Cook County-Grand Marais Economic Development Authority (EDA) Chair Mark Sandbo called the Tuesday, March 12, 2013 meeting to order and said the first order of business was a public hearing regarding the sale of a lot in the Cedar Grove Business Park. Sandbo said the purpose of the hearing was to give the public the opportunity to comment.
The only citizens present, however, were the potential buyers, Ryan Mixdorf and Luke Gulstrand of Fine Finish Painting. The men have submitted an offer of $30,000 for Lot 5, Block 7, which is the second lot down from the top of the business park.
EDA Board Member Scott Harrison asked if the city of Grand Marais or the EDA assumed any additional responsibilities regarding the lot sale. Chair Sandbo said no. Originally, the business park covenants required that the buyer pave the lot’s driveway and parking area, however, Sandbo said, that requirement has been suspended
Harrison asked when a building would be constructed. Luke Gulstrand said within two to five years. He said they plan to clear the lot and begin site prep this year.
Board Member Hal Greenwood said when plans for the building are ready, Fine Finish needs to submit their design to the EDA for review by the Design Review Committee for approval. Gulstrand said they will not be building anything too elaborate, they just need space to mix paint, sandblast and paint indoors. He said they won’t need public restrooms or lobby space.
Gulstrand asked about the status of the assessment for infrastructure at the business park. He said he understood that Fine Finish would not be responsible for that assessment. Sandbo replied, “Correct. The point is to sell lots and get them on the tax rolls.”
The EDA passed a unanimous motion to approve the sale of the lot to Fine Finish Painting.
Cedar Grove Business Park
George Wilkes and Paul Nelson of the Cook County Local Energy Project (CCLEP) returned to the EDA to ask about the possible purchase of a business park lot. As suggested at a previous meeting, the CCLEP representatives looked at Lot 7 but have determined that Lot 6 better meets their needs. “We feel Lot 6 is the best location for a biomass district heating plant,” said Wilkes.
Wilkes asked if the EDA would consider “holding” Lot 6 for the biomass project.
Nelson said they understood that there were concerns that the biomass facility would look too industrial for the lot at the entrance to the business park. He shared photos of some biomass heating plants that were aesthetically pleasing. Nelson said a great example is a district heating plant in downtown St. Paul. Board Member Don Davison reiterated that he was still very concerned about the aesthetics. He reminded his colleagues that the EDA is still trying to get Como Oil & Propane to install the screening it said it would erect on its lot.
Wilkes answered concerns about emissions from the plant. He said there would be virtually no smoke, perhaps only a steam plume in the winter. Regarding traffic, Wilkes said there would be 2.5 truckloads per week, less in the summer and more in the winter. He also said they could screen the view from the road with vegetation.
Wilkes said another idea under consideration is a partnership with the Northwoods Foods Project to construct a community garden. Wilkes said a community garden could possibly use some of the biomass heat for greenhouses and maybe even ash for the garden. “It could be very synergistic,” he said.
Asked about funding for purchase of the lot and construction of the facility, Wilkes said they were optimistic because the project met criteria from several potential funding entities. He said it has potential for job creation, is environmentally friendly, and has some forest management benefits. Nelson added that the EDA would be able to offer new tenants the opportunity to link to the biomass system. And, said Hanson, “We are one of the best-situated small communities because of the 1 percent monies and the feasibility study that has been done.”
EDA Board Member Hal Greenwood asked if the plant would only burn wood. He said he was aware of plants that burned garbage. Wilkes said at this time they are only considering wood because there were potential emission problems with burning trash.
The EDA board also asked if there was enough wood in the forest to sustain the plant. Nelson said there seems to be and added that the Forest Service is excited about the project. Mark Sandbo asked if there would be protests from environmental groups about harvesting forest lands. Nelson said he didn’t think so. He said he had been working with these groups with the Firewise program for years.
Nelson said all of the questions asked by the EDA were good ones and many will be answered by Phase 2 of the biomass feasibility study.
Chair Sandbo said the EDA would have to hold a public hearing before any lot sale and the community would have the chance to weigh in on the matter. Harrison said if the EDA moved ahead, it would want a premium price for the lot. He noted that the purpose of selling lots at a deep discount is to get properties on the tax rolls, but if the biomass plant was operated by the Grand Marais Public Utilities Commission, it would be tax-exempt.
Sandbo said the EDA could not hold the lot unless some money was put down on it, but he added, “Can we definitely say we can reserve that lot for you? No. Unless you wanted to put some money down today. That said, no one has been knocking our doors down to buy a lot,” said Sandbo.
Golf
Golf Course Manager Bob Fenwick said he has been working on the Superior National at Lutsen (SNL) budget. Fenwick said 1 percent recreation and infrastructure sales tax funds are being used for some items in the current budget and he, Golf Pro Greg Leland and Mike Davies are working on getting it sorted out.
Fenwick said SNL is in discussions with Cook County Visitors Bureau regarding marketing. Fenwick said last year SNL only spent $20,000 on marketing. They intend to spend $70,000 in 2013. Fenwick said, “It is inconceivable to me to spend an additional $30,000 in marketing and not see that manifest itself in increased rounds.”
Fenwick pointed out a new budget line item, for $40,000, which will go into a sinking fund for reinvestment in the golf course. Don Davison said he appreciated all the work that went into the budget. He said, “This is the most work I have seen put into the golf course budget for a long time.”
A unanimous motion was passed approving the proposed SNL budget.
Fenwick added that construction at the golf course and on the Lutsen Mountains – Lake Superior water pipeline will likely begin in early July. Fenwick said construction will have some impact on golf course operations and likely revenue. He said it was decided to lower rates slightly to make up for the impact on golfers. Because of the reduced rates, Fenwick added, SNL will try really hard to avoid discount rounds. Fenwick said there are a few more details to be worked out before construction begins, but he said things are progressing well. He said the plan includes a $400,000 contingency fund.
Fenwick also gave a follow-up on the water damage due to broken water pipes at the clubhouse. The golf course has received a check from its insurance company for $58,000. When the repair work is completed, the course will receive another $18,000, for a total of $76,000. Fenwick submitted some invoices for payment from that money. He said he had been there almost every day and is pleased with the work.
In other business:
. The EDA accepted an application from Cindy Carpenter-Straub for commercial rehabilitation funds for the business she co-owns with her husband Ed Straub, Harbor House Grill. She said they hope to make their building more energy efficient. Mark Sandbo said he would give the application to Nancy Grabko of the EDA’s housing program.
. In his monthly update, Superior National at Lutsen Manager Bob Fenwick said the course will likely be opening after May 1.
. The EDA received a thank you letter from Phil Bonin of Arrowhead Locksmith. Bonin completed locksmith training with the help of an EDA/RDC scholarship through Cook County Higher Education. He has returned his scholarship funding to the EDA/RDC. Don Davison, the Higher Ed/RDC liaison, said it is nice to hear from a successful student.
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