The Cook County commissioners put their stamp of approval on a number of documents Oct. 21 aimed at improving the Superior National Golf Course with a $2.4 million loan.
The process began with a positive report from Bruce Kimmel of Ehlers and Associates, the county’s bond counsel. Kimmel announced the sale results of the Series 2014A General Obligation Tax Abatement Bonds, bids for which were received just prior to the Tuesday morning board meeting. Kimmel said the winning bid of the three submitted was for a 3.12 percent true interest rate, which is 1.99 percent better than what was projected. That translates into about a $164,000 annual bond service fee, a savings of about $3,000 per year compared with the original estimate, said Kimmel.
“This is an excellent rate for the county, and it is fixed,” Kimmel said. “It’s definitely a positive.”
Next, County Auditor-Treasurer Braidy Powers guided the board through a series of resolutions needed to finalize the loan and guarantee repayment through the 2 percent lodging taxes collected in the West End townships of Lutsen, Tofte and Schroeder, each of which has approved a Cooperative Agreement and Lodging Tax Pledge Agreements. The purpose of the agreements is to designate the county’s 2 percent lodging tax for recreational purposes to pay debt service on the newly minted General Obligation Tax Abatement Bond.
The financing plan calls for net revenues of the Superior National Golf Course to pay debt service on the bonds, and the 2 percent lodging tax to be available only if those funds are insufficient.
In the end, the board approved and signed off on three resolutions, and requested input and explanation from attorney Robert Toftey (via telephone), who put together many of the agreements on behalf of the county’s Economic Development Authority (EDA), which administers the golf course.
Powers acknowledged that the consultation was wise, since the process is “very complicated,” and the board wished to be very comprehensive. Even more questions arose when Commissioner Garry Gamble asked about some of the language contained in the agreements. Gamble said the loan agreements entailed “a lot of paper and quite a process,” and stated that he didn’t want the finished product to represent “something that’s inconsistent with the overall intent.”
Toftey recommended and received board approval of the necessary resolutions, which Powers said were “substantially complete,” and Toftey said he would fill in the blanks and add the final details – which were unknown at the time of the first draft – later in the week.
Powers cautioned that despite the flurry of paperwork, there will be even more documents for Board Chair Jan Hall to sign on Nov. 20, when closing is scheduled. “We’ll require many, many, many signatures by Jan on that day,” he said.
The EDA’s improvement plans for Superior National include the acquisition of four acres of land, and renovation of 18 of the existing holes (nine holes on the Canyon Course and nine holes on the River Course).
In other county business:
. Appointed to the Lake Superior-Poplar River Water District board of directors for three-year terms were Bob Fenwick, Charles Skinner, Tom Rider and Stephanie Slanga. Mark Sandbo also sits on the board. The rural water district was established by the state legislature in 2012 and governs irrigation, commercial and domestic use of water.
. The Broadband Commission, consisting of Rena Rogers, Joe Buttweiler and Bob Pranis, gave a brief update of their efforts to upgrade the county’s communications towers and install broadband service. To date, about 350 residences have been hooked up to the broadband network, Buttweiler said, and they are using a lot more bandwidth than expected. “There’s an incredible amount of data flowing out there,” he said, adding that work to extend the service area eastward will continue through the winter.
. The board approved a $16,338 Revolving Loan Fund request made by Sara and Nate Hingos for improvements to the Crooked Spoon restaurant for planned expansion and renovation. The project includes addition of a three-season rooftop patio, indoor prep area and outdoor covered storage area.
. State Sen. Tom Bakk and Rep. David Dill stopped by and took part in an hour-long discussion of topics of mutual concern including the cooperation and communications between the county and state offices; clean water and septic system funding and regulations; the possibility of the state reimbursing the county for its $160,000 expenditure for a special prosecutor in the recent county attorney’s case; the reopening of Taconite Harbor; tax rates; and changes in the Department of Corrections.
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