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Published June 11, 2009, 10:52 AM

Area business gets $100K boost

One Two Harbors business will benefit from a $100,000 Minnesota economic development agency grant.

By: Matt Suoja, Lake County News Chronicle

One Two Harbors business will benefit from a $100,000 Minnesota economic development agency grant.

The grant, from the Iron Range Resources Public Works Infrastructure Program will provide $100,000 for the infrastructure to accommodate a new building for Bodies in Balance.

Owner Amy Poe and the North Shore Business Enterprise Center board have been embroiled in a disagreement over how long Poe could continue to rent in her current location at the business incubator while pursuing building a new facility.

Poe signed a lease extension with the North Shore Business Enterprise Center that negated eviction proceedings in March.

At the heart of the dispute between the North Shore Business Enterprise Center and Bodies in Balance appears to be “a personal issue, and not business,” said Greg Hull, a member of the enterprise center board.

Bad feelings, apparently prompted by a land-sale agreement that fell through, prompted the Two Harbors City Council to intervene. In late February, the council directed the Two Harbors Development Commission, a volunteer board that controls a revolving business loan fund used to stimulate local development, to temporarily step aside. Members of the city council then appointed themselves as the development commission to see Poe’s deal through.

The project would probably not go forward without this help, the Two Harbors City Council concurred at its meeting this week. “It’s a catalyst for future development,” said City Councilor Jason Kuettel.

The new Bodies in Balance building will be located just south of Two Harbors Auto Body on Highway 2, and should be completed by the fall.

Another $150,000 Iron Range Resources Public Works Infrastructure Program grant has been proposed for a water line and infrastructure extensions for North Shore Manufacturing.

The Iron Range Resources’ mission, according to its Web site, is to advance regional growth by stabilizing and enhancing the economy of Northeastern Minnesota’s Taconite Assistance Area.

In other city council news:

- A meeting was set up for 6:30 p.m. June 23 at the Two Harbors Community Center on the design of a new marina. Public input for the project is requested.

- A motion was passed to consider authorizing an advertisement for the purpose of creating an eligibility list for the position of police officer. The list, however, is not a commit-to-hire.

- The city council also approved a motion to paint the decks of the Edna G. Tugboat.

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