City councilors agreed Aug. 10 to grant a company that develops assisted living facilities 120 days to come up with a detailed proposal for Grand Marais.
The offer made by Spectrum Health Companies is contingent on the city donating land for the facility. Nancy Grabko, housing director for the Cook County/Grand Marais Economic Development Authority, made the presentation to council and said that while there are still some unknowns about the plan, the city would stand to benefit with the creation of 30 full-time construction jobs, and 20 fulltime jobs for those who maintain and operate the facility upon completion, tentatively set for fall 2012.
A less tangible benefit, said Grabko, would be the community’s ability to provide a place for its aging population to stay, rather than having senior residents relocate in the Twin Cities or Duluth. “I fully believe we’ll have seniors coming back who were forced to leave for care,” said Grabko. “There’s nothing more discouraging than to be old and alone in a community where you’ve never been.”
As proposed by Spectrum, the developer is seeking about five acres of land to build a 30-bed, 32,000-square-foot facility at a cost of $3.5 million. The units would be priced $1,500 less than those in nursing homes, and would include in-house memory and assisted living options. The plan has been endorsed by the EDA’s board of directors.
Members of council, however, had some questions.
Mayor Larry Carlson wondered if the city would be tying its hands by granting Spectrum exclusivity to develop a detailed plan. What if Spectrum’s plan doesn’t work out, he asked, but a better proposal for a similar development from another firm came along later? Could the city entertain such a proposal? Carlson said he didn’t want to get the city involved in another legal dispute such as the one going on now with the city’s municipal swimming pool. City Administrator Mike Roth said Spectrum’s proposal stipulates only a 120-day period to put together a draft development plan and present it to the city.
Councilor Bob Spry wanted to know how confident Spectrum was of the size needed to accommodate the county’s needs. Grabko said the 30-bed proposal was based on a 2007 needs assessment survey, and she believes that the facility would be filled, as was the case with a similar facility in Silver Bay. “I fully anticipate that to happen here,” she said. “But Spectrum will have to do their own research. If they overbuild it’s at their expense, not ours.”
Regarding questions about the amount of land needed for the facility, Roth said he believes the five-acre request is not firm, and until a more detailed plan is put together, an answer will not be known.
The location of that land was an issue as well. Spectrum is looking at a site near the water tower above the hospital off the Gunflint Trail. Roth said that, too, is negotiable and still in the discussion stage. Jan Sivertson said council must carefully consider what is the “highest and best use for that land” before any decisions are made, and Roth agreed. He said the idea of a health care facility may be easier for the public to accept than, for example, an office complex, residential development or hotel, but it is up to council to weigh the pros and cons before bargaining away a city asset.
Tim Kennedy expressed a concern that Spectrum would be getting an unfair advantage over existing health care facilities and/ or taking business away from the county’s care center. Kennedy said it wouldn’t be fair for the city to give Spectrum city land and public assistance in developing the infrastructure when they’d be competing with others who are already here and did it at their own expense. “It’s unsettling to me,” Kennedy said. “We want to be cautious about affecting a local business which has made a substantial investment in the community.”
Mayor Carlson asked why Spectrum doesn’t just buy its own land, rather than ask for a donation. Roth said that’s the way Spectrum operates, and so far has been successful in building 16 similar facilities in Minnesota. However, Roth said, the city could try to interest the developer in purchasing a suitable parcel.
City Attorney Chris Hood said he didn’t see any problems with council granting the 120-day exclusivity period for Spectrum to come up with a more detailed plan, especially since the city wasn’t considering any other similar proposals anyway. “There are no further obligations with this,” he said.
Roth and Grabko said they would seek more information in response to council’s questions by contacting local care providers, communities where Spectrum is already established, and speaking with Spectrum about the expectations the city has for the deal.
Council’s unanimous vote gives Spectrum the green light to develop a detailed plan, and present it to council within four months. “Their statements look good on paper, but what is the reality, and what are the risks to the city?” asked Kennedy.
In other business:
Council agreed to accept an invitation from the county board to participate in an Aug. 23 work session regarding financing of the planned community center, and pursuing a resolution of the ongoing legal complications that prevent the city from participating in the process.
Councilor and park board member Bill Lenz said it behooves the city to try to work out some arrangement with the county by which a new pool can be built. Lenz said the pool is an important asset to the community, and if nothing is done, “eventually we will have to make a decision.”
Lenz also raised a concern about staffing at the Rec Park, and said it was unfair that park staff was being asked to pick up trash from downtown garbage cans at the expense of doing their regular work at the campground. Kennedy also offered an opinion on the topic, saying there needs to be an evaluation of exactly where the public garbage cans are placed; some are located on private property, he said, and it isn’t right that garbage from those businesses is collected and hauled away at public expense. Roth said that subject could be discussed at a future meeting, and added that the staffing concerns at the Rec Park would be addressed during upcoming budget talks.
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