Client Feature: Housing in Babbitt & Newest Loans
Client Feature: Supporting Business and Community Growth in Babbitt
Back in 2002, Don and Leanne Negley took a chance starting a new venture in Babbitt, Minnesota.
What started as a small, community-rooted idea has grown into Rural Living Environments (RLE), a thriving business that today plays a vital role in supporting individuals with intellectual and developmental disabilities in northern St. Louis county.
RLE’s mission is straightforward: provide compassionate, individualized support that helps people live meaningful, engaged lives. From its base in Babbitt (population ~1,400), the organization now employs 45 to 50 people and offers a range of services from adult foster care and in-home support to community employment supports.
A Business Built Around People
RLE operates three adult foster care homes and supports individuals living independently, helping them stay connected to their community. It’s essential work—and like many rural employers, RLE faces ongoing workforce challenges. To meet staffing needs, the Negleys have recruited beyond the immediate region, even out of state. What helps draw people in? Meaningful jobs and quality of life.
“Fishing, camping, swimming, skiing, and snowshoeing—we shouldn’t underestimate what this region offers,” Don notes. “But people also need places to live.”
That reality has pushed RLE to think beyond traditional service delivery. Housing has become a part of their business model—not just for clients, but also for employees.
A Different Kind of Housing Project
Workforce housing is a persistent challenge in our rural communities. Over the years, the Negleys have purchased stand-alone homes to rent to staff, with some employees eventually becoming homeowners themselves.
In 2025, a larger opportunity—and risk—emerged. A 16-unit apartment complex in Babbitt, long used in part to house RLE clients, was put up for sale. Losing it would have meant fewer housing options for both clients and the broader workforce.
Rather than wait and see, the Negleys took action. Although they have a great relationship with their local bank, existing credit limits would have prevented them from completing this intended new purchase.
Don and Leanne called on the Northland Foundation, whom they’ve worked with more than once over the years to support the growth of RLE.
“Northland helped us pull everything together efficiently so we could close on a short timeline.” —Don Negley
Our Business Services team assembled a participation loan including the Entrepreneur Fund and the Arrowhead Regional Development Commission (ARDC) in the deal.
A Broader Impact
Today, the building—now owned by Negley Properties—remains a community asset. It continues to provide stable housing for RLE clients and others in Babbitt, preserving an important piece of local infrastructure.
“We appreciated working with the Negleys again,” stated Michael Colclough, VP of Business Services. “Theirs is a family-owned, family-run business that shows just how important local investment is to our region. They have spent decades not only building their own company but also strengthening the broader ecosystem in the Babbitt and Ely area. They care for people with disabilities, their employees, and the future vibrancy and viability of the community.”
Projects like this reflect the kind of work the Northland Foundation supports: business expansions that also address critical community needs. In rural markets especially, those two goals are often inseparable.
For lenders and economic development professionals, it’s a reminder that business lending ripples beyond the doors of the business itself.
Business borrowers fund growth with Northland Foundation financing
The Northland Foundation was pleased to close on financing with two business borrowers, both located in Two Harbors, which financed expansion of their operations.
- Mosher Trucking and Excavating, LLC, Two Harbors
- Shoreview Natives, Two Harbors
Are you a small business, aspiring business owner, or a bank or credit union seeking to partner or refer clients? Get in touch by emailing Michael Colclough, VP of Business Services, or Amanda Vuicich, Small Business Lender. We’re here to help!