Gov. Tony Evers seeks designation to help businesses in Douglas County as bridge is replaced

Gov. Tony Evers is asking the Trump administration to give Douglas County a federal designation that would help businesses compete for federal contracts and weather a multi-year project to replace a bridge linking Superior with Duluth, Minnesota.

Evers released a letter Wednesday that asks the Small Business Administration to designate the county as a Historically Underutilized Business Zone, or HUBZone. The federal program allows businesses in disadvantaged communities to compete for certain federal contracts to boost employment and economic growth.

The request comes as the city of Superior and Douglas County prepare for disruptions from the roughly $1.8 billion Blatnik Bridge replacement, which is set to receive $1 billion under the federal bipartisan infrastructure law. Construction is set to begin next year, and the bridge is anticipated to close for 4 to 5 years beginning in 2027.

“A HUBZone designation would provide local businesses with additional tools to remain competitive during this period of disruption and help offset anticipated economic losses as well as assist these businesses in the future after completion of the new bridge and the new opportunities that may come with the upgraded infrastructure,” Evers said in the letter.

What would the designation do for businesses in Douglas County?

The federal government aims to award about $15 billion in federal contracts to certified small businesses in designated HUBZones under the program first launched in 1999. Businesses may be able to obtain contracts without competitive bidding or receive a 10 percent price preference on bids. The agency decides designations based on local income and employment. 

Data from the U.S. Bureau of Labor Statistics shows Douglas County had an unemployment rate of 6.1 percent in March — almost double that month’s state unemployment rate of 3.2 percent. Census data shows the county also has a lower median household income and per-capita income than the state as a whole.

One of Superior’s major employers, Fraser Shipyards, requested the designation. Fraser Industries CEO Patrick Kelly told WPR the shipyard has used HUBZone certification in the past to qualify for contracts to build or repair boats for the U.S. Navy, Coast Guard and other military branches.

Kelly said he hopes the designation would help the company secure additional work, as well as the chance to qualify for contracts tied to construction of the Blatnik Bridge.

“We helped build the first Blatnik Bridge, and we are ready to help build the second Blatnik Bridge,” Kelly said. “A lot of what we do in the way of welding and steelwork, shaping metals, is applicable whether we’re building a bridge or building a boat.”

Fraser Shipyards is one of Superior’s oldest employers

The designation would also be expected to help Fraser with its plans to invest up to $100 million in the shipyard. Superior Mayor Jim Paine said he’s grateful the state recognizes the challenges the city’s businesses will confront with replacement of the bridge, including the shipyard.

“It’s one of our oldest employers, and we just have to do everything we can, not just to protect it, but to make sure that they’re advancing to become a 21st century shipyard,” Paine said.

The company’s origins date back to 1890. Kelly said the shipyard employs about 500 people in the winter months to conduct maintenance and repairs on ships, as well as roughly 200 contractors. Fraser employs about 200 people year-round.

A study from the Maritime Administration within the U.S. Department of Transportation found 2.7 jobs are tied to every direct job in the shipbuilding and repair industry.

Taylor Pedersen, president and CEO of the Superior-Douglas County Area Chamber of Commerce, said the designations would help local businesses that might face additional supply chain or workforce challenges compared to more urban areas.

“It just kind of helps to level the playing field,” Pedersen said.

Designation request receives bipartisan support

The designation has received bipartisan support from northern Wisconsin lawmakers. State Sen. Romaine Quinn, R-Cameron, said in a letter that year-round employment at Fraser Shipyards is affected by the availability of federal contracts.

“With a HUBZone designation, they and other local businesses would be able to compete for set-aside federal contracts, and in turn, provide more constant employment or even expand it,” Quinn wrote.

Rep. Angela Stroud, D-Ashland, agreed that the designation would bring more stability to the local workforce.

“This will help to address the fact that many of our jobs are seasonal and will bring more stable, well-paying, year-round, union jobs to the region,” Stroud said in a statement.

Evers said the Wisconsin Economic Development Corporation will educate local businesses on government contracts.

Wisconsin has more than 120 HUBZones in urban and rural Wisconsin, according to the Small Business Administration. An SBA spokesperson said there’s no specific timeline for review or approval of gubernatorial petitions for designations under the program.