At the Tuesday, November 12, county board meeting, the board discussed the Cook County-Grand Marais Economic Development Authority’s (EDA’s) decision to write off $100,335 owed to it from Superior National at Lutsen Golf Course (SNL). The same thing was done in 2011 with $69,000 in debt.
A memo from EDA Treasurer Scott Harrison explaining the EDA’s rationale stated, “If and when SNL is able to generate positive cash flow, it belongs to the EDA anyway. Further, it does not affect the EDA obligation to the county.”
Commissioner Garry Gamble said he would be reluctant to grant any requests for subsidy in the future. He said Scott Harrison’s position as owner of Lutsen Resort could be seen as a conflict of interest and he thought Harrison should recuse himself from voting at EDA meetings in regard to the golf course.
“…We’ve never seen anything but spend, spend, spend,” Commissioner Jan Hall said.
Commissioner Bruce Martinson said the course made money for 18 years.
Commissioner Heidi Doo-Kirk, also on the EDA, said the EDA would be responsible to pay its debt of $100,335 to the county even if the golf course does not pay its debt to the EDA. She said no one was shirking responsibility.
Commissioner Gamble stated that if things were going well for the golf course, they wouldn’t have to work so hard to “put good face on” things.
“They’re doing everything they can to cut expenses,” Doo-Kirk said.
Commissioner Sue Hakes said that while she did not support allocating $3.1 million of 1 percent recreation and infrastructure sales tax revenue for the golf course, they should support the EDA. She indicated she could see that the EDA has tried to make positive changes.
Commissioner Doo-Kirk said the EDA is working on finding funding to cover the funding gap between the $3.1 million from the county and the $4.2 million construction cost. They are trying to cover costs within house to avoid asking for any more money, she said.
Broadband build-out grant period extended
The board approved an extension of the grant period of Arrowhead Electric Cooperative Inc.’s (AECI) broadband build-out project to September 30, 2015. Arrowhead Electric received the same extension for its $16,137,484 grant and loan from the U.S. Rural Utility Service grant.
Arrowhead Electric received $4,000,000 from the county. The original completion date was December 31, 2013.
Joe Buttweiler of Arrowhead Electric said the project is taking longer than expected. The total cost to extend broadband throughout the county electric grid will be $27,000,000.
Zipline wetland order
Commissioner Sue Hakes said she had heard that a cease and desist order had been imposed on an area of wetlands on the Superior Zipline property being developed on the Gunflint Trail just north of downtown Grand Marais.
Commissioner Heidi Doo-Kirk said she believed the order regarded only one portion of the property, so owner Matt Geretschlaeger would be allowed to continue construction in another area.
Commissioner Bruce Martinson said Dave Demmer of the Planning & Zoning Department told him Mr. Geretschlaeger was in the process of purchasing some wetland credits to offset wetland impacts on his property.
He was supposed to do that before construction started, Commissioner Doo- Kirk said.
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