The ground has been cleared and the foundation work will soon begin on the Grand Marais public works building. When it’s finished later this year the building will cost in the neighborhood of $5 million but should serve the city well for many years to come.
John Hegenmiller, site superintendent for the $5 million public works building that is being erected on the site of the old Tomteboda property, appeared before the council with a progress report.
Hegenmiller said that a majority of the trees were removed from the site and a silt fence was up. Work on the foundation was to start on Monday, June 5, with plans to have the footings in by June 16 and pre-cast walls done by June 26.
The crew had also begun working on the retainage pond on the south side of the building.
“Does it look like everything is coming together in a way that you would have hoped?” asked Mayor Jay Arrowsmith-DeCoux.
Hegenmiller responded, “Right now the trending is good. Right now everything looks good,” he said.
“As of now, some of the major components, pre cast panels, structural steel etc., they have all been ordered,” said Hegenmiller. “As of right now our major components are falling in place. The contractors are falling into place.”
Bond sales update
Chris Mickelson, a financial advisor employed by Ehlers & Associates, came before the council, and gave them some good news. He said the city had received an offer from Northland Securities to purchase General Obligation Bonds, Series 2017A from the city at 2.409 percent that will be used to pay for a portion of the public works building.
Because the interest is much lower than expected, the city saved $130,000 over the life of the bonds.
Ehlers received four bids for the bond issuance. Northland Securities’ 2.409 percent was low bidder. The high bidder was about 2.55 percent. The difference between the high and the low bid, said Mickelson, was that over the course of repayment, savings to the city would translate to just over $50,000 over the high bid.
Mickelson said Ehlers pre-sale estimate was that the city would get a bid of around 2.8 percent.
“This lower rate translate into significant debt savings for the city,” said Mickelson.
Grand Marais City Administrator Mike Roth said that with historically low rates, the city should borrow as much money as it can. “This is as good an interest as we can get. It’s definitely worth hanging on to some cash.”
All told the bonds will be sold for $3,575,000, with the closing date for the sale set for June 28. At that time the city will receive proceeds from the sale. The bonds will mature on or after February 1, 2027.
A big part of the reason the city received such good interest rates is because the city’s rating is Double A (AA). Based largely on a tourist-driven economy, City Administrator Mike Roth said he believes the AA rating is about as high as the city can go.
Even with a higher bond rating, Mickelson said he couldn’t see the city getting a better return than it received at this point in time.
Roth said the city’s bond rating has improved from an A rating to a double minus AA rating to an AA rating over the last 10 years.
“We’ve definitely been heading in the right direction,” said Arrowsmith- DeCoux.
Staff employees
Despite few applicants, the Grand Marais City Council was able to hire the following people to fill summer positions.
Council made the jobs official at its May 31 meeting.
Tristen Bockovich was hired as a golf course laborer at Gunflint Hills golf course. Haden Hinchan, Ron Wizykoski, and Hannah Curran were hired to work at the Grand Marais Recreation Park office as seasonal clerks.
Caleb Phillips and Cameron Roy will also work at the campground as seasonal custodians. And Harris Mills was hired as seasonal maintenance worker for the city.
In other business
. Council also approved a Lions Club raffle permit for the Fisherman’s Picnic, a fireworks permit for the Fourth of July, and a permit for the North Shore Federal Credit Union Member Association.
. Lake Superior Construction was awarded the contract to put a new roof on the recreation hall $5,580) and picnic pavilion ($ 4,800) for a total of $10,380.
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