Chuck Hartley, director of Energy Management Services for LHB Corporation, talked with Grand Marais City Council during a onehour work session on Wednesday, July 8 about a proposed $20 million joint biomass district heating project.
Plans for the project, known as “Boundary Waters Renewable District Heat and Combined Heat & Power,” would be submitted to the Department of Energy for funding. Hartley said the city of Ely supported the application at its July meeting, and urged Grand Marais to do the same.
How would it work? Hartley explained that the federal government would fund half of the project, with the other half split between the two cities. That means Grand Marais would receive about $5.6 million in Stimulus money and would have to provide a similar amount as its cost share. The match would probably be raised by selling bonds.
Each city would build its own centralized district heating plant. Hartley said Grand Marais would have a plant capable of generating enough electricity and heat to serve the school, hospital, courthouse and a proposed Community Center, and an additional 100 to 300 homes.
Mayor Sue Hakes expressed reservations with the proposal, but the rest of council supported filling out the grant application, which was due July 14. Hartley said the city could use the time between now and the end of October — when the grant award winners will be announced —to learn more about the plan and work with the Local Energy Project group to decide whether it’s feasible. Asked if the city was under any obligation if it submitted an application, Hartley said there was no commitment “until the check is signed” by the city.
Hakes said she was opposed to the grant submission due to the short time line between the request and the grant deadline (less than a week), and she wasn’t willing to take a “leap of faith.” Hakes said the decision was premature, and feared that the energy project would take time away from others already identified as city priorities. “This is going to bump other things we value more down the list,” she said. “It’s too much to decide in an hour.”
City Administrator Mike Roth, too, warned that going forward with the biomass project would require a significant time commitment by both the office staff and councilors, perhaps even weekly meetings. He said a committee will have to be put together, and periodic meetings will likely be necessary with their Ely counterparts. “We need to move fast,” he said.
Themayor said she was also concerned about the cost, and how the city could afford its share of $5.6 million if approved by the federal government. Hakes reminded council that it was only about a month ago that the city’s auditor told them the city was in danger of getting into too much debt.
The rest of council, however, said the opportunity was too good to pass up. “We’ll never have this opportunity again,” said Jan Sivertson.
Hartley guessed that the city has a “1 in 4 chance” of being approved for the grant.
City attorney search
Due to the resignation of longtime city attorney Don Davison, the city has decided to contract with the Cook County Attorney’s Office for prosecution services. Mayor Hakes said the agreement states the county attorney will prosecute petty misdemeanor, misdemeanor and gross misdemeanor violations of state law or city ordinance that occur within the city limits.
The city will pay a quarterly fee of $3,125 to the county, which represents a slight savings over the current arrangement, said the mayor.
Meanwhile, applications are due July 17 for the city attorney contracted position. Roth said there has been interest expressed by either local or out-of-town lawyers, but so far no one had applied. With the position’s duties somewhat changed due to the contract with the county attorney, Roth said there may be more interested applicants.
For instance, he said, some were concerned about the time commitment, but with that having been reduced significantly to about 3 1/2 hours per month plus attendance at two monthly meetings, more applicants may come forward.
Co-op sign approved
Council voted unanimously to support the planning commission’s recommendation to grant a conditional use permit allowing the Cook County Whole Foods Co-op to put two roof signs on its East First Street building.
General Manager Kelly Rauzi said the signs are needed to increase the store’s visibility from the highway. One of the signs will face north toward the highway and extend six feet over the roof; the other will face west and extend about three feet over the façade.
Legion beer tent approval
Scott Puch of American Legion Post 413 presented an application for permission to run a beer tent during Fisherman’s Picnic.
Puch said the beer tent will be separated from the bingo tent in a fenced-in area, and new security measures will be put in place to ensure safety and discourage minors from attempting to enter the beer tent. For instance, he said, there will be no drinking while working for those charged with monitoring the doorway. “We want to make it as nice and safe as possible for everyone,” he said.
Council granted approval.
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