Apparently tired of waiting for the county to take action on its plan to hire an independent consultant to review operations at Superior National at Lutsen golf course, the Cook County – Grand Marais Economic Development Authority (EDA) and its golf course committee have decided to proceed with advertising—and the potential hire—of a general manager for Superior National.
The county board issued a request for proposals in December 2010, hoping to find a consultant that could “lead the golf course to financial success.” Of the eight respondents, all said they wanted to see the golf course in use before completing the evaluation. According to Auditor-Treasurer Braidy Powers, who collected the responses, there were also questions about exactly what the county sought from the consultants. Because of those questions, the county board agreed at its December 21, 2010 meeting to consult with ORB Management, the firm acting as the county’s consultant on 1% sales tax-funded projects and as owner’s representative on the community center project, to see if ORB could redo the RFP process. To date, no further action has been taken on this.
Reached by phone, Commissioner Bruce Martinson, who is the county’s EDA representative, said the county was waiting for the consulting agreement with ORB Management to be signed. “Recently, Braidy Powers [golf course committee member] Jim King and I met with ORB to discuss a timeline,” said Martinson.
“The first step will be to have ORB review the RFPs. It was agreed that the due date for RFPs should be June to allow entities to look at the golf course in use. The soonest any recommended improvements—if there are any—could be done would be in 2012.”
Advertising for general manager approved
In the meantime, the EDA and its golf course committee have been discussing the need for a golf course manager. The matter was debated at length at a special meeting on January 25, with the concept of hiring a golf course general manager finally being endorsed by the EDA. However, at that time, the EDA stopped short of advertising for the posi- ftion, citing concerns about how the management position—an estimated expense of $70,000 –
$75,000, which would include employment taxes, PERA, travel, and other related expenses— would be funded. The matter was tabled to be taken up again at the
Tuesday, February 8 regular EDA meeting.
Golf Course Committee
Member Jim King noted that the
EDA had “come to a standstill” on how to proceed regarding a general manager for Superior
National. King noted that an earlier agenda item—the EDA housing program—was handled very professionally by Housing
Program Coordinator Nancy
Grabko. “It was nice to see Nancy come in here with all of the facts, all of the numbers, all lined up.
We don’t have that for the golf course and we need it. If we had that professional point person, I rthink the position would pay for itself,” said King.
King suggested advertising to fill the general manager position as soon as possible so the person could start in March or April, in time for the course opening. gHe added that since whoever was hired would not start until midway through the year, the expense for 2011 would only be approximately $56,000.
King pointed to the latest golf course financial report, stating that the golf course ended the year $98,902 in the black.
He acknowledged that finances would be more clear when the county takes over the bookkeeping, as discussed with Auditor-
Treasurer Powers at a January 25 special meeting, but King said it appears money could be found for the position.
EDA Board Member Mark
Sandbo agreed that the golf course would fare better with the county handling its accounting.
“If we have better reports, we will be better able to track our budget. If we get halfway through the season and we’ve spent half of our budget, we know we need to do something. We need to close down nine holes or something— that’s probably not a good example, but we need to know where we stand during the season,” said Sandbo.
EDA Chair Mike Littfin agreed a general manager was needed but said he was reluctant to proceed without knowing how the position would be paid for.
King said it might take the auditor-treasurer’s office several months to take over the accounting. “If you wait, we will end up going another year without a manager,” he cautioned.
EDA Board Member Hal Greenwood insisted that the EDA should move on the matter. “Just because you advertise doesn’t mean you have to hire someone.”
“You might not find the right person,” said King. “Or you might find someone who can lead us out of the wilderness.”
EDA Board Member Don Davison expressed concern about funding the position—and that of the EDA director. He suggested, as he had at the previous meeting, that the two management jobs be combined.
Finally Littfin made a motion to proceed with advertising for the general manager position— with the stipulation that adequate funding is found before anyone is hired. The motion passed with Davison casting the lone nay vote.
Asked why the EDA does not wait until after the county hires a golf course consultant and completes its review, Martinson replied, “The EDA would argue that this is something that should have been done seven years ago. Superior National should be allowed to operate at its full potential.”
EDA director position still up in the air
“I just want to remind you that somewhere along the way we need to hire an EDA director,” said Davison.
In July 2010, EDA Director Matt Geretschlaeger announced his intention to resign on December 31, 2010. At the mid- December EDA meeting, the board asked Geretschlaeger to stay on as a half-time director for an additional three months, until March 31, 2011. The board debated how to proceed as the new resignation deadline neared, but no decision was reached. However, a special meeting has been scheduled at the city hall council chambers for 9:00 a.m. on Wednesday, February 23 with an agenda item entitled “EDA Director for 2011.”
Major discrepancy on business park repair work
Also causing concern for the EDA board was the news of an extremely large discrepancy on the invoice for storm damage repair work done by KGM Contractors at Cedar Grove Business Park. Geretschlaeger said the work was done by KGM in 2008 and the EDA anticipated that the bill would be $66,820. He said he has been seeking a final invoice for “more than a year” and he recently received a final invoice—for $237,495.62.
Board Member Sandbo asked if the EDA had a contract that shows that the work was to be done for $66,820. Geretschlaeger said the EDA authorized the work under a memorandum of understanding (MOU), which said the EDA would pay $66,820 for the work. However, he added, the MOU was never signed by KGM Contractors. He said the EDA attorney and its engineering firm, SEH Engineers were working to complete a contract and to see the work finished. “The board will recall that no less than six attorneys have been working on this for three years,” said Geretschlaeger.
Sandbo said, “If we signed a document saying we authorize $66,820, we are not obligated for the additional amount.”
Martinson said the EDA should not make the decision without consulting its attorney. Geretschlaeger assured the board that the EDA’s attorney, Mike Hero, was aware of the discrepancy.
Davison made a motion, seconded by Greenwood, not to pay the invoice, because there had been a fixed rate and because more than two years had passed since the work was done. The motion passed unanimously.
In another business park matter, Geretschlaeger asked for authorization from the board to negotiate payment of another invoice for the business park from SEH Engineering. He said the EDA had contracted for $323,000 of engineering services and it was being billed for approximately $356,000. Geretschlaeger said he would work with SEH and bring back the results to the March 2011 meeting. However, that matter has also been added to the agenda for the February 23 special meeting.
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