Citing five years of successful grant writing resulting in $1.75 million in funding for commercial and residential building rehabs, representatives of the Cook County-Grand Marais Economic Development Authority (EDA) Housing Program have asked the county board to approve a budget increase of almost 43 percent for next year. On August 21, EDA board members Mark Sandbo and Mike Littfin and contracted Housing Administrator Nancy Grabko of Community Fundraising Solutions proposed increasing the housing budget from $82,610 in 2012 to $118,000 in 2013.
The request includes increasing the levy from $56,500 to $102,000 and increasing the contract with Community Fundraising Solutions from $47,310 to $66,900, the first raise since Nancy Grabko was hired to launch the program. Of that amount, Grabko was asking for $31,900 for her own salary and $35,000 for Rehab Specialist Steve Grabko. Also requested was $8,000 to pay for insurance benefits.
The $16,000 gap between the amount budgeted and the amount levied is expected to be covered by fees for administrative tasks completed for AEOA in Cook County by EDA housing staff.
A memo to the board from Sandbo and Littfin states, “As successes have been achieved, it has demanded more staff time and resources to deliver programs.” The memo states that increasing housing staff would result in “consistent office hours, review of financial operating procedures, implementing a comprehensive programming and marketing plan, and further advancing the EDA’s overall mission and benefits to residents and business interests in Cook County.” It says, “Office hours and staffing will continue at three days per week with combined staff hours totaling 40+ hours per week.”
The housing program received $133,850 in levy revenues from 2008 to 2012, resulting in a return of $13.07 for each levy dollar.
Grabko said while some counties have had housing programs for 25 to 30 years, Cook County is “still playing catch-up.” She said she expects the need for rehabs and energy efficiency upgrades to plateau at some point, although there will always be residents who could use their help.
Commissioner Fritz Sobanja asked if the county has gained anything in property taxes from the properties that have been improved through this program. “That’s entirely possible,” Grabko said.
“There’s another purpose here,” said Commissioner Sue Hakes, “and that’s to get people into housing that’s safe and affordable. That’s a good thing.”
EDA Housing Committee Representative Mike Littfin said the program also benefits local businesses that sell supplies and do the rehabs. Because of confidentiality agreements, he said, they probably won’t be able to see how individual property tax bills have changed after the rehabs.
Commissioner Hakes said she saw the benefits of the program and wanted to be fair but was not sure if the county could afford the requested increase in administrative expenses.
Commissioner Bruce Martinson said that when Cook County ended its housing program partnership with Lake County, Nancy Grabko took on extra expenses without asking for a new contract. “She has been taking a large hit in the last two years,” he said. “She’s too nice.”
“That was my decision,” Grabko said, “and I’m glad I made it.”
Her decision did ensure her another year of work, said Commissioner Jan Hall. “Good thinking!”
The program currently has 12 commercial rehab requests and 29 residential rehab requests. “Where you are today is so much better than where you were five years ago, seven years ago,” said Grabko. “But so much more needs to be done.”
“As an EDA, I think this is important,” said Sandbo. “It’s worth the investment.”
Grabko said that while a large grant this year benefitted only Grand Marais because it required focusing on a populated target area, she would like to help property owners throughout the county.
The EDA’s proposed 2013 budget and levy, which includes the housing program budget and levy, is $200,000, up from a budget of $149,016 in 2012 and a levy of $148,566.
In other county news:
During the public comment period, real estate developer and attorney Lance Johnson of Lutsen offered his expertise to help the EDA sell the Cedar Grove Business Park lots. He said that residential lots with utility infrastructure are going for $2,500 in the Twin Cities, far less than the price of the undeveloped lots in the business park.
“Those lots are not worth what you’re trying to get for them,” he said. He likened asking realtor Tim Kennedy, who has the listing, to sell the lots to trying to get someone to sell tickets to the Titanic just before it went down.
“We all have a stake in this,” he said. “If this goes tapioca, it’s not good for the city, it’s not good for the EDA, and it’s not good for the county.”
Sue Hakes agreed that they need to do something different and recommended that Johnson work with the EDA. Bruce Martinson invited him to an upcoming EDA strategic planning meeting.
By a 4-1 vote, with Commissioner Hakes voting no, the board approved a three-year interim use permit for James and Cheryl Sulerud to have an RV on Loon Lake.
Commissioner Hakes said she would expect the Suleruds to ask for a renewal of the permit if they have not built a cabin on the site in the next three years. She said she recognized concerns shared anonymously by a lakefront property owner opposing the permit that property values would decrease if an RV were allowed on the site. Mr. Sulerud told the Planning Commission that they plan to start building a cabin next year.
Information Technology Director Danna MacKenzie recommended hiring Rowan Watkins for the Information Technology/Radio Technician job, a new position created in anticipation of contractor/Radio Systems Coordinator Duane Ege’s retirement. Out of seven applications received, six had the proper qualifications and four agreed to be interviewed.
The board approved the hiring. Watkins will have a cubicle near the GIS staff in the Assessor’s Office.
Tim Kennedy of the Superior Cycling Association informed the board of a Minnesota Department of Natural Resources Parks and Trails Legacy Grant the association is applying for. If awarded, the proposed project would increase Cook County mountain biking trails from approximately 12 miles to over 50 miles. “This project is likely to be a million-dollar project,” Kennedy said.
He asked the board to consider giving a matching grant of $25,000, local governmental support that would increase their chances of being awarded the grant. The association is also hoping to solicit $25,000 matching dollars from local businesses. Suzanne Cable of the U.S. Forest Service spoke up, saying the Forest Service is in support of the application.
Kennedy said the trails would not be multi-use trails. “They’re built specifically for mountain biking,” he said. The board talked about the possibility of different types of trail users coordinating their plans for future trails throughout the county.
Kennedy said the Superior Cycling Association would return before the grant application is submitted to ask the board for formal support and a matching grant.
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