Minnesota regulators on Wednesday launched a process to strip a controversial metal foundry on St. Paul’s East Side of its operations permit, a rare move officials say is warranted to counteract the company’s lack of compliance with state rules.
The Minnesota Pollution Control Agency notified Northern Iron and Machine that it is seeking to revoke its permit, a move that would shutter the facility located off Phalen Boulevard. The MPCA and Northern Iron have been involved in a regulatory and legal battle over the past two years, since they reached a 2023 stipulation agreement that imposed a $41,500 fine on the foundry.
The MPCA has said for months that Northern Iron’s application for a new permit, required by the 2023 agreement, lacks needed information. In April, the agency warned the company that it was falling short and asked it to submit missing information by May 8. The company submitted new materials, but the MPCA was not satisfied.
“Northern Iron has repeatedly failed to provide us with information required under state law necessary to write a permit for the company that protects human health and the environment,” the MPCA wrote in a statement. “We expect Minnesota businesses to comply with the law. The company is not in compliance with its permit, the stipulation agreement, the administrative order, or the requirement to send us information necessary to write a permit. We do not have reasonable assurance that the company can comply with a permit.”
The MPCA declined to comment further, citing pending legal proceedings.
Payne-Phalen residents have held several protests at the foundry in recent months. Members of the Payne-Phalen Community Council and East Side Environmental Justice have knocked on doors in the neighborhood to raise awareness and distribute resources such as air filters.
At times, working with the MPCA was frustrating, said Rebecca Nelson, board chair of the Payne-Phalen Community Council. But she and others in the neighborhood were glad to hear the agency is moving forward with the permit revocation process.
“It feels like, oh my god, finally. They’re finally doing something, they’ve finally heard what we’re saying,” Nelson said.
Nelson said she wants to see a positive outcome for the foundry’s workers.
Complicated process required to revoke permit
Revocation of a company’s permit is rare in Minnesota, and involves a long process, according to the MPCA. Northern Iron now has 30 days to respond to the MPCA’s notice and request a hearing before an administrative law judge. That judge’s ruling could be appealed to the Minnesota Court of Appeals. Northern Iron is allowed to continue operations through the process.
Lawton Standard, Northern Iron’s parent company, called the MPCA’s actions unacceptable in a statement Wednesday and said the agency is not following the law as a regulator. They believe the MPCA is trying to scare the community without merit.
“Minnesota has earned a reputation for being a state where businesses consistently struggle to operate and successfully secure permits and approvals,” Lawton Standard CEO Alex Lawton said. “The MPCA’s continued efforts to shut us down by ignoring facts, law, and process reaffirm this and send a dangerous message to businesses.”
The foundry, which has operated for about a century, is located in a residential neighborhood that is home to many immigrant families. Because of the neighborhood’s demographics and poverty levels, the state considers it an environmental justice area whose residents are disproportionately affected by pollution.
In May 2024, Northern Iron sued the MPCA after the agency ordered it to reduce operational hours, citing concerns it was emitting excessive amounts of smog and lead.
In July 2024, Ramsey County District Court Judge Leonardo Castro issued a temporary injunction allowing most operations to resume while Northern Iron installed new pollution control equipment and applied for a new state permit. That case continues, with a discovery conference scheduled for Thursday.
Neighbors have complained about dust from the foundry. Ismahan Alasow, a mother of six, rented a home near the foundry and told Sahan Journal in January that she believed the facility was causing health issues for her kids. She said she needed to clean dust in her home daily and wanted to leave the area.
Brittney Bruce, a mother who lives across the street from the foundry, filed a class-action suit against Northern Iron in March. The lawsuit says the foundry is harming the well-being of nearby residents and is infringing on their property rights by failing to control pollution. Its class-action status allows others to join the suit.
Residents around Northern Iron submitted complaints to the MPCA about soot coating their homes and vehicles. The agency collected samples of that soot and determined that Northern Iron was likely the source. The soot contained heavy metals, including lead, cobalt and manganese, according to court documents.
The MPCA’s testing of the soot sparked more confidence and trust from the community, according to Jack Byers, executive director of the Payne-Phalen Community Council. The move to proceed with the permit revocation process surprised many.
“It’s a very positive development,” Byers said.
In legal proceedings, Northern Iron has argued that air monitors the company installed show its emissions meet National Ambient Air Quality standards.
Update: This story was updated Wednesday afternoon to include comments from Northern Iron.
