Delta Air Lines eyes $5.9 million expansion in Chisholm, creating 107 jobs

$5.3 million in additional projects, creating 41 jobs, also up for review at IRRRB meeting

November 05, 2013

EVELETH, Minn.—Iron Range Resources and Rehabilitation Board (IRRRB) Commissioner Tony Sertich today announced that the IRRR Board will consider $11.2 million in funding for three business expansion projects, creating 148 new jobs, at its November 7, 2013 meeting in Eveleth. According to Sertich, the projects range from large, international companies to a small, local company with one thing in common—they all have maintained a strong Iron Range presence for many years. 

Topping the agenda is a major Delta Air Lines expansion project. The company is seeking a $5.9 million direct loan for the renovation and modernization of its 40,000 square foot facility in Chisholm. The funding would transform the facility into a modern, state-of-the art Customer Engagement Center and refurbish the infrastructure. It is projected that 107 new jobs will be created as a result of the expansion. 

“Delta Air Lines has been a valued business partner on the Iron Range for nearly 20 years,” said Sertich. “This expansion demonstrates the company’s long-term commitment to the region.” 

“Delta Air Lines looks forward to signing a new agreement with the Iron Range Resources and Rehabilitation Board to continue the long-term partnership with our Customer Engagement Center in Chisholm,” said Allison Ausband, vice president-Reservation Sales and Customer Care. “Under the proposed new agreement, Delta will provide even greater job opportunities in the region. Today the Iron Range Center is one of the highest performing offices in the Delta Reservations system. The Chisholm center will become the flagship model for other Delta Customer Engagement Centers, showcasing design concepts that create greater efficiencies, improve employee engagement and promote an atmosphere of high employee morale and performance.”

A $5.04 million direct loan to the Chisholm-Hibbing Airport Authority also will be considered to increase the size of its speculative building for further expansion by Detroit Diesel Remanufacturing (DMR). The company recently relocated its operations to the airport site and is already moving on to the second phase of its expansion. In addition to the 10 projected new jobs related to the company’s relocation, 40 jobs are projected to be added with this expansion.

A $250,000 bank participation loan to Hibbing Fabricators will be considered. The loan will be used to add manufacturing and precision inspection equipment, which will help the company to increase production, remain competitive and add to its customer base, while creating one new job. The total project investment is $500,000. 

In other business, $5.4 million in Taconite Economic Development Fund requests will be considered. 

IRRR Board meetings can be viewed live or on demand anytime at www.irrrb.org

IRRRB is a state economic development agency headquartered in northeastern Minnesota whose mission is to promote and invest in business, community and workforce development for the betterment of northeastern Minnesota.