The End of an Era: Why Minnesota’s Elite Itasca Project Is Shutting Down After Two Decades

In a move that has sent ripples through Minnesota’s civic and corporate circles, the Itasca Project—a prestigious alliance of business, nonprofit, and public sector leaders—has announced it will cease operations as a standalone entity. For over 20 years, the organization served as the primary "think tank" for the state’s most influential CEOs, tackling everything from transportation funding to racial economic disparities.

The decision to "graduate" the project’s work to other regional organizations marks a significant shift in the landscape of Midwestern civic leadership. It comes at a time when the Twin Cities are grappling with complex post-pandemic recoveries, demographic shifts, and a changing philosophy on who should lead community transformation.

Main Facts: The Dissolution of a Civic Powerhouse

On Friday, a 10-paragraph memo was dispatched to the Itasca Project’s working teams and funders, signed by the Executive Leadership Council. The message was clear: the unanimous decision had been reached to "retire the Itasca Project as a standalone initiative."

The announcement was particularly surprising given the leadership trajectory over the past 12 months. In October 2023, Steve Grove—the publisher of the Minnesota Star Tribune and former Commissioner of the Minnesota Department of Employment and Economic Development (DEED)—was tapped to chair the project. At the time, Grove lauded Itasca as a "national model for collaboration," expressing enthusiasm for growing the impact of the work.

However, following what leaders described as a "period of careful deliberation" lasting roughly seven months, the council concluded that the organization’s mission had been sufficiently woven into the fabric of other regional entities.

The dissolution means that the Itasca Project will no longer host its own task forces or publish its signature independent reports. Instead, its remaining initiatives—most notably the Minnesota Young American Leaders Program (MYALP)—will be absorbed by Greater MSP, the regional economic development organization that Itasca itself helped create in 2011.

Chronology: From Gas Taxes to the 20th Anniversary

The Itasca Project’s history mirrors the evolution of Minnesota’s economic priorities over the first two decades of the 21st century.

The Formative Years and Early Wins (2003–2010)

Founded in the early 2000s, the Itasca Project was designed as a "virtual" organization. It had no permanent office and no full-time staff; instead, it relied on the volunteer time of CEOs and the pro-bono consulting services of McKinsey & Co.

Its first major political victory came in 2008. After an Itasca task force rigorously analyzed transportation funding gaps, the group became a pivotal force in advocating for an increase in the state gas tax. This effort resulted in the largest transportation investment in Minnesota’s history, establishing Itasca as a group that could bridge the gap between corporate interests and legislative action.

The Institutional Era (2011–2021)

In 2011, recognizing the need for a dedicated economic development arm for the Twin Cities, the Itasca Project founded Greater MSP. While Greater MSP focused on business recruitment and regional branding, Itasca remained the "intellectual engine," focusing on social issues that impacted the business climate, such as educational attainment and housing.

During this period, the group launched "Mind the Gap" (later "Close the Gap"), a data-driven campaign that forced the local business community to confront the region’s significant racial and socio-economic disparities.

The Pivot to Professionalization (2022–2023)

By 2022, under the leadership of then-chair Lynn Casey (former CEO of Padilla), the group attempted to move away from 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 2022. This led to the hiring of Jake Blumberg as managing director and the establishment of a formal 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, there was little indication that the organization was less than 18 months away from closure.

Supporting Data: A Legacy of Task Forces and Research

The Itasca Project’s impact is best measured through its "task force" model. Typically, the group would convene two task forces per year, each led by high-ranking corporate executives. These were not mere networking groups; they were research-intensive units supported by McKinsey & Co.

Key data-driven initiatives included:

• Business Bridge: An initiative that analyzed the procurement spends of the region’s largest employers (such as Target, Best Buy, and UnitedHealth Group) to identify ways to redirect billions of dollars toward local and diverse-owned suppliers.
• The Gas Tax Analysis (2008): Research that benchmarked Minnesota against peer states, providing the statistical backbone for the legislative push for infrastructure funding.
• Young American Leaders Program (YALP): A partnership with Harvard Business School that has trained hundreds of "emerging" leaders in the Twin Cities, ensuring a pipeline of civic-minded executives.
• Early Childhood Care: Reports that made the "business case" for investment in childcare, framing it not just as a social good, but as a critical component of workforce participation and regional GDP growth.

The decision to sunset the project suggests that this "task force" model has been so successful that it is now being emulated by others, rendering a standalone entity redundant.

Official Responses: The Rationale for Retirement

The leadership’s explanation for the shutdown centers on the idea of "evolution" rather than "failure."

Jake Blumberg, the outgoing managing director, provided the most detailed insight into the decision via a LinkedIn post. He revealed that the leadership spent seven months asking difficult questions: How do we define success? Are we the right leaders to pursue it?

Blumberg wrote: "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."

This statement touches on a growing critique of the Itasca Project: that its "CEO-led" model, while efficient, was often seen as an exclusive "old guard" of predominantly white, male corporate leaders. By handing the reins to groups like the GroundBreak Coalition—a multi-sector group focused specifically on closing the racial wealth gap—the Itasca leadership is signaling a move toward a more decentralized and diverse leadership model.

Steve Grove and Peter Frosch (CEO of Greater MSP) have been designated as the primary contacts for the transition. The Friday memo emphasized that the "spirit of Itasca" remains strong, even if the nameplate is being removed. They pointed to the fact that Greater MSP has committed to "advancing and even growing" the leadership programs like YALP into 2026 and beyond.

Implications: Are CEOs Stepping Back or Stepping Aside?

The dissolution of the Itasca Project raises a fundamental question for Minnesota: Is the state’s legendary "civic muscle" weakening, or is it merely changing shape?

1. The Debate Over CEO Involvement

There is a growing concern among some veteran business leaders that modern CEOs are less engaged in local civic affairs than their predecessors. In a February 2024 Twin Cities Business article, some observers noted that the "Complexity and intensity of the corporate environment" have forced executives to focus inward on their companies rather than outward on their communities.

Lynn Casey, however, challenged this narrative of "decline," describing it instead as an "evolution." The argument is that today’s CEOs are still engaged, but they are doing so through more specialized organizations rather than one monolithic "alliance."

2. The Shift Toward Diversity and Inclusion

The mention of "different lived experiences" in Blumberg’s exit statement is critical. The Itasca Project was born in an era where a few dozen CEOs could sit in a room and set the agenda for the region. In 2025, that model is increasingly viewed as outdated. The implication is that for civic work to be effective today, it must be led by a broader coalition that includes community activists, minority business owners, and grassroots organizers—voices that were not always at the center of the Itasca table.

3. Economic and Political Headwinds

The shutdown occurs as Minnesota faces significant challenges:

• Fiscal Pressures: Both Minneapolis and St. Paul are navigating post-pandemic budgetary constraints and commercial real estate devaluations.
• Demographic Shifts: Anemic population growth remains a concern for the state’s long-term economic competitiveness.
• Political Polarization: The consensus-based approach that Itasca pioneered is harder to maintain in a climate of sharp divisions over public safety and government spending.

4. The Future of the "Itasca Model"

While the organization is ending, its methodology lives on. The "task force" approach to solving regional problems is now the standard operating procedure for Greater MSP and the St. Paul & Minnesota Foundation. The legacy of the Itasca Project will likely be seen as a "vanguard" movement that professionalized civic engagement for the 21st century, eventually becoming so integrated into the regional culture that it no longer needed a separate office.

As the Executive Leadership Council prepares for a final virtual meeting to "create space for dialogue" with funders and partners, the Twin Cities must now look to a more fragmented, yet potentially more inclusive, era of civic leadership. The "Spirit of Itasca" may survive, but the era of the CEO-led "Super-Alliance" has officially come to a close.