Downtown Tofte Project is still in the works

With interest rates climbing and the country’s economy remaining sluggish, some building projects in the county have been canceled or put on hold.

That said, the much-anticipated Downtown Tofte project proposed by Bluefin Bay owners Joe Swanson and Pipasu Soni will be built, just not now.

Originally the plan was to start construction last year, but late spring and rising building costs, among other things, caused the project to be held back.

Commenting last Summer, Joe explained, “The largest concern is the cost to build is much higher than we first saw in our bids, and the rents will not pay for the cost to finance and own when the building is complete.”

Still, on May 18, Joe said while delayed, “The Mixed-Use project in Tofte remains fully engineered (with the exception of the expanded water treatment system), but we don’t have a start date as of today,” he added.

The Downtown Tofte Project comprises two mixed-use buildings, including 14 workforce housing apartments and six commercial/ retail spaces in Tofte.

The Cook County/ Grand Marias EDA received $450,000 from the Iron Range Resources and Rehabilitation Board (IRRRB) to construct infrastructure to develop the Downtown Tofte development, estimated (at first) to cost $5.4 million. The total square footage of the two buildings is 21,107 square feet.

Business will have to be robust to build, but Joe said this season might not be on par with last year.

“Bluefin Bay Family of Resorts has had a great year (2022), but we do see the county tourism traffic overall going down in the Winter/ Sprint of 2023,” said Swanson, adding, “This is reflected in county-wide data for 2023. The change will create both challenges for businesses as well as an opportunity to learn, change and grow with the challenges. Growth was expected for 2022, but for 2023 hospitality providers have to earn customer support every day.”

When asked about having enough employees for the upcoming summer, Joe replied, “Staffing levels remain hard work, and our team stays on that with vigorous diligence.

“One challenge for the area is fewer and fewer Food Options available between Beaver Bay and Grand Marais. Our community members and travelers comment on this often. The Blue Fin Bay restaurants keep steady hours, and this is helpful. I hope there is renewed excitement for careers and small business ownership in the food area. Folks are also looking for entertaining activities while traveling.”

Regarding providing housing for staff, Swanson and Pipasu have invested in several properties in Cook and Lake County.

“Blue Fin Bay is fortunate to offer diverse housing options between Silver Bay and Grand Marais for the general public and also for Blue Fin Bay career-holders,” noted Swanson.

Who is Joe Swanson and Pipasu Soni?

After several joint ventures, the two friends purchased the Bluefin Bay Family of Resorts on June 30, 2020. Bluefin Bay consists of three resort properties, Surfside on Lake Superior, Temperance Landing and Bluefin Bay. The three lakeside resorts have 229 bedrooms and can host up to 704 guests across a collection of suites, condos, and townhomes. The sale also included The Bluefin Grille, Coho Café and Bakery, Waves of Superior Café, as well as Waves of Superior Spa. In addition, the resort properties include indoor and outdoor pools, saunas, fitness centers, tennis courts, ice rinks, children’s play areas, and wedding and event venues.

A Silver Bay native, Joe worked in housekeeping, dining, and maintenance positions at Bluefin Bay for seven years during high school and college. Today, Joe, his wife, and his family live in the Twin Cities, where he works as a 401(k) and business advisor.

Pipasu and his family live in Winnipeg. He is the Chief Financial Officer of (CFO) NFI Group, headquartered in Winnipeg. Before that, he served as an Officer of United Steel Corporation in various financial leadership roles, including vice president, Performance and Management & Analytics, Vice President, Finance, and interim CFO. Joe and Pipasu met through their children, who became friends in school while Pipasu lived in the Twin Cities.