Under the terms of an arrangement approved by city council last week, the public restrooms at City Hall will now be kept clean by city employees, relieving Visitors Bureau staff of the responsibility. The tourism agency’s rent for the adjacent 700-squarefoot visitor’s center space, however, will be raised accordingly.
Grand Marais City councilors voted Oct. 30 to implement a gradual increase in City Hall rental rates in an effort to bring them up to market value.
Most affected by the proposed plan will be the Cook County Visitors Bureau, which will see its rent rise from a current $1 per month to $8,400 per year.
City Administrator Mike Roth told council that although the issue has been discussed in the past during city budget talks–most recently in 2009–there was never any action taken to bring the rates up to market value. Instead, rents paid by the city’s Liquor Fund and Utility Fund were increased, but a deal was struck with the Grand Marais Area Tourism Association (which occupied the 700-squarefoot visitor center space at that time) to keep their rent at $1 per month. Under the terms of that agreement, GMATA said it would take responsibility for cleaning the adjoining public restrooms, and the city would not ask for additional rent.
The following summer, however, the agreement was changed after GMATA said it was no longer feasible for them to clean the restrooms due to low staffing levels and lack of time during the busy months. The city then took on the task of cleaning the restrooms in the summer and charging GMATA $13 per hour for staff time.
Now, however, Roth said the Visitors Bureau–which has taken over GMATA’s City Hall space–has let the city know that it cannot continue that arrangement. Thus, said Roth, now would be a good time to take a look at the rental rates and make necessary adjustments based on the standard market rate of $1 per square foot. Roth also described the existing rental rate structure with the CCVB as “uncomfortable” and “confusing,” involving restroom upkeep as it does.
He said, and councilors agreed, that it was really two separate issues: keeping the restrooms clean and establishing a fair price for rent. Roth said the city provides all the cleaning supplies and equipment and does the maintenance on the restrooms, so the “real costs” involved are actually about $16 per hour. “The best suggestion is to have our staff do the cleaning, but that doesn’t come without costs,” he said.
Councilors were in agreement that the public restrooms are the city’s, so the city should maintain them but charge “more realistic” rent to its tenants. After all, the city pays insurance and utilities on the building, maintains it and has agreed in the past to requested upgrades such as new carpeting,
In other business: new doors and installation of air conditioning.
Councilor Bob Spry suggested that rather than implementing the rate increase all at once–a move that would see CCVB’s visitor center rent jump from $12 to $8,400 per year– the city should phase it in over a three- or four-year period. Council then voted to ask the CCVB for rent of $4,000 next year, $6,000 the following year, and finally the market value rate of $8,400 the year after that.
Whether the tourism agency, which also pays rent for its office space in the Mayhew Building west of town, will go along with the new rate structure remains to be seen. But, said Roth, “We can ask, and they can decide if they want to stay.”
There was no decision made on adjusting rates for other City Hall tenants which include the liquor store (currently $24,000 per year) and the EDA ($3,000 per year), but there was some discussion about making better use of and perhaps attracting new tenants for some of the underused or vacant space in the nearly 11,000-square-foot building.
. Council approved a disbursement agreement for the state Taconite Grant money the city received for the zipline project on the Gunflint Trail. The agreement calls for a third party, Cook County Abstract and Title, to hold the funds and disburse them directly to zipline contractors after they have met certain requirements. The city was awarded $191,552 in taconite tax money to help pay for improvements necessary for the zipline project. Roth said grant money left over, if any, could be used for another public improvement project.
. Councilor and park board member Bill Lenz reported that the covered bridge at the entrance to the new Community Connection at the Rec Park is finally covered–the roof has been completed–and grass and other landscaping have been added. Lenz said he is happy with how the project has progressed, and installation of solar lights is the only thing left to do. “It looks really, really good,” he said.
. Councilor and library board member Jan Sivertson reported that the board is still deciding on a sign for the new and improved facility, and said the new furniture has been installed and looks good.
. Councilor and PUC board member Tim Kennedy said he expects the lead consultant for the ongoing biomass project to attend council’s next meeting and give some of his findings on the project’s feasibility and the city’s participation therein.
. Council recessed into closed session to discuss strategy for upcoming labor negotiations with AFSCME, the city’s labor union.
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