Grand Marais city councilors took the next step in developing and building a new city garage on November 9 when, during their regularly scheduled meeting, they voted to hire McGough Construction to work as the city’s construction manager for the project.
Only two bids were submitted. The second was from Kraus-Anderson who is currently heading up the reconstruction/remodel of the Grand Portage Lodge and Casino.
Both Duluth-based companies estimated it would take 5-7 months to complete work on the estimated $4 million public works garage for the city. McGough’s bid was $180,000 more than Kraus-Anderson’s submission, but it contained more staff-hours, including a part-time superintendent. Kraus-Anderson promised a full-time superintendent but fewer man-hours. Both companies said they preferred to work with local contractors and would seek to hire locally if awarded the contract.
Councilors were impressed with the professionalism of McGough’s management displayed during the interview. Councilors also worried that Kraus-Anderson wouldn’t be able to handle two big jobs at once if work on the casino/lodge wasn’t completed when work on the city garage needed to start.
After much discussion council decided to make an offer to hire McGough Construction for 2.5 percent construction management fee, far less than they initially bid. Several days later McGough notified the city that they were accepting the offer.
But just how much McGough will receive is based on several factors, and some are still undetermined, said City Administrator Mike Roth. The $4 million budget is an estimated number, said Roth. Once the architect has submitted final plans for the building, a new budget will be created. Fees for services (travel, lodging, meals) are extra, and the company will charge an hourly fee for the superintendent that will also be an addition to its 2.5 percentconstruction management fee.
Regardless of what the construction cost is, the city council will set a cap on the amount of money that McGough can be paid for its services, said Roth.
Members of the Creative Economy Working Group appeared before the council with a Cook County Cultural Plan detailing how the community can grow both financially and culturally through the arts.
Three steps were outlined. The first phase was called Telling Our Story, which begins a marketing/branding concept. The second is Working Together, a step to merge both public and governmental support for artists, craftspeople, and students, giving them access to studio space and creating more marketplaces for art. The third step is called Placemaking, which includes long- and short-term public housing for artists, artisans, and students, and offers more access to studio space. It also includes adding public art to public spaces and streetscapes.
Council also voted to give $75,000 to the Cook County/Grand Marais EDA to develop 4-7 houses with OneRoof Housing from Duluth.
Under terms of the deal, OneRoof will own the land and develop the houses and manage the lease/purchase of the units.
The project is not considered “affordable housing” because the houses will be marketed to middle income workers like teachers and nurses. The plan is to start with four houses that will cost between $160,000 to $220,000. Homebuyers won’t purchase the land, just the houses, and the houses must be sold back through OneRoof Housing, so they go to someone else that meets the income requirements. Two goals are to keep the homes affordable for middle-income people and to keep the houses available for the local workforce. They aren’t meant to be sold as “tourism” housing.
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