Business Park lot prices considered, postponed by EDA

Cedar Grove Business Park

At the July meeting of the Cook County – Grand Marais Economic Development Authority (EDA), the EDA board instructed Director Matt Geretschlaeger to develop a proposal for lot prices in the Cedar Grove Business Park.

Since completion of the business park infrastructure installation in 2007, the EDA has struggled with how to price the lots, since some have better building sites than others and some have better views. The EDA had established a flat price of $75,000 per lot. At the July meeting it was agreed to have a professional realtor review the lots and help Director Geretschlaeger establish lot prices reflecting the different lot sizes, topography, and views.

Geretschlaeger presented a list of proposed lot prices to the board at the end of the August 11, 2009 EDA meeting. EDA board member Bruce Martinson immediately said he felt the lots were priced far too low. “I’m very surprised at the wide range,” he said. “This is a huge drop. I don’t believe these prices are in line with sales in Grand Marais.”

Geretschlaeger, who worked with Tim Kennedy of Gunflint Realty to develop the lot prices, reminded the board that the pricing was in response to the city’s request for reduced prices so some lots get sold.

EDA board member Hal Greenwood said, “Under normal times, I would agree with Bruce, but with bond payments coming up, this is a ticking time bomb.”

His board colleague, Jim Hall, agreed, but pointed out that the EDA owes the city of Grand Marais $60,000 in assessments for each lot. He expressed concern that with such low prices for lot sales, the EDA will not recoup its investment and have enough to cover the infrastructure costs.

Geretschlaeger suggested postponing a decision on lot sale prices until after a joint meeting with the city of Grand Marais and its bond counsel firm, Ehlers Associates, to discuss options for lot prices and assessment repayment options. The joint meeting will be held Friday, August 28 at 1:00 p.m. at Grand Marais City Hall.

The business park land was set aside in the 1980s for commercial development. In April 2005, the EDA selected the name Cedar Grove Business Park for the development. Governor Tim Pawlenty visited Cook County for a groundbreaking ceremony on May 26, 2006. Roads and infrastructure to the park were completed in 2007. The park includes 33 lots ranging in size from one to four acres. To date, four lots have been sold.