Arrowhead Cooperative, Lutsen Mountains Corporation close on USDA financing

August marked the final milestone in the Lutsen Mountains Snowmaking and Lodging Infrastructure Project, which was originally awarded a Rural Economic Development Loan & Grant (REDLG) Program loan from the U.S. Department of Agriculture (USDA) in 2024.

Representatives from Arrowhead Electric Cooperative (Arrowhead), Lutsen Mountains Corporation (LMC) and Great River Energy met in Lutsen to close on the zero-interest REDLG loan as part of the ski resort’s investment in newer, more efficient snowmaking equipment. The co-op applied for the loan and secured the funding on behalf of LMC in 2024, but per the USDA regulations, funds were not distributed until the project reached substantial completion. 

This is the third time in the cooperative’s history it has helped secure economic development financing for Lutsen Mountains Corporation — a family-owned business that has been owned and operated by the Skinner family over three generations since 1980. 

The focus of this most recent project was the replacement and expansion of the snowmaking system serving Moose Mountain, allowing for more efficient snowmaking as early season temperatures trend warmer and as the windows of opportunity for snowmaking decline. Replacement of the aging system will allow it to operate at a higher capacity, resulting in better performance of the system’s automated snowmaking machines. 

Replacement of the old pipelines on the Bull Run, Moose Glade, Moose Crossing and Lower Meadows ski runs also allows Lutsen Mountains to increase its discharge pressure to the design point, providing full pressure to the highest elevations within the system. Caribou Curve, a recently installed pipeline that had frozen and split, was also replaced to facilitate the operation of the Timberwolf lift.

The second component of this project involved the conversion of the old registration building at Eagle Ridge into two new and larger lodging units. This came about after Lutsen Mountains converted its old ski school building into a new registration building, which allows guests to check in for lodging, purchase tickets and talk with guest services, all in one convenient location. The space in the old registration building was repurposed into a two-bedroom and a three-bedroom condo, adding two new, modern condos for larger families and groups of friends.

Altogether, the project is expected to create 11 new fulltime equivalent jobs in the mountain operations department and hospitality staff at LMC, while helping to retain around 85 existing jobs at this major Cook County employer. 

This is in addition to all the other improvements and investments LMC has made in the resort over the past several years, including the newly constructed Charlie’s Alpine Bistro, which replaced the original Papa Charlie’s that was destroyed by fire in June of 2023. The new 9,825-square-foot restaurant and lodge also celebrated its grand opening in August. 

“Arrowhead and Great River Energy were proud to support the Lutsen Mountains Snowmaking and Lodging Infrastructure Project and we look forward to seeing this family-owned business continue to thrive on Lake Superior’s north shore,” said Jeff Borling, economic development lead at Great River Energy. “Think snow!”