Monthly Archives: September 2009

New conference center coming to Mountain Iron

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The owner of the new Holiday Inn Express & Suites in Mountain Iron announced plans Wednesday to build an adjoining 10,000-square-foot conference and event center — adding about another $1 million of investment to what was already a $9 million project.
 

The developer, Home on the Range LLC, had planned to include the conference center as part of the hotel’s initial construction, but the project was scaled back, due to the recession.

“We’ve been able to learn more amount the market since opening the hotel. And we’ve determined that not only is there a need for a facility like this but it’s an immediate need,” said Scott Uttley, president of Pineview Hotel Management LLC, which runs the hotel, which opened this past June.
 

“We believe this center will help the hotel and bring more people into the area,” he said.
Plans also call for the new facility to include a prep kitchen and small pub. Uttley said work could begin on installing footings for the center yet this year, if weather permits. He aims to see the center completed by late summer or early fall of next year year.

Rockie Kavajecz, project manager for Island Investment Inc., the lead investor in the project, said his group owns 47 acres of land at the hotel site and hopes to attract other businesses, including restaurants and retailers to the area. Island Investment is based in Superior.
 

“I think the conference and event center will be a catalyst for additional growth in the area,” Uttley said, noting that the project will be built entirely with private funds.
Iron Range Resources earlier approved an investment of about $700,000 to install infrastructure that could support future development in the area surrounding the hotel.
 

Kavajecz and his family own five other hotels, including three Country Inn & Suites hotels in Eau Claire, Menominee and at Spirit Mountain; plus the Hotel Chequamegon and Super 8, both in Ashland. Island Investment also has a stake in the Canal Park Lodge in Duluth.

 

Home sales and prices fall in August

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Home sales usually slip in Northeastern Minnesota in August, but last month they fell.

Coming down from routine summer highs, home sales dipped only 6 percent from 221 last July to 207 in August. This year, sales between the months fell 20 percent from 229 to 183, according to Duluth Area Association of Realtors statistics.

Pat Johnson, association president and a broker for Focus Real Estate group, pointed to the high number of pending sales in August as an indicator that the current real estate market is cyclical, not declining.

“I’m thinking September will be a higher sales month,” Johnson said of the 2009 high of 224 pending sales in August — up from 187 in July — and a bump expected from the upcoming expiration of the first-time homebuyer tax credit on Nov. 30. “I think we will see strong sales now for a little bit.”

The month’s median selling price also decreased about 5 percent compared to July and 13 percent compared to August 2008. The price was $130,000 last month, a dip from $137,200 in July and $149,000 in August 2008.
This stat caught Johnson’s eye.

“In this economy is anything startling? Probably not,” Johnson said. “But I haven’t seen a reason for it to go down.”

Signifying a return of the area’s real estate market, the median selling price had trended upward by about $25,000 in four straight months from April to July at $137,200. Last year, the medial selling price was above $142,000 in the summer and fall before plummeting to $127,900 in December.

“I wouldn’t call it startling, but it was a bit of a surprise,” Johnson said of the August dip. “I looked at the graph and saw the sale price was down a bit and we had been going up for so long.”

What’s happened to your paycheck?

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With the economy largely still in the tank, many workers are facing the prospect of frozen or even reduced pay. I’m working on a story about this phenomenon and could use some help.

Please tell us what has happened to your pay and benefits. Did you get that annual raise you expected? Did your employer contribute to your 401(k) as in years past? I’m also curious as to what’s happening to people’s hours. Some of us are working longer than ever in workplaces where staffing has been stretched thin. Others have had their hours reduced, as employers seek to cut costs. What’s your story?

Please share your experiences with me via e-mail at ppassi@duluthnews.com or phone at (218)279-5526. And thanks. 

Preparing for the Lake Superior Business Expo

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Although it’s still months away, the 6th annual Lake Superior Business Expo is taking shape.

About 100 exhibitors will gather Wednesday March 17 at the Duluth Entertainment Convention Center. The event, formerly known as the Duluth Business to Business Expo, will also have seminars, workshops, chances to network and a keynote address.

The University of Minnesota Duluth’s Center for Economic Development will give a series of workshops on relevant business issues.

The Lake Superior Business Expo is organized by the same folks — Lundeen Productions — that put together last weekend’s My Own Biz expo at Miller Hill Mall.

A $100 deposit gets you a spot to exhibit your products or services. Contact Tracy Lundeen at 727-1177.

Super One now offers coupons, ads online

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Local grocery shoppers can now go online to see weekly circulars, printable coupons, recipies and customizable shopping lists with last week’s announcement of a new partnership between Miners Inc. and the Grocery Shopping Network.

The Associated Press reported that the application, GSNConnect, will allow customers of the Super One chain in Northeastern Minnesota and Wisconsin view every page of the store’s weekly circular before it’s available in print.

Customers can click on the advertised item and it will then be placed on the shopping list where they can adjust the quantity. It also connects customers to manufacturer coupon offers, unadvertised specials, and information about new products -which would normally only be seen in-store.

In addition, over 64,000 kitchen-tested recipes and more than 160 cooking videos are available. Rather than generating a shopping list by hand, the program allows you to build one online while accessing coupons and various in-store discounts to help you chose those items that are on-sale and most affordable. The service offers a convenience that makes shopping easier and more economical than ever before.

Consumers can register here.

Virginia, Hibbing and Grand Rapids papers to begin charging for online content

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In a bold move, The Mesabi Daily News and its sister papers – The Hibbing Daily Tribune and The Grand Rapids Herald-Review – plan to begin charging for their online products this week.

As of Wednesday, the online version of The Mesabi Daily News will be available for free to people who subscribe to the print edition of the newspaper, which sells for $4 per week, delivered. People who want to view the publication only in electronic form will be charged a monthly fee of $6.95.

"We’ve been giving away our most valuable resource — our news content — for too long," said Bill Hanna, co-publisher and executive editor of The Mesabi Daily News.

He noted that many readers of the on-line version of the paper currently provide no revenue to the company.

"Our print customers have been subsidizing our online readers. Meanwhile, our newsrooms have been cut," he said.

At present, the Mesabi Daily News has a daily print circulation of about 9,500 and has an online audience of about 18,000 registered guests, according to Hanna.

What will that online audience look like after The Mesabi Daily News begins charging customers for access? Hanna says we’ll have to wait and see.

Duluth magazine sold to Waukesha publisher

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Cabin Life was sold last week to Kalmbach Publishing Co. of Waukesha, Wis., for an undisclosed sum. But Chuck Croft, Kalmbach’s senior vice president, said the company has no plans to relocate the publication.

"We will keep the Cabin Life group together," he said. "Our employees in Duluth will stay in Duluth."

Fladmark Publishing launched Cabin Life in April 2001. The magazine, which is published eight times per year, caters to owners of cabins, cottages and second homes.

The Duluth-based magazine is Kalmbach’s 16th magazine product. Its other titles include Model Railroader, Fine Scale Modeler, Scale Auto, BeadStyle, Bead&Button, Astronomy and Trains.

"We’re a publisher of magazines for enthusiasts and niche readers. Cabin Life is a great fit for us, because of the passion and enthusiasm people have for their cabin properties," Croft said.

Kalmbach Publishing is a privately held company with more than $50 million in annual sales. The company employs 275 people in Waukesha.

Although just eight years old, Cabin Life has earned industry acclaim, including two Gold Eddie Awards for Editorial Excellence, an Ozzie for Design Excellence, 2 Gold Ink Awards, 17 Gold MMPA Awards.

 

State unemployment figures dip slightly

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While it has remained relatively unchanged in 2009, Minnesota’s unemployment rate dipped slightly for the third straight month to 8 percent in August.

The August figures, according the Minnesota Department of Employment and Economic Development, come after the 2009 year-to-date high of 8.4 percent in June.

Nationally, the unemployment rate jumped to a year-to-date high of 9.7 percent in August, up from 9.4 percent in July, but still above the year-to-date low of 7.6 percent in January.

All state and national numbers are seasonally adjusted.

Local and regional figures should be available within a week, according to DEED’s schedule.

 

DuSu.com launches

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Time and again at last week’s next gen summit speakers dropped the DuSu.com as the young professional’s destination for everything Twin Ports.

Well, that website has launched.

It includes links to "work," "live," "play," and "connect." While it’s a start-up, it has blogs and tips on resumes and employers, neighborhoods, and what entertainment options are available. (Including last night’s great Ani DiFranco show, if you missed it.)

The Web site, a project from the Duluth Superior Area Community Foundation and the A.H. Zeppa Foundation, is directed to help retain and attract young professionals in the Twin Ports.

Check it out. (It is also one of our Web site links at right.)