st abilization necessary, again having an impact on

construction cost.

285

4.) Amou,nt and size of vegetation can significantly affect

removal costs prior -to construction.

5.) Watersheds and drainage systems vary greatly and may

require construction of various culverts and bridges.

The factors influencing construction costs vary greatly

within the study area and with respect to highway location

within the study area.

The North Shore Region of Minnesota is famous for its

unique scenic quality. The major scenic features that give

the area its distinct character are Lake Superior and its

rocky shoreline, along with the spectacular water falls and

cascades that have formed in the gorges as the rivers draining

the upland forest areas have eroded through the volcanic rock

of varying resistance.

The present route is where most of the scenicIfeatures

are located and it offers the grea test variety. Most of the

features are located in the river gorges which run perpendicular

to the present highway alignment and cannot be viewed without

stopping. Viewing angles appropriate for even low speed

viewing could not be achieved without endangering the features

themselves.

There are no single areas inland which are scenically
%
omplex enough to justify a complete new route. Rather,

senic points are located individually and are suited for

roadside pull-offs. An inland route could offer a.number of

panoramic vistas of Lake Superior which could lend themselves

286

to high speed viewing, supplemented by selected pull-offs.

_T'he-scenic quality of the present route could be improved

by opening up more vistas; providing better pull-off areas; and

also by providing for pedestrian and bicycle traffic along the

route. Also, by maintaining the present route location, high

intensity use would remain confined to the immediate area of

the lake. An inland route would weaken both the intensive

reaction uses near the lake-and the extensive inland recreational

uses.

The scenic intervisibility map depicts those areas or

features of the Unique Features Map that are.seen from certain

distances. The map below illustrates the darker tones where

the following views are possible: (the darkest tone depicts

the area or feature from which the view is run).

1) Views of unique features such as water falls, cascades,

Split Rock Lighthouse, trout streams and islands. The

viewshed is one mile maximum distance.

2) View of land forms include Palisade Head, Islandsj Silver

Cliff and other dominant geological formations which are

seen up to one mile distance.

3) Views of the shoreline show the area up to one mile

distance in which the edge of the Lake Superior is visible.

4) The horizon view of Lake Superior is depicted as 'a view to

a series of points approxi mately one mile into the lake

from the shoreline. This 3-mile.search Qraphically portrays

the line where the sky seems to meet the surface of Lake

Sunerior.

AL RESOURCES
DEPARTMENT OF NI%TUW

State Co mprehensive Outdoor Recreation Plan

Purpose of the Plan

The purpose of the Plan is'to provide a guide and frame-

work for management, protection and development for the outdoor

recreation system. This will be done through the presentation

of background information, outlining of needs and deficiencies,.

the setting of.priorities, and by presenting alternatives

for action.

Goals For Outdoor Recreation--Ln Minnesota

The goal for outdoor recreation in Minnesota is to manage

and protect the appropriate natural, historic and archaeological

resources in Minnesota and develop supporting facilities and

programs for an outdoor recreational system providing quality

recreational and aesthetic experiences

Manage and protect . . . would imply proper planning for

future natural resource needs. Protection of certain resources

is preferable to development; while development of certain

resources is n6cessary to provide for use of the air, water and

land (including the fish, wildlife and vegetation managed as

ecological communities), and the landforms represented in parks,

forests and other recreational resources. A proper balance

288

of protection, development and use of the resource is

assumed.

The Outdoor Recreation System

The Minnesota Outdoor Recreation System, as the phrase

is used in this Plan, includes the broad spectrum of areas

and facilities.for all types of outdoor recreation provided

by all levels of government, plus the private sector. It is

composed of several components (See-Table 1-1), and consists

of a.wide variety of areas which will provide readily avail-

able opportunities to urban, suburban and rural residents,

irrespective of age, sex, color, residence, economic status

or physical disability.

objectives For the outdoor Recreation System

In order to achieve the goal for the outdoor recreation

system as stated'above, certain objectives have been established

to provide specific targets.

These objectives-are general in nature and intended to

provide an overall direction or guide for developing the

recreational system'.

(Specific objectives stated in quantitative terms are

discussed in the Action section; Chapter 7.)

Incorporate into the Outdo or Recreation System in Minnesota,

by 1990, resource areas of high quality and diversity in

289

sufficient quantity to conserve and portray the state's

natural, historical and archaeological heritage.

2. Provide a suitable base for outdoor recreation experience

and activities to meet participation levels projected

for-1990.

3. Attain a fully coordinated partners hip among the various.

agencies and the private sector having administrative

jurisdiction over all components of the recreation system.

The specific capabilities of each agency should be

recognized and shared by the others in order to achieve

the best planning, development, operation, maintenance,

protection and visitor satisfaction of outdoor recreation

areas.

4. Assist the several levels of government to develop

recreational facilities which are best suited to meet

their needs, within the system goals. Standards and

guidelines will be prepared to outline the responsibilities

.of the various levels of government.

5. Seek financing for all levels of government to achieve

the stated objectives.

6. Maximize the participation of non-governmental entities

in the development and operation of recreation facilities,

to complement those provided by public agencies. The

-public sector should provide only those facilities which

290

the private sector cannot provide.

7. The outdoor recreation system must be flexible enough

to meet changing needs of the people or conditions.of

the resources.

8. Expand research into recreation problems to a level,

sufficient to provide planners and administrators the

necessary tools to adequately protect resources.and meet

recreation needs.

9. Monitor conditions of recreation and open space areas

on a.continuing basis, at all levels of the recreation

system, so that deterioration of resources can be

arrested before it becomes irreversible.

10. Provide, whereverIfeasible, facilities and programs for

environmental education.

DNR Park and Recreation Areas (161,600 acres).

The state park,and recreationsystem includes 59 par'rrs,

6 recreation areas, 12 waysides, 8 monuments, 16 boating and

canoeing rivers, 11 special authorized long distance trails

and 4 scientific and natural areas. The purpose of these areas

is to preserve the best examples of the scenic, cultural and

historical features of Minnesota's environment, while accommodating

the public in utilizing the educational and recreational

benefits inherent in these resources. At least 22 parks have

particular historic interest.

291

These lands are managed under,the jurisdiction of the

regional administrators of DNR, with planning and central

administrative services provided by the Division of Parks

and Recreation.

Minnesota's 59 State Parks present a wide diversity of

natural and historic features and recreational opportunities..

They are a composite of our remaining open space and natural

areas and are designed to capture and hold the unique identity

of a region -- its rocks and waters, its legend and lore. At

the same time they provide recreational opportunities for

fishing, swimming, camping and trail use, as well as valuable

areas for study and research.

Minnesota has six designated state recreation areas: sites

that are adaptable to heavy use and offer a broad range of

opportunities for active outdoor recreation.

The waysides and monuments generally a re small areas set

aside to preserve sites.of historic interest and, in some

cases, serve as rest areas for travelers.

Designated state trails are a relatively new component

of the state-administered system. These are long-distance,

overland trails which eventually will form a network through-

out the state. New trails were authorized by the 1973

Legislature, bringing the number to 11, totalling more than

.700 miles. The trail system is being developed as an all-season.,

292

multi-use network which will link many state parks, recreation

areas, waysides and forests. The system will be coordinated

with and supplemented by secondary and tertiary trails in

state parks and forests, and trails.

TABLE 4-4

Minnesota State Parks, Recreation Areas, Monuments
And Waysides

Total
Region County Year Total Authorized Lands
Established Land Area Acquired

STATE PARKS

Region 3
Baptism River Lake 1945 705.85 705.85
Bear Head Lake St. Louis 1961 4,371.00 4,111.00
Cascade River Cook 1957 2,813.00 1,895.00
George Crosby-
Manitou Lake 1955 5,160.00 4,790.00
Gooseberry Falls Lake 1937 1,662.00 741.83
Jay Cooke Carlton 1915 11,196.00 8,920.00
'Judge C.R.Magney Cook 1957 4,514.00 4,195.00
McCarthy Beach St. Louis 1945 2,562.00 1,743.91
Savanna Portage St. Louis 1961 15,758.00 14,605.55
Scenic Itasca 1921 1,334.79 1,334.79
Split Rock
Lighthouse Lake 1945 996.00 155.17
Temperance River Cook 1957 133.00 133.00
Tower Soudan St. Louis 1963 982.20 982.20

STATE WAYSIDES

Region 3
Caribou Falls Lake 1947 91.62 91.62
Cross River Cook 1961 2,560.00 600.00
Devils Track Falls Cook 1961. 240.00 240.00
Flood Bay Lake 1961 19.00 27.00
Franz Jevne Koochiching 1967 117.83 117.83
Kodonce River Cook 1947 127.80 127.80
Ray Berglund Cook 1951 45.90 45.90

Region, 3 -Overview of Recre ation Potentials

Bounded on the north and east by the province of Ontario

and Lake Superior, Region 3 ranks first in water and forest

acreage, contains Minnesota's only National Park and has a

wealth of history, including fur trading, Indian culture,

mining, lumbering, and commercial fishing..

Surveys indicate that fishing is the principal reason

Minnesotans and other Midwesterners vacation in-this region

(excluding the 160-mile North Shore). In the soft water lakes

of northeastern St. Louis and northern Cook and Lake counties,

sucker removal programs can enhance walleye catches. Also,

lake-stream trout are being planted in those counties' coldest

lakes to provide greater fishing diversity. These activities,

in addition to continued intensive walleye stocking programs,

hold much promise in expanding the area's game fish harvest.

Lake Superior also has significant s port fishing potentials.

During the 1950's Lamprey infestation virtually eliminated

sport fish from North Shore streams and the Lake. With the

infestation now being controlled, the recently enlarged North

Shore fisheries management program (lake trout, steelhead and

chi-nook salmon) has the potential to expand fishing opportun-

ities from a ten-week spring steelhead run,-to a five-month

multi-species season.

294

Potential 1977 North Shore Fishing Season

Steelh ead April - June and September

Chinook Salmon June - September

Lake Trout June - September

The popularity of fishing and boating on Lake Superior

also could be enhanced by an expanded harbor of refuge system

to assure boating safety.

in the centralpart of the region, public access to water

resources is being reduced by private developments, particularly

seasonal homes.

As a case in point, the south shore of Lake Vermilion

has undergone rapid conversionS from resorts and open space to

seasonal homes. Fortunately, th e regionis more southerly

located lakes -- such as Bass, Trout, Bluewater-Wabana and Deer

in Itaspa County do have public recreation potentials. Recreation

areas partially bordering lakes of such size and quality could

help assure adequate public water recreation opportunities

(swimming, fishing and boating) without unduly disturbing

already established resorts and private campgrounds, which

constitute an important part of the region's economic base.

Northeastern Minnesota's streams also offer substantial

potentials in meeting the water recreation demands of Minnesotans

and visitors. Although the B.W.C.A. lakes complex faces a

-major cha llenge in balancing recreational demands with ecological

295

concerns, alternative waters can'be promoted._'Much of the

Mississippi River flowing through Region 3 is suitable for

canoeing. Tuikewise, the Cloquet and St. Louis Rivers in the

southeast, and Little Fork, Big Fork, and Ve rmilion Rivers

feeding the Border Lakes Rainy River complex in the north,

could add substantial canoeing opportunities. Public preserv'a-

tion of stream quality, through Minnesota's wild and Scenic

Rivers System together with private outfitting operations,

holds much promise for accommodating increased canoeing.

Region 3 hunting opportunities serve a-statewide clientele.

Moose populations, particularly in the northern areas, have

increased in numbers to where a harvestable surplus is present.
The first season since 1922 was'held in 1971. Similarly,

large numbers of bear thrive in these counties and were given

game status during the same year. Moving to the west and

south, parts of Itasca and Aitkin counties offer good waterfowl

hunting and deer hunting opportunities. Along with deer,

ruffed grouse have long been primary viewing and hunting

attractions. The Region also hosts the last viable timber

wolf population in the lower.48 states. Maintaining or expand-

ing the aforementioned populations is highly dependent upon

forest management practices. Insufficient vegetative disturbance,

resulting in mature forests, has been one,of the primary reasons

forthedecline of,these species.

296

The Region also has significant camping, trail and

sightseeing potentials. The Superior National Forest, as well

as state forest lands in northern Itasca County and along

the North Shore, could absorb substantially more primitive

camping. Located adjacent to the Park, the Kabetogama State

Forest's significant camping potentials may be needed to

help assure adequate lodging for Voyageurs National Park

visitors.

Opportunities for accommodating hiking include.develop-

ment of additional hiking trails paralleling North Shore streams

and a connecting north-south hiking corridor paralleling the

shore and following old dog sled trails, logging roads, rail-

road grades and cleared boundaries between state forests, parks,

etc. Such a corridor, running three to ten miles "up from

the shore," could significantly expand existing hiking as well

as winter activity trail capabilities of the North Shore's

state parks; linking up with the North Country National Scenic

Trail, covering 386 miles through Northern Minnesota from

Danbury, Wisconsin, to Wahpeton, North Dakota.

Expansion of certain North Shore state parks could also

facilitate development of the North Shore trails system,'as

well as providing additional land for intensive uses (developed

camping, picnicking, short nature interpretation trails, etc.).

Other Region 3 trail potentials include connecting public

297

and private lands to form an Iron Range Hiking and Snow

Activity Trails System, linking the Range with Voyageurs

National Park. 'Potentials for shorter trail systems also'

exist in the state and private forests and couhty tax-forfeit@ed

lands. The Hibbing-Grand Rapids area and Aitkin County have

developed many miles of tra-il-s.using county and private forest

lands. Significant opportunities for expanding trail mileage

through such land aggregations pertain to much of the Region's

central and southern-areas. Additional trail system informa#-@

tion is' provided later in this Chapter-.

The Region also has a significant opportunity for

interpretation of natural history. An expanded naturalist-

sta @fed interpretation program,in state parks c Ian.definitely

enhance visitor appreciation of the area's diverse natural

resources.

Such programs*take on even greater meaning when full

recognition.of man's interaction with natural resources

(trapping, fishing, lumbering and mining) is realized. A

pri@nary objective of Voyageuts National. Park is interpretation

of the northern reaches of this region, particularly the fur-

trade. However, the fur trading story e@ctends well beyond the

Park to the south and east involving portages such as Fond

Du Lac, Savanna and Grand Portage.

Such portages were part of a waterways system used by

298

the British, Americans and French attracted to the prime

furs available in Northern Minnesota, Western Ontario and

Manitoba. Numbered among key interpretation possibilities

are the historic fur trade cemetery locat ed near Jay Cooke

State Park and nearby Fond Du Lac site (American Fur Company

headquarters).

Dpring the 19th century settlement period, the Savanna

areals Mississippi waters hosted small cargo-carrying vessels

making trips upriver, facilitated by a system of hand-operated

locks. Later, during the 1920s, placer gold mining took place

in the same vicinity. These interpretive "credentials,"

together with the state-owned shoreline along Big Sandy
Reservoir, justify consi dering part of this.area for a state

park site.

Another major state park potential, a "Mesabi Iron Range

State Park" (in the proposed Giants Ridge location), could focus

on the open pit mines which, during World War II, supplied high

grade, ore, accounting for the bulk of America's iron ore inputs

for steel products. Interpretation of rock outcroppings and

socio-economic interpretation of the industry's technological

adjustments (verified by open-pit ghost towns and nearby

thriving taconite.cities) could provide a quality recreational/

educational experience. In addition, the miners' strong ethnic

identifications, evidenced by festivals, could provide recreational

opportunities to visitors.

299

The iron ore mining story extends beyond the Range, to

the North Shore with its rail heads, ore boats and taconite

plants. The Shore also provides a-base for interpreting the

commercial fisheries industry (Grand Marais-Isle Royale)

which attracted the Norwegian population which set the ethnic

tone of many North Shore communities. In addition, sites

such as Duluth's Minnesota Point, with its outstanding beach,

lighthouse, dunes and waterbirds, and the high Pigeon River

Falls located 160 miles north, provide scientific and natural

area interpretation potentials.

Important private interpretation opportunities are also

available. For example, inland paper mills (Grand Rapids,

Cloquet, international Falls, etc.) through dev eloping combin-ed

plant-forest tours, have a unique opportunity to relate the

complexities involved in meeting man's needs and sustaining a

renewable resource. A recent survey of northern Minnesota

industrial tours indicates that such tours not only provide

good public relations, but are also considered interesting and

educational by visitors. Greater emphasis could be placed

upon these industries in strengthening the Region's sightseeing

opportunities.

Providing a summary of this Region's potentials is a

virtually impossible task, given its wealth of recreation

resources. Many significant features, such as battle sites

and geologic structures, have been omitted in -the previous

300

discussion in order to stress key themes. In spite of these

omissions, much of the overview has dwelt on the Region's

natural, historical, and cultural interpretation possibilities

because its vast sightseeing-educational capabilities probably

constitute its greatest recreational potential.

The interrelated historical and nature interpretation

potentials of the Kabetogama area played a major role in the

establishment of Voyageurs National Park. The direct impact

of the Park, in bringing new visitors to northeastern Minnesota,

will be very substantial. Equally, and perhaps more important,'

the-Park's program will provide a needed quality example of

the recreational opportunities which can be built upon diverse

natural and historical resources through interpretive efforts.

Throughout this Region, history in its broadest sense can be

traced; from a geologic time frame through early man (Indian

Mounds), 17th-18th century commerce (fur trading), and l9th-20th

century industrial adaptations. Recognition of this opportunity

constitutes a vast potential which has.been relatively untapped.

REGION 3

Aitkin, Carlton, Cook, Itasca, Koochiching, Lake and St..

Louis counties.

Swimming

Swimming water area at designated beaches and pools is

adequate to meet requirements for the Region through 1990.

301

However, swimming opportunities shou_ld be available in every.

community of 5,000 population or over, and where not existing

should be considered a priority item. Local swimming facilities

primarily are the responsibility of municipalities. (See.Note

5.)

Camping

There is a large deficiency of campsites in Region 3

nearly 800 less than needed to meet 1975 requirements,'and

nearly 2,500 short of 1980 requirements. To provide these

additional sites, 1.98 and 622 acres of land, respectively,

will be needed.

The 1972 inventory showed that in Region 3, 48 percent

of the campsites (outside of the B.W.C.A.) were provided by

the private sector; 21 percent by the state, 20 percent by the

federal government (mostly U.S. Forest Service); and 9,percent

by municipal governments. This represents a significant increase

in the involvement of the private sector in recent years.

It is suggested that in this Region, 25 percent of the.

campsites.be of the primitive type, 55 percent be of the semi-

modern type, and 20 percent be modern. (See Note 7.)

It is suggested that -the counties take an active role in

providing campsites of the primitive and semi-modern types,

utilizing some of the large acreages of county forest and tax-

.forfeit lands which they administers. The private sector

302

should continue to provide about one-half the sites in-the

Region, concentrating on the modern and semi-modern types.

The role of the state and federal governments will be in pro-

viding primitive sites, in keeping with the wild character

,of the forest lands in the Region, including canoe campsites

in the B.W.C.A. The state is not expected to develop any

significant number of additional semi-modern sites at state

parks (in fact, such sites probably w ill be cut back in some

parks.) Municipalities will continue to have a small role in

providing camps ites, as a tourist-bus,iness attraction.

Picnicking

A deficiency of 1,321 picnic tables was identified for

1975 in Region 3, and the deficiency is projected to increase

to 1,470 tables by 1980, and 1,762 tables by 1990. These

deficiencies will require 132 acres, 147 acres, and 176 acres

of land, respectively, to be satisfied (See Note 1.)

In 1972., 37 percent of the picnic tables were provided by

the state, 25 percent by the private sector, 23 percent by

municipalities, 9 percent by "the federal government, and 5 per-

cent by counties and townships.

The state will continue to play a key role in providing

picnic facilities in the Region, in conjunction with its many

parks, recreation areas P and waysides; and planned additions

should maintain its share of the total at about the current

303

level... To-meet the total deficienc ies in -the Regibn, however,

counties and municipalities will have to provide significant

additional picnic facilities, as part of local and county park

development (some of which may be of the "regional" type).

The federal government will continue to provide picnic-facilities

at its recreational sites in the Superior National Forest,

although additions are not expected to be significant; and

picnic facilities will be part of the development at the new

Voyageurs National Park.'

Water Accesses

There currently are 96 lakes of 150 acres or more in

Region 3 which do not have public accesses: 33 in Itasca

County, 27 in St. Louis, 22 in Aitkin, six in La7j,,e, five in

Cook, two in Carlton, and one in Koochiching. In addition, there,

are 14 smaller lakes which have been designated for intensive

fish management which do not have publ ic accesses: five each

in Aitkin and St. Louis counties, two in Itasca, an d one each

in Cool-, and Lake counties.

The DNR should develop public accesses on these lakes.

(See Note 2.)

Trails

Although hiking trails were considered to be in adequate

supply in Region 3, snowmobile trails were deficient by 274

miles., A total of 1,096 acres of 1,and will be required to meet

_304

this deficiency-

In 1972, 30 percent of the snowmobile trails were pro-

Xided by the federal government on national forest lands,. 52

percent by the state, 6 percent by counties and municipalities,

and 12 percent on private lands.

There are large state and federal land holdings in

Region-3 (5.1 million acres), and the majority of additional

trails probably will have to be developed on those lands.

However, coun ties also own a substantial amount of land (two

million acres) and, although the land largely is in scattered

parcels, it could contribute to meeting trail needs. Therefore,

it is recommended that counties ta ke a greater responsibility

in providing trails, especially to meet local needs (utilizing,

where appropriate, state funds from Snowmobile Trail Assistance

Program). The proposed'North Country National Trail will pass

through the southern part of the Region, providing additional

non-motorized trail opportunities. (S.. ee Note 3.)

Golf

The existing number of golf courses in the Region exceeds

the standard (18 holes per 25,000 population) by the equivalent

of eight 9-hole courses.

Athletic Fields and Playgrounds

A deficiency of 206 acres of athletic fields and playgrounds

was identified in Region 3 for 1975, and the deficiency will

increase to 264 acres in 1980, and 346 acres in 1990.

305 -

Municipaliti.es and school. districts should have the primary

responsibility in providing this type of facility. (See Note 4.)

Tennis Courts

A deficiency of 57 tennis courts was estimated for 1975,

but the deficiency will be less in 1980 and 1990 (50 and 37,

respectively), because of the significant population decline

projected in the Region., There should be at least one tennis

court provided for each 2,000 population. Tennis courts should

be the responsibility of municipalities and school districts.

306

Uo So DEPARTMENT OF T9E INTERIOR

Prepared by Mineral Resources Work Group
of the Great Lakes Basin Commission (Appendix 5)
Sponsored by Bureau of Mines
U. So Department of the interior

The mineral industry of the Great Lakes Region is important

to local and national economics. Total value of mineral

production approached 1.5 billion dollars in 1968. The Reg ion's

mineral industry also plays a strategic role by supplying 100

percent of the iodine, 69 percent of the iron ore, 51 percent

of the magnesium compounds, and 42 percent of the peat, lime,

and bromine Droduced in the 'United States. Other mineral

products are important in the more limited regional and local

markets.

"Future mineral production potential is good within the

Region. The opening of new mines producing new mineral

products can be anticipated because of technologic development

in mineral extraction and processing, although a timetable

of such events cannot be made at present.

"An adequate water supply is essential to the production

of a number of mineral products. Consumptive water losses

for mineral production are small and water withdrawals chn

be reduced through recirculation practices. Because recirculation'

is being used increasingly by the mineral industry, no serious

307

water supply problems are anticipated. Pollution of surface

and ground water is limited primarily to unrecorded oil, gas,

and salt wells and test wells that were abandoned many years

ago- There is no easy way to detect abandoned wells or test,

but legal'provisions exist for their sealing when discovered.

Pollution from other mineral producers.is minor and technologies

exist to eliminate such practices.

"Land requirements of the mineral industry are the most

critical single factor governing future mineral production.

only a small portion of land within the Great Lakes Region

contains mineral material economically accessible to the mining

industry. In many cases the location of mineral deposits is

not known, preventing adequate p lanning for preservation of

the resource inventory. Loss of mineral-bearing land is

particularly critical around urban and suburban cent.ers of

the region where the sand, gravel, and stone resources are

being rapidly depleted through restrictive zoning ordinances

and construction activities overlying the deposits. Future

supplies of low cost, high bulk aggregate minerals will have

to be imported into several planning subareas in the near

future, resulting in greatly increased costs due to transportation

charges. Reclamation of mined lands is an integral part of

most modern.mining operations and must be considered in any

land use planning efforts. Sequential. use of reclaimed land

308

varies considerably and is treated in 0nly a very general

manner ...

In subregion 1.1 which constitutes the Minnesota Arrow-

head and the South Shore of Lake Superior including small

portions of Northern Wisconsin the projected mineral-being

land requirements are:

Planning Subarea 1.1:
Projected Mineral-Bearing Land Requirements (acres)

1968 1968- 1968
2 to to to 3
Commodity 1968 1980 1980 2000 2000 2020 2020

iron ore 50,000 75,000 75,000 150,000 150,000 '250,000 250-,000
Peat 600 600, 600 650 650 700 700
Sand and
gravel 94 110 1,153 181 4,061 296 8,828
Stone, 4 4 4
crushed --- 3 --- 11 1 27

Total 50,694 75,710, 76,756 1500831 154,722 250,997 259,555

Includes non-mineral-bearing surface lands required for iron
2ore production
Estimated
Cumulative
4Less than an acre

In 1968 the Minnesota portion of the Mesabi and Gunflint, iron

ranges -as well as the entire VermilionRange, are found. At

present, direct iron ore production is limited to the Mesabi

Range where 29 mines and 9 stockpile recovery operations are

active. Since mining. first began on the Mesabi in 1892, ship-

ments of hematite and magnetite ore from St. Louis County

309

have totaled 2,130,000,000 gross tons.

Current mining emphasis is on the concentrates from

magnetic taconites, with a subsequent reduction in natural

or direct shipping-ore production. Six taconite plants are

active. Production from these six pellet operations accounted

for more than 70 percent of the iron ore produced in the area.

Iron ore products are transported by rail to the ports of

Taconite Harbor, Silver Bay, Two Harbors, Duluth, and Superior

for transshipment by lake freighter to consuming districts

in the lower Great Lakes Region. Reserves of Mesabi ore

include 855 million gross tons of measured ore and 500 million

gross tons of indicated-inferred ore,.both averaging 50 per-

cent Fe. Magnetic taconite reserves containing 20 percent Fe

include approximately 6 billion gross tons (8-15 billion Minn.

DND) of potential processed ore. All iron mining activity

within the planning subarea during the projection years is

expected to be centered on the Mesabi Range, with taconite

operations almost completely replacing natural ore production

by 1980.

Exploratory work that has been carried out on the Gunflint

Range resulted in numerous test pits and minor'shipments of

handsorted ore but no extensive mining operations. The iron

formation is composed essentially of thin-bedded magnetic

taconite. Average assays of the iron-bearing members range

310

between 22 and-25 percent Fe. No estimate of reserves is

available. Thinness, low grade, steep dip, and difficulty

of bene ficiation preclude the development of this range at

least in the foreseeable future.

Iron.ore was mined on the Vermilion Range exclusively

by underg round methods from 1884 until cessation of production

in 1967. A total of 103,752,604 gross tons of ore was shipped.

in addition to the iron ranges,- reserves of titaniferous

iron ore are contained in the Duluth gabbro. The bulk of

these reserves are lean ore with an average assay of 25 per-

.cent Fe and 14 percent Ti02. Reserve tonnage includes

approximately 24,600,000 gross tons of measured ore, 60,500,000

gross tons of indicated ore, and 9,500,000 gross tons of

inferred ore. Fourteen deposits with reserves in excess of

one million tons account for more than 86 percent of the total

reserve tonnage. These deposits will remain as potential

iron and titanium sources until technology or market demands

makes their extraction and processing economically feasible.

Basalt is produced near Duluth in St. Louis County and

crushed for local use as aggregate and roadstone. Reserves

of this material are extremely large, and can support production

throughout the projection period. Various types of rock

including bas-alt, granite, marble, slate, anorthosite, and

sandstone have been quarried at various locations in the.past

311

for use as-dimension or.crushed stone. Waste r ock produced

in conjunction with iron mining on the- Vermilion and Mesabi

has been used locally for railroad and highway construction

and repair. The opening of new stone quarries depends

primarily upon local demand for dimension and crushed stone

products. To a lesser degree, the demand for dimension

stone in larger population centers outside the planning sub-

area may stimulate production of specialty stones or silica

sand in the future.

Glacial lake clay deposits exist at various locations
within the planning subarea. The Coleraine s@ale in St.

Louis County may have value as a clay material or for the

manufacture of lightweight aggregate. Bec ause these potential

resources have not been thoroughly investigated, no reserve

estimate for clay or shale is available. Future production

of clay is primarily contingent upon local market demands,

which may or may not develop during the projection period.

(2020)

Production of peat i s limited to only two locations, not

by a lack of quality deposits but by excessive distances to

the major market areas. Most peat produced in Carlton County

and reed-sedge peat produced in St. Louis County are used

for horticultural purposes as a general soil. conditioner. Local

demand for this material is small.; Producers in other areas

312

of the country are closer to markets outside the area, and

therefore maintain a competitive edge. Reserves of peat-in

Minnesota on an air-dried basis include more than 900 million

tons in St. Louis County, 100 to 900 million tons in Lake

County, 1 to 100 million tons in Carlton County and less

than one million tons in Cook County. Reserves of peat in

the planning subarea are sufficiently ample to support

'production.well beyond the projection period. (2020)

Deposits of sand and gravel are found in the glacial

and postglacial sediments that cover the entire area. Quality

deposits are abundant and should be more than ample to meet

local demand for many years. In those. instances where

glacial cover may be thin or lack sand and gravel deposits,

bedrock can be quarried and crushed as a substitute material.

No estimate of the quantity or quality of sand and gravel

reserves is available.

In addition to.the minerals currently produced, certain

potential resources warrant.consideration because of their

prospects for future development.

A potential source of aluminum exists in the intrusive

anorthosite bodies occurring along the shore of Lake Superior

in Lake and Cook Counties. These anorthosite bodies contain

between 29 and 32 percent Al 203' no free silica and only

small amounts of extraneous mineral material. As such they

313

have excellent potential as low gra .de al-uminum. sources.

Potential reserves of anorthosite a re estimated at 100 to

500 million tons. The proximity of these deposits to water

transport routes adds to their desirability. Although it

is not economically feasible to use these low grade deposits

while 50 to 60 percent Al 203 bauxite is available, use of

such low grade deposits in areas of low cost energy will

probably be necessary within tbe next 10 to 20 years.

The presence of copper and nickel sulfides@in the

Duluth gabbro of Minnesota have been known since the late

1800s and has presently stimulated exploration interest.

The past evaluation of the deposits has prevented the mining

of this material. Recent increases in metal prices, and

constantly improving mining and metallurgical technology,

have again stimulated interest in these sulfide deposits.

The results of much of the exploration activity are not avail-

able but from the published information it appears that some

marginal ore has been found. It is anticipated that some

copper-nickel mining activit:@ will begin within the projection

period, but the specifics remain open to speculation.

The Ely Greenstone belt, a portion of which lies within

St. Louis and Lake Counties, may contain potential sulfide

ore bodies. Considerable base metal mining activity has taken

place on the Canadian extension'of the formation. Indications

31-4

of mineralization on the Minnesota portion are sufficient

justification for detailed exploration of the greenstones.

Mineral Production for Planning Subarea 1.1 is summarized

in Table 5-7 for 1968 and for projection year 1980, 2000, and

2020. All mineral production is expected to increase during

this period. Cumulative production over the projection period

is also included in the table, and provides an estimate@ of the

vast quantities of mineral material that will be produced.

There is the strong possibility that aluminum-bearing anorthosite,

titan 4ferous iron ore, and copper-nickel sulfides will be

mined in the area within the next 50 years. A more remote

possibility exists that ba se metal sulfides and kyanite will

be mined during this period.

THE MINERAL INDUSTRY OF MIN NESOTA IN 1974

Prepared December 26, 1974, in the Division of Ferrous

Metals--Mineral Supply, U. S. Department of Interior, Bureau

of Mines.

The value of Minnesota's-mineral output in 1974 was

estimated at $920 million, up 8% from that in 1973, according

to the Bureau of Mines, U. S. Department of the Interior. The

rise was due largely to substantial price increases for iron

ore, which represents 93% of the State's total mineral output

value.

Shipments of usable iron ore from-Minnesota mines in 1974

were estimated at 57.9 million long tons, an 8% decrease from

115

1-973 shipments. Total value was-approximately $857 million,

an increase of 9.5% over that of 1973. -Ore shipped included

approximately 39.6 million tons of iron ore pellets and .18.3

million tons of natural ore.

Construction of mine and plant facilities for the Hibbing

Taconite Co. project began early in 1974 Production was

expect-ed to begin by late 1976. The pelletizing plant, 4eing

built by Dravo Corp. of Pittsburgh, Pa., will use the travelling-

grate process to produce 5.4 million-tons of pellets peryear.

Hibbing Taconite Co. is owned by Bethlehem Steel Corp. (75%),

Pickands Mather & Co. (15%), and The Steel Co. of Canada, Ltd.

(10%). Cost of the project was estimated at $150 million.

Inland Steel Co. broke ground in October for its Minorca

taconite operation near Virginia. V@hen completed, the

pelletizing plant will have a production capacity of 2.6

million tons. The pelletizing plant will be equipped to burn

natural gas, fuel oil, or coal. Cost of the project is estimated

at $70 million and production is scheduled to begin in the

spring of 1977.

Expansions of three existing taconite facilities were

announced during the year. United States Steel Corp. will

increase the productive capacity of its.Minntac plant by 50%

to 18 million'tons of pellets annually. Eveleth Taconite Co.

will increase the capacity of its operation to 6 million tons

316

-of pellets annually. Hanna Mining Co-. and National Steel

Corp.'s expansion of their pelletizing plant at Keewatin will

increase capacity to about 5.8 million tons per year. The

three expansions will cost a total of $500 million and be

completed by early 1978.

- Production began in mid-1974 at two natural ore mines

which were under development. Ore from the Whitney mine,

operated by The Hanna Mining Co., was being concentrated at

the Pierce plant. The first shipments of'washed concentrate

from the Rana mine, owned by Rhude and Fryberger, Inc., were

made in August.

on August 1, strikes by locals of the United Steelworkers

interrupted productionlof iron ore at mines and processing plants

of five companies. The strikes were settle d in from 1 to 2

weeks when 3-year labor agreements were negotiated and made

retroactive to May 1, 1974.

Three price increases in 1974 for Lake Superior iron

ores resulted in an average increase over 1973 prices of 17%

for natural ores and 20% for pellets. ore prices in late

1974 were 31% to 35% higher than those of the same period 1

year ago. At yearend the published pricelof Mesabi non-Bessemer

ore, basis 51.5% Fe natural, delivered rail-of-vessel at lower

lake ports, was $15.75 pe r long ton and.that for iron ore

pellets was 40.619 cents per long ton unit of iron.

317

According to published rates in mid-1974,lthe cost of

transportation. of-iron ore from the Mesabi range to lower lake

ports (rail-of-vessel) in 1974 ranged-from.$5.49 to @6.05 per

long ton. These rates represent a 24% to 30% increase over

the rates in mid-1973. They include a dock handling-charge

of $0.34.

Minnesota's 1974 shipping season began at Duluth on

April 8 and was underway at all ports by April 17. Because

-of bad weather and ice-build-up, the 1973 shipping season ended

'earlier than had been planned; the last shipment frot Two

Harbors was on February 5, 1974. Congress* appropriated funds

for a 2-year exten'sion of the demonstration program to extend

-Ei-@e'ship'pin'g seas,on o.n th.e.Great Lakes

After an 8-month trial of the suit brought against

Reserve Mining Co. by the U*. S. Dep artment of Justice, alleging

pollution of water and air by the company's taconite

processing plant at Silver Bay, the U.S. District Court in

Minneapolis ordered the plant closed-on April 20. Two days

later it was allowed to reopen, following suspension of the

order by the U. S. Court of Appeals. In October, the U. S.

Supreme Court refused to intervene in the case, and the District

Court later ruled that the plant's discharges violated Federal

and Stat,e laws. The latter decision was scheduled for-revi ew

.by the Court of Appeals in December. In November, the company

submitted to the State of Minnesota_a preliminary plan for on-

land disposal ofthe plant's wastes, increased air pollution

controls, and changes in the production process, at an estimated

cost of $243 million.

other environmental issues in 1974 centered on the mining

of copper-nickel ore in the northeastern part of the State. The

Minnesota Ehvironmental'Quality C ouncil'(EQC) created an inter-

agency task force to study the potential environmental, social

and economic impactsof mining and processing copper-nickel ore.

The EQC also voted to require an environmental-impact statement-

before any such mining activities could take place. In December,

four environmental groups filed suit in Hennepin County District

Court against the EQC, contending that the EQC violated State law

with its decision not to require an impact statement on an ANAX

Exploration, Inc. project to sink a.1,700 foot exploration shaft

near Babbitt. The EQC would require the statement only if and

when AMAX decides to actually mine ore at the site.

MINNESOTA'S TACONITE INDUSTRY

Taconite Facilities Estimated
Presently in Operation Annual Capacity Investment Employment

Reserve Mining Company 10,800,000 tons $ 350,000,000 3,200
Erie mining company 10,500,000 tons 350,000,000 2,900
Minntac 12,500,000 tons 275,000,000 3,300
Eveleth Taconite Company 2,400,000 tons 53,000,000 475
Butler Taconite 2,400,000 tons 56,000,000 600
National Steel Pellet 2,800,000 tons 90,000,000 600
TOTAL 6 Commercial 41,400,000 tons @1,174,000,000 11,075
Plants

319,,-

Taconite Facilities
under-Construction or Estimated
Comiiitted: Annual C@j@at@- Investment FMplovment

Inland'Steel (Minorca) 2,600,000 tons 70,000,00,0. 450
Minntac Expansion 6,000,000 tons 200,000,000 750
Eveleth Expansion 3,600,000 tons .150,000,000 450
Hibbing Taconite 8,300,000 tons 300,000,000 11000
National Expansion 4,100,000 toils 150,000,000 400
Total new Expansions -24,600,000 tons 870,000,000 3,050
Total Taconite 66,000,000 tons @2,044,000,000 -4 19r@
125
_J@
Investment

THE ECONOMIC ASPECTS of
COPPER-NICKEL MINING IN MINNESOTA

A.presentation by,Commissioner James Heltzer, Department

of Economic Development, State of Minnesota, to the Envir,on-

mental Quality Council, State of Minnesota, October 8, 1974.

The.Minnesota Implic ations

To.view the Minnesota situation, a quote from -the United

States Mineral Resource, Geological Survey, Professional Paper

820, 1973, will help put the analysis in context:

"The copper-nickel deposits in the Duluth Gabbro Complex

in Minnesota represent a large.conditional resource. P. K.

Sims (oral commun.,1972) estimated that 14 billion tons of

mineralized rock exists-along the lower contact of the gabbro

body. This material has.a lower cutoff of-0.25 percent and

an average grade of 0.58 percent combined copper nickel.

Assuming a 3 to 1 copper-nickel ratio, these deposits contain

slightly more than 60 million tons of copper metal. Some of

this copper is dis.seminated in-bodies as-large as.100 million

,.tons and may,soon become:amenable,to ma.ss-mindng methods,

320

according to Sins.

Summing up the nation's conditional resources gives

a total of 111 million tons of copper which may at some

time become available in the United States."

It is important to note that Minnesota has 60 million or

54% of the total.

The Duluth Complex also called the Duluth Gabbro, and the

Duluth Gabbro Complex, is a large composite body of basic,igneous

rocks of late Precambrian age that extends in a great arc from

Duluth northeastward into the arrowhead portion of Minnesota@

copper-nickel mineralization was discovered in the Complex

about 25 years ago, southeast of Ely. Subsequent drilling and

geologic studies have shown that copper and nickel sulfides are

dispersed widely in the lower portion and are concentrated

locally in bodies of sufficient size and grade to now have strong

commercial interest.

The major deposits that have been delineated are in the area

between Hoyt Lakes and the Boundary Waters Canoe Area known as

the Ely-Hoyt Lakes region.,According to the Geological Suvery

assessment, some of the mineralized material is amenable to open

pit mining, but most probably will be mined underground. The maximum

area that would be directly affected by mining operations in the

Ely-Hoyt Lakes region would be a linear belt along the base of

the complex about 35 miles long and one mile wide.

-in a 1973 study,-Copper and Nicke 1 Resources-in the'Duluth

321

Complex, Northeastern Minnesota, by Bill Bonnicksen, University

of Minnesota, Minnesota Geological Survey', four conclusions

were reached as -to copper-nickel deposits:

"l. Large, economically marginal deposits of copper and

nickel su:lfides are associated with the Duluth Complex in the

Ely - Hoyt Lakes region. The principal sulfide minerals are

pyrrhotite, chalcopyrite, cubanite, and pentlandite.

"2. The principal concentrations of copper and nickel

are disseminated deposits in the lower few hundred feet of the

DU luth Complex and local massive deposits in granitic footwall

rocks. The size, shape, and geometric relations of the sulfide

concentrations to lithologic units and structural features

of the complex are poorly known.

"3. The Ely - Hoyt Lakes region contains the largest

known combined copper-nickel resource in the United States.

Conservatively, the region contains more than 18 million tons

of metal having an average grade of 0.82 percent Cu+Ni. At

today's prices the metal has a value of more than $27 billion.

"4. The magnitude of the copper and nickel resources in

the Duluth Compl ex compares favorably with that in some of the

larger copper and nickel districts in the world. Accordingly,

the region constitutes a major future source of these metals

for the United States. More detailed studies of the deposits

are needed in order that land-use decisions be made that will

best serve the needs of Minnesota and the United States."

322

But perhaps one of the most astonishing assessments made

of these deposits was published in the U. S. Mineral Resources,

U. S. Geological Survey Professional Paper 820 which has.this

to say in regard to nickel:

The United States sulfide resources are quite large

(6.9 billiqn tons) but low grade (0.21 percent Ni). The very

large estimate of nickel in the Duluth Gabbro near Ely, Minn.,

is based on data recently released 'by the Minnesota Geological

Survey (P. K. Sims, written commun. 1972). Canadian reserves

of minable ore are the world's largest with probably close to

2 billion tons of material that can be mined under present

economic conditions. Australia probably has great potential

for increasing the present estimate of-400 million tons and

the yearly production rate is growing rapid ly. South Africa

also has potential for greater than the 200 million tons estimated

here. U.S.S.R. tonnage is probably greater than 100 million,

but grade is probably less than 0.6 percent nickel.

"World Nickel-Sulfide identified Resources

(Identified resources are specific, identified mineral

deposits that may or may not be evaluated as to extent and

grade, and whose contained minerals may or may not be profitably

recoverable with existing technology and economic conditions.)

323

Area Tons of ore Ni
(percent)

United States:
California 100,000 1.5
Colorado 1 70,000 .8
Montana (Stillwater) 150,000,000 .25
Missouri 10,000,000 .5
Nevada 30,000 .3
pennsylvania (Gap) 800,000 .7
Washington 2 100,' 000 .9
Minnesota (Ely) 6,500,000,000 .21
Alaska, Brady Glacier 200,000,000 .25
yakobi island 20,000,000 .3
Funter Bay 600,000 .35
Maine 10,000,000 1
Total (0.21 percent
Ni avg.) 6,900,000,000

Canada:
Thompson district:
Thompson mine 150,000,000 3.0
Mystery Lake d:eposit 200,000,000 .45
Moak Lake deposit 400,000,000 .7
Others 250,000,000 1
Total (1.0 per-
cent Ni avg.) 1,000,000,000

SucIbury district Abo,ooo,ooo 1.5
Other Canadian 100,000,000 1.5
Other Canadian 200,000,000 .2
South Africa 200,000,000 1
Norway 2,000,000 1
Burma 25,000,000 .3
Australia 300,000,000 .6
Australia 100,000,000 1.5
U.S.S.R. 100,000,000 ..6
'Also contains 0.25 percent Cu.
2Also contains 0.64 percent Cu.

Although the nickel deposits of the Duluth Comp lex are

substantially lower in grade than those in the Sudbury district,

324

it is interesting to note. that the estimated tonnage of

nickel resource in the Ely-Hoyt Lakes is of a higher order

of magnitude than the reserves in the Sudbury district.

Two factors of paramount importance in the copper ore

industry to establish economic feasibility are:

(1) the grade of ore mined, and

(2) the price per pound.

The following table shows the prices per pound for

selected years since the turn of the century.? the equivalent

prices in 1970 dollars and a steady decline in the average

grade of ore mined through this period.

Average annual price
-in cents per pound

Average grade
Quoted Equivalent of ore mined
Year refinery 1970 dollars (percent copper).

1900 16.19<-, 63.5@ 4.0
1910 12.73 .43.5 1.88
1920 17.45 30.0 1.63
1930 12.98 32.5@ 1.43
1940 11.29 29.5 1.20.
1950 21.32 30.01 .89
1955 3.7.49 41.0 .83
1960 32.05 36.5 .73
1965 35.02 39.9 .70
1970 58.20 58.2 .60

Source: United States Mineral Resources, Geological Survey,
Professional Paper 820, 1973.

It is especiallv evident here that the lower grade deposits

are moving into the profitability column. The current price of

copper is 79@ per lb.--and has been as high-as 85(@ pet lb.

Copper-nickel mining has drawn the interest of several

companies. The Assessments of Growth Impacts on the Iron

Range, May, 1974, published by the Arrowhead Regional Develop-

ment Commission, shows the projected economic development of

total mining for the region to be:

projected Total mining Development

cost Mil-
in lions Perm. Peak.
Project mil- of Req. Const.
Projects Status Location lions Tons Labor Labor

Taconite Plants
Hibbing Taconite Co.
(Bethlehem & PM) Const. Hibbing @300 8.3 1,000 2,000

Eveleth Taconite Co.
(ogleby-Norton) Engrg. Eveleth 110 3.6 400 800

Minorca Tac. Plant
(Inland Steel) Engrg. Virginia 90 2.3 500 1,500.

Minntac Expansion
(U. S. Steel) Engrg.. Mt. Iron 200 6.0 750 .1,500

Nat'l.Steel P.Plant
(Hanna Mining Co.) Const. Keewatin 150 3.4 400 1,200

Butler-Cooley Expan.
(Hanna mining Co.) Planng. Cooley 100 3.0 350 1,000

McKinley Tac. Plant
(Jones & Laughlin) Planng. Biwabik 150 4.0 600 1,300

Copper-Nickel (Mining & Metal Extraction)
International Nickel
Co. (INCO) Planng. Ely 250 unkn, 800 1,800
American Metal Climax unkn. Babbitt 150 unkn. 500 1,200
American Shield Corp. unkn. Hoyt Lakesl20 unkn. 450 1,000

326

U. S. Steel Company.can also be added to,.this list of

copper-nickel mining.firms, although nospecific data is avail-

able at this time.

With the addition of possible copper-nickel operations

to the total mineral industry, a view of Minnesota production

capability is significant.

The present importance of Minnesota as a source of mineral

mining is best understood by the following table:

Minnesota Iron Ore Shipments as Percent of United States and World
(Thousands of gross tons)

Total U.S. Total Mn.' Mn.as % Total World Mn.as %
Year Shipments Shipments of U. S. Production of World

1961 72,949 44,883 61.5 494,689 9.1
1962 70,410 44,556 '63.3 '-499,'110 8.9-'
1963 74,387 45,745 61.5 513,661. 8.9
1964 85,184 49,794 58.5 566,716 8.8
1965 85,332 51,126 59.9 607,269 8.4
1966 90,824 55,315 60.9 627,974 8.8.
1967 83,016 49,720 59.9 618,820 8.0
1968 82,531 51,436 62.3 668,142 7.7
1969 qO,570 57,292 63.3 707,183 8.1
1970 87,891 55,157 62.8 754,299 7.3
1971 78,196 49,136 62.8 758,131 6.5

Source: Minnesota Department of Economic Development

The state"s role in technological advance of the world iron

ore industry is vividly-shown by the August 24, 1974, Skillings'

mining Review. For iron ore oxide pelletizing plants, the

annual gross ton, present and under constructiona, capacities

look like this:

327

Present Under Const.- %

Minnesota 40,000,000 24 .6 9,0.00,000 20.8
Rest of U.S. 21,000,000 12.9- 5,800,000 13.4
Rest of World 101,000,000 62.5 28,500,000 65.8
Total 162,000,000 100.0 43,300,000 100.0

From the above it is evident that Nort heastern Minnesota

has the manpower base and technologi .cal skills to participate

effectively in world-wide mineral mining operations.

With mineral mining magnitudes of this order, it is

important to consider the general land use pattern of the

Arrowhead Region:

General Land Use

Forty acre parcels % of region

Forested 257,197 79.3
Cultivated 5,918 1.8
Pasture and open 15,107 4.6
Water 30,566 9.4
Marsh @3,305 2.9
Urban residential 3,116 1.0
Urban mixed 1,731 .5
Extractive 1,609 .5
Transportation 143 .0
Total 325,412 (sq. mi. 20,338)

Source: Pocket Data Book, Minnesota State Planning.Agency

The extractive industries in region three have less than

lVo of the general land use total.

From this presentation I think we can draw several

conclusions:

Minnesota contains a supply of economically valuable

copper-nickel ores.

328

2) The supply i's in such quantities that the state has

an.important percentage of the domestic and inter-

national total.

3) The ore content of the supply is now reaching market-

ability levels.

4) World-wide operations have demonstrated interest in

the Minnesota deposits.

5) The Arrowhead region historically has developed the

manpower base and technology skills to engage

succe ssfully in a vital national and world enterprise.

6) An average facility would be a strong economic

addition to the Arrowhead and state.economy from the

point of view of employment, sales, expenditures

and capital investment.

7) The State is at a critical decision point concerning

a long-term utilization of this valuable resource.

it is the hope of our Department that deep study and

dispassionate thought be given to the total considerations

necessary to make this decision and, further, that the economic

aspects set forth here are an integral part of this consideration.

329

NORTHEASTERN MINNESOTA DEVELOPMENT ASSOCIATION

Northeastern Minnesota Development Association (NEMDA),

a private, non-profit corporation, was formed in 1964 to

promote the economic development of Northeastern Minnesota.

Financed by industry, labor unions, news media, commercial

enterprises, utility companies, financial institutions and

individual contributors, NEMDA's primary concern is the

regional development of the Arrowhead.

The main goals of NEMDA are:

1) To bring new industry and business to the area.

2). To assist existing enterprises in expansion programs.-

3) To be a coordinating agent for private, local, state,

and federal gover nments and industrial development

groups in regional development affairs.

4) To act as a regional vehicle for new jobs, new

income, new tax revenue, new money and new brains

for Northeastern Minnesota, and

5) To work on legislative matters both on the national

and state levels which have bearing on the economic

health of the region.

The Association formally began operation in November of

1964 providing a regional economic development program to the

330

counties of Carlton, Cook,, Itasca, Koochiching, Lake, and

St. Louis.

The policies and budget of the Association are determined

by a twenty-five man board representing subscribing companies

and organizations as well as representatives from all parts

of the region. This board meets in communities throughout

the six-county area.

Site-searching company officials and industrial engineers

are encouraged to investigate this region. Plant expansion

and plant location services are offered on a no-cost, 'no-

obligation, and fully coordinated basis.

In the early 1960's, Northeastern Minnesota was suffering

a severe economic recess. The main cause of this downswing

was the closing.of the high grade natural ore mines. As is

always the case in areas where the economy relies on one or

two basic industries, many satellite businesses and industries

that depended on mining for their income were also forced to

close. As the major industries closed, the result was a high

rate of unemployment and a generally poor economy.

it was at this time that the beginning of the taconite

industries emerged. The processing of this low grade ore at

that time had a risk factor and was expensive. Thus, the

steel industry wanted some guarantee from the people of

Minnesota that they would be treated equitably in the payment

of taxes.

331

There was a massive effort to pass'the Taconite Amend-

ment, the people voted overwhelmingly in favor of the measure.,

and there has since been almost $2 billion invested in thIs

industry in the past decade. The people of Minnesota expressed

confidence in the taconite industry and that industry responded

by investing huge sums and providin g steady, year-round jdbs@

for the people of the area.

it was also at this time, in 1964, that the areals

business and governmental leaders realized that Northeastern

Minnesota desperately needed economic expansion and

diversification in industry other than mining and wood fiber.

They felt that the area was sadly lacking in the field of

industrial development. The people of Minnesota had helped

with the passage of the taconite amendment. The leaders felt

it was time to respond to that vote of confidence by showing

the State and Nation that Northeastern Minnesota wanted to

begin helping itself. In short, it was time for Northeastern

Minnesota to enter the highly competitive field with industrial

development.

It was at this time that NEMDA was formed. To fulfill

that need, business, industry and labor invested an initial

@1 million to get NEMDA in the field of economic and industrial

development. Since then there. have been substantial additions

.to NEMDA's membership and budget.

332

NEMDA was the first organization to sell Northeastern

Minnesota on a regional basis. it was the first organization

that actually went out into the market place and told.people

in business and industry that this area was a good business

potential.

In its effort to expand the economy of Northeastern

Minnesota, NEMDA realized that it would have to-have the

cooperation of the entire area. Cooperation and unity were

the key to a successful program. In this endeavor, local

development organizations were established, in every community

in Northeastern Minnesota. With this intricate development

network now formed, and working, it is the job of NEMDA to

seek business and industrial prospects and-sell them on the

idea of moving or expanding to our area. It is the job of

these local development organizations to sell their specific

communities to the various prospects that NEMDA brings to

them.

What Northeastern Minnesota now has,is a well-rounded,

economic and industrial development program to attract new

business and industry.

LIST OF NEMDA PUBLICATIONS

N. E. Minnesota Timber Resources

Minnesota Iron Ore Future

Tomorrow Is Here-

333

N. E.-Minnesota Educational Resources

N. E. Minnesota Manufacturing Tax Comparisons

The Emerging copper-Nickel Industry in N. E. Minnesota

Special Report * Availability and Projected Cost of

Aspen Timber in Northeastern Minnesota

Availability of Processing Steam

Northeastern Minnesota's Economy - From Now to 2000!

A Luxury Resort to Serve The Northwoods Guest at Ely

Minnesota

334

MINNESOTA ARROWHEAD ASS-OCIATION (MAA)

The Minnesota Arrowhead Association (MAA) was formed on

July 1, 1924. At the time of its formation, it was known as

the Northeastern Minnesota Civic and Commerce Association. At

the annual meeting in Duluth on July 13, 1925, the organiza-

tion's name officially became the Minnesota Arrowhead Association.

The organization was created with the idea to encourage

the spirit of cooperation between civic associations in the

area. It consisted of fifteen (15) commercial organizations

throughout the Arrowhead Region.

Today, the MAA states its purpose' (objectives) as aiding

in the development of Northern Minnesota by:

(1) The promotion of its recreational, agricultural, and

industrial advantages.

(2) By carrying on educational activities in such civic,

economic, and industrial movements as may assist

in such development.

(3) By carrying on such additional or subsequent

activities as the future may develop, and as will

harmonize with the purposes herein before set forth.

The membership of the mi@A is comprised of a ny individual,

resort, firm, corporation, association, agency or governmental

unit interested in promoting the objectives above. The annual

-,335

membership dues are forty dollars ($40.00)., 'The membership

entitles the membe rto voting privileges at the annual or

special meetings of the Association. In the case of member-

ships held by organizations, an individual of each such

organization acts as a representative and exercises its voting

privilege.

The annual-meeting is held within 120 days of the close

of the fiscal year. An important issue dealt'with at this

meeting-is the election of no less than 75 and no more than*

150 Board of Directors. These members are elected from the

membership and act as the management and control of the'Organ-

ization. Following the annual meeting, the Board of Directors

elect an Executive Committee consistihg of 25 members as

follows: a President, three (3) vice Presidents and 21 other

members.

other committees include:

(1) Advisory Comm ittee - Past MAA Presidents.

(2) Nominating Committee - Five appoin ted members of the

Association's Directors and/or Advisory Committee

to nominate officers and Directors for the ensuing

year.

(3) other Committees The President of the MAA can,

with the Executive Committee's approval, appoint

336

-such'.committees that are.neces.sary to conduct,the

affairs of this Association.

In 1967, the association became an active partner with

the State of Minnesota in the promotion of tourism. Due to

the efforts of previous Board Of Directors and Legislative

committees over the many years, the state legislators recognized

the importance of its state's tourist-travel industry, and

decided to promote it. Through the .Department-of Economic

Development, came a proposal that the state be divided up into

six tourism Regions and that a matching fund program be

established. The details were finalized at the Governor's

-First Summit Conference in St. Cloud in 1967. With the

establishment of the newborders, the Arrowhead Country was

delineated at twelve counties. Other regions set up were

Heartland to the west of Arrowhead, Vikingland in the north-

west corner of the state, Pioneerland in the southwestj

Hiawathaland in the southeast and Metroland covering the Twin

Cities greater metropolitan district.

in 1970, promotion was initiated for the lengthening of

the tourist season and a strong push was given to winter

vacations-as well as the other three seasons. Skiing, ice

fishing and snowmobiling were promoted and resorters were urged

to winterize.their accommodations. The success is attested

by the large number of winter facilities now available to

3.3 7

the.tourist in the.Arrowhead Country,

Early in 1974 tourism felt the shock of the oil embargo
and the energy crisis. Emerge'ncy measures were taken and

the Association played a significant part in educating the

traveling public with more precise information as to-avail-

ability of gasoline and travel energy conservation techniques.

Historically, the MAA has led the way in tourist-travel

promotion and devel.opment. With the ever-increasing

sophistication of resort operations.and the recognition by'

the traveling public of the attractiveness of the Arrowhead,

tourism will continue to be a major economic factor in the

future and the Minnesota Arrowhead Association will continue

to be,the leadin g voice of the industry.

338

UNIVERSITY OF MINNESOTA IMPACT ON ECONOMIC INFORMATION

FOR RESOURCE PLANNING IN MINNESOTA COASTAL ZONE*

Economic impact-studies pertaining to Northeast Minnesota

which have been, or are being conducted, by staff members

from the University of Minnesota are presented in this report.

These studies are confined to economic impact analysis, pro-

jection and related data base. Staff members from the Duluth,

Minneapolis and St. Paul campuses are participants in these

studies, which are summarized here with reference to their

economic content and implications.

Economic studies

Much of the review of'e*cono.mi.c impact studies'in North-

east Minnesota refers to the current studies on energy and

infrastructure development in this part of the State. A

special effort is made here to provide a preliminary report

on these studies with a focus on questions relating.to economic

impact measurement and projection.
In reporting on'the University of Minnesota studies, a

certain perspective in the relation of economic research to

resource management is presented. Studies have been selected

which relate to one or more criteria as follows:

*Prepared for Minnesota Department o f Economic Develop-
ment by Wilbur R. Maki, Professor of Resource Economics,
University of Minnesota-St. Paul, June 2, 1975

339

1. Identification, measurement and projection of

resource development acti vity which creates signifi-

cant economic impact in the region;

2. Delineation of development activity in economic

impact zones in the regions;

3. Estimation and projection of amount and incidence

of specified economic impacts in the region;

4. Determination, demonstration and/or illustration

of significance of specified economic impacts for

present and future resource (e.g., coastal zone)

management in the region.

Not excluded, therefore, are studies in physical, social and-

biological sciences which are supportive o f the data base

requirements of the economic studies emphasized in this report.

Regional data base

The regional data base for the economic studies is

presented by data sources and related studies as follows:

Regional data files compiled from reports based

on national and state censuses of population,

housing, employment, agriculture, mining, manu-

facturing, trade and services;

2. Regional economic base and input-output studies;

3. Special purpose and/or regional case studies of

related activity systems, such as outdoor recreation

340

and waste water,treatment.

included here are studies from othe r than economic fields

which help build..a regional data base for economic impact

oanalysis and projection.

Tor most of the economic studies selected for this review,

a statistical data base from nationa 1 and state census-reports

is required. Several studies require primary data which are

acquired (initially at least) on a one-shot basis. For these

studies, design and implementation.of a continuing reporting

system may not have been completed, thus making them of only
marginal importance in regional resource mana4ement. Develop-

ment of a regional information system for economic impact

analy sis and projection is of particular concern in this review.

Economic impact Analysis and Projection

Economic impact analysis and projection is an increasingly

important activity in the regional development process. Alter-

native deve lopment strategies are identified and their impacts

are simulated by means of large-scale computer models of the

regional system. included in the models are both economic

and ecologic elements to represent the total regional environ-

ment.

Input-output modeling
A research project on improving long-range energy planning

3.4 1

was initiated in 1974 in the.Minnesota Agricultural Experi-..

ment Station.under the supervision of Professor Wilbur Maki

from the Department of Agricultural and Applied Economics.

This project was supported by the Minnesota Energy Agency

with funds from the Upper Great Lakes Regional De velopment

Commission. Dr. James Carter, Research Director in the

Minnesota Energy Agency, was overall projectsupervisor. A

related complement of the project was the development of a

Regional Energy Information System (REIS). The REIS project,

is under the direction of Dr. Norman Chervany of the Depart-

ment of Management Information Systems in the College of

Business Administration.

Two principle elements make up the input-output modeling

effort, namely, the industry surveys and the interindustry

transactions tables. The industry surveys covier a selected

sample of business and governmental establishments which

reported on (a) energy utilization during the 1972-1974 period,

and (b) capital expenditures actual and projected -- for-

the period 1972-1979. Employment data were acquired also

for relating both the energy utilization and capital expendi-

tures reports to secondary data sources on which the large-

scale input-output systems are based.

The inte-rindustry transaction tables are part of the

comprehensive data base for regional impact analysis and pro-

jection. (The 1967 U. S. input-output transactions table was

342

used as a prototype for the Northeast Minnesota (including

Douglas Coun ty, Wisconsin) interindustry transactions table.

The 80 industry groups in the U. S. table were expanded.to

.95 industry groups in the Northeast Minnesota table (table 1)..

The larger number of industry groups results from the break-

down of energy-related industry groups in the U. S. table into

an additional 15 industry groups. The base year for the

Northeast Minnesota interindustry study is, however, calendar

year 1970 rather than calendar year 1967. The 1970 base year

corr esponds with the study period in.the University of

Ninnesota-Duluth input-output study for the Duluth/superior

growth pole region (i.e., the area within the municipal

boundaries of Duluth, Superior, Cloquet and Two Harbors).

A Minnesota two-region input-output (TRIO) model was

built first for a 1.967 base year. Except.for the

95-sector breakdown, th 4S model conforms with the 1967 U'. S.
L

input-output model. By extending the Minnesota TRIO model

from 1967 to 1970, a now state-level input-output data base

was derived for use in the preparation of the 1970 Northeast

Minnesota input-output transactions table.

Represented in the interindustry transactions tables

are the flows of industry gross outputs: the goods and services

produced by the commodity-producing and noncommodity-producing

industry groups--all in dollar values., For the commodity-

343

producing industries, including contract construction, the

producer value of the gross output is shown. For the

noncommodity-producing activities, the gross margins are

shown. Thus, for agriculture, forestry, mining, contract

construction and manufacturing, the gross outputs include

the cost of materials as well as the value added.by the

production activity. For the trade and service-sector, however,

the costs of materials, other than the materials used in

providing the service, are not included in the gross margin

valuation.

Gross output estimates were prepared for each of the 95

industry groups for Minnesota and Northeast Minnesota using

secondary data sources, including U. S. censuses of population,

manufacturing, wholesale and retail trade, selected services,

and mining, and periodic reports of employment, population,

income and tax collections from various state government

agencies. For some industry groups, gross output estimates

were not available directly and, hence, for these industries

ratio estimators were used (e.g., employment in Minnesota vs.

employment in United States) with the U. S. gross output

estimates to obtain the corresponding estimate for Minnesota.

Northeast Minnesota gross output estimates were obtained

by using the Minnesota data base rather than the

-U. S. data base.

344

Critically important in the validation of the gross

output estimates was the derivation of the employment estimates

for the 95 industry groups in Minnesota. These estimates were

prepared for selected years from data report ed in County

Business Patterns and by reports of the Minnesota Department

of Emplovment Services. Special Minnesota and Northeast

Minnesota tabulation were tabulations provided for the first

quarter 1974; these data were used as additional checks on the

@secondary sources. Output-per-worker estimates were derived.

for Minnesota using the gross output and employment data.

These estimates were compared with the corresponding estimates

for the United States. Differences between the two series

were noted in the data review process and a justification for

these differences was prepared. Additional data were consulted

to account for probable differences in industry mix and pro-

duction practices which would result in differences in output

per worker ratios.

A corresponding set of employment estimates was prepared
I I

for Northeast Minnesota (table 2). Output-per-worker estimates

were prepared and all differences between the Minnesota and

the Northeast Minnesota data series were justified. Thus,

three different data sources were consulted in the preparation

of the gross output estimates for Northeast Minnesota.

All known employment estimates for the region were

345

consul.ted,.also, and differences between themse series were

identified and-evaluated. Both the validation and the final

evaluation procedures are presented in the Northeast Minnesota

energy-economic study reports.

The Northeast Minnesota interindustry transactions table

for 1970 was used in the preparation'of an industry technical

coefficients table. This table is a summary representation

of the input mix of each industry group in the region. The

input mix, however, is confined to those inputs acquired

from industries located within the region; hence, imports

are excluded. To this extent, therefore, the technical

coefficients table may show less than the total dollar require-

ments of.a particular input per one dollar of total purchases.

A reduction of imports because of import substitution (i.e.,

new industry location in the region or expansion of existing
industry) would result in an increase in 'the numerical value

of the technical coefficient.

The Minnesota TRIO model, when used for Northeast Minnesota,

yields a complete interindustry import coefficients table.

Each industry source outside the region is related to its

purchasing sector in the industry-import matrix. The TRIO

model thus provides for an extension of the conventional

input-output modeling approach; this extension is essential

in dealing with the problem of import-substitution in a region.

346

The.technical coefficients tables (both with and without

the complete import matrix) are use d in the preparation of the

so-called "Leontief inverse." The-inverse matrix is sometimes

called an interdependency coefficients table. Because of the

interindustry linkages noted in the interindustry transactions

table, a given increase in the demand for a particular industry

output results in a direct and indirect effect on output

which, together, meet the increased requirements of the input-

supplying industries in the region. Thus, to meet a one dollar

increase in final demand for a given industry output, the total
industry output must be increased by enough to meet the direct

requirement ofone dollar'increase in total output and the

indirect requirements-ofall the input-supplying industries.

These indirect requirements may add up to more than the direct

requirements in total dollar value for some industries. Thus,

the total output multiplier maybe much larger than one for

some industries and very close to one for others. The output

multiplier table, therefore, is an important research tool for

use in translating the final,demand estimates and projections

into corresponding total output estimates and projections which

take,into account the unique impact of each industry on every

other industry.

Impact assessment

The input-output modeling effort-in-the energy planning-

347

d regional impact assessment.
related study Is directed towar

The interdependency coefficients table and the total output

multipliers are used in deriving the impacts of changes in

final demands upon each industry and the economic and ecologic

environments in which the industry activities take place.

Preparation of a table of final demands for regional

industry outputs is th&first step in regional impact assessment.

Such a table was prepared for the 1970 base year. This table

shows the so-called final purchases (as compared with inter-

mediate purchases represented in the interindustry transactions

table) in the Northeast Minnesota economy; included here are

the purchases of households for consumer goods and services,

of governmental agencies, and of business establishments. The

government and business purchases represent capital outlays

for land, buildings, equipment and inventories.

When the 1970 base-year final demand table is multiplied

by the interdependency coefficients table, a set of industry

gross outputs is obtained which is identical to the industry

gross outputs estimated initially. When the 1970 base year

final demand table is extended, say to 1980, an entirely

different set of industry gross outputs is obtained when this

new table is multiplied by the industry interdependency

coefficients-table. Derived thusly is 4 set of projected 1980

industry gross outputs.

348

Projected industry gross outputs are used in deriving

a corresponding set of industry employment, earnings and

value added projections. Individual industry impacts of a

projected growth in final demands thus can be determined for

Northeast*Minnesota. These industry impacts can be represented

further in terms of projected changes in employment, earnings

and value added..

Changes in industry production practices can be-incorporated

into the industry interdependency coefficients table. The
base'-year coefficients can be adjusted to count for the expected

changes in input requirements as a result of the changes in

production practices. Thus, when the adjusted interdependency

coefficients table is used with the projected final demands

table, a new set of industry gross outputs is obtained for

the target year which takes into account both market and

technological changes. Similarly, the effects of expected

changes in imports and industry mix can be incorporated into

the input-output procedures.

Fiscal-ecologic accounts

A.final step in the input-output modeling and assessment

procedures is the preparation of a set of fiscal-ecologic

accounts. The industry output, employment, earnings and-value

added data 'are' used with a corresponding set of fiscal and

ecologic coefficients in building an entirely new set of fiscal

349

and ecologic accounts for the bas'e-:-year and the target year.

These accounts will show the accumulative effects of changes

in both final demands and industry outputs on the fiscal and
ecologic environments in which the regional 'deve lopment

occurs.

Fiscal environment refers to the public financing functions

of localP state and federal governments in the region. Regional

impacts of economic development are represented in terms of

changes in both public revenues and public expenditures., Sources

of revenues for all levels of government-in the region are

identified for the base year and these sources are projected

for the target year. The dispos ition Pf t hese revenues, both

current outlays and capital outlays, also are shown for the

base year and the target year. Total public expenditures,

however, are related to total economic activity in the region.

Similarly, a set of ecologic coefficients is being

derived. The natural resource input requirements of the

base-year and the target-year economic activity are presented.

This work is being initia ted as part of the energy-related

studies in Northeast Minnesota.

Regional economic impact analysis and projection, thus

provides a total regional perspective on resource development

impacts. None of the models nor studies provide for place-

specific results. Rather, the results.are industry-spe cific

350

and time-specific; they provide the control,,totals for a

given regional-economy. Procedures for translating these

economy-wide estimates and pro to sub-areas of the

region are being developed.in related studie's and research

projects at the University of Minnesota.

Economic Resource Data base

For*much of the research cited earlier, the county and

the municipality were the basic building blocks of the

information system. For.the place-specific research, however,

the basic building block is the 40-acre tract. In the

aggregation of the 40-acre tract, the Minor Civil Division

is the pivitol territorial unit in regional impact

assessment.

Regional information system fo r economic impact analysis

and projection are-being developed,,.therefore, at two levels

of data aggregation for two different purposes.. The site and

small area data pertain primarily to land and water resources

while large area data pertain primarily to population and.

economic activities.

Regional economic development

County-level data are used in the regional economic

information system for input-output modeling. The federal and

state census and related reports which provide,the data base

can be consulted in the data files of the Minnesota Analysis,

35.1

Planning System (MAPS). Included in these files is the

Regional Economic Information System (REIS) maintained by

the Bureau of Economic Analysis, U. S. Department of Commerce.

Contents of the MAPS data files are described in a series

of reports published by Minnesota Economic Data. This series

includes also special reports based on the MAPS data.

Much of the data requirements for implementing the North-

east Minnesota Input-Output Model are not available in MAPS

files. A special purpose data file is being developed as

part of the Minnesota Economic Research Information System

(MERIS) which supports the input-output modeling efforts on

the St. Paul campus of the University of Minnesota.

The industry gross outputi employment, earnings, value'

added, energy utilization, capital expenditures and related

data series started earlier are included in the MERIS data

files. Elements of these data series are being accumulated,

also, by MCD for use later with the land and water resource

management data files.

Input-output-studies of'resource based areas in Northeast

Minnesota were completed before the on-going energy-related

study was initiated. The first of these studies was authored

by Jay M. Hughes and entitled "Forestry in Itasca County's

Economy: An Input-Output Analysis". A-35-sector input-output

table of the Itasca County economy in-1966 was prepared.

352

It was used to -subsequently derive the impacts of alternative

forestry sector development strategies in the county. This

study is used currently in SIMIAB which is discussed in the

next section.

@A second study was prepared for the "Interim Commission

to Make an Economic Study of the Lake of the Woods-Rainy Lake

Area." This commission was established by the 1967 Minnesota

legislature. Its study, entitled, "An Economic Analysis of

the Lake-of-the-woods - Rainy Lakes Region of Minnesota," was

authored by Jerome M. Stam Like the Itasca County.

study, this study is used in SIMLAB. Also, the data,from this

study, are comparable, sector-by-sector, with Itasca County

interindustry transactions table; they ar,e being used now in

the preparation and evaluation of the technical coefficients

in the eight county Northeast Minnesota input-Output Model.

Data on Northeast Minnesota's timber industry are obtained

from a study completed in 1969 by Robert D. Knepper This -

study shows employment and output levels for northern Minnesota

pulp and paper establishments'for-selected years from 1958-1968.

Projections of Minnesota wood pulp production are provided,

also; these projections pertain primarily to the Northeast

Minnesota timber industry.

Included in the regional economic data base are.studies

prepared by Richard W. Lichty and Wayne A...Jesswine from the.

353

Department of Economics, University of Minnesota-Duluth. "An

Interim Report on the Economic Base of the Duluth-Superior

growth Center" was completed by the two researchers for the

Northwestern Wisconsin Regional Planning and Development

commission and the Arrowhead Regional Commission in August of

1973. The first of a series of reports on the employment

impact-of the Reserve Mining Company was published in July of

1974. Subsequent reports in this series will include

use of the Northeast Minnesota Input-output Model, and, also,
a 17-'sector input-output table for the Head of the Lakes

urbanized area, i.e., Duluth-Superior, Cloquet and Two Harbors.

Primary data were collected, both by mail questionnaire and

by personal interview for the calendar year 1970. Secondary

data were used also from the 1970 U. S.-Census of Population.

The 17-sector input-output table will be used for ongoing impact

estimates as needed by the Arrowhead Regional Commission. A

report is being prepared also on regional tax and income

impacts of the Reserve Mining Company. This report, however,

is based on the employment estimates derived earlier from the

location-quotient analysis.

The University of Minnesota-Duluth studies@involve use

of the Northeast Minnesota version of the TRIO model for special

studies funded by the Economic Development Ad ministration,

U. S. Department of Commerce, and the Arrowhead Regional

354

Devel pment Commission. In one study, the input-output tables
0

prepared for the energy-related studies cited earlier will.be

used in determining the interindustry impacts, of Reserve

Mining Company activities on the region's economy.

.Finally, Prof. Lichty has been involved in an investigation

of the preference patterns of senior citizens.for housing. This

report,is being prepared for the City of Duluth. Prof. William

Fleischman from the Department of Sociology, UM-D is co-author,

with Lichty, of a second report on transient housing for the

elderly in Duluth

The DULUTH BUSINESS INDICATORS reports prepared by Cecil

H. Meyers, Bureau of Business Research, University of Minnesota-

Duluth and Glenn 0. Gronseth, Duluth office, Mi nnesota Depart-

ment of Employment Services, provides a monthly business

activity index based on 15 activity components. In addition,

a retail sales.index and a hote 1-motel index are published

monthly. Also, a monthly labor market report and a monthly

bank,debits report are included with the DBI monthly reports.

Historical data relating to the current DBI reports are

summarized graphically in a report published by Gronseth and

Meyers in 1968. A six-county study by meyers,.also

published in 1968, provides a comparable series on business
t indicators for Northeast Minnesota for the 1951-1966 period

Professor 0. Uel Blank from the Department of Agricultural

355

and Applied Economics, University of Minnesota-St. Paul, has

published a series of studies which focus--all or in part--on

the tourism industry in Northeast Minnesota. of general use

in the delineation of recreational subareas in the Region is

Blank's concept of the Recreational Pocal Area (or RFA's).

He identifies 10 RFA's in Northeast Minnesota. Blank also

has published his findings on the travel/tourism industry for

the Duluth-Superior area. These findings pertain to only

one of the 10 RFA's identified earlier, i.e., the North Shore.

Other RFA's studied by Blank are included in the Boundary

Waters Canoe Area (BWCA) and the Voyageur's National Park

(VNP). In one study Blank surveyed tourists in the Lake of

the Woods-Rainy Lake Area to find who they are, what attracts

them, and who caters to them. Another study focuses on

the economic impact of visitors to VNP on one county bordering

the Park. The findings have application, however, to

other adjoining areas. Also, many of the visitors to both

the BWCA and VNP enter these areas through Duluth and North

Shore trade centers.

Two statewide studies are included in this review because

of the importance of Northeast Minnesota in the overall

tourism industry in Minnesota. In one study Dayton M. Larson,

Area Extension Agent, and Lawrence R. Simonson, Extension
41
Specialist, report on the resort and campground facilities and

356

their average weekly rates in the Arrowhead Region. in

the other study, Bland, Jensen and wegeen hals report on the

economic status, in 1970, of the total logging industry in

each of Minnesota's 11 development regions. Detailed data

are available for Northeast Minnesota which, like other

regional data on the tourism industry, is being used in the

preparation of the economic studies based on the input-output

system models cited earlier.

The sociology of industry organization and decision making,

with particular reference to the use of water resources, has

been studied by R. E. Rickson and colleagues from the Depart-

ment of Rural Sociology, University of Minnesota-St. Paul

Included among the interviews upon which the published

reports were representatives of bus inesses located in Northeast

Minnesota. Funding for this work was provided by the Water

Resources Research Center, University of Minnesota and the

Minnesota Agricultural Experiment Station.

Land and water resource management

Much of the data on land and water resource management is

included in the Minnesota Land Mdnagement Information System

(MLMIS). George W. Orning, Project Director, is now completing

a series of reports on extensions of MLMIS in Northeast Minnesota.

General reports published under this project,,although not

.focusing entirely or even in part on Northeast Minnesota,

357

nontheless-provide important data and descriptive material

for the land and water resource management data files

Exploratory work is underway to adapt the MLMIS data

files for use with the spatial components of a regional trade-

off model which depends on the MERIS data files. Descriptive

data, by 40-acre tract, is being compiled at the MCD level of

data aggregation for use with population, employment and

related industry data which, also, are being prepared for minor

civil divisions. The establishment-business,, governmental.or

residential is a pivitol economic unit for relating the

aggregate, regional economic data.to the place-specific land

and water resource data.

Computer mapping is used in the preparation of develop-

ment potential maps for Northeast Minnesota. These maps show

the distribution of developable resources in the region in

terms of composite criteria which are prepared from descriptive

data for each 40-acre tract. Development potential maps are

available for timber, mineral and water resources, or combinations

of these and related economic and human resources which, also,

are being mapped.

Closely related to MLMIS is the research on the Minnesota

soil Atlas which is being developed by H. F. Arneman, L. D.

Hanson, R. H. Rust and others in the Department of Soil Science,

University of Minnesota-St. Paul, in cooperation with the Soil

358

Conservation Service, U. S. Department of Agriculture. 'Of

the four sheets scheduled for completion which cover Northeast

Minnesota, however, only the Hibbing Sheet is published.

The Two Harbors Sheet, which includes most'of the North Shore

will be published shortly, given available funds. Shown on

these sheets are two types of data broad geomorphic regions

and, within those regions, specific soil landscape units.*

Thus, a uniform set of soil resource maps is being prepared

which makes available to resource planners a description of

each soil lands cape unit in terms of (1) landscape position;

(2) rooting zone and substratum (of most common soil texture

and thickness), (3) inches of available water to 5 feet,. drainage

clas's and ph (to show moisture'relationships), (4) approximate

fertility in working zone (in terms of.P and K), and (5) major

soil series. The soil resource data are compiled by 40-acre

tract for the MLMIS data base.

Because the production limitations represented of the soil

landscape units can be modified by various resource.development

schemes, a rating system.has been devised by Hanson and'associates

for interpreting the general soil map. These ratings

apply to (1) crop production (using total digestable nutrients --

TDN -- as a common measure for a 10-category productivity

index), (2) forest production-(based on a key species -- suitable

for soil unit -- and it's estimated site index), and (3) resi-

-'359

dential development (taking into account soil strength, flooding,

wetness, slope, septic field suitability,'and groundwater

contamination). The ratings can be modified at a cost, which

can be determined for each soil landscape unit in terms of

its alternative use ratings. Thus, the soil landscape unit

data when transferred to the 40-acre tract data base, can be

compiled by MCD.for use in the input-output and related spatial

modeling systems cited earlier.

Studies of the forest ecology of selected areas in

Northeast Minnesota are being directed by L. C. Merriam, Jr.

and associates in the College of Forestry, University

of Minnesota-St. Paul. These studies focus on

(a) the ecologic impacts of newly developed campsites in the

Boundary Waters Canoe Area and (b) the inventoring of basic

.resources in primary development areas in Voyageurs National

Park.'

Arnett Mace, also from the College of Forestry, University

of Minnesota-St. Paul, is looking at the problem of waste

water disposal in the small communities in his study on

"Feasibility of Using Iron Ore Overburden Material as a Media

for Disposal of Secondary Effluent in Northern Minnesota". The

Erie Mining Company is cooperating in this study in providing

the study sites and in the preparation of these sites for

effluent.di sposal.

R. S. Farnham, Department of Soil Science, University of

360

Minnesota-St. Paul, is engaged in the study peat resources of

northern Minnesota. Over the past 15 years, Professor Farnham

has published extensiv@E!ly in this field and has become an

internationally recognized authority on peat resources.

Farnham's- work, also, is pro viding alternatives

for the disposal of waste water in small communities and

individual residential units which are located near peat bogs.

The Iron Range Resources and Rehabilitation Commission

and the@Minnesota Agricultural Experiment Station jointly

have'funded this research. Some o f the.work has been funded

also by the Economic Development Administration, U. S. Depart.-

ment of Commerce.

Related to the economic analysis of the La ke of the Woo6s-

Rainy Lake area is the study of fishery resources by Heyerdahl

and Smith . This study provides a summary of the commercial

fishery survey conducted by the Department of Entomology,

Fisheries and Wildlife, University of Minnesota, in cooperation

with the Minnesota Department of Conservation for the-Lake

of the Woods-Rainy Lakes Commission. Results of the survey

were used in the preparation and prediction of future management

options for the Minnesota-Legislature during the spring of

the 1971 session.,

Resource Development Syst.ems Simulator

A computer interactive resource development simulator

has been prepared for use in research and planning. The initial

361

application of the simulator has been for teaching purposes

(in a course taught jointly by Professors Robert Barrett

and Wilbur Maki entitled Community Development Si mulation,

which is part of the Resource and Community Development

curriculum in the College of Agriculture, University of

Minnesota-St. Paul). organization and potential-uses of the'

simulato r for economic resource impact assessment are discussed

in this section of the report.

organization of simulation laboratory

The Minnesota Resource Development Systems Simulator is

used currently in a coitputer-interactive laboratory setting;

hence, the designation simulation laboratory or SIMLAB. One

demonstration area for testing the model is Itasca County;

others are the Lake-of-the-Woods, Rainy Lake area and the

Duluth, Superior, Cloquet and Two Harbor urbanized area.

SIMLAB provides a labo ratory-type capability for assessing

regional economic impacts of resource-related infrastructure

development. Infrastructure here includes the basic community

facilities, such as water supply and waste water treatment

plant, solid waste collection and disposal facilities and

electric power plants. Also,included ar-e transportation,

education and health, and recreat ional and cultural facilities,.

and other public buildings. of concern in the development of

-SIMLAB is the assessment of basic community and related

362

facility requirements associated with.the development of

agricultural, forest, mineral resources in the selected areas.

Simulation of local impacts of the driving economic

forces in resource development is extremely difficult, if.not

impossible, without gross simplification of-economic structure

and process. Critical regional variables and constraints

must be identified, however, and included in the simulation

to achieve a reasonable measure of realism about what is

happeningand how and why the happenings occur. Simplification

is essential, also, in making the modeling efforts manageable.

The driving forces of regional resource development are

represented as submo,dels in a selective.and a simplistic

manner, at least initially. They are gross approximations,of

the economy of a region Here the submodels are

identified in terms of their potential relevance for coastal

zone management.

Markets. In a market-dominated economy the role of

markets in regional development is of primary importance,

particularly in understanding a region's present and future,

economic status. Markets here are viewed as being local and

external, or export. Local markets are the people and the

industries of the area. Number of people, their earnings

and income levels, and number, type and size of businesses

are important sources of variability in accounting for

363

prospective changes in local market conditions. Export markets,

on the other hand, reflect general economic conditions, or

the conditions in a particular region which is a major market

for the.area's basic industry.

Demand. Demand is represented b y the individual industry

disbursements of its outputs to final users -- local household,

government and business sectors. Shipments to n ational markets

are included, also. For the household sector, annual percentage

change in a specified personal consumption expenditure is

related to annual percentage changes in total population,

total personal income per household, and average price per

unit. For government and business, total expenditures are

related to total population and individual industry outputs,

respectively. Finally, the annual percentage change in export

demand for a given industry is a function of the national

market growth rate, the industry market share, and the annual

percentage change in market share. With reference to energy,

demand includes the use by household and government units and

in business capital formation. Intermediate demand for energy

is based on industry output. Conversion coefficients are used,

finally, to translate the energy requirements from physical

to monetary units.

Production. Production is determined, within certain

limits, by final demands. The final demands "drive" the

364

product ion-system, which gen erates'the intermediate demands,

including industrial, commercial and transportation (i.e.,

end-use) demands for energy. With reference to energy production,

a regional input-output table yields the technical and trade

coefficients to derive the projected energy requirements.

Production is constrained by energy.supplies as well as pro-

duction facilities. Production, of course, determines the

levels of money flows from purchasers to producers and from

producers to resource owners, e.g., employee compensation to

households. An excess of money inflows over money outflows

on current accounts for the area itsel f implies a counter-

balancing flow of savings on the capital accounts. Total

money flow from producers to resource owners in the area

represents the "value added" to gross national product by the

areals economic activity.

Employment. Production requirements for labor represent

the dema nd for labor, which interacts with labor supply. Labor

requirements are specified industry by industry. They are met

in terms of an occupational distribution of employment for

each industry. Thus, the occupational constraint may result

,in simultaneous out-migration of workers with unneeded skills

and in-migration of workers with needed skills.

Commuting rather than migration adjustments occur first

in response to changes in the demand for labor. SIMLAB yields

365

estimates of employed populati-on@by both place of work and

place of residence. migration occurs only,when unemployment

levels (and also commuting levels) reach the critical limits

cited earlier. Transportation facility and energy constraints

within the commuting area may impose further limits on

commuting.

Population. The population of a region is represented by

age and sex in the derivation of birth, death. and migration

rates. The current migration rate is based on last years'

rate and the level of "exc6ssl' or "defici t" unemployment.

Unemployment above some critical upper limit, e.g., six per-

cent, results in out-migration while unemployment below some

critical lower limit, e.g., three percent, results in in-

migration. Thus, an age-sex distribution of unemployment

also is required for the population component.

Population "drives" the local demand for goods and

services. For the population sector, the consuming unit is

the household. Population is converted to equivalent house-

ihold units. In turn, these units are correlated with demand
and' supply of housing and energy.

Investment. Investment includes both replacement and

expansion capital-outlays. Replacement outlays are related

to industry outputs. -Expansion outlays are dependent on

policy decisions, both internal and external. Different levels

of private and public expansion'outlays are assumed and their

366

implications for industry output and.regional income growth

are derived. Energy-related (including transportation)

facility replacement and expansion is.emphasized here. Investment-

output relationships for all industries have been obtained

from business surveys on energy utilization and capital

expenditures. Projected increases in industry output (based

on projected capital outlays) are converted into corresponding

increases in energy requirements. Additional energy require-

ments are compared, finally, with projected expansion of

energy production in the study region.

Land Use. Land use is both extensive and intensive.'

Extensive uses are associated with agriculture and forestry

while intensive uses include mining, industrial, commercial,

transportation and residential. Land use is described in terms

of both space and site attributes of particular land parcels.

A pivotal concept for relating production and investment to

land use is the establishment. The four-digit Standard

Industrial Classification (SIC) code is used to differentiate

among establishments, which are related directly to the

corresponding industry outputs. An employment-size distribution

of establishments is presented for each industry. Eventually,

each (SIC) group of establishments will be related to

correspondinq'groupings of (40-acre) land parcels. The location

of these parcels in the spatial economy of the region will be

367

cited along with the taxable valuation and other site

characteristics.

Management and Control Systems. Management and control

systems relate to both fiscal and ecologic impacts of regional

infrastructure development. Regional fiscal and ecologic

accounts are being prepared in the context of the regional

input-output model cited earlier. The levels of investment,

production and population components of the regional system

depend on the constraints imposed by the regional control

systems. Again, different sets of assumptions about regional

fiscal and ecologics budgets, and their management, are

introduced into the computer models to provide for alternative

scenarios for regional investment and development.

Use of simulation in research and planning

SIMLAB is being used now in studies relating to energy

planning and development. Economic impacts of national energy

policy are being derived for both Northeast Minnesota and

Rest-of-Nation with the Northeast Minnesota Trade-off Model

(NEMTOM). The regional impacts, of course, have only nominal

repercussions in the-rest-of-nation,- they are not of the same

order of significance as,the repercussions of national policy

on Northeast Minnesota.

Energy allocation, conservation and development programs

-depend, in their design and implementations, upon the.industry

368

patterns of projected regional.economic.growth. Impacts.of

energy shortages for selected industries are ascertained by

imposing an energy constraint upon the production activities

of each sector in the use of NEMTOM. Alternative simulation

runs show t],ae industry impacts of different energy allocations

strategies in terms of industry output, employment-and earnings.

Energy conservation practices similarly are translated into

corresponding changes in energy requirements for the inter-

mediate and final demand sectors., Finally, energy programs

are translated into corresponding increases in energy supplies,-

thus removing the constraints imposed on industry expansion.

For dealing with problems of regional economic growth,

alternative projections series are being prepared which show

total industry outputs with related employment and earnings of

different levels of population and market growth. The alter-

native future scenarios show the market implications of

projected public policies and national market outlooks. The

local.indust.ry.implications of each projections are being

der ived by the Trade-off model.

Urban and inter-7urban transportation issues are closely,

.related to those dealing with energy and, also, regional.

economic growth. Proposed shifts from private transportation

to public.transportation and to different modes of public trans-

portation can be simulated in terms of impacts on specific

369

industry activities and related employment requirements. For

example, a shift from private auto to personalized rapid transit

would drastically reduce requirements for gasoline service

stations in the Duluth-Superior metropolitan area. These shifts

also will be demonstrated in future applications of NEMTOM.

Manpower development and training issues are approached by

means of the industry projections, coupled with corresponding

projections of occupational requirements of the projected work

force. The local occupational requirements of industry are

compared with the corresponding industry requirements of the

state and the Nation. These projections, in turnf represent

the market forecasts for high schools, technical institutes

and vocational schools, colleges and universities.

Finally, land use controls are introduced in the trade-off

model by restricting public and private facility development,

and thus, the total economic activity in a given area. Again,

the implications of land use constraints on economic activity

are being simulated much the same way as impacts energy

constraints on the same ac tivities.

Design and implementation of NEMTOM as a decision data

source for-resource planning is being undertaken as part of

SIMLAB. A modular series of computer programs are used

de-off model. These programs represent a
to implement the tra

series of interdepend ent subsystems of the total- regional

370

economy which are identified as follows:

(1) markets -- export and local -and respective roles

in private sector planning;

(2) Demand -- household, business and government and

role in "driving" production;

(3) Production -- both goods and services, private and

public, current and capital;

(4) Employment and labor force in terms of production

requirements and existing labor force of given skills

distribution;

(5) Population and migration dynamics and dependency

on jobs and overall role in "driving" demand;

(6) Income and inve'stment -- how it is' acquired and

distributed and deployed in production.and consumption.

Each submodel routine is linked to the preceding and

succeeding submodels by a feedback loop. A series of nine

parameters are presented initially for review and adjustment

in a particular sequence by the model operator. Each variable,

however, is determined internally, within the trade-off model,

except for the starting input variables. Eventually, the

input and output variables will be linked to a regional resource

development game (which is patterned after the'City Model used

in the-Community Development Simulation course cited earlier).

in addition, a series of submodels are being developed

371

which are linked to the preceding system model. The submodels

are treated as separate modules in an expanded system model.

These additional modules are identified as follows:

(1) Transportation and land use -- their interdependence

and interaction with markets, production and population

and with the ongoing activities in the economic,

governmental and social sectors of the local

Community and/or regional community;

(2)' Energy allocation, conservation and development

their interaction with demand and production and

with economic governmental and social sectors in

the community;

(3) Waste emissions and control -- their impacts on

local environmental and quality-of-life indicators

and their interaction with economic, governmental

and social sectors in the community;

(4) Social service delivery -- impacts of providing,_

using and financing essential social services on

economic, governmental and social sectors in the

community;

(5) Housing and municipal services -- impacts of

@providing, using and financing of residential units

and'related public infrastructure on economic,

governmental and social sectors;

372

(6) Economic base expansion impacts on service

delivery and role of econ omic, governmental and

social sectors.in basic economic development.

Each module thus will provide data for the total regional

systems models and will receive data from.the land and water

resource management information system data files. NEMTOM

thus provides a laboratory setting (i.e., written SIMLAB) for

integrating micro-level data on local environmental conditions

with macro-level data on-regional economic conditions with

specific applications to resource planning in Northeast

Minnesota.

APPENDIX A:

MINNESOTA LAND MANAGEMENT INFORMATION SYSTEM STUDY

A Minnesota Land Management information,System pilot

study is being completed for Itasca County, Minnesota. "Technical,

Report # 1: User's Guide to M.L..M.I.S. Data Sys tem for Itasca

County" will report on this study. This report is the first

of a series of reports "designed to document a wide range of

aspects of the land information system for immediate users of

the system". Because data for Itasca County are used., also,

in SIMLAB, the MLMIS study is reviewed here in terms of its

importance for economic impact studies of coastal zone resource

development.

Technical Report I provides for.the identification,

373

description and documentation.of each variable in MLMIS which

is available.for Itasca County. Two types of variables are

presented --- free-standing and tabled (Table A-1). Free-

standing variables are represented by the prefix V while the

table variables have the prefix J or G. Several of the free-

standing variables, e.g., V14 and V15, have data levels that

can be-used to access a group of related tabled variables.

For example, 84 soil types are identified under V14, Soil

Landscape Units. For each of the 84 data levels, it is

possible to access 25 tabled variables, J01 to J25. Each

tabled variable provides additional information about the

specific soil type.

A total of 63 variables are presented in Technical

Report # 1; each of these variables is in the Itasca County

data system. A standard format is used in reporting on each

variable as follows: variable number, variable name, source,

interpretation, variable description and variable data levels.

Three of the six reported items are summarized in Table A-1.

Each of the variables pertains to the basic data unit--

the 40-acre parcel. This unit was adopted for MLMIS because

it is the smallest consistent unit in U. S. land surveys

system which employs the township and range references (with

township be ing defined by a pair of township lines and ranges

to form an area 36 miles square). Each township has 36 sections

374

and each section 16 forty-acre parcels. Each 40-acre parcel

is located within a coordinate system.

Economic studies on local impacts of regional resource

development are based, in part, on the types of data now

compiled in MLMIS. Data on land use, forest cover, soil

landscape units, and related physical and natural resource

attributes are used in compiling estimates of the distribution

of land parcels of specified attributes in a township, minor

civil division or school district. Subsequent steps in the

analysis involve the.conversion of these data into estimates

of their economic value as determined in the market place

and, also, by the tax accessor.

Combinations of land attributes, which are given by the

system variables identified in Table A-1, can be used in

mapping the 40-acre parcels which may provide potential sites

for present and future economic development in the county.

This analytical capability can be extended to the study of

developable sites in the coastal zone.

Additional economic variables are being,identified for

inclusion in the MLMIS data base. The reported and/or estimated

market value of 40-acre parcels is an important economic

variable, which, if accumulated by minor civil division would

behelpful in measuring the differential municipal impacts of

resource development activities. The economic data, however,,

375

are more transitory than the -physical and natural resource

.data and, hence, they are in need of periodic and frequent

updating.

use of the MLMIS Itasca County data series in SIMLAB is

being considered, also. The MLMIS data again would be

compiled by minor civil division and then collated with popu-

lation and economic data for these statistical reporting

units. Such a procedure would be particularly applicable in

the investment, facilities location,. and land use components

of SIMLAB.

The Minnesota Land Use Information System pilot study

would have direct application to the coastal zone area by an

extension of the pro gram.

376

Table 1: Industry,Classification for 95-sector
Input-Output Model, 1967

Sector U.S. 87-sector Related SIC Codes
No. Title 1967 model (1967 edition)

Agriculture, forestry
& fisheries

1 Livestock & livestock 1 0130, pt. 014,
prod. 0193, pt. 0729
2 Other agricultural prod. 2 011,012, pt. 014,
0192
3 Forestry & fishery 3 091
products
4 Agricul., fores.-& fish. 4 071, 0723, pt.
serv., 0279, 085, 098,
0731
Mining and construction

5 Iron & ferro alloy ores .5 1011, 106
Nonferrous metal ores mining 6 102, 103, 104,
105, 108, 109
7 Coal mining 7 11, 12
8 Crude petroleum & natural gas 8 1311, 1321
9 Stone & clay mining & 9 14 (exc. 147)
quarrying
.10 Chemicals & fertilizer 10 147
11 New construction 11 pt. 15, pt. 16,
12 Maintenance & repair 1-2 pt. 17, pt. 6561
.pt. 15, pt. 16,
construc. 17

Manufacturing

13 ordnance & accessories 13 19
14 Food & kindred products 14.1 20 (excluding 201,
except meat prod., grain 204, & 208)
mill prod., and beverages
15 Meat products 14.2 201
16 Grain mill products 14.3 204
17 Beverages 14.4 208
18 Tobacco 15 21

377

Table 1: Industry Classification for 95-sector
Input-Output Model,. 1967

Sector U.S. 87-sector Related SIC Codes
No. Title 1967 model (1967 edition)

19 Broad & narrow fabrics, 16 221-226, 228
yarn & thread mills (Excluding 225)

coverings
20 Misc. textile goods & floor 17 227,229

21 Apparel 18 225,23 (excluding
239), 3992

22 Misc- fabricated textile 19 239
prod.
23 Lumber & wood products 20 24 (excluding 244)

24 Wooden containers 21 244

25 Household furniture 22 251

g 251)
26 other furniture & fixtures 23 25 (excludin
27 Paper & allied products exc. 24 26 (excluding 265)
containers & boxes

28 Paperboard containers & 25 2 65
boxes

29 Printing & publishing, exc. 26 .1 27 (excluding 2751
comm. print and 2752)
30 Commercial printing 26.2 2751 and 2752

31 Chemicals & selected chem. 27 281 (excluding
prod. 2815), 2861, 2870,
289
32 Plastics & synthetic 28 2821, 2822
materials

33 Drugs, cleaning & toilet 29 283,284
prep.
34 Paints & allied products 30 2851
@5 Petroleum refining 31.1 29114, 299
36 Petroleum@-related indus- 31.2 2951, 2952
tries

37 Rubber & miscellaneous 32 30
plastics
38 Leather tanning & industrial 33 3111, 3121
leather products

378

Table 1: industry Classification for 95-sector
Input-Output Model, 1967

Sector U.S. 87--sector Related SIC Codes
No. Title 1967 model (1967 edition)

39 Footwear & other 34 31 (exc. 3111
leather prod. 3121)
40 Glass & glass products 35 3211, 3229,3231
41 Stone & clay products 36 324-329
42 Primary iron & steel manuf. 37 331,. 332, 3391,
3399

43 Primary nonferrous metals 38 333-336,3392
manuf.
44 Metal containers 3!@ 3411, 3491
45 Heating, plumbing & 40 343,344
fabricated structural
metal products
46 Screw machine products, 41 345, 3461
bolts, nuts, etc., & metal
stampings
47 other fabricated metal 42 34@2,347,348,349
products
48 Engines & turbines 43 3511, 3519
49 Farm machinery & equipment 44 3522
50 Construction, mining, oil 45 3531-3533
field machinery & equipment
51 Materials handling mach. & 46 3534-3537
equip.
52 Metalworking machinery & 47 354
equip.
53 Special industry mach. & 48 355
equip.

54 General industrial mach. & 49 356
equip.
55 Machine shop products 50 359

56 Office & accounting machines 51.1 357 (exc.3573)
exc. computing & related
mach.

379

Table 1: Industry Classification for 95-sector
Input-Output Model-, 1967

Sector U.S. 87-sector Related SIC Codes
No. Title 1967 model (1967 edition)

57 Computing & related 51.2 3573,
machines

58 Service industry machines 52 358
59 Electric transmission & 53 361, 362
distribution equip. & elec.
industrial apparatus
60 Household appliances 54 363
61 Electric lighting & wiring 55 364
equip.

62 Radiol television, & 56 365, 366
communication equipment
63 Electronic components & 57 367
access.

64 Misc. elec. machinery, 58 369
equipment & supplies
65 Motor vehicles & equipment 59 371
66 Aircraft & parts 60 372
67 other transportation equip. 61 373,374,375,379

68 Prof., scientific & 62.1 3821,3822,3841-
controlling instruments & 3843,381 (exc.
supplies, exc. eng. & 3811)
scientific instruments

69 Engineering & scient. instr. 62.2 3811
70 optical,'ophthalmic, & 63 383,385,386
photographic equip. &
supplies
71 Miscellaneous manufacturing 64 39

Trans ortation, Communication
& Utilities

72 Transportation, exc. rail, 65.1 44,46,47 (exc.
air, hwy. pass. & motor 473,474)
freight
73 Railroads & related services 65.2 40,474

380

Table 1: Industry Classification for 95-sector
Input-Output Model, 1967

Sector U.S. 87-sector Related SIC Codes
No. Title 1967 model (1967 edition)

74 Local, suburban & 65.3 41
interurban highway
passenger transportation
75 Motor freight tr ansportation 65.4 42,473
& warehousing
76 Air transportation 65.5 45
77 Communication, exc. radio 66 48 (exc. 483)
& television broadcasting

78 Radio & television broad- 67 483
casting
79 Electric service 68.1 491, pt. 493
80 Gas service 68.2 492, pt. 493
81 Water & sanitary services 68.3 494-497, pt. 493

Trade, finance & services

82 Wholesale trade 69.1 50 (exc. manu-
facturers sales
offices)
83 Retail trade 69.2 52-59, 7396,
pt. 8099

84 Finance & insurance 70 60-64, 67

85 Real estate & rental 71 65 (exc. pt
6561), 66
86 'Hotels & lodging places; 72 70,72,76 (exc.
personal & repair serv. 7692 & pt.7699)
exc. auto rep.
87 Business services 73 73 (exc. 7396),
76�4, pt.7699,81,
89 (exc.8921)

88 Automobile repair & 75 75
services

89 Amusements 76 78,79

.90 Medical, educ. serv. & non- 77 80,82,84,86
profit organizations 8921,0722

381

Table 1: Industry Classification for 95-sector
Input-Output Model, 1967

Sector U.S. 87-sector Related SIC Codes
No. Title 1967 model (1967 edition)

91 Federal government enter- 78
prises
92 State & local govt. enter- 79
prises

93 Business travel, enter- 81
tainment
94 office supplies 82
Other non-produced inputs 83

382

Table 2: NORTHEAST MINNESOTA EMPLOYMENT

1/0 1967 1970 1972 1974
SECTOR EMPLOYMENT EMPLOYMENT EMPLOYMENT EMPLOYMENT

1 2,618 2,016 1,970
2 1,666 1,283 1,253
3 70 76 52
4 626 500 531
5 11,658 11,601 11,951 12,352
6 53 86 71 65
7 0 0 0 0
8 0 0 0 0
9 160 148 114 81
10 01 0 0 0
11 5,333 3,495 4,103 4,298
12 1,038 698 803 820
.13 0 0 0 0
14 1,873 2,856 2,010 1,799
15 282 292 386 344
16 152 73 30 14
17 182 127 130 153
18 0 0 0 0
19 12 0 0 0
20 0 0 0 0
21 1,142 1,505 1,368 1,583
22 24 30 35 41
23 2,624 1,948 .2,419 2,519
24 172 112 177 211
25 22 19 16 14
26 24 9 15 18
27 5,260 5,139 4,584 5,628
28 74 95 105 133
29 855 893 1,001 1,083
30 332 347 .389 414
31 26 34 45 54
32 0 0 0 0
33 8 19 0 0
34 11 15 14 13
35 250 263 256 266
36 37 37 17 14
37 51 48 0 0
38 0 0 0 0
39 0 0 0 12
40 0 0. 7 0

383

1/0 1970 1972 1974
SECTOR EMPLOYMENT EMPLOYMENT EMPLOYMEUT EMPLOYMENT'

41 361 348 291 503.
42 2,550 3,220 1,934 428
A3 150 90 17 17
44 0 0 0 0
45 240 n6 180 271
46 0 0 0 0
47 620 504 464 708
48 0 0 0 0
49 .0 0 32 41
50 675 665 797
51 40 0 0 0
52 19, 20 34 48
53 32 40 79 124
54 0 0 8 13
55 143 130 133 137
56 0 9 0 0
.57 0 0 0 0
58 4 4 5 6
59 7 9 9 11
60 14 0 0 0
61 0 0 0 0
62 644 275 257 143
63 0 0 39 41
64 0 0 0 0
65 38 20 46 173
66 0 0 0 0
67 232 255 310 323
68 0 0 0 12
69 0 0 0 0
70 0 0 0 44
71 337 367 377 573
72 1,011 .1,170 11109 2,311
73 0 0 0
74 52.4 228 319 301
75 1,062 986 1,043 1,130
76 30 24 30 41
77 867 890 907 974
78 315 381 441 505
79 1,181- 1,016 11189 1,443-
80 142 160 87 110
al 53 67 79 104
82 5,846 6,316 6,227 5,672
83 20,981 22,469 21,660 26,385
84 3,399 3,444 3,536 3,209
85 136 943 991 922

384 -

1/0 1967 1970 1972 1974
SECTOR EMPLOYMENT EMPLOYMENT EMPLOYMENT EMPLOYMENT

86 3,636 3,771 4,095 4,370.
87 1,885 1,943 1,479 2,225
.88 623 762 684 720
89. 779 469 495 783
90 9,656 11,253 12,109 11,781

TOTALS 89,887 92,309 91,269 97,442

Note: Totals do not include Sector 1-4.

Source: Northeast Minnesota Energy-Capital Expenditure Survey
County Business Patterns, 1967, 1970, 1972, 1973
OM4C
Regional Econ L Information System, 1967, 1970, 1972, 1973
Census of Manufactures, 1967
Minnesota Employment Services

385

BIBLIOGRAPHY

(By Chapter)

GREAT LAKES COMMISSION

Great Lakes Newsletter - bi-monthly.

Great Lakes Research Checklist - semi-annually.

Tonnage (Commerce) Statistics for Great Lakes Ports
monthly.

Report to the States - biennually

Summary of State and Provincial Sport Fishing Regulations
on Great Lakes - annually

GREAT LAKES BASIN COMMISSION

Great Lakes Basin Framework Study, Appendix 19, Economic and
Demographic Studies, prepared by Economic and Demographic
Studies Work Group.

Great Lakes Basin Programs FY 75-FY 79, published in 1975 by
the Great Lakes Basin Commission, Public Information Office,
Box 999, Ann Arbor, Michigan.

UPPER GREAT LAKES REGIONAL COMMISSION

Up2er Great Lakes Regional Commission, Newsletter, Fall, 1974

ARROWHEAD REGIONAL DEVELOPMENT COMMISSION

Arrowhead Economic Development District, Overall Economic
Development Program, Initial Report, prepared by State of
Minnesota Department of Business Development, Minnesota Area
Redevelopment and Arrowhead Economic Development District
Staff, July 17, 1967.

Arrowhead Regional Development Commission, Annual Report, 1974

Arrowhead Regional Development Commission By-Laws, Chairman
Joseph Veranth, July 1, 1970.

386

By-Laws Of The Duluth-Superior Metropolitan Interstate Committee

Overall Program Design FY 1975, Arrowhead Regional Development
Commission, July, 1974

Regional Development Act, (As Amended by Chapters 153 & 174,
Laws, 1971)

U. S. DEPARTMENT OF COMMERCE, BUREAU OF THE CENSUS

Guide To Programs and Publication s, Subjects and Areas, Bureau
of The Census, (Dept. of Commerce), 1973

SMALL BUSINESS ADMINISTRATION (SBA)

U. S. Small Business Administrationg "What it is .... what it
does," August, 1974

@U. S. DEPT. OF LABOR,- BUREAU OF LABOR STATISTICS

A Historical Summary of Duluth Nonagricultural Wage and Salary,
Glenn 0. Gronseth and Peter J. Oppel, Dept. of Employment
Services, January, 1958-December, 1974.

An Analysis of The Active Application Files for Ely, Grand
Rapids, Hibbing, international Falls, Virginia, Glenn 0.
Gronseth, Dept. of Employment Services, November, 1974.

An Analysis of The Duluth Active Application File, Glenn 0.
Gronseth, Dept. of Employment Services, November, 1974.

City of Duluth; manpower Information For Affirmative Action
Programs, Roy H. Anderson and Glenn 0. Gronseth, 1973.

Duluth Business Indicators, Vol. 12, No. 3, March, 1975.

Employment Gap, Glenn 0. Gronseth, Dept. of Employment Services,
February, 1975.

Part and Total Graphs Showing EMloyment, Unem2loyment and
Work Force for N. E. Minnesota, Glenn 0. Gronseth, Dept. of
Employment Services, February, 1975.

387

U..S. DEPARTMENT OF AGRICULTURE, FOREST SERVICE

Quid e for Managing The National Forests in the Lake States,_
Eastern Forest Service, U. S. Department of Agriculture,
February, 1975.

DEPARTMENT OF ECONOMIC DEVELOPMENT

Department of Economic Development, Annual Report, 1974.

Economic Development, Chapter 362, Book of Statutes.

Inventory of Natural, Sci entific and Aesthetic_Sites, North
Shore of Lake Superior, Minnesota, Janet C. Green and John
C. Green, March, 1974.

Minnesota Directory of Manufacturers; 1975-76, Research
Division, Minnesota Department of Economic Development.

Minnesota Tourist Travel Industry, Department of Economic
Development, Research Division, 1974..

Minnetours, Tourism Division, Department of Economic Develop-
ment, Minnetour 1.

The Future Direction of the Department of Economic Develo2ment.

Tourism Program, Department of Economic Development.

ARA-EDA

ARA-EDA, (Information derived from personal interview)

SEAWAY PORT AUTHORITY OF DULUTH

A. A. P. A. Advisory, Vol. 9, No. 8, February 24, 1975

Duluth_Airports_, sites for light industry, Seaway Port Authority.

Duluth Business Indicators and Selected Area Economic Data,
Cecil H. Meyers and Glenn 0. Gronseth, Bureau of Business and
Economic Research, University of Minnesota-Duluth, 1975.

Extending the Shipping Season in the Great Lakes-St. Lawrence
Seaway System: The realities after a three year evaluation,
Prod@ced by the Great Lakes Commission.

388

International Trade of Agricultural Products, Oscar F. Litterer.

international Trade of Manufactured Products, OScar F. Litterer,
June, 1969.

Minnesota's world Port, Vol. 9, No.. 3, Fall 1973.

Minnesota's World Port, Vol. 10, No. 2, Summer, 1974.

Minnesota's world Port, Vol. 11, No. 1, Winter, 1975.

Minnesota's world Port Promotion, Seaway Port Authority of
Duluth, 1975.

Northeastern Minnesota_,. Arrowhead Regional Development Commission,
Minnesota Department of Employment Services, Prepared by
William M. Bolander and Glenn 0. Gronseth, July, 1975 (Fourth
Printing)

Port of Duluth-Superior, Seaway Port Authority of Duluth,
Minnesota U. S. A., Published by Seaway Port Authority of
Duluth.

The Port of Duluth-Minnesota's World Port, World Ports Magazine,
May, 1975.

U. S. DEPT. OF THE ARMY, BURLINGTON NORTERN

TACONITE TRANSSHIPMENT FACILITY DULUTH-SUPERIOR HARBOR

Environmental Assessment Report, Burlington Northern; Taconite
Transshipment Facility, Duluth-Superior Harbor, Dept. of the
Army, March, 1975.

MINNESOTA STATE PLANNING AGENCY-GRAIN TRANSPORTATION

An Interregional Analysis of U. S. Domestic Grain Transportation,
Jerry A. Fedeler, Earl 0. Heady, Won W. Koo, Center For
Agricultural and Rural Development, Iowa State University,
February, 1975.

Grain Transportation in Minnesota., Minnesota State Planning
Agency; Transportation Planning Section, january, 1.975.

DEPARTMENT OF AERONAUTICS ,ECONOMIC IMPACT

A Study of the Socio-Economic Impact of Aviation on Selected
Communities, David Braslau Associates, Inc. and Boward Needles,
Tammen and Bergondoff, January 1, 1975.

Minnesota Aviation System Plan Summary Report, Minnesota Dept;
of Aeronautics; February, 1974, prepared by R. Dixon Spees
Associates,.Manhasset, New York.

MINNESOTA HIGHWAY DEPARTMENT

T. H. 61/Norshor, A Resource Assessment Using Computer Analysis
Techniques, Trunk Highway 61 Prom Two Harbors To Illgen City,
prepared by Minnesota Highway Department, District One, Duluth
and office of Environmental Services, 197@.

Coastal Zone Traffic Data, prepared by Minnesota Highway
Department.

DEPARTMENT OF NATURAL RESOURCES

Snowm'obiler Economic and Preference Survey, Dr. James D. Perry
and Larry Hopkins, 1974.

State Comprehensive Outdoor Recreation Plan, 1974, Bureau of
Environmental Planning and Protection, Minnesota Department
of Natural Resources

U. S. DEPARTMENT OF INTERIOR; (BUREAU OF MINES)

Assessment of Growth Impacts on the Range, May, 1974, revised
June, 1974. Arrowhead Regional Development Commission.

Copper: Red Metal in Flux, Yvonne Levy, Federal Reserve
Bank of San Francisco, 1968.

Copper and Nickel Resources in the Duluth Complex, Northeastern
Minnesota, Report of Investigations 16, Minnesota Geological
Survey, Bill Bonnichsen, University of Minnesota, 1973.

industrial outlook, 1974, with Projections to 1980, U. S.
Department of Commerce, Domestic and international Business
Administration.

Mineral industry Surveys, U. S. Department of the interior,
Bure au of Min es, "Copper in 1973"'.

Mineral industry Surveys, U. S. Department of the Interior,
Bureau of Mines, "Copper in May, 1974".

3,90

Mineral Industry Surveys, U. S. Department of the Interior,
Bureau of Mines, "Nickel in may, 1974".

Mineral Industry Surveys, U. S. Department of the interior,
Bureau of Mines, "Copper Production in June, 1974".

Mineral Resources, Mineral Resource Work Group, Ronald M.
Hays, Principal Investigator, Dept. of Civil and Mineral
Engineering.

Minneapolis tar, The, August 26, 1974, "The Question: State
Copper Nickel, Pro: Area scarred pretty-small; Con: Make
sure cost is worth benefits".

News Front Magazine, Sept/Oct., 1973, "Copper, The Innovative
Metal: A Special Report".

"
Nickel", reprint from the 1972 Bureau of Mines Minerals Year-
book'.,_,U. S. Department of the Interior.

Pocket Data Book, 1973, State Planning Agency, State of
Minnesota. . I

Skillin4s Mining Review, April 6, 1974, Volume 63, No. 14.,
"Minnesota Mineral Resources: A.Brief Overview" and August 24,
1974, Vol. 63, No. 34, "Iron ore Pellet Shipments"

.'The Mineral Industry in Minnesota", reprint from the 1972
Bureau of Mines Minerals Yearbook, U. S. Department of the
interior.

United States Mineral Resources, Donald A. Brobst and Walden
P. Pratt, Editors, Geological Survey Professional Paper 820,
Department of the Interior, 1973.

NORTHEASTERN MINNESOTA DEVELOPMENT ASSOCIATION

A Luxury Resort to Serve the Nort*1-iwoods Guest at Ely, Minnesota,
prepared by: Northeastern Minnesota Development Association,
February, 1974 (with consultant assistance from Uel Blank,
Dayton Larsen, L. R. Simonson)

Availability of Processing Steam, from Clay Boswell Steam
Electric Station, prepared by Engineer ing Department, Minnesota
Power and Light Company, April, 1968.

391

Minnesota's iron Ore Futurc, by Eugene P. Pfleider, Professor..
of Mineral Engineering, University of Minn., Northeastern
Minnesota Development Association, January, 1966.

Northeastern Minnesota's Economy - From Now to 2000! by Arthur
C. Barschdorft in cooperation with Northeastern Minnesota
Development Association and the University of Minnesota,
Duluth, July, 1968.

N. E. Minnesota Educational Resources, A NEMDA Research Report,
Northeastern Minnesota Development Association,.January, 1967.

N. E. Minnesota Manufacturing Tax Comparisons, Significant
findings from an Ernst & Ernst Tax Study, Northeastern
Minnesota Development Association, May, 1967.@

N. E. Minnesota--Timbe.--Resourcea, prepared by Robert Peura,
and Allen J. Schecht, Northeastern Minnesota Development
Association; 1962.

S2ecial Re ort Availability and Projected Cost of Aspen
Timber in Northeastern Minnesota, January, 1968.

The Emer2inq Copper-Nickel Industry in N. E. Minnesota, A
Chronology of Important Developments and Review of Industry'
Characteristics and Outlook, Northeastern Minnesota Develop-:-
ment Association, June, 1967.

Tomorrow Is Here, James R. Tills, Northeastern Minnesota
Development Association, August, 1966.

Your Proqress Report, Tenth Annual Report, Northeastern
Minnesota Development Association, January, 1975.

MINNESOTA ARROWHEAD ASSOCIATION

Articles of incorporation, Minnesota Arrowhead Association,
Amended J*anuary 16, 1973.

By-Laws of Minnesota Arrowhead Association, Amended April, 1974.

Minnesota Arrowhead Association; 1924-1974, 50 Years of Service
to the Vocational Travel Industry.

UNIVERSITY OF MINNESOTA-IMPACT ON ECONOMIC INFORMATION

Blank, Uel, August,@1973. A concept of Recreational Focal
Areas, Compendium of Teennical Papers Proceedings, Institute
of-Traffic Engineers, 23rd Annual Meeting, Minneapolis, Minn.

Blank, Uel, 1975, Dul.uth-1,;uperi.or's-TraveJ-/Touri-sm EconcEly,
.Number 2-Hospitality Service Series, Agri. Ext. Service,
University of Minnesota, St. Paul, Minn. 55108.

Blank, Uel, Jensen, Helen and Wagenhals, Susan, 1975, Minnesota's
Lodging Industry: Statistics and Characteristics, Extension
Bulletin 386, Hospitality Series No. 1, Agri. Ext. Service,
University of Minnesota, St. Paul, Minn. 55108.

Borchert, John R., October, 1974. Perspective on Minnesota
Land Use - 1974, Minnesota State Planning Agency, University
of Minnesota, Center for Urbanand Regional Affairs, Report
No. 6, Minneapolis, Minn.

Farnham, R. S., October, 1964. Peat Resources of Minnesota,
Report of Inventory No. 1 - W. Central Lakes Bog, St. Louis
Co., Minnesota Iron Range Resources and Rehab. Commission
in cooperation with Department of Soil Science, Minnesota
Agricultural Experiment Station, Institute of Agriculture,
University of Minnesota.

Farnham, R. S. and Grubich, D. N., April 1965. Peat Resources
of Minnesota, Report of Inventory No. 2, Cook Bog, St. Louis
Co., Minnesota, office of Iron Range Resources and Rehab.,
State of Minnesota, in cooperation with the Department of
Soil Science, Minn. Exp. Sta., Institute of Agriculture,
University of Minnesota, St. Paul, Minn. 55108.

Farnham, R. S., et al,:October, 1968. Feasibility of Reducing
Production and @Ts@ribution Cos-'Cs of Minnesota Peat to a
Competative Level for The Economic Development Administration,
United States Department of Corauerce, Department of Iron
Range Resources and Rehab., St. Paul, Minn. 55101

Farnham, R. S., Grubich, D. N., July 1970. Peat Resources of
Minnesota, Potentiality Report Fens Bog Area, St. Louis Co.,
Minnesota. office of Iron Range Resources and Rehab., State
of Minn., in Cooperation with the Dept. of Soil Science,
Minnesota Agricultural Exp. Sta., Institute of Agriculture.,
University of Minnesota.

Fleischman, William and Lichty, Richard 1974. Report on the
Transient Nature of Selected Downtown Residents in Duluth?
Minnesota. Department of Sociology and Department of Economics,
University oil Minnesota-Duluth.

Gronseth, Glenn 0., Meyers, Cecil H., 1968. A Graphic Summary
1952-1967, Duluth Business Ind 4cator- -University of Minnesota,
Duluth, minn. 55812.

393

Grubich,,D.- N., Farnham, R.. S. 1972. Proceedings of the 4th.
International Peat Congress I- IV, Helsinki, Finland.

Hanson, L. D., Rust, R. H., Bruns,,E. L., and Orning, G. W.,
1974. Interpretation of a Minnesota General Soil Ma2 for
Land Use Interpretations. Paper prepared for 66th Annual
Meeting of American Society of Agronomy, Chicago, Ill.,
November 10-15. Department of Soil Science, University of.
Minnesota, St. Paul, 55108.

Hughes, Jay M. 1969. The Itasca County Input-Output Study,
University of Minnesota Spring Meeting, Mid-Continent Section,
Regional Science Association, Minneapolis, Minn.

Hughes, J. M., 1970. Forestry in Itasca_County's Economy:
An input-output analysis. Misc. Report 95, Forestry Series
4, Agricultural Experiment Station, University of Minnesota,
St. Paul, Minn. 55108.

Hwang, Henry and Maki, Wilbur R., April 1975,,User Guide to
Minnesota Input-Output Model. Research Bulletin, Dept. of
Agri. and Applied Economics and Agri.. Exp. Sta., University
of Minnesota, St. Paul, Minn. 55108.

Jesswein, W. A. and Lichty, R. W., July., 1974. The EmploVment
Impact of Reserve Mining Company on the Arrowhead Region of
9
No. 1, Econ. Development Admin. Arrowhead Reg. Dev. Commis-sion,
Northeast Minnesota plus Dou las County, Wisconsin, Report

Lake Superior Basin Studies Center-University of Minnesota,
Duluth, Minn.

Knepper, Robert D., 1969. Comments on Northeastern Minnesota's
Timber Economy, S2ecial Report 34, Agricultural Extension
Service, University of Minnesota, St. Paul, Minn. 55108.

Larsen, Dayton M., Simonson, Lawrence R., 1974. The Minnesota
Resort and Campground Rate Structures 1973, Special Report
50, Agricultural Ext. Service, University of Minnesota,
St.'Paul, Minn. '55-108.

Lichty, R. and Jesswein, W., August 1973. An Interim Report
on the Economic Base of the Duluth-Superior'Growth Center.
A joint effort of the Arrowhead Regional Development Commission
and Northwestern Wisconsin Regional Planning and Development
commission funded by the Upper Great Lakes Regional Commission.

Maki, Wilber R., et-al, 1975. input-Output Data base for-Long-
Range Enerqv Planning in Northeast Mi-nnesota;,',,Minn. Agr.
Exp. Sta., University of-Minnesota,-and Minn. Enbrg)@ Agency,
St. Paul, Minn. (In process).

394

Maki, Wilbur R. et al. 1975. simIAB: A Resource Develo@ment
System Simulator. Minnesota Agr. Exp. Sta., University of
Minnesota and Minnesota Energy Agency, St. Paul., Minn. (in
process)

Merriam, L. C. Jr., et al, October, 1973. Newly Developed
Campsites in the Boundary Waters Canoe Area: A Study of 5
Year's Use, Agricultural Exp. Station, Bulletin 511, Forestry.
Series 14, University of Minnesota, St. Paul, Minn. 55108.

Merriam, L. C., Jr. and Smith, C.K. , October, 1974. Visitor
Impact on Newly Developed Cam.2sites in the Boundary Waters
Canoe Area, Journal of Forestry, Vol. 72, No. 10.

Merriam, L. C.,Jr., and C. K. Smith, 1975. Newly Established
Campsites in the Boundary Waters Canoe Area, Restudy of
Selected Sites 1974., No. 254, Published by School of Forestry,
University of.Minnesota, St. Paul, Minn. 55108.

Meyers, Cecil H., 1968. A Six County Study, Indexes of
Business Activity in Northeastern Minnesota 1951-1966, Bureau
of Business and Economic Research, University of Minnesota,
Duluth, Minn. 55812.

Meyers, CecLl H. and Glenn 0. Gronseth, 1975. Duluth Business
indicators and Selected EconomicData throuah 1974. Research
Study No. 13. Bureau of Business and Economic Research,
University of Minnesota, Duluth.

Orning, George w., and Maki, Les, 1972. Land Management
information in Northwest Minnesota, The Beginning of a State-
wide System, Report No. 1. University of Minnesota Center
for Urban and Regional Affairs, Prepared for Minnesota State
Planning Agency and.the Upper Great Lakes Regional Commission.

Rickson, R. E., Tichenor, P. J., Donohue, G. A., and Ollien,
C. E., 1975. Role of the Scientist Technician in Water Policy
Decisions at the Community Level: A Study in Purposive
Communication, Bulletin 79, Water Resources Research Center,
University of Minnesota.

Rickson, R. E., February,,1974. Social and Economic Factors
in the Adoption by IndustrV of Water Pollution Con-'Crol Measures
in Minnesota, Bulletin 67, Water Resources Research Center,
University of Minnesota Graduate School, St. Paul, Minn. 55108.

Rusch, Pamela G., Borchert, John R., and Orning, George W.,
December, 1972. Tand for Development Adjoining Northern Minnesota's
National Recreationa.1 Corridor, Report No. 2. jklinnesota Land

395

Management Information Sysems Study, Minneapolis: University
of Minnesota, Center for Urban and Regional Affairs, Pre-
pared for the Minnesota State Planning Agency and the Upper
Great Lakes Regional Commission.

-396-

3 6 8 1 -103 1874