The End of an Era: Unpacking the Dissolution of the Itasca Project and the Future of Twin Cities Civic Leadership

In a development that has sent shockwaves through Minnesota’s civic and business corridors, the Itasca Project—a powerhouse alliance that has defined regional collaboration for more than two decades—has announced it will cease operations. The decision, characterized by leadership as a "graduation" of its work to other entities, marks the end of a unique experiment in cross-sector problem-solving that once served as a national gold standard for how the private sector can influence public policy.

The announcement is particularly jarring given the trajectory of the organization over the last three years. Only a year ago, Steve Grove, the publisher of the Minnesota Star Tribune, was tapped to lead the initiative, expressing optimism about growing its impact. However, a memo released on Friday, February 2025, revealed a unanimous decision by the Executive Leadership Council to retire the Itasca Project as a standalone initiative, signaling a major shift in the landscape of Minnesota’s regional governance.

Main Facts: A Sudden Sunset for a Civic Titan

The dissolution of the Itasca Project was communicated via a ten-paragraph memo sent to funders and working team members. The move was spearheaded by an Executive Leadership Council that includes some of the region’s most influential figures: Steve Grove (Chair), Audrey Lucas of McKinsey & Co., David Mortenson of Mortenson Construction, John Naylor (formerly of Medica), and Tim Welsh (formerly of U.S. Bank).

According to the memo, the decision follows a seven-month period of "careful deliberation" and strategic planning. The core rationale provided by the leadership is that the "task force" model pioneered by Itasca has been successfully "fully adopted" by other organizations, most notably Greater MSP—a regional economic development group that Itasca itself helped create in 2011.

While the Itasca Project name will be retired, several of its flagship programs will survive. The Minnesota Young American Leaders Program (MYALP), a partnership with the University of Minnesota and Harvard Business School, will be transitioned to Greater MSP, which has committed to expanding the program in 2026. However, the closure of the central organization raises fundamental questions about the future of high-level CEO engagement in the Twin Cities.

Chronology: From Foundation to Dissolution (2003–2025)

To understand the weight of this decision, one must look at the two-decade arc of the Itasca Project’s existence.

The Formative Years (2003–2010)

The Itasca Project emerged in the early 2000s as a "virtual" organization. It lacked a permanent office and a large payroll, relying instead on the donated time of CEOs and the pro bono analytical power of McKinsey & Co. Its primary goal was to address regional challenges that transcended political boundaries, such as transportation, education, and economic competitiveness.

Its first major victory came in 2008. After an Itasca task force studied transportation funding models across the country, the group became a pivotal force in advocating for the increase in the state gas tax—the largest transportation investment in Minnesota’s history at the time. This established Itasca as a group that didn’t just write reports but moved the needle on legislative policy.

Expansion and Maturity (2011–2021)

In 2011, recognizing the need for a dedicated economic development arm for the region, the Itasca Project founded Greater MSP. Over the next decade, Itasca expanded its scope to tackle social "gaps." The "Mind the Gap/Close the Gap" campaign became a landmark effort, using data to illustrate the stark socio-economic disparities in Minnesota based on race and geography. This period also saw the launch of "Business Bridge," an initiative designed to encourage large corporations to buy from local, minority-owned businesses.

The Pivot to Permanence (2022–2023)

By 2022, under the leadership of then-chair Lynn Casey, the organization felt it had outgrown its "virtual" roots. Casey argued that the complexity of modern challenges required more oversight and accountability. "We’re at a point now where more is expected of Itasca," she noted in a 2022 interview. This led to the hiring of Jake Blumberg as the first dedicated Managing Director, the establishment of a permanent office, and the creation of the Executive Leadership Council.

In October 2023, the group celebrated its 20th anniversary with a massive event at St. Paul’s Union Depot titled "Catalyzing Civic Leadership." With over 300 leaders in attendance, the organization appeared to be at the height of its influence.

The Sudden Decline (2024–2025)

The momentum appeared to shift shortly after Steve Grove took the chair in late 2023. Despite initial statements about growing the work, the leadership began a secret seven-month strategic review. By early 2025, Jake Blumberg had quietly exited his role to start a consulting firm, and by Friday, the memo was sent out officially ending the project.

Supporting Data: A Legacy of Measured Impact

The Itasca Project’s impact can be measured through several key metrics and initiatives that reshaped the Twin Cities:

• Transportation Funding: The 2008 gas tax increase, which Itasca championed, unlocked billions in infrastructure spending over the following decade.
• Economic Development: Greater MSP, the "child" of Itasca, now oversees regional business recruitment and retention for a 15-county area.
• Social Awareness: The "Mind the Gap" reports provided the statistical foundation for much of the equity work currently being done by the GroundBreak Coalition and other local nonprofits.
• Leadership Pipeline: Through MYALP and YALP, hundreds of "rising star" leaders have been trained in cross-sector collaboration, a network that the leadership claims is now strong enough to function without a central Itasca umbrella.

However, the decision to close comes at a time when Minnesota is facing data-driven headwinds. State population growth is currently described as "anemic," and the Twin Cities are grappling with a commercial real estate crisis and fiscal deficits in both Minneapolis and St. Paul. Critics argue that the "data-driven task force" model is needed now more than ever.

Official Responses: "The Time is Right"

The official explanation for the shutdown centers on the idea of organizational evolution rather than failure.

Jake Blumberg, the outgoing Managing Director, offered a candid reflection via LinkedIn. He framed the decision as a response to a changing social landscape. "The work of cross-sector civic engagement is best carried forward by numerous other organizations that have grown over the past two decades—especially those led by folks with different lived experiences and identities than those who have predominantly led those efforts historically," Blumberg wrote. This suggests that the "CEO-heavy" model of Itasca may have felt increasingly out of step with modern demands for grassroots and diverse representation.

Steve Grove and the Executive Council echoed this in their memo, stating that the "spirit of Itasca" has become so pervasive in other groups—like the GroundBreak Coalition—that a standalone entity was no longer necessary. They described the move as a "unanimous decision" reached after exploring "multiple paths forward."

Lynn Casey, the former chair who originally pushed for a more permanent structure in 2022, offered a nuanced view. While she had previously argued for strengthening the organization, she recently characterized the current shift as an "evolution driven by the complexity and intensity of the corporate environment." This points to a reality where modern CEOs, burdened by global economic pressures and internal corporate demands, have less bandwidth for regional civic "extracurriculars."

Implications: A Civic Vacuum or a New Ecosystem?

The disbanding of the Itasca Project raises several critical implications for the future of the Twin Cities and the state of Minnesota.

1. The Question of CEO Engagement

For twenty years, the Itasca Project was the primary vehicle through which top-tier CEOs engaged with public policy. With its absence, there is a risk of a "civic vacuum" at the highest levels of business leadership. If CEOs are "walking away," as some local business leaders feared in recent reports, the region may lose the political and financial "clout" necessary to push through major legislative reforms or large-scale infrastructure projects.

2. The Shift to Distributed Leadership

The rationale that the work is being "graduated" to other groups like Greater MSP and GroundBreak suggests a shift from a centralized "shadow cabinet" of CEOs to a more distributed ecosystem of specialized nonprofits. While this may allow for more diversity of thought and "lived experience," it remains to be seen if these smaller or more specialized groups can command the same attention from the Governor’s office or the State Legislature that the Itasca Project once did.

3. A Model for Other Cities?

The Itasca Project was often cited by New York Times columnist Tom Friedman as a model for how cities can save themselves through "radical collaboration." Its closure may be seen as a warning sign for similar civic alliances in other metropolitan areas. If the "Minnesota Model" is being retired in its home state, it suggests that the traditional 20th-century model of "business-led civic progress" is undergoing a fundamental—and perhaps painful—transformation.

4. Addressing Current Crises

The timing of the shutdown is perhaps the most concerning element for many observers. Minnesota is currently navigating sharp political divisions over public safety, education funding, and a stagnant labor force. The Itasca Project was designed specifically to provide a "neutral ground" for these heated debates. Without that table to sit at, the burden falls on a fragmented group of stakeholders to find consensus in an increasingly polarized environment.

In the coming weeks, Steve Grove and Peter Frosch (CEO of Greater MSP) will host virtual meetings to "create space for dialogue" regarding this transition. Whether this dialogue leads to a new form of collaboration or simply serves as a final eulogy for the Itasca Project remains the most pressing question for Minnesota’s civic future. For now, a twenty-year chapter of regional history has officially come to a close, leaving the business community to find new ways to define and pursue success in a rapidly changing world.