MINNEAPOLIS — In a move that has sent ripples through the Upper Midwest’s civic and corporate landscape, the Itasca Project, a powerhouse alliance of business, philanthropic, and public sector leaders that has shaped Twin Cities policy for over two decades, has announced its dissolution.
The decision, described by leadership as a "graduation" of its mission rather than a failure of its mandate, marks the end of an era for a model of civic engagement once hailed by the New York Times as a national standard for regional collaboration. The move comes just one year after Steve Grove, publisher of the Minnesota Star Tribune, assumed the chair, and only two years after the organization attempted to formalize its structure with permanent staff and dedicated office space.
The following report examines the history, the strategic pivot, and the profound implications of the shuttering of one of Minnesota’s most influential private-sector coalitions.
Main Facts: A Unanimous Decision to "Graduate"
On Friday, October 25, 2024, the Itasca Project’s executive leadership council issued a memorandum to its working teams and funders, signaling the end of the organization’s lifespan as a standalone entity. The decision followed a seven-month period of strategic deliberation led by the council and Jake Blumberg, who served as the project’s managing director until late September.
According to the memo, the decision was "unanimous," predicated on the belief that the "spirit of Itasca" had successfully permeated the region’s other institutional frameworks. Rather than maintaining a separate overhead and organizational structure, the council determined that the work of cross-sector civic engagement is now better served by a "mature ecosystem" of organizations that have emerged in the twenty years since Itasca’s inception.
Key entities identified to take over Itasca’s legacy work include:
- Greater MSP: The regional economic development organization (which Itasca itself founded in 2011).
- The GroundBreak Coalition: A multi-sector effort focused on closing wealth gaps.
- The Minnesota Young American Leaders Program (MYALP): A partnership with the University of Minnesota and Harvard Business School.
While the "Itasca Project" brand will be retired, leadership insists the mission—addressing regional economic competitiveness and social disparities—remains vital but requires a different, perhaps more diverse, set of messengers.
Chronology: From "Virtual" Alliance to Formal Institution and Back
The trajectory of the Itasca Project reflects the evolving philosophy of corporate social responsibility in Minnesota.
2003–2010: The McKinsey Era and Early Wins
The Itasca Project began as a "virtual organization." It had no dedicated office and no full-time staff. Instead, it operated as a coalition of CEOs who met regularly to tackle "wicked problems" that no single sector could solve alone. The intellectual engine was largely powered by the Minneapolis office of McKinsey & Co., which provided pro bono staffing for task forces.
In 2008, the group achieved its most cited victory: playing a pivotal role in the passage of the largest transportation investment in Minnesota history. By researching funding models in other states, Itasca provided the political cover and data necessary for a gas tax increase to support crumbling infrastructure.
2011–2021: Institutionalizing the Mission
In 2011, the Itasca Project recognized the need for a dedicated economic development arm, leading to the creation of Greater MSP. Throughout this decade, the Project shifted focus toward socio-economic disparities, launching the "Mind the Gap" campaign to highlight racial and economic inequities in the Twin Cities.
2022–2023: The Push for Permanence
By 2022, under the leadership of then-chair Lynn Casey, the organization felt the limits of its "virtual" status. Casey argued that the complexity of the post-pandemic world 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 managing director and the establishment of an executive leadership council.
2024: The Strategic Pivot
Despite a high-profile 20th-anniversary celebration in October 2023 titled "Catalyzing Civic Leadership," internal questions began to arise about redundancy. A seven-month strategic review concluded that the very organizations Itasca helped build were now capable of carrying the torch, leading to the October 2024 announcement of its closure.
Supporting Data: Two Decades of Impact
The Itasca Project’s legacy is defined by a data-driven "task force" model. Over 20 years, the organization tackled issues ranging from early childhood education to regional transit.
- Transportation (2008): Their advocacy led to a historic gas tax increase, the first in 20 years for the state at that time.
- Socio-economic Research: The "Mind the Gap" and "Close the Gap" reports became the foundational texts for Twin Cities leaders to understand that regional prosperity was inextricably linked to racial equity.
- Business Bridge: This initiative mobilized the region’s largest employers to redirect their procurement spending toward local, diverse suppliers, injecting millions into the local economy.
- Leadership Development: The MYALP program has trained hundreds of emerging leaders in "cross-sector" problem-solving, ensuring a pipeline of civic-minded executives.
The decision to sunset the organization comes at a time when the Twin Cities face significant headwinds. Recent data indicates anemic population growth in Minnesota and widening fiscal gaps in Minneapolis and St. Paul. The Itasca Project’s departure leaves a vacuum in the specific niche of "CEO-level" collective action.
Official Responses: Voices from the Leadership
The transition is being framed by its architects as an evolution of leadership rather than a retreat.
Steve Grove, Chair of the Itasca Project:
Just one year ago, Grove expressed optimism about growing the impact of the work. In the final memo, his tone shifted to one of legacy preservation. Grove, along with the council, emphasized that "the task force model that Itasca pioneered… has been fully adopted by Greater MSP and others."
Jake Blumberg, Former Managing Director:
In a detailed LinkedIn post, Blumberg shed light on the internal soul-searching that led to the shutdown. "We focused on working with Itasca leadership to answer the most important questions any organization can ask: How do we define success, and are we the right leaders to pursue it?"
Blumberg’s most poignant observation centered on the need for new voices. He wrote that the work is "best carried forward by numerous other organizations… especially those led by folks with different lived experiences and identities than those who have predominantly led those efforts historically."
Lynn Casey, Former Chair:
Casey, who originally pushed for a more formalized Itasca in 2022, also signed the dissolution memo. She has previously pushed back against the narrative that CEOs are walking away from civic life, describing the current climate as an "evolution driven by the complexity and intensity of the corporate environment."
Implications: The Future of Civic Leadership in Minnesota
The disbanding of the Itasca Project raises several critical questions about the future of the "Minnesota Model" of cooperation.
1. The Decentralization of Influence
For decades, the Itasca Project served as a "single table" where the region’s most powerful people sat. With its closure, influence is now decentralized. While this allows for more diverse voices—as noted by Blumberg—it may also make it more difficult to achieve the kind of singular, massive policy shifts (like the 2008 transportation bill) that require the concentrated weight of the entire business community.
2. The Shift in CEO Engagement
The "CEO-as-civic-leader" role is changing. In the past, leaders like those at 3M, Target, and General Mills were expected to devote significant time to local boards. Today, global pressures and political polarization have made some executives more cautious. The dissolution of Itasca may reflect a shift where "civic work" is delegated to specialized staff or industry groups rather than being a personal mandate of the CEO.
3. The Role of Greater MSP
Greater MSP now stands as the primary successor to Itasca’s regional competitiveness work. The organization has committed to "advancing and even growing" the leadership programs previously housed under Itasca. However, Greater MSP’s mandate is primarily economic development; whether it can—or should—replicate Itasca’s focus on social issues like housing affordability and racial disparities remains to be seen.
4. Navigating Political Polarization
The closure occurs during a period of sharp political division in Minnesota over public safety, taxation, and the role of government. The Itasca Project’s strength was its ability to provide "neutral," data-backed recommendations. Without this buffer, the business community may find it more challenging to engage in public policy without being drawn into the partisan fray.
5. A New Model of Diversity
Perhaps the most significant implication is the admission that the "old guard" model—often dominated by white, male corporate executives—is no longer the most effective way to lead a modern, diverse metropolitan area. The "graduation" of Itasca’s work to groups like GroundBreak Coalition signals a transition toward a more inclusive form of civic power.
In concluding their final memo, the leadership council acknowledged that this change is "worthy of further discussion." They have scheduled a virtual meeting in the coming weeks to allow funders and partners to voice concerns. For now, the "Itasca Spirit" remains, but the table where it was born has been cleared.
