The End of an Era: The Itasca Project Dissolves After Two Decades of Civic Influence

MINNEAPOLIS — In a move that has sent ripples through Minnesota’s corporate and civic corridors, the Itasca Project—a heavyweight alliance of business, philanthropic, and public-sector leaders—has announced it will cease operations as a standalone entity. For more than 20 years, the organization served as the quiet but powerful engine behind some of the region’s most significant policy shifts and economic initiatives.

The decision to "graduate" its work to other regional organizations marks the end of a unique experiment in civic architecture. Founded on the principle of cross-sector collaboration, the Itasca Project was often cited as a national gold standard for how the private sector can engage with public challenges. However, a unanimous decision by its Executive Leadership Council has determined that the "Itasca model" is no longer the most effective way to address the complexities of the 21st-century Twin Cities.

Main Facts: A Unanimous Decision to Sunset

The announcement came via a 10-paragraph memorandum emailed to funders and working team members on Friday. The memo, signed by the Executive Leadership Council and outgoing Managing Director Jake Blumberg, stated that the organization reached the conclusion following a "period of careful deliberation."

The move is particularly striking given the organization’s recent trajectory. Just one year ago, Steve Grove, publisher of the Minnesota Star Tribune, was appointed as the Itasca Project’s chair. At the time, Grove lauded the initiative as a "national model for collaboration," expressing optimism about growing the impact of the work. Today, Grove’s name sits atop the list of leaders who have voted to retire the brand.

According to the leadership council, the Itasca Project is not failing; rather, it is "graduating." The core philosophy is that the civic landscape has matured to the point where other organizations—many of which were spawned or supported by Itasca—are better equipped to lead. Organizations like Greater MSP, the GroundBreak Coalition, and various community-led groups are expected to absorb the ongoing work.

Chronology: From Virtual Alliance to Institutional Maturity

The Itasca Project’s journey is a study in the evolution of civic leadership. To understand its dissolution, one must look at its twenty-year lifecycle:

The Early Years: The "Virtual" Powerhouse (2003–2020)

For much of its existence, the Itasca Project operated without a permanent office or a large payroll. It was a "virtual" entity, relying on the donated time of CEOs and the pro-bono consulting services of McKinsey & Co. This lean structure allowed it to be nimble, focusing on high-level task forces that tackled specific regional issues such as transportation, educational gaps, and economic competitiveness.

The 2022 Pivot: Professionalization

Three years ago, under the leadership of then-chair Lynn Casey (former chair of the communications firm Padilla), the organization began to formalize. Casey argued that "more is expected of Itasca" and that the "virtual" model lacked the necessary oversight and accountability. Under her tenure, the project established an Executive Leadership Council, secured a permanent office within the Greater MSP headquarters, and hired full-time staff, including Managing Director Jake Blumberg.

The 20th Anniversary and the Final Deliberation (2023–2024)

In October 2023, the organization celebrated its 20th anniversary with a high-profile event at St. Paul’s Union Depot titled "Catalyzing Civic Leadership." With over 300 emerging and established leaders in attendance, the organization appeared to be entering a new phase of growth.

However, behind the scenes, a seven-month strategic planning process was underway. Blumberg recently revealed that this process involved asking existential questions: Are we the right leaders to pursue success? What is the right way forward to serve the community? By late 2024, the answer was a surprising consensus: it was time to step aside.

Supporting Data: A Legacy of Policy and Economic Impact

The Itasca Project’s impact on Minnesota is documented through two decades of white papers, task force recommendations, and legislative victories. Unlike traditional lobbying groups, Itasca used data-driven research to build consensus among the state’s elite.

Infrastructure and Transportation

Perhaps its most tangible achievement was the 2008 gas tax increase. At a time of political gridlock, an Itasca Project task force produced research comparing Minnesota’s infrastructure funding to other states. This provided the "business case" that allowed lawmakers to pass the largest transportation investment in state history, arguing that a failing road system was a threat to regional commerce.

Socio-Economic Equity: "Mind the Gap"

Long before "DEI" became a standard corporate acronym, the Itasca Project launched the "Mind the Gap/Close the Gap" campaign. This initiative used hard data to illustrate the widening socio-economic disparities in the Twin Cities based on race and geography. It shifted the conversation from social justice alone to economic necessity, arguing that the region could not remain competitive if a significant portion of its workforce was left behind.

Economic Ecosystems

In 2011, the Itasca Project founded Greater MSP, the regional economic development partnership that has since become the primary vehicle for business recruitment in the Twin Cities. Additionally, the "Business Bridge" initiative was created to encourage large corporations to shift their procurement spending toward local, minority-owned businesses, effectively using corporate balance sheets as a tool for community development.

Official Responses: Shifting the Baton

The leadership’s explanation for the shutdown centers on a belief that the "who" and "how" of civic leadership must change.

Jake Blumberg, in a detailed LinkedIn post, noted that the cross-sector work pioneered by Itasca is now being carried out by organizations "led by folks with different lived experiences and identities than those who have predominantly led those efforts historically." This suggests a conscious decision by the traditional "CEO class" to make room for more diverse leadership structures.

The Friday memo from the Executive Leadership Council echoed this sentiment:

"Today, the Minneapolis/St. Paul region has many organizations… where business and other community leaders come together to address critical issues. The task force model that Itasca pioneered… has been fully adopted by Greater MSP and others."

The council also confirmed that the Minnesota Young American Leaders Program (MYALP), a prestigious partnership with Harvard Business School designed to train the next generation of civic leaders, will continue without interruption under the stewardship of Greater MSP.

Implications: The Future of Civic Leadership in Minnesota

The dissolution of the Itasca Project raises urgent questions about the future of Minnesota’s "civic muscle" during a period of significant stress.

The "CEO Gap"

The shutdown occurs amidst a broader debate about whether modern CEOs are retreating from civic life. In a February 2025 article for Twin Cities Business, some observers expressed concern that current corporate leaders are too focused on global pressures and quarterly earnings to dedicate time to local policy. Lynn Casey, however, views this not as a decline but as an "evolution driven by the complexity and intensity of the corporate environment," suggesting that leadership roles are shifting to executives just below the CEO level.

A Fragmented Landscape?

While the Itasca Project argues that the landscape is now "populated with many tables," some worry that the absence of a single, unified "table" like Itasca could lead to a fragmentation of efforts. The Twin Cities are currently grappling with anemic population growth, fiscal challenges in both Minneapolis and St. Paul, and deep political divisions regarding public safety. Without the Itasca Project’s ability to force a consensus among the state’s most powerful individuals, the path toward solving these "wicked problems" may become more disjointed.

The Successor Organizations

The burden of proof now lies with the successor organizations. Greater MSP will take the lead on economic competitiveness and leadership development, while the GroundBreak Coalition—a multi-billion dollar racial equity initiative—will take on the mantle of closing the wealth gap. The "Itasca spirit," as the memo calls it, will be tested by whether these specialized groups can replicate the broad, cross-sector influence that the original alliance maintained for twenty years.

In the coming weeks, Steve Grove and Peter Frosch (CEO of Greater MSP) will host a virtual meeting for funders and stakeholders to discuss the transition. As the Itasca Project prepares to close its doors, its final act appears to be a deliberate attempt to decentralize power—a move that is either a visionary evolution of civic engagement or a risky gamble on the strength of the region’s remaining institutions.

Regardless of the outcome, the retirement of the Itasca Project marks the end of the "McKinsey-and-CEO" era of Minnesota governance, leaving a vacuum that the next generation of leaders must now scramble to fill.