Community Profile: Grand Forks, ND-East Grand Forks, MN

A tall pointed stone monument in downtown Grand Forks marks the height reached by floodwaters throughout the northeastern North Dakota community’s history.

No marks are higher than the 54 feet registered by the 1997 flood. The monument stands beside the city’s flowing Greenway of grass-lined walking and bicycle paths surrounded by scenic views of the downtowns of Grand Forks and East Grand Forks, MN, connected by the Sorlie Bridge.

The flood caused billions of dollars of damage, destroyed hundreds of homes and businesses and led to a long, arduous rebuilding process. But an influx of federal funding aided in the building of a new flood protection system and helped both cities rebuild and make needed infrastructure improvements.

“What we have done downtown would have taken 25 years or longer had we not had the flood,” says Hal Gershman, president of the Grand Forks City Council and a local businessman. “There would have been one project here, another one there. The waters kind of washed away all the silt so we could see what was there and all the possibilities. We didn’t have a choice. We had damage, we had to repair it.”

Many businesses moved out of downtown following the flood. New apartment and condo buildings have sprung up in their place alongside a growing number of bars and restaurants in downtown Grand Forks. Across the river, the flood cleared the way for a boardwalk of restaurants in East Grand Forks, a nearby Cabela’s outdoors outfitter store and a popular movie theater.

Grand Forks has experienced a building boom in the last decade, including the opening of the Alerus Center events center, the attached Canad Inns hotel complex, the Ralph Engelstad Arena and a number of hotels and big box stores on the city’s south side. Since the flood, the Grand Forks Industrial Park has added an LM Glasfiber wind turbine blade manufacturing plant, a Cirrus Design Corporation aircraft manufacturing facility and an Amazon.com customer support center — three of the city’s largest employers.

The recession has had an impact on the community, forcing a long-term plan to develop more than 500 acres on the south end of Grand Forks into commercial, retail and housing within 20 years to be scaled back and delayed. But there are still plenty of signs of growth.

“The Grand Forks area has pretty much sat out this recession,” says Barry Wilfahrt, president and CEO of The Chamber of Grand Forks and East Grand Forks. “You can point to agriculture, the Canadian retail trade, the University of North Dakota, the oil boom in the western part of the state and the state’s relative financial health. Throughout the recession Grand Forks has stayed aggressive in its outlook towards major projects and the economy. Commercial building projects that have been on the drawing board are still happening here, while in other parts of the country they have been shelved.”

CONTINUED GROWTH

A new airport terminal under construction at the Grand Forks International Airport is expected to open in 2011. The new two-story, 48,000-square-foot terminal will be more than twice the size of the current facility and carries a price tag of between $21 million and $22 million. “This will be a jewel of a front door to the community,” says Patrick Dame, who took over as executive director of the Grand Forks Regional Airport Authority in March. “It will provide a wow factor for people when they get off the airplane that a community of this size can provide such a nice facility.” The airport, which is served by daily round trip flights to and from Minneapolis on Delta Air Lines, added Allegiant Air direct flights to and from Las Vegas a year ago and this month will begin service to Phoenix-Mesa Gateway Airport.

An additional 129 acres have also been acquired to expand Grand Forks’ industrial park to the south. “It provides an opportunity to be more responsive to opportunities, rather than having to broker a deal for land whenever a company is interested,” says Keith Lund, vice president of the Grand Forks Region Economic Development Corporation. “Now we have the land.” East Grand Forks’ industrial park is also nearly full and could be expanded in the future.

The Philadelphia Macaroni Company pasta plant in Grand Forks announced expansion plans earlier this year.

The University of North Dakota recently opened a new student housing complex and is going ahead with planned construction and renovation projects. The university is also exploring the possibility of adding a presence in downtown Grand Forks.

EAST GRAND FORKS ECONOMY REMAINS STRONG

Reduced state funding has had an impact on East Grand Forks, but city leaders say there are many bright spots as well.

There are a lot of good things going on here,” says Jim Richter, executive director of East Grand Forks’ Economic Development and Housing Authority. “Canadian trade has been very healthy for us. We have a steady workforce that shows up for work and works hard. Agriculture is very strong. Our banks have been insulated from the economic downturn.”

The Cabela’s and new River Cinema 12 movie theater have continued to be big draws, bringing more traffic downtown. “Cabela’s draws from quite a distance,” says East Grand Forks Mayor Lynn Stauss. “They have increased in sales every year. The theater has been a good draw for our community. We also have the restaurants there so people can have a night of eating out and watching a movie. We have the state campground and the trails on the Greenway. It just adds to the enjoyment.”

Northland Community and Technical College’s East Grand Forks campus was recently transformed during a $9 million expansion and renovation project. “We have completely redone our campus to look to the future, to be more collegiate, to focus more on students,” says Kent Hanson, Northland College’s vice president of academic affairs and student services. “It’s a modern facility.”

East Grand Forks-based Ideal Aerosmith recently added a research and development location at the University of North Dakota and is in the process to adding an additional 20,000-square feet of space in a former carpet store in Grand Forks. “We think there’s more room for us to grow,” says John Mohn, the company’s executive vice president. “We plan to grow the business significantly in the next five years. We want East Grand Forks and Grand Forks to be the core of that business. There is a very good workforce here.”

STEADY ECONOMY

The area’s economy is helped by the steadying influence of the University of North Dakota, the Grand Forks Air Force Base, Altru Health System and the region’s strong agricultural and manufacturing bases. The cities have also continued to diversify their economies in recent years.

“Our community has many of the benefits of a thriving community without the ill effects of larger cities,” says Dave Molmen, CEO of Grand Forks-based Altru Health System, which employs more than 3,500 in a service area that covers parts of northeastern North Dakota and northwestern Minnesota. “What we have to offer for our size is amazing without a lot of the hassle and danger that people face in some parts of the country.”

The University of North Dakota is one of the region’s largest employers and its more than 13,000 students have a significant impact. “The university is a major economic engine, not just for the cities of Grand Forks and East Grand Forks, but for the state of North Dakota and the region,” says Robert Kelley, the university’s president.

The Grand Forks-East Grand Forks area has long been a regional shopping draw for residents in smaller towns in northeastern North Dakota and northwestern Minnesota. A favorable exchange rate the last few years has led to the return of Canadians coming to Grand Forks and East Grand Forks to shop. “The Canadian dollar is strong right now,” says Julie Rygg, executive director of the Greater Grand Forks Convention and Visitors Bureau. “We’re trying to figure out how to continue to develop our retail and services industry so they stay here longer and shop more.”

The Grand Forks Air Force Base is transitioning from an air refueling tanker base to one that specializes in unmanned aircraft systems. The change in missions has led to a decline in personnel at the base during the transition, but staffing is expected to increase in the future. Local officials are also optimistic about the possibilities for UAS-related spin off businesses. The University of North Dakota, which has a strong aerospace program, is adding more research and technology in UAS applications.

“UAS long-term have significant potential from a business standpoint,” says Klaus Thiessen, president and CEO of the Grand Forks Region Economic Development Corporation. “There is a real opportunity down the road, but the real issue is air space.”

The Empire Arts Center, weekend farmers markets, art and wine walks and events like Blues on the Red, the Grand Cities Art Fest, Cats Incredible and Heritage Days have also helped create a more vibrant arts community in the two cities.

Kristi Magnuson-Nelson, who leads the Grand Forks-based Hugo’s grocery store chain, says the area has been a good place for the family-owned business, which has grown to 900 employees and eight locations in Grand Forks, East Grand Forks, Crookston, MN, Thief River Falls, MN, and Jamestown, ND.

“Grand Forks is our hometown,” she says. “My grandparents started this business 70 years ago in a small building in downtown Grand Forks. We plan to remain in Grand Forks for many years to come.”