Welcome to In Business with Almanac North.

I'm Ken Buer.

Thank you for joining us here in the parking lot in Proctor of the Aspirus St.

Luke Sports and Event Center.

Built in 2018, it revolutionized high school sports and community involvement here in Proctor.

On this cold winter day, we're talking about the hottest development to come to Proctor since 1894 when the Duth Msabia Northern Railway came to town.

And for the most part, Proctor has been a railroad town ever since.

The school's sports teams are called the Rails.

The biggest celebration in the summer is Hogad Days, which is slang for a railroad engineer.

And it's all about rail.

But that's changing.

Imagine, if you will, right next to the sports center where this wooded area is right here.

Imagine a huge big dome enclosing 156,000 square ft.

enough for two softball fields, four basketball courts, soccer fields, pickle ball courts, and of course, more community involvement.

It's a big plan to tap into what is the tourism industry surrounding amateur sports.

Stay with us for In Business with Almanac North.

Welcome to In Business with Almanac North.

I'm Ken Buer.

Tonight, we're taking an in-depth look at a huge new development that could transform the city of Proctor, the Nexus National Complex, a multiaceted sports and lifestyle project that could reshape amateur athletics and local economic growth.

We'll hear from one of the developers and from Proctor City Administrator about what this means for a small community facing big changes.

We'll also launch our new series, Orange Cone Construction Zone.

We'll take you to multiple new projects across our region.

But first, we travel to Blaine, Minnesota, where the National Sports Center has been doing what Proctor hopes to do for 35 years.

So, my name is Todd Johnson.

I'm the executive director of of two entities.

One is the Minnesota Amateur Sports Commission and the other is the National Sports Center Foundation.

The Minnesota Amateur Sports Commission started first and it was actually a sort of a um a very creative and interesting idea by predecessor who who ran this facility.

his name was Paul Ericson who went to then Governor Rudy Perpich uh who's you know from the Iron Range in northern Minnesota and um the idea back then was that this was going to be a training facility for the um US Olympics and most people don't know that Minnesota lost to the Atlanta games just by four votes.

So we we uh Minnesota went ahead and funded and built some of the facilities here, including, you know, a stadium and a and a track.

After Minnesota missed out of the bid back then, then they had to figure out what they're going to do with the facility.

And um that's where the National Sports Center Foundation was formed.

So it's a nonprofit that basically, if you think about it, is the management entity for the Minnesota Sports Commission and for this 700 acre campus.

Since that time, it's gone on.

We have eight sheets of ice.

We have 55 outdoor soccer fields.

We have a golf course, the only PGA Tour design public course in the state.

Um over over its history, um it's continued to grow and sort of be flexible.

A lot of wonderful stories about hockey and and uh especially girls and women's hockey in the state of Minnesota because of the you know, Title N intervention we did to build more ice rinks so there are more facilities available for uh girls and women to play hockey.

So to the extent it was about sort of high level athletes but also the facility serves almost four million visitors a year.

We are the second largest tourist attraction in the state of Minnesota after the Mall of America.

Um and it's split just about equally between our outdoor sports and uh 2 million or so visitors there and two million to our uh the super rank it's called where we have eight seats of ice.

It's it's quite a facility.

it it's run by a nonprofit uh so we don't get any operating money from the state of Minnesota but so we have a pretty good model at places like Proctor and we've had discussions with many other people who who've been involved in that project I think over the years um just about how to go go about making sure that uh it's a success you're not going to be successful unless you have a community involved and and you do a whole lot of your sort of due diligence around anticipating what what the needs are and you know formal uh discussions uh focus groups uh uh when I took over the job 10 years ago, we did a we did a a major um planning process where we involved the community.

Uh and I'm sure a lot of that's already happened up in Proctor, but it's but these uh types of facilities are most successful when they're first of all community- based and then secondly you sort of, you know, spread the net to bring in some other outside users.

But if you if you have the core um of of your users um helping to pay the bills, uh they're usually pretty successful.

This is in business with Almanac North.

Thank you for joining us.

We're discussing a new very exciting business development that's been in the works for some time and is making great strides towards changing amateur sports here in the Northland.

It's the Nexus National Complex being developed in Proctor, just up the hill from Duth.

A land swap between the school district and the city of Proctor opened up an opportunity to build a multiaceted sports and lifestyle center with amenities such as hotels, a daycare, restaurants, and apartment buildings.

The centerpiece is a 156,000 square foot indoor sports dome with two softball fields, four basketball courts, volleyball, and pickle ball.

The project is privately funded and will tap into an amateur sports tourism market that the Wall Street Journal says is a $17 billion a year industry and it's growing.

By 2030, the Journal predicts that sports tourism will reach $41 billion a year.

Now, if you're a parent or know parents with children on a traveling sports team, uh you know these figures are for real.

It's a growing market with a never-ending supply of youngsters.

And when combined with the fun of competing in amateur athletics, what could possibly go wrong?

Well, here are two examples.

Mesa, Arizona.

The Arizona Sports Complex, known as Legacy Park, sold $280 million in municipal bonds to build a huge multi-use facility in January of 2022.

By October of that very same year, the facility was bankrupt.

And in May of this year, the two developers, Randy and his son Chad Miller, were found guilty of fraud, theft, and conspiracy to defraud.

They both paid hefty fines and are in prison.

But bond holders were left with only 1% of their investment secured following the sale of the multi-million dollar park at a debtor's auction for just $25 million.

The Millers said they had signed letters of intent from two major soccer clubs, including a Manchester United youth affiliate.

The letters were forgeries.

Closer to home, on Monday of this last week, the city council in Rochester, Minnesota, voted to downsize that city's entry into the sports tourism market.

The 158 acre site was approved by voters several years ago.

$7.7 million in sales tax revenue has already been spent in planning and development, but the original cost of $65 million has skyrocketed.

So on a controversial 5 to2 vote this past Monday, the council scaled back the project to just over $53 million.

The two no votes on the council were worried that the smaller complex wouldn't attract enough interest to pay back the city's investment.

Construction though expected to start this April.

Now it must be pointed out that these two examples are not at all what's being proposed for Proctor.

Mesa and Rochester were publicly funded.

The Nexus Sports Complex is a private development and includes other entities not directly related to amateur athletics like those apartments.

Proctor is not unlike almost every other community in our region and is facing a severe housing shortage.

Here to talk about this new development is Jess Rich.

She is Proctor city administrator and joined the city after doing similar work for the city of Floodwood.

Project developer Beth Wetszoff is with CMR the consulting management and realy association.

They are a developer and manager of a wide range of commercial properties across northern Minnesota and Wisconsin.

Thank you both for joining and for coming this evening.

Beth, we'll start with you.

Thank you.

How long has this idea of the Nexus Sports Complex been around and how did it get started?

Well, my partner Sean Marlin had come up with this idea as his kids were in sports and there was nothing here and we we are very sports-minded community.

And so he's been developing this and for the last two years we have been very quietly working tenaciously and working with the city to come up with the right plan and the right strategy for a new development.

And you're excited about it.

I am excited about it.

Yes.

Let's see what Jess is excited about.

We just heard the success that Blaine has had.

I think the Minnesota Amateur Sports Association estimates that they pump about $90 million a year into the local economy and and it's growing.

Do you anticipate that kind of excitement and growth in Proctor?

Um we do and not only just Proctor, but the entire region.

Um I and a lot of people don't know this, but our EDA was studying a similar project um much before uh Beth and Shawn came on the scene.

And so we had done some leg work and did some extensive research to see if this was feasible for Proctor.

And what we had found is um a pro a project like this is going to benefit the entire region.

Many communities will will feel the effects and enjoy this complex and the benefits that it brings to their communities.

Obviously, one of the benefits is a business standpoint that has money flowing into the community, but there must be other aspects of enrichment that come along with something like this.

Absolutely.

Um housing enrichment is going to be huge for a smallbedroom community like Proctor.

Um the the enrichment that it can bring our local sports not only to the Proctor Rails but also the Hermantown Hawks to Duth Superior is um it's going to be astounding.

Beth CMR has a successful uh track record of projects across the area.

Um but have you ever done a sports complex like this or is this a a step over?

This is this is a a new step.

Uh, luckily Sean has got the mind for the sports and we work on the the development part.

He has it the sports all hooked in.

He's really good at that.

And you're going to do this as a phased project.

Yes.

So phase one is the first one that you want to start coming up very shortly.

What is included in phase one?

And how much do you think that's going to cost?

And do you have a cost estimate for the entire project?

Well, phase one is going to have the dome, the accessory building, which has the medical clinic in it, and restaurants and esports and other things, and then the daycare and a hotel.

We already have a hotel ready.

And an apartment building that is one of four that they're going to do in the area.

And where along the path to starting phase one are you?

Well, I would have said we were way down the road and we just had the final wetland assessment and it ha I've said from the beginning this is a fluid project and I didn't know how quite how fluid it was.

We have a lot of wetland.

So, we're sort of back at the drawing board and redesigning the master plan as we had said that we it could be.

So, as soon as that gets done, which they're beginning right now, then we're going to be able to head off on the rest of it.

So, that's the major thing.

Get the the overall site plan and the beginning is about 24 million at beginning and then the rest of the phase, we'll see how much we can fit in in the rest.

You've got plenty of property though.

We have 89 acres right now plus we have an additional 10.

So, we're we're right at that 100 acre spot.

That's where you want to be.

Okay.

Jess, um, how much has the city of Proctor put into this so far and do you expect to be on the hook for more?

Uh, great question.

So, as Beth just said, uh, we they have the land and that is due to the Proctor City Council and their EDA foresight and as taxexempt property came available, um, the EDA and the city of Proctor has pieced this development together, that has been our contribution.

So some of it was tax forfeited, some of it we purchased.

Uh but we were able to give that uh offer that land to the developers at a reduced price.

So uh we've we've provided that subsidy as you might want to call it.

Um the prop the land had been for sale for many many years um sitting vacant and uh anyone who drew drove by it would see the for sale signs.

So um gave the community plenty opportunity to buy it themselves.

And when Beth came knocking at our door, we said, "Let's go."

So, at this point, uh, selling the property at a at a reasonable price and then our investment, uh, of time working with Beth and and the partnership of helping this project move forward.

We're very excited about the public private partnership.

Um, as your introductory said, this has failed in the past as a public and as a public uh, opportunity and we're trying to prevent that.

This is in business with Almanac North.

We're discussing the Nexus Sports Complex planned for Proctor with city administrator Jess Rich and CMR developer Beth Wetszoff.

The Nexus development is being built adjacent to the existing Aspirus St.

Luke Sports and Event Center that besides hosting amateur hockey tournaments is home to the mighty Fighting Proctor Rails Boys and Girls Hockey Teams.

A shout out to them.

The boys team is currently 2 and five.

The girls are 63 and one.

Congratulations and go Rails.

We talked to Proctor School Superintendent Tim Rowiter about what this new development could mean to the school district.

My name is Tim Rowiter and I'm the superintendent of schools of Proctor Public Schools.

Uh this facility was opened in 2018.

Um so yeah, we're in our seventh or eighth season, I should say.

It's been a great facility.

Well, just overall, I mean, as a school community, have had more teams and and more people from around the state want to come and visit.

Um, it's definitely helped with tourism, helped with uh people coming to our area, uh, because they want to play in this arena and they want to play in this environment.

Uh, it's helped our youth programs grow.

Uh, more and more kids are wanting to play uh, hockey.

Uh, and it's also with the, uh, warm track that people get to walk around.

Uh, as you can see behind me, there's people walking and and and we're in a community room that is able to be used by by uh community members and and for different events.

Um, and so it's definitely brought uh it's been a place that the community can take pride in and and uh definitely take advantage of during the cold winter months.

Well, the the new development is is privately run.

Uh however um as part of getting the the new development uh going, they needed the land to to build it on.

Uh and so the land to the north of our or south of our our facility here uh was owned by the school.

And so the city came to us and asked us to swap land with them.

Uh and so we did a land swap with the city so that they could work with the private investors to uh develop uh this this new development that's coming in.

And so that was kind of the starting point was to just getting the land to do it.

Uh and so we were definitely happy to uh cooperate with that and and then now moving forward um as they're looking at developing and the planning that goes with that.

Uh we're involved with kind of what the layout will look like, logistics of the operations of these facilities because there's some partnerships that we could have with these companies that are going to maybe manage the dome.

Uh how they could also help us manage this facility at the same time.

Uh and then also just, you know, as we're looking at uh the big development here, you know, what could we do with this site to uh make it something that uh could increase teams for tournaments and things like that by adding maybe a second sheet to our facility here, you know?

So, that's something that we're looking at as well uh to capitalize on on the momentum that's been created from this development.

There's a lot of excitement.

I mean, really, you know, Proctor, uh you know, since the railroad left, it's kind of just been a a bedroom community.

people just, you know, working in Duth or working in the area.

And now to have an actual development here that's going to bring businesses in here to our town, bring uh homes and apartments and those types of things along with facilities that will bring more people to our community uh from outside the area is exciting.

and and from a school district perspective where enrollment drives kind of our funding and whatnot, uh the opportunity and the possibility to maybe increase enrollment uh with families coming in and moving into our town uh and bringing with them school age children uh is definitely exciting to think about the possibilities of things that we could do with with more funding and increased enrollment.

That was Tim Rowiter.

He is the superintendent of the Proctor School District.

And we're back now with Proctor City Administrator Jess Rich and project developer Beth Wetszoff.

Beth, um, we're talking about the sports complex.

Uh, Tim just mentioned how that's going to help the Proctor Rails.

Is that really your market or are you much bigger than that?

We are regional.

This is going to be not only local sports, but this will bring teams from all over the country with lacrosse.

Our fields are going to be lacrosse and women's lacrosse.

So, that is bringing in something we don't have in in northern Minnesota at all.

So, we're really excited about being able to do that.

This is a year- round facility.

So, um we think of, you know, playing softball or soccer or uh lacrosse in the winter.

What about the summer events?

We are going to have so many different things.

We have soccer and and lacrosse.

And then there's going to be golf items out there that we're excited to be able to explore and tell you about later on.

Um as well as uh we've got a national company coming in for softball and baseball training.

And you were talking about some of the other parts of the development uh the restaurants, the hotels, the apartments.

We were talking about uh the need for apartments and housing in Proctor.

Is is that something that is really going to benefit the community as part of this too, Jess?

Um yeah, the school district um and other school districts surrounding districts that'll help uh it'll help with workforce uh the workforce housing as we all know is very stretched right now in our region and other developments uh around this.

I mean they're talking about a restaurant other spin-offs that you might see.

I mean people come uh from long distances as Beth said uh they've got to buy gasoline, they've got to buy souvenirs.

There's other opportunities in that.

There is.

And you know, Beth and I have kind of envisioned a second main street to to Proctor, if you will.

You know, designing it so we can invite small businesses and have a a space for small business owners.

So, the development outside this is a development all on its own possibly.

Absolutely.

Yep.

Um we're excited.

One of the things that was really exciting with Beth when she came to us was um the environmental development of trails and possibly that long awaited connection to the Munger Trail that these communities have been talking about for many years and and with this development that's a true possibility.

It seems like a lot of good things are going to come from this.

We wish you both the best of luck.

Beth, thank you for being with us.

Beth Woff is with the developmenter and uh Jeff Rich is with the city of Proctor.

Thank you both for sharing your insights on this project.

Now before we get to tonight's final story, let's take a look at some of the top business headlines making news across our region this week.

Doo City Council advances Lester Park redevelopment study.

The Doo City Council voted 8 to1 this week to transfer some former Lester Park golf course land to the Duth Economic Development Authority.

The move clears the way for a land use study on the more than 200 acre site.

The decision followed two hours of public testimony.

The land use study will take about nine months before returning to the council for their final approval.

The state of manufacturing event was held in Duth earlier this week.

Enterprise Minnesota hosted its annual state of the manufacturing event at Minnesota P headquarters in downtown Duth.

The gathering featured results from their statewide study, discussions on workforce and talent development, and networking among manufacturers, educators, and local business leaders.

Some good news for the region's mining industry.

US Steel announced that we'll restart one of its two blast furnaces at the Granite City Works in Illinois, a furnace that had been idle for two years.

The company says improving customer demand supports the decision as they prepare for 2026 needs.

Labor leaders note that the pellets from KTAC on Minnesota's glorious iron range have traditionally fed Granite City, meaning the move could boost demand for iron ore mined here in Minnesota.

And that's a look at some of the business stories making headlines this week.

Now, let's take you to a few local construction projects you may have seen around the region in this week's installment of Orange Cone Construction Zone.

This is a new segment on In Business.

It's called the Orange Cone Construction Zone.

We're going to visit work sites around the region, tell you what they're building back here, how much it costs, and what it's going to be when it's done.

This was supposed to be the Breakers, a much bigger development, but it's slimmed down, but not in price.

They're building two luxury condominiums right on the water, right on Lake Superior, off Water Street by I35 in eastern section of Duth.

The two condos are right on the shore of Lake Superior, right off Water Street by I35 in the Aloise section of Duth.

And they're going to sell for three and a half to $3.7 million each.

If you think that's a lot of money, well, you're right.

It is.

Guess what?

One's already sold.

The developer Fi Salter got the other one on the market.

We're in downtown Doo on Superior Street.

Behind me, Lake View Residences 333.

The 33s are the address on Superior Street.

This project's been in the works for a long time, but it's just about ready to wrap up.

They hope to have it done by late spring summer.

It's 15 stories tall.

Duth News Trabune reported it's just under $100 million to build.

It has 210 residence rooms, and on the lower level here, there'll be some retail space.

And then two floors are reserved for short-term rental.

A lot less than the 3.5 million we talked about just a minute ago.

This orange cone construction zone is going to rent apartments from about 1,500 up to just short of six grand.

And they hope to be done come spring.

This is another orange cone construction zone.

2403 West 6th Street in Duth.

This dilapidated old building an eyes sore, but starting this spring, it's going to be rejuvenated, reused, and saved.

And it's a very historic building.

You know, back in the day, before you went to the supermarket, parked in the parking lot, walked in, and this huge big array of food was there for you, you had the corner grocery store, and that's what this is.

F. Bellinger started this in 1916, and this was a corner grocery store.

His apartment was upstairs for his family and he rented out the other apartment upstairs for another family.

It's fallen into disrepair now, but it's got local landmark status as a historic spot because it's an end of an era.

There aren't quarter grocery stores anymore.

But the developers starting this spring are going to turn this into six apartments and over there a subscription laundromat.

Yep, it's an orange zone construction zone.

Another orange cone construction zone.

The last one on our trip today.

We're on Hannes Road, right across from a couple of other businesses.

This is a brand new one, and it's Tanner's Express Car Wash.

They've been building it for a while.

A 20-year-old entrepreneur by the name of Caner Stokes is one of the principal partners in this development.

It's going to be a high-speed, high-tech car wash.

Some of the features, 45% of the water that they're going to use is going to be reclaimed and reused again.

They hope to be open this spring.

Now, keep in mind that you should always support your local high school pep squad or sports team when they have the car wash at the corner gas station.

But in the meantime, high-tech is coming to Duth.

We have a lot of car washes to choose from.

This will be another one.

Well, that's our orange cone construction zone report for today.

We might take this on the road.

We'll be visiting your town real soon.

If you got some ideas of projects that are in the works in your community, please let us know at in business here at PBS North.

Hi, I'm Ken Ber.

Thanks for watching In Business with Almanac North.

If you missed any parts of tonight's show, you can always watch it at pbsnorth.org or listen on Mondays at 5:30 on the North 1033.

Thanks again for watching and until next time.

Let's take care of each other.