A solution to the challenge of finding affordable housing in Grand Marais may be around the corner. At the November 26, 2013 county board meeting, Leah Hall and Scott Zahoric of Arrowhead Economic Opportunity Agency (AEOA) proposed a plan to build a 24-unit townhome style development on the southeast edge of Cedar Grove Business Park.
Hall explained that a need for “safe, decent, affordable rental units” had been identified in Cook County and that AEOA was poised to apply for funding to meet that need. In order to create a competitive proposal to funders that demonstrated local interest and commitment, AEOA has asked the Cook County/Grand Marais Economic Development Authority (EDA) to donate two Cedar Grove Business Park lots between the new Gunflint Trail and 7th Avenue East just north of Fifth Street, a 4.3-acre piece of property. The EDA has the lots up for sale listed on its website for $50,000 apiece.
Hall said if cost prohibited a townhome style development, they would look at a two-story lodge-style apartment complex. Most units would be large enough to accommodate families and would have up to four bedrooms, with at least 75 percent of the units intended for working families. The target population would be people with low to moderate incomes and residents would have to have qualifying incomes. Rent would be kept at 50 percent of median rent rates as determined by the U.S. Department of Housing and Urban Development (HUD). Currently, the median rate is $578 for a one-bedroom unit, $695 for two bedrooms, and $802 for three.
The building would be “green,” constructed with high-efficiency mechanical systems and non-toxic building materials.
AEOA would own the property, and it would generate property taxes.
Affordable housing is needed in order for the county to grow economically, Commissioner Sue Hakes said. AEOA would be taking all the risk, she said. “It’s basically risk-free to our community,” she said.
Commissioner Bruce Martinson said he wouldn’t consider it risk-free if they were giving away the land.
Commissioner Garry Gamble said they should make sure that location would be the best place for the development and that it would be a good use for those lots.
It is close to town and in a pedestrianfriendly location, Martinson said.
Commissioner Hakes said these would be good lots for businesses, but they have been for sale for years with no buyers.
EDA Housing Coordinator Nancy Grabko said, “The EDA supports this project.” She said she gets a lot of calls from people looking for affordable places to rent.
“You can’t talk to anyone in this county about economic development for more than five minutes before the topic of housing comes up,” said Jim Boyd of the GO Team, a Cook County economic development group. He said this would be the next step for the county board in its support of significant economic development initiatives such as improvements to Superior National at Lutsen Golf Course and the hiring of a county administrator.
Boyd said, “We need to find ways to make this community affordable for families.” He said he believes there are a lot of locals who went away to get their education and start their careers who would love to come back and raise their families here.
“I’m fully in support of finding a way to make this work,” said Hakes. She also sits on the AEOA board.
Funding would be sought from the Greater Minnesota Housing Fund and the Minnesota Housing Finance Agency. Hall said they do not know what other projects they would be competing against.
Commissioner Martinson said he would like to know how much has been spent on the two lots so far. Commissioner Hakes said that was not pertinent because the market changes and what is paid for a property at one time is not necessarily what it will be sold for at another time.
Zahoric said it would be highly important to AEOA that the project would be successful and meet the needs of the county.
The board passed a resolution supporting the project and EDA’s potential donation of the two lots.
Wedgewood conversion
The Wedgewood Motel on Highway 61 east of Grand Marais is going to be converted from a 10-unit motel to a set of three apartments. The board approved a conditional use permit from owners Peter and Amy James, who purchased it in 2004.
The property consists of 4.22 acres and is zoned resort commercial/residential. Three apartments will be created – two 900-square-foot two-bedroom units on the ends and one 700-square-foot one-bedroom unit in the middle.
Rosebush SGSD
At a brief second hearing attended by one of seven affected property owners, the board approved the establishment of the Rosebush Subordinate Government Service District on Rosebush Hill Road north of Highway 61 just west of Grand Marais.
Speaking for herself and her neighbors, Marsha Hovland said, “We’re very excited.” The county will oversee summer and winter maintenance of the road by private contractors.
Highway 61 shoulders
Commissioner Bruce Martinson said he had good news to share about expanding the shoulders of Highway 61 between Onion River and County Road 7, a 12-mile section of highway the Minnesota Department of Transportation (MnDOT) will be repaving in 2014. Requests had been made to widen the shoulders from their present width of 12-18 inches to five feet to create safer passage for bicyclists since the Gitchi- Gami State Trail does not travel between those two points yet and future funding is uncertain.
Martinson said MnDOT engineer Duane Hill said at one meeting that widening the road would be costly because it would require re-ditching and replacing culverts. MnDOT, however, then made a decision to widen the shoulders to three feet along that stretch.
“It’s better than nothing,” Martinson said.
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