Grand Marais City Council authorized its attorney on Aug. 31, 2011 to begin talks with Burbach Aquatics in an effort to resolve an ongoing legal dispute that precludes the city from taking part in a proposed multi-million-dollar community center project.
Council’s vote follows similar action taken by the Cook County Board of Commissioners a week earlier during a joint meeting with both city and county officials. At that time, the commissioners authorized County Attorney Tim Scannell to begin talks with the Wisconsin firm.
“This seems like a very logical thing to do…to see how we can move forward with this project,” said Mayor Larry “Bear” Carlson.
At issue is a 2005 contract the city signed with Burbach when the city was looking into rehabbing or replacing its municipal swimming pool. According to attorneys representing Burbach, the contract prohibits the city from participating in any project involving a new pool unless Burbach is the chosen pool architect. The contract requires a period of five years between suspension of any pool projects and entering any new pool design agreements with other firms — or even contributing in any way to another entity’s project. Under the advice of their attorney, Chris Hood, city councilors officially suspended the pool project in February and have declined to take part in any planning discussions about a new community center.
Without the city’s participation and financial commitment, however, the community center project has stalled, leaving elected officials and attorneys scratching their heads as they try to reach some kind of a solution to ward off the threat of litigation and get the building project back on track. Roth described the Aug. 23 citycounty meeting as “very fruitful” and said he was pleased to learn that both boards are interested in working together to solve the problem.
Hood said he would proceed with council’s wishes and contact Burbach’s attorneys, and would try to have a report by council’s next meeting. If nothing can be agreed on short of litigation, Roth said the city may consider arbitration.
In other business:
Council heard its annual report from Bradley Peterson of the Coalition of Greater Minnesota Cities, and agreed to renew Grand Marais’ membership next year at a cost of $1,322. Among the issues Peterson said the Coalition is taking a strong stance on are the importance and continuance of Local Government Aid; monitoring proposed state cuts in program funding; infrastructure grants programs; expanded use of TIF; environmental bills; and parks and trails funding.
Council voted, however, not to renew the city’s membership in the Minnesota Association of Small Cities. Based on the city’s population of 1,400, dues for 2012 would have been about $800. Councilors said they weren’t really sure what benefit the city received from the organization, and with membership in two other similar advocacy groups, the redundancy was probably not necessary. “This is an easy way to be fiscally responsible,” said Mayor Carlson.
Council received a memo from the city’s bond counsel, Ehlers Associates, about some opportunities to pay off and/or refinance two of its existing bond issues. Roth said it is an idea “worth kicking around,” but advised council to wait and see what capital improvement projects may be put in the city’s next few budgets. Roth said he would bring more information back at a future meeting, but a decision on refinancing should be made by the end of September.
Council awarded a contract in the amount of $60,547 to Brian Bennett of Outback Solar to provide equipment and installation of photovoltaic panels at the city’s golf course. The project is supported by a $57,636 grant from IRRRB with a match from CCLEP, the city, Cook County and in-kind donations. The city has approved a match of $8,000 toward equipment purchase and $5,000 toward site work.
Council approved a mutual aid agreement for the fire department, based on a League of Minnesota Cities model, which governs procedures for all departments in the county. Roth said that while neighboring fire companies have always cooperated and provided mutual aid, there has never been such a formal, clear and organized agreement.
Councilor Tim Kennedy reported that he received a “Stop the Madness” letter regarding the proposed new community center and commented that it’s something council “will have to think about if we get involved.”
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