Tower receives nearly 2.5 million funding approval from IRRRB — projects will now move forward

THURSDAY, MAY 24, 2018 — Members of the Iron Range Resources and Rehabilitation Board (IRRRB) met in St. Paul at noon yesterday. Tower was very successful in getting its projects financed.

First on the list was funding approval of a $1,850,000 non-recourse loan to construct a 9,000 square foot manufacturing facility in Tower’s Industrial Park on Highway 135, south of town. Lamppa Manufacturing will lease half of this manufacturing space to build its wood burning sauna stoves and warm air furnaces. Lamppa Manufacturing has been producing its stoves in the former Lamppa Dairy building since 1977. Last year the company announced that it received Environmental Protection Agency verification that its new “Vapor-Fire 100’s have even burned past the new 2020 standard by over 40%! The virtually “smokeless” burning Kuuma furnaces extremely efficient, safe, easy-to-use, gentle on our environment and built to provide generations of reliable service,” according to the company”s website.

It is expected that the expansion will see Lamppa Manufacuring increase its workforce from its current eight employees to 20, starting next year.

Lamppa Manufacturing will enter into a ten year lease with the Tower Economic Development Authority (TEDA) and the city is seeking another company to lease the other half of the building.

Tower will pay-off the IRRRB non-recourse loan through the rents it generates from the building. There is no interest charge to be paid on the loan and the city will only be require to make payments when it has rental income from the property.