At the request of the Cook County-Grand Marais Economic Development Authority (EDA) and in support of the county commissioners, Grand Marais city councilors voted 3-1 Nov. 27 to donate four acres of land in the Cedar Grove Business Park for development of a housing project.
The proposal was outlined by Cook County commissioner and EDA board member Heidi Doo-Kirk, who said the county board had agreed to the land donation the previous day, and the EDA board had likewise voted to pursue the project. However, without the city’s approval, she said, the plan could not go forward.
The concept is being proposed by the Arrowhead Economic Opportunity Agency (AEOA), which wants to build a 24-unit townhome-style development on the southeast edge of the business park on EDA-owned land. Each townhome will consist of two, three or four bedrooms, with a goal of at least 75 percent of the units targeted toward low- to moderate-income families. If the townhomes prove cost-prohibitive, the AEOA has said it will consider two-story lodge-style apartments, with most large enough to accommodate families.
The project would be the responsibility of and paid for through AEOA, which will apply and compete for funding from the Greater Minnesota Housing Fund and the Minnesota Housing Finance Agency. Significantly, AEOA would take possession of the property, which would be added to the tax rolls.
City councilors expressed support for the project, citing both a need to develop and provide affordable housing as well as to make use of some of the vacant lots in the business park, but had some reservations about the funding arrangement.
“This is a good opportunity for the city, and we’ll all come out better for it,” said Councilor Tim Kennedy. “This [lot donation] seems a small investment to make because there’s such a demand for affordable housing…and if we don’t solve the housing problems, we’re not going to solve the economic problems.”
Kennedy added that the estimated $15,000-plus that the housing units will pay in property taxes annually “is a lot more than the nothing we’re getting now.”
Councilor Jan Sivertson said, “The idea of this is so much better than anything we’ve had before. I’m very much behind it and giving them the land as long as taxes are paid and they’re not taking lots away from people who are waiting in line for them, which is not the case.”
Councilor Bob Spry agreed that affordable housing is definitely something the city lacks, but cautioned that the council has to ensure that the county pays its half of the bonding. “This is something we need, and we shouldn’t let that [bonding] interfere with this project.”
Commissioner Doo- Kirk sought to allay those fears. “The AEOA will pay for this as would any other contractor, and we want to make sure that neither the city nor the county is responsible for any huge financial obligation as well,” she said. “The AEOA has assured us that property taxes will be paid when the housing units are built, and the property will not be tax-exempt or nonprofit when turned over to a manager.”
As a result of the discussion and at the request of the council, the matter will be placed on an upcoming county board agenda to ensure that a satisfactory bonding and lot assessment arrangement can be worked out. “The payments are a concern, and it’s appropriate we talk with the county about it,” said Kennedy.
Mayor Larry Carlson cast the lone “no” vote, stating that the city was the bondholder on the property and he wasn’t comfortable supporting the land donation until the loose ends were tied up. “We’re on the hook for this, and I have some concerns with this resolution,” he said. “Is the AEOA going to be able to raise all the money they say they’re going to? And what happens if they don’t?” he asked. “I personally have some reservations until we resolve these issues.”
Fire department news
In other business, Fire Chief Ben Silence asked for and received permission from council to hire at least five new firefighters as soon as possible. Silence said there are currently 20 people on the roster, 17 of whom are fully trained firefighters. That’s the lowest number in about 15 years, and it’s a problem all fire departments are struggling with, said the chief.
Fortunately for Grand Marais, Silence said he already has three qualified applicants who will be hired, and he hopes to find two more. Noting the expense and time commitment required for training (close to 200 hours), Silence said “hiring in bulk” makes it easier for the city to provide and accommodate the training.
“I have not been concerned about our responses to calls because we have a very dedicated group of people,” Silence said in a letter to council. However, he noted that two people have retired this year, and three more have said they may retire in the near future. “I feel it is necessary to hire as many firefighters as we can…and get them on board as soon as possible,” he wrote.
On the chief ’s recommendation, council approved the hiring of Kyle Munson, Rob Wells and Cory Belt as city firefighters. City Administrator Mike Roth said the ideal number of firefighters for the city to maintain is between 22 and 24; Silence said he can remember a time when the roster was 29 and there was a waiting list.
Residents interested in joining or learning more about the fire department may call City Hall at (218) 387-1848.
Finally, Chief Silence told council that the fire department has recently purchased a portable fire pump (I400 fire pump and trailer) at a cost of $31,950, which was financed largely through a FEMA Assistance to Firefighters grant. Under the terms of the grant, the city is responsible for only 5 percent of the purchase price.
The fire department has already taken possession of the new equipment.
Leave a Reply