Beltrami County approves $137M upgrade plan for West Fraser lumber mill

The Beltrami County Work Session held on May 6, 2025, focused on significant developments regarding the West Fraser mill and the county's upcoming budget challenges. The meeting featured discussions on a proposed $137 million investment to upgrade the West Fraser facility, which is crucial for both the mill's future and the local economy.

Jeremy Buck from West Fraser presented plans to modernize the mill, which has been operational since 1981 and still uses much of its original equipment. The proposed renovations aim to enhance energy efficiency and reduce environmental impact, with the potential to preserve approximately 32 direct jobs and support an estimated 500 indirect jobs in the community. The company has applied for assistance from the Minnesota Department of Employment and Economic Development (DEED) through the Job Creation Fund, which requires a resolution of support from the county.

The commissioners discussed the importance of this investment, emphasizing its role in retaining jobs and maintaining the local tax base. The resolution includes findings that the project aligns with public interest and is unlikely to proceed without public funding support. The county's involvement is particularly significant as the West Fraser mill is the only one of its kind in Minnesota, competing for capital with other facilities across the country.

In addition to the mill discussions, the meeting addressed the county's fiscal challenges for the upcoming budget year. County officials highlighted the impact of state and federal funding reductions, which could lead to significant budget shortfalls. With a projected $6 billion deficit at the state level, local governments, including Beltrami County, may face increased pressure to manage costs while maintaining essential services.

The county's budget is heavily reliant on state and federal revenues, with property taxes accounting for only a third of its funding. As a result, the commissioners are preparing for potential cuts in health and human services, which could lead to a levy increase of 2.5% to 10% over the next biennium. The county is also looking to establish budget principles to guide decision-making, focusing on operational efficiency and prioritizing mission-critical services.

The meeting concluded with a call for commissioners to provide guidance on budget priorities, emphasizing the need for a collaborative approach to navigate the financial landscape ahead. The next steps will involve further discussions on the budget and the resolution to support West Fraser's investment, both of which are critical for the county's economic stability and growth.