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Beltrami commissioners hear request to sponsor West Fraser job-creation grant for $137 million mill upgrade
Summary
West Fraser representatives asked the Beltrami County Board to sponsor a state Job Creation Fund application tied to an estimated $137 million capital upgrade at the county’s wood products mill; no formal county vote was recorded in the work session.
West Fraser representatives told the Beltrami County Board of Commissioners on Wednesday that the company plans a roughly $137 million renovation of its local mill and asked the county to sponsor a state Job Creation Fund application to help secure a preliminary incentive from the Minnesota Department of Employment and Economic Development (DEED).
The request matters to county officials because, company representatives said, the investment would modernize aging equipment at the plant and signal a long-term commitment to local operations. "We make a substantial investment of about 137,000,000 to renew about a third of the mill," Jeremy Buck said during the presentation.
The company representative described the project as a phase 1 investment focused on energy efficiency and pollution controls, including replacing five old burners with a single new system that would run on residuals rather than natural gas and installing a large rotary dryer. "We're taking out 5 old antiquated burners. We're putting in 1 new burner, and it'll all run on residuals and, no natural gas usage for that," Buck said.
County staff and presenters said West Fraser directly employs 32 people at the facility and that the plant supports additional indirect jobs locally. County staff described the mill as older and in need of capital: "the mill is the oldest plant in their portfolio," a county economic development presenter said, characterizing the investment as important for jobs and the local tax base.
Company and county representatives said DEED has preliminarily estimated an incentive of up to $1.25 million from the state Job Creation Fund, which requires a sponsoring governmental resolution. County staff circulated an updated draft resolution containing findings DEED requested, including that the project be in the public interest, would not be likely to occur without public support, and would reduce energy use and emissions.
No formal vote on a sponsorship resolution is recorded in the work session transcript. County staff explained the Job Creation Fund pays on performance and that state audits and payment timelines are managed between DEED and the company, not the county.
County Administrator Tom Barry and board members asked technical and procedural questions during the presentation; commissioners expressed support for the mill’s continued operation but did not record a formal vote during the meeting.
If the county later adopts a sponsorship resolution, the state program’s structure means payments would be disbursed only after the company meets performance requirements and state audits confirm results.
The board can expect additional paperwork and, if the county elects to sponsor, a formal resolution on a future agenda.
