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Study shows ATVs rev up Northland's economy

An economic impact study suggests that all-terrain vehicles contribute more than $36 million to three counties in Northeastern Minnesota.

ATV
The Prospectors ATV Trail, connecting Ely, Tower, Soudan, Babbitt and Embarrass is just one of the Northland's major draws.
Steve Kuchera / 2021 file / Duluth Media Group

DULUTH — A just-released report illustrates the financial benefits of the Northland’s burgeoning popularity as a destination for all-terrain vehicle enthusiasts.

The Northeastern Regional ATV Joint Powers Board recently enlisted the help of the University of Minnesota’s Extension Service to ascertain how much riders contribute to the local economies of Koochiching, Lake and St. Louis counties.

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According to the research, ATV enthusiasts exploring the tri-county region spent about $23.4 million in 2023, generating an estimated $36.1 million in economic impact, when jobs, wages and other spinoff benefits are factored into the equation.

Man and his daughter sit on an ATV pulled by 20 sled dogs.
Blake Freking and his daughter ride an ATV as their team of Siberian huskies pulls them along a road in Finland, Lake County, in 2022.
Wyatt Buckner / File / Duluth Media Group

In 2023, researchers estimate 219,230 visitors were drawn to trails in the study area, with visitors defined as people traveling more than 50 miles to their destination and/or staying overnight. Out-of-town visitors’ parties averaged about seven people in size, with each individual spending an average of $144.10 per day. The average visitor stay? 4 1/2 days.

Local riders’ parties averaged about six people, each spending $38.50 per day.

The results are primarily based on the analysis of 986 user surveys.

Eric Senarighi also won the Minnesota DNR award in 2021.

Among the most popular trails are those that link communities, including:

  • The Voyageurs Trail, carrying riders from Ely to Crane Lake.
  • The Prospectors Trail, connecting Ely, Tower, Soudan, Babbitt and Embarrass.

St. Louis County Commissioner Paul McDonald said the joint powers board has enabled counties to join forces and more effectively navigate the bureaucracy often involved in permitting and funding regional trails.

“We work to eliminate any surprises with trail development,” he said.

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Brigid Tuck, a senior economic impact analyst with the U of M Extension Service, said researchers gathered input from ATV riders from around the nation who visited the study area. They also partnered with local ATV clubs to conduct traffic analysis on area trails.

Of the visitors surveyed, she said 85% indicated ATV trails were the primary reason for their trips.

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ATV enthusiast Ron Potter drives his Polaris side-by-side on a newly-opened section of ATV trail just outside Finland, Lake County, in 2020.
Steve Kuchera / File / Duluth Media Group

Ron Potter of ATV Minnesota acknowledged Northeastern Minnesota is a haul for many visiting riders. “We need to provide a quality trail experience to bring them here, and we see that that is working," he said.

As the regional trail network continues to expand into Koochiching County, Potter predicts the region’s pull as an ATV destination will continue to grow.

“Once we get connected to International Falls, then we can connect to the Blue Ox Trail, which will connect us all the way over to Bemidji," Potter said. "So, the trail system and where it’s going to pull from is not only going to be a state draw or a regional draw. It’s going to be nationwide."

Mike Jugovich, vice chair of the St. Louis County Board, said the impact study should be a helpful tool.

“We now have the data to back up and support the funding and continued funding of trails, maintenance and trail development throughout Northeast Minnesota,” he said. “This is about economic development. This is about jobs. This is about recreation — all things Minnesota holds near and dear.”

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State Rep. Grant Hauschild, DFL-Hermantown, said the region’s growing network of trails is connecting communities and showing off what he called “the playground that is Northeast Minnesota.”

Proceeds from ATVs flow into a state fund to support new trails, and Hauschild said that because of organized efforts, such as those being led by the regional ATV joint powers board, “Northeastern Minnesota is punching above our weight and getting more than our fair share of that ATV-dedicated account," he said.

Hauschild said ATV trail development enjoys broad bipartisan support at the state level.

State Rep. Natalie Zeleznikar, R-Fredenberg Township, said she has been an ATV enthusiast for 33 years.

“I think it’s just a great day,” she said. “For years, people have been asking: When? When are we going to have trail systems to connect areas in this region.”

“We have trails that are fantastic to ride,” Zeleznikar boasted.

This story originally contained a misspelling of Commissioner Mike Jugovich's name. It was updated at 8:58 a.m. Jan. 8 with the proper spelling. The News Tribune regrets the error.

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more by peter passi

Peter Passi covers city and county government for the Duluth News Tribune. He joined the paper in April 2000, initially as a business reporter but has worked a number of beats through the years.
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