Cook County News Herald

County approves two loans and wetland credit purchase




Cook County commissioners heard recommendations on Tuesday, June 24, 2014 from the county revolving loan fund committee on two projects and the airport commission on wetland mitigation.

Auditor Braidy Powers introduced the revolving loan fund (RLF) projects, approved by the RLF committee on May 21, for the Cook County Visitors Bureau and Harbor House Grille. Harbor House continues improvements

The Harbor House Grille project is well under way and it is the continuation of renovation already completed by owners Ed and Cindy Straub since purchasing the former Chez Jude restaurant in November 2012. The Straubs requested a RFL loan of $28,390 to be used toward installing energy efficient windows, siding, heat pump and to add a handicap accessible entrance and addition for improved bathrooms.

Auditor Powers said the total project cost is estimated to be $85,000 and another piece of property is being offered as collateral. The county board passed a unanimous motion to support the loan. Visitors Bureau moving ahead with moving plans

The Cook County Visitors Bureau (CCVB) requested a loan of $50,000 to improve a building the organization is purchasing, the former Gunflint Realty building. The CCVB plans to invest $235,000 in the project to purchase the building and to make improvements that will allow the CCVB to combine its administrative offices and the Grand Marais Information Center to one building.

Unlike most RLF loans applicants who offer a piece of property as collateral, CCVB proposed using the 1 percent lodging tax that funds the tourism organization.

The board asked Jeanne Smith of the county attorney’s office if she believed this was appropriate. Smith said the authorizing law for the 1 percent lodging tax funds state that the funds are to be used to fund the events and visitors bureau. She asked for time to research the question.

Commissioner Garry Gamble asked if lodging tax money is currently being used to pay rent. CCVB Executive Director Linda Kratt said yes, up to 30 percent of the CCVB lodging tax is earmarked for administrative costs.

Commissioner Heidi Doo-Kirk asked, “You’re paying rent at two facilities now? What are you paying now?”

Kratt nodded, “Yes—and a storage facility.”

She said the CCVB is currently paying $2,700 a month.

Commissioner Doo-Kirk noted that the payment CCVB would be making for the new facility would be less than what they are currently covering.

Commissioners debated whether this was an appropriate use of the 1 percent lodging tax and Auditor Powers said an alternative could be for the CCVB to give the county second place on the mortgage for the property.

Commissioners agreed that was a better way to proceed and a unanimous motion passed to award a $50,000 loan to the CCVB, with the county as the second on the mortgage. Wetland mitigation costs questioned

Airport Commission Board Member John Barton asked the county board for release of funds for wetland mitigation associated with the Cook County Airport runway extension project. Although commissioners noted that the money for the runway extension comes primarily from the Federal Aviation Administration (FAA), they balked at the cost for the wetland credits—$ 55,756.80 plus a fee of $796.80— for .64 acres.

Commissioner Sue Hakes asked, “How do we know this price is justifiable?”

Commissioner Doo-Kirk, who is the county board’s airport board liaison, and Barton said the consultant for the project, RS&H Aviation, as well as Barr Engineering had reviewed the proposal from S.J. Bautch and had pronounced it reasonable. “In fact, our consultant said sometimes the price can go as high as three times that amount,” said Doo- Kirk.

Assistant Highway Engineer Sam Muntean agreed the price was high. He noted that it equals $86,000 per acre of wetland. However, he said the alternative is creating a wetland and to do that he said the county would have to establish a wetland-monitoring plan for five years.

There was discussion of the entire wetland credit system and Commissioner Gamble expressed his frustration, saying, “Frankly, it isn’t working.”

A motion finally passed to authorize the expenditure of the funds with Commissioners Doo-Kirk, Gamble and Hall voting yes. Commissioner Gamble noted that the advice from the consultant that the cost was in-line with the market price was assurance for him.

Commissioner Hakes voted no, stating she didn’t think the cost had been adequately justified. Commissioner Martinson voted no because he believed that the Cook County/Grand Marais Economic Development Authority (EDA) has wetland credits that could be purchased for the airport project. In other business: . Commissioners authorized the delineation of wetlands for another project, the replacement of a bridge for the Junco River. The cost of delineation is $3,089. . Commissioners approved an agreement between the county and Arrowhead Cooperative to construct a telecommunications cabinet on county property near the Little League field on Creechville Road. . Public Health and Human Services Director Sue Futterer asked the board to approve hiring a new staffer, Heidi Akins. Akins has a bachelor’s degree in psychology and has experience in therapeutic support services for youth and adult. Because of her background, Futterer asked that she start at C42, step 2, or $19.51 per hour. . Commissioners approved the county highway department’s purchase of a pavement management system from Goodpointe Technology for $10,665 to be used to evaluate the condition of county road and bridges. . Commissioners approved a one-year contract for $6,800 with Boreal TV to record meetings of the Cook County commissioners. Videos of commissioners’ meetings can be viewed online at www.boreal.TV.



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