Although the consultant gathering information on the affordable housing situation in Cook County had a somewhat dismal report of low wages and high housing prices he also said, “I don’t want to be too negative.”
Consultant Steve Greisert of Community Resource Partnership (CRP) gave the update over the phone at the Cook County/Grand Marais Economic Development Authority (EDA) meeting on February 10, 2015. Before he started, Greisert said he had visited a lot of towns that have a lot to offer—a lake or some trees or something to do—but Cook County “has it all.”
Greisert said the only thing Cook County is lacking is affordable housing.
Greisert shared some demographic research, noting that in 2010, Grand Marais lost 21 families. He said that is kind of a “red flag.” He also said only about 1 in 8 households have parents and kids. According to the census, 44 percent of the households are single-person residences. He said that likely means there are a lot of senior citizens instead of families. However, he added, that could mean a housing turnover in 10-15 years.
For now though it is a problem, especially added to the fact that wages in Cook County are low compared the state median. Another problem is that existing housing sale prices are high.
Greisert said by looking at building permits in the county, there has been significant construction, but it is primarily vacation properties. He said for households making less than $25,000 he could only find one property in that range.
EDA Board Member Hal Greenwood said one of the big problems in the county was lending issues. He said in rural areas it is difficult to find comparable sales.
Greisert agreed and said he addresses lending in his recommendations. CRP came up with nine recommendations for the county and he went through some of the strategies, such as improving first time home buyer assistance and down payment assistance; finding buildable sites and developing them; purchasing and redeveloping dilapidated homes; possibly doing some small home construction; allowing mixed use (commercial and residential) developments; and more.
Greisert said one strategy the city and county need to consider is loosening some building regulations. “We have to protect the scenic and natural resources of this area, but we need to think outside the box to be able to build affordable housing.”
Commissioner and EDA Board Member Heidi Doo-Kirk asked Greisert if there were any benchmarks that “jumped out” at him. He said one issue is that the county’s major source of jobs is tourism, which are generally lower paying, especially compared to someplace like Rochester, where jobs are primarily in healthcare. He also said in Cook County, there are no “starter” homes.
EDA Chair Howard Hedstrom asked about the rental situation in the county. Small Business Development Center representative Pat Campanaro said the EDA housing committee, which worked with Greisert, had discussed rental assistance. One of the CRP recommendations is increasing this rental assistance in Cook County.
Greisert provided a written report and encouraged the EDA to review it. He said the EDA and county may or may not like all of the recommendations, but said “It gives a foundation to start from.”
The EDA housing committee will continue to meet to discuss the strategies. The committee is also going through the recent online housing survey results which received 306 responses. The committee currently meets on the first Thursday of each month at 7 p.m. at Grand Marais City Hall.
Hedstrom said he hopes the housing committee is engaged in the Cook County Land Use Guide Plan update. He said that is very important to the EDA as it attempts to build some housing. Hedstrom said nothing will happen without changes to the county’s attitude. Hedstrom said, “We need a change to an attitude of ‘How can we help you get this project done?’”
Superior National at Lutsen budget approved
Treasurer Scott Harrison, in his role as acting manager at Superior National at Lutsen (SNL) golf course, gave a report on winter activities at the golf course. He said the first meeting of the SNL board of governors had been held and they had worked on the budget. He said the governors considered three budget scenarios with 9,000 rounds, 10,500 rounds and 12,000 rounds. They estimated revenue of about $54 per round. After research they settled on 10,500 rounds in the budget.
Harrison said Grounds Superintendent Mike Davies received about one-third of his budget request.
Harrison reiterated what he has said at the last several EDA meetings, that the golf course is facing a tough two years as construction is under way. Harrison said the golf course would not be able to pay its $175,000 loan to the county yet, but he said he didn’t think the course would have to borrow to get up and running this year. He also reiterated that the golf course has not borrowed any money for two years.
A unanimous motion passed to accept the SNL budget as presented.
Harrison presented employment agreements for two SNL staffers and recommended that the EDA approve them. The agreement includes salaries of $61,000 for Grounds Superintendent Mike Davies and $41,000 for Mechanic Jim Zunker. The EDA approved the agreements with a unanimous motion.
In other business
. Pat Campanaro gave a written report covering her January activities, which included 91 hours of client and consultation services. With other University of Minnesota Small Business Development Center representatives, Campanaro gave a marketing workshop for the International Falls Convention and Visitors Bureau. She is working with Cook County Higher Education to conduct a similar session in Cook County.
. Campanaro provided follow up information on a request from the Northwoods Food Project for funding to assist with a Community Based Research Program (CURA) study to determine if food needs could be met by local food production. The EDA board agreed unanimously to contribute $500.
. Scott Zahorik and Barb Ackerson were on the phone to answer questions regarding Arrowhead Economic Opportunity Agency programs. They said six Cook County projects had been selected for the commercial rehab program.
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