Following the Revolving Loan Committee’s recommendation and a lot of discussion and questions by commissioners, the board voted 3-1 to approve a revolving loan of $125,000 to Kate Usem.
Usem, from Hovland, and her husband are planning to purchase Lake Superior property in Grand Marais and renovate a building on that property to be used for short-term rental. Usem also intends to purchase two Nordic saunas that will be open to the public.
All told, the project is expected to cost over $900,000 and will create five jobs paying from $16 to $20 per hour.
Au d itor / Tre asure r Braidy Powers presented the request to the commissioners at the board’s January 26 meeting.
Powers read down a list of expectations that Usem must meet before receiving the money. The final approval of the revolving loan is subject to the approval of bank financing; creation of loan documents including: the loan agreement, security agreement, and promissory notes. Plus acceptance of the loan documents by the county attorney and authorization for the county auditor and board chair to sign all of the loan documents.
If Usem meets all of the above requirements and receives the revolving loan, she will move forward with development of Dream Superior. The business will feature a vacation rental unit big enough to accommodate larger families and groups of friends traveling to Grand Marais. The other half of the Dream Superior property will be home to a guided Nordic Sauna experience open to the public, welcoming residents and tourists alike.
Commissioner Hawkins said as a member of the Revolving Loan Committee, she had voted against the proposal but added as she has learned more, she supported the business plan now. “We want this (business) to succeed,” said Hawkins.
Board Chair Dave Mills posed a rhetorical question. He asked if the county board would support giving a loan to someone starting a short-term rental business? Or would the county board provide a loan to a sauna business?
“I don’t know if giving out a loan to a short-term rental business is in the best interest of the community with all of the other needs out there right now,” Mills said.
Powers said the revolving loan committee had never discussed that issue, commenting, “We didn’t talk about that at the committee level, but it’s a valid point. Does the community need another short-term rental?”
Mills also questioned how much local support there would be for a sauna that cost $45 an hour, especially when one can buy an all-day pass to the YMCA for $10 an hour and use that sauna. Although he admitted, the two experiences would be quite different.
“I may be the lone commissioner with these concerns,” noted Mills.
Commissioner Ginny Storlie talked about moving to Cook County and starting an outfitter business, a youth hostel, and a flower shop. The first five years were tough, she said, but she wanted to support the Usem’s dream by approving the revolving loan. “It’s hard to imagine someone else’s dream,” Storlie said.
Commissioner Sullivan weighed into the conversation, noting the creation of five jobs in the community supported the revolving loan committee’s goals.
Chairman Mills called for a motion, and Storlie moved with Hawkins seconding to approve the loan. When the vote was taken, only Mills voted against, and the motion passed 3-1. From here, Kate Usem will seek to fill the obligations the county requires before the money will be released to her for her new enterprise. In other county news:
* Cook County Sheriff Pat Eliasen provided the board with information regarding filling dispatcher openings at the law enforcement center.
Eliasen said there was one dispatcher opening in his memo to the board, and a second dispatcher was slated to leave by the end of January. With that, two candidates had been offered conditional opportunities through the application and interview process, and each accepted the chance to work at the law enforcement center. The candidates are Laura Andrews and Trace McQuatters. Eliasen said they would begin their training on February 1, 2021.
* A request from the Banadad Trail Association to hold a raffle on Wednesday, September 6, 2021, at Stone Harbor Wilderness Supply was granted. Tickets will be sold May through Labor Day, and the proceeds will be used to raise funds for the BTA.
* Four people were appointed to the Communications Board. Commissioner Ann Sullivan was placed on the Emergency Communications Board. Mike Keyport was named to the Regional Advisory Committee, Lindsay Mielke will serve on the Owner and Operators Committee, and Gary Fagerman was appointed to the Users Committee.
Board appointments for each calendar year are required from every county, tribe, and four cities in the Northeast Region by the Northeast Emergency Communications Board. The Emergency Communication Board also mandates appointment from the Northeast Regional Advisory Committee, the Northeast Owner & Operators Committee and the Northeast Users Committee.
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