Several members of the Cook County/Grand Marais Economic Development Authority (EDA) attended the September 27, 2011 county board meeting to discuss the proposed 2012 EDA budget. This was a better showing than when the county board held budget hearings in the summer and the only EDA representative present turned out to be Commissioner Bruce Martinson, liaison to the EDA.
EDA Director Matt Geretschlaeger addressed the ongoing dearth of Cedar Grove Business Park lot sales. Two-thirds of the park’s sites were reserved when the park was built, he said, but “the perfect economic storm hit, and that all went away.” He believes the uniqueness of Cook County needs to be highlighted in marketing efforts. “What we have to sell here is lifestyle,” Geretschlaeger said. The EDA is considering hiring an outside marketing firm to draw interest from outside the county.
The board spent some time asking Geretschlaeger and EDA board members to justify the amounts being requested under some line items, such as $6,000 for office expenses, separate from $3,000 for renting a portion of the City Hall building and $6,000 paid to the city for clerical assistance. EDA board member Don Davison said this amount goes to things like paper supplies and copy machine rental.
Geretschlaeger said he believes the EDA’s track record is good. “I believe that the progress is extremely evident,” he said. “You need to remember that this is a parttime agency, and I think that for a parttime agency, we’re accomplishing a lot.”
Why isn’t the city helping fund the EDA? Commissioner Fritz Sobanja asked. Geretschlaeger said the city has been helpful in other ways, and Commissioner Sue Hakes (formerly the mayor of Grand Marais) said the city did take on the risk of refinancing the Cedar Grove Business Park bond.
When asked about what kind of marketing has been done to sell those business park lots, Geretschlaeger said they have had no marketing budget, although Gunflint Realty has had the lots listed on the Multiple Listing Service for the last two years. Commissioner Hakes said some marketing efforts, such as updating the EDA’s website to reflect the current listing price of the lots, would cost little money.
Geretschlaeger also said that his parttime status has limited the amount of time he has to devote to marketing the business park. Community member Lance Johnson said a lot of people would be willing to do Geretschlaeger’s job full-time for what he makes working half-time.
Lance Johnson invited Commissioner Hakes and EDA board members to speak to the Minnesota Real Estate Exchangors in the Twin Cities, an association of which he is president. People are not going to move their businesses to Grand Marais for the lifestyle, Johnson said. They would only move here for the bottom line.
According to the Minnesota Real Estate Exchangors website, “Minnesota Real Estate Exchangors (MREE) is THE real estate and business networking organization for real estate investors, property owners and licensed real estate professionals. MREE is for anyone with an interest in owning, selling or exchanging real estate property, equities, notes, investment and business opportunities.”
Housing program
Cook County Housing Coordinator Nancy Grabko was optimistic about the effectiveness of her program. Thirtyone families and two businesses in Cook County have benefitted from the EDA’s housing program since is began in 2008, she said.
The future is promising as well. A recent grant opportunity for commercial rehabs generated 13 applications from local businesses. A memo from Steve Grabko of the housing program states, “Business owners have told me that if these dollars were to be awarded to their business, they would be able to remain open year around.”
The proposed 2012 EDA budget included a raise in the EDA’s contribution to the housing program. The EDA has contributed $34,000 each of the last two years, but Grabko asked the county board for $55,000 this year. The EDA is no longer in partnership with the Lake County EDA, which has contributed matching funds for previous grants submitted jointly by both counties. The extra contribution would go toward matching funds for grants Cook County will be applying for on its own. Grabko said grant applications that have financial support from the county and community have a greater chance of success.
The board took no action on the EDA’s proposed budget. The budget for Superior National at Lutsen Golf Course, owned by the EDA, was not included in the EDA’s budget because it is a separate budget sustained by income from the golf course and not by levy dollars.
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