'Devastated': Milling Company Cancels $440M Investment In Minnesota

COHASSET, MN — A North Carolina company has canceled its plans to build a $440 million milling operation in northeastern Minnesota. The project would have brought 150 new, high-paying jobs to southwest Itasca County.

The announcement follows Monday's state Court of Appeals decision that said the city of Cohasset, Minnesota, must complete a stricter environmental review of the project than what city officials had planned.

"Due to delays that jeopardize our ability to meet product demand deadlines, we will pursue development of our sixth mill in another state," Huber Engineered Woods President Brian Carlson said in a statement.

"We will be seeking a new location where we can produce critical home building products that are desired by American home builders and homeowners in a timely manner and consistent with Huber’s environmental and social commitments."

The project was first announced in 2021. The state quickly approved $15 million in public funds to assist Huber in its construction of the state-of-the-art facility located on more than 400 acres.

But the Leech Lake Band of Ojibwe sued, arguing that the facility could damage the region's wetlands.

"After preparing a required environmental-assessment worksheet (EAW) in relation to the planned facility, the city decided that it was not necessary to prepare a more detailed environmental-impact statement (EIS)," Judge Lucinda E. Jesson wrote in her opinion published Monday.

"Relator Leech Lake Band of Ojibwe filed this certiorari appeal to challenge the city’s decision not to prepare an EIS. The Band argues that the facility falls into categories for which an EIS is mandatory under governing administrative rules. Alternatively, the Band challenges the city’s determination that the facility does not trigger the requirement that an EIS be prepared for a proposed project that has the potential for significant environmental effects."

An EIS is required in Minnesota when a project will negatively public wetlands. The court sided with the Band on Monday, stating that "The city’s determination that an EIS was not mandatory under governing administrative rules is based on legal error and unsupported by substantial evidence."

Reacting to Huber's announcement Thursday on Twitter, state Rep. Spencer Igo said "I am devastated and beyond frustrated. One of the largest private investments to our state in its history is gone, taking with it jobs and more. Once again, Northern MN loses because of negligence by our State and activism. Enough is enough! This must stop!"

Commissioner of Iron Range Resources and Rehabilitation Ida Rukavina said, "Our agency invested extensive time, energy and resources to bring this project to fruition. We are extremely disappointed that these high-paying, quality jobs will not be coming to our region. Our agency was eagerly looking forward to welcoming Huber to our manufacturing economy, and the positive impacts the new facility could have had on the region’s timber and construction trades industries."

Read the Court of Appeals decision here.