Cook County News Herald

County gets an update on the Lutsen workforce housing





George Wilkes talks with Jeanne Wright just before appearing before the county board on June 27, with Olya Wright, who is seated. George presented information about the Carbon Fee and Dividend proposal created by Citizens Climate Lobby to lower harmful fossil fuel emissions in the atmosphere. Olya represented the Nordic Nature Group, which is a youth advocacy organization whose mission is to “help nature in good ways and take care of the earth,” said Olya. A complete report about their presentation will be included in next week’s newspaper.

George Wilkes talks with Jeanne Wright just before appearing before the county board on June 27, with Olya Wright, who is seated. George presented information about the Carbon Fee and Dividend proposal created by Citizens Climate Lobby to lower harmful fossil fuel emissions in the atmosphere. Olya represented the Nordic Nature Group, which is a youth advocacy organization whose mission is to “help nature in good ways and take care of the earth,” said Olya. A complete report about their presentation will be included in next week’s newspaper.

Plans are moving ahead swiftly for building 16 affordable workforce housing units in Lutsen near the Arrowhead Electric office.

On Tuesday, June 27, Cook County commissioners approved a resolution for the county to act as the legal sponsor for projects included in a grant application to the Department of Employment and Economic Development (DEED) to seek funding for the Lutsen workforce housing project.

Commissioners heard a presentation by EDA board member Scott Harrison and EDA Director Mary Somnis before voting to approve the application.

Under the resolution the county applied for $209,715 for a Business Development Infrastructure Application with DEED. If awarded the money must be used within the first 18 months or if the project isn’t completed in five years, then the money must be returned to DEED.

Funding for the project will come from a series of grants, loans, and capital contributions. Grants and deferred loans will come from the EDA, the Iron Range Resources and Rehabilitation Board (IRRRB), Greater Minnesota Housing Fund, DEED and Neighbor Works America. To date the IRRRB has given $350,000, DEED $325,000, the EDA $140,000 and local West End businesses $30,000.

Further grant money is also being sought. An additional $100,000 in DEED money and $80,000 in GMHF funds were awarded on June 28 while another $155,000 (up to $200,000) is expected to be applied for on July 1, 2017.

Cook County commissioners held a public hearing on Tuesday, Feb. 28 in the commissioners’ room to discuss the sale of up to $1.6 million in taxable General Obligation Tax Abatement bonds that will help fund building 16 affordable workforce housing units. Ehlers & Associates will sell the bonds on July 17 and the money will be delivered to the county for disbursement to One Roof on July 18.

Four West End businesses – Lutsen Mountains, Lutsen Resort, Caribou Highlands and Bluefin Bay/AmericInn – have promised to pay any shortfalls in rent for the first year. Caribou Highlands has promised to pay rent for six units for the first year while the other businesses guarantee cash payments of $30,000 payable for two years.

Cook County/Grand Marais EDA have worked with One Roof Housing for the past year. The Duluth company will own and manage the property.

One Roof Community Housing’s Deputy Director, Cliff Knettel, informed the county board that his company was ready to begin the project. One Roof will have Design Homes build the housing units and must place its order by July 6 to have the manufactured housing completed on or before October 1, 2017. The goal is to have rental units ready in the fall.

Rents – which aren’t set yet – are expected to be in the neighborhood of $800 for one-bedroom units and $1,100 for two –bedroom units, which will include utilities.


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