The Sunset of the Minnesota Model: Inside the Decision to Dissolve the Itasca Project

For over two decades, the Itasca Project served as the quiet, influential engine room of the Twin Cities’ civic and economic strategy. Comprised of a high-level alliance of CEOs, philanthropic leaders, and public sector officials, the organization was often cited as the gold standard for how a metropolitan region can solve systemic problems through cross-sector collaboration. However, in a move that has sent ripples through the Minnesota business community, the leadership of the Itasca Project has announced that the organization will officially cease operations as a standalone entity.

The decision, described as a "graduation" of its work to other regional bodies, marks the end of an era for a group that was once championed by New York Times columnist Thomas Friedman as a national model for civic engagement. The dissolution comes at a precarious time for Minnesota, as the state grapples with sluggish population growth, fiscal pressures, and a shifting landscape of corporate leadership.

Main Facts: The Dissolution of a Civic Titan

On Friday, October 25, 2024, the Itasca Project’s executive leadership council issued a ten-paragraph memorandum to its working team members and financial backers. The memo delivered a unanimous verdict: the time had come to retire the Itasca Project.

The decision was spearheaded by Steve Grove, the publisher of the Minnesota Star Tribune, who had taken over as the project’s chair only one year prior. Joining him in the decision was Jake Blumberg, the project’s managing director, and a council of high-profile executives including representatives from McKinsey & Co., Mortenson, and U.S. Bank.

According to the leadership, the Itasca Project is not "failing" so much as it is "evolving." The organization’s various initiatives—ranging from leadership programs to economic development task forces—will be absorbed by other regional entities, most notably Greater MSP, a regional economic development partnership that the Itasca Project itself helped create in 2011.

The announcement was met with surprise by many in the civic community, particularly given the efforts made just two years ago to formalize the group’s structure. Between 2022 and 2023, the Itasca Project moved from being a "virtual" entity staffed by consultants to a more traditional organization with its own office space, full-time staff, and a formalized governing council. The sudden pivot to dissolution suggests a significant re-evaluation of how civic leadership should function in the modern era.

Chronology: From a "Virtual" Alliance to a Formal Sunset

The trajectory of the Itasca Project reflects the changing nature of corporate social responsibility and regional governance over the last twenty years.

The Formative Years (2004–2010)

Founded in the early 2000s, the Itasca Project began as an informal, "virtual" gathering of CEOs. It had no permanent office and no dedicated payroll. Instead, it relied on the volunteer time of top executives and the pro-bono (or low-cost) analytical power of McKinsey & Co. This lean model allowed the group to focus on high-impact policy shifts without the bureaucratic overhead of a traditional nonprofit. In 2008, the group achieved one of its most significant victories by helping secure the largest transportation investment in Minnesota’s history through a gas tax increase.

Expansion and Institutionalization (2011–2021)

As the group’s influence grew, it began spinning off more permanent institutions. In 2011, it founded Greater MSP to handle regional economic marketing and business recruitment. It also launched the "Mind the Gap" campaign, which used data to highlight the socio-economic disparities between racial and geographic groups in the Twin Cities. For most of this decade, the Itasca Project was the primary "table" where the region’s most powerful people sat to discuss the future.

The Push for Structure (2022–2023)

Under the chairmanship of Lynn Casey, former head of the communications firm Padilla, the project began a process of institutionalization. In a 2022 interview, Casey noted that "more is expected of Itasca" and that the "virtual" model was no longer sufficient for the level of accountability required by donors. This led to the hiring of Jake Blumberg as managing director and the establishment of a permanent headquarters. In October 2023, the group celebrated its 20th anniversary with a massive "Catalyzing Civic Leadership" event at St. Paul’s Union Depot, signaling what many thought was a new chapter of growth.

The Deliberation and Dissolution (2024)

The momentum of the 20th anniversary proved short-lived. Over a seven-month period in 2024, the leadership conducted a deep strategic review. According to Jake Blumberg, this process involved asking whether the current leadership was the right fit for the community’s evolving needs. By September 2024, Blumberg had stepped down to start a consulting firm, and by late October, the executive council finalized the decision to sunset the project entirely.

Supporting Data: Two Decades of Impact

The Itasca Project’s legacy is defined by its data-driven approach to social and economic issues. Unlike many civic groups that focus on networking, Itasca operated through "Task Forces" that produced rigorous research and policy recommendations.

• Transportation Infrastructure: The 2008 gas tax increase, supported by Itasca’s research, provided billions in long-term funding for Minnesota’s roads and bridges.
• Economic Development: Greater MSP, the organization born from Itasca, now represents a 15-county region and has been instrumental in attracting billions in capital investment to the state.
• Business Bridge: This initiative focused on supply-chain equity, encouraging the state’s largest employers to shift their procurement spending toward local, minority-owned businesses.
• Educational and Leadership Pipelines: The Minnesota Young American Leaders Program (MYALP), a collaboration with Harvard Business School and the University of Minnesota, has trained hundreds of emerging leaders. This program, along with the national YALP program, will continue under the stewardship of Greater MSP.
• Regional Competitiveness: Itasca’s frequent reports on "regional health" became the benchmark for how the Twin Cities measured itself against "peer cities" like Denver, Seattle, and Boston.

Official Responses: A Unanimous Conclusion

The leadership’s official messaging has focused on the idea that the "spirit" of the Itasca Project has been so successful that it is now embedded in other organizations, making the original entity redundant.

Steve Grove, Chair of the Itasca Project:
In a statement released via the executive council’s memo, Grove emphasized that the regional landscape is now more robust than it was in 2004. "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."

Jake Blumberg, Former Managing Director:
Writing on LinkedIn, Blumberg provided a more nuanced look at the decision-making process. He noted that the leadership arrived at a conclusion regarding identity and representation: "The work of cross-sector civic engagement 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, Executive Leadership Council Member:
Casey has framed the move not as a retreat, but as an "evolution driven by the complexity and intensity of the corporate environment." She has previously pushed back against the narrative that CEOs are disengaging, suggesting instead that civic leadership is being decentralized across different levels of corporate management.

Implications: The Future of Civic Leadership in Minnesota

The dissolution of the Itasca Project raises several critical questions about the future of the "Minnesota Model" of civic cooperation.

1. The "CEO Retreat" Debate

There is a growing concern in the Twin Cities that the current generation of CEOs is less engaged in local civic affairs than their predecessors. In decades past, the leaders of Dayton’s, General Mills, and Honeywell were the primary architects of the region’s public-private partnerships. Today’s CEOs face global pressures, intense shareholder scrutiny, and a more polarized political environment that makes public advocacy riskier. The end of Itasca could be interpreted as a sign that the "CEO table" is no longer the primary driver of regional change.

2. A Shift Toward Diversity and Inclusion

Blumberg’s comments regarding "lived experiences" suggest a strategic pivot. The Itasca Project was often criticized—fairly or not—as a "top-down" organization where elite, mostly white executives decided what was best for the community. By "graduating" its work to groups like the GroundBreak Coalition (which focuses specifically on closing the racial wealth gap), the leadership is acknowledging that the next era of civic work must be more inclusive and grassroots-oriented.

3. The Centralization of Power in Greater MSP

With Greater MSP absorbing Itasca’s leadership programs and task force models, that organization is poised to become the singular, most powerful civic entity in the region. This centralization may lead to better efficiency, but it also removes the "think tank" buffer that the Itasca Project provided, potentially making civic initiatives more closely tied to immediate economic development goals rather than long-term social engineering.

4. Navigating State Challenges

Minnesota is currently at a crossroads. The state is facing anemic population growth, which threatens the long-term tax base and labor pool. Furthermore, the political divide between the urban core and the rest of the state has deepened. The Itasca Project’s greatest strength was its ability to bridge these divides through data and a shared "business case" for progress. Without a dedicated standalone entity to forge these compromises, the responsibility falls on a fragmented network of smaller organizations.

In the coming weeks, the Itasca Project’s leadership plans to host virtual meetings to allow for community dialogue regarding this transition. While the name "Itasca Project" may soon disappear from letterheads and office doors, the "Itasca Spirit"—that unique Minnesotan belief that the private sector has a moral and economic obligation to the public good—is about to face its greatest test. Whether the work truly "graduates" or simply fades away will depend on how the next generation of leaders chooses to step up.