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Study: Extending water and sewer to Hermantown's southwest could support about 1,500 jobs and $600 million in annual economic activity
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Summary
A city-commissioned economic-impact study presented to the Hermantown City Council modeled five non-data-center development scenarios that, together, could support about 1,500 jobs and roughly $600 million in annual economic output if municipal water and sewer were extended to the southwest Adolph area; the study excludes data-center impacts and will be posted by UMD.
Ronchetti, the consultant presenting an economic impact analysis commissioned for the city, told the Hermantown City Council on April 20 that extending municipal water and sewer to the city's southwest Adolph area would create substantial long-term operational economic activity across St. Louis County.
"We partnered with Apex's area partnership for economic expansion and the Bureau of Business and Economic Research at the University of Minnesota Duluth to quantify potential impacts apart from any data center project," Ronchetti said. He said the study intentionally modeled five real site opportunities that had previously evaluated the region but lacked necessary site assets (water/sewer, acreage, power, rail).
The study modeled five non-data-center scenarios: a mid-sized regional fulfillment/logistics center (about 215 direct jobs; roughly $18 million direct output; total effects about $30 million), advanced specialty-material manufacturing (about 180 direct jobs; direct output near $60 million; total effect about $80 million), heavy machinery and equipment manufacturing (about 80 direct jobs; direct output about $60 million), specialized manufacturing and distribution (about 190 direct jobs; direct output about $75 million; total effects roughly $105 million), and reconstituted wood-product manufacturing with rail access (about 205 direct jobs; direct output about $240 million; total effect about $300 million). Ronchetti summarized: "All told, in aggregate, about 1,500 jobs in total and about $600,000,000 a year in economic impact" if those five scenarios were realized.
Ronchetti emphasized that the analysis focused on ongoing operational effects rather than construction activity and that figures reflect direct, indirect and induced impacts calculated by BBER's modeling tools. He also noted power, rail access and acreage were key site drivers for the modeled scenarios; advanced manufacturing scenarios required significant power supply, while wood-product scenarios depended on class-1 rail access.
Councilors asked about public access to the full report. Ronchetti said the Bureau of Business and Economic Research would host the study on a persistent link at UMD and that the city would provide a link on its project page (hermantownmn.com/project).
Why it matters: The presentation shows how municipal utilities can change the type of industrial development feasible in an area and quantifies the potential scale of employment and annual output. Councilors and residents in subsequent public comment raised concerns about the study's scope—specifically, that it did not model data-center impacts or neighborhood effects—and several residents asked the council to consider moratoria or additional review before utility extensions proceed.
What's next: Ronchetti invited councilors and the public to download and review the full BBER study on the UMD-hosted link; staff said the city's project page would include the report link for more detailed tables and tax-implication materials.
(Reporting note: All quotes and figures are taken from Ronchetti's presentation to the Hermantown City Council on April 20, 2026 and the accompanying summary provided in the meeting transcript.)
