EDA Chair Mike Littfin will see increased duties.
At January meetings of the Cook County-Grand Marais Economic Development Authority (EDA), there was considerable discussion of how to meet financial obligations and keep the EDA operating. The EDA board and Director Matt Geretschlaeger thought they may have found a temporary solution to the EDA’s financial problems—postponement of wages for Geretschlaeger. However, at the February 9, 2010 meeting, EDA Attorney Mike Hero told the board that it would not be legal to ask the director to work without pay.
Hero explained the statutes that govern employee compensation and said even with the consent of the EDA director, non-payment of wages would be a violation of state statute. Geretschlaeger was at the February meeting as a private citizen, sitting in the audience.
Board Chair Mike Littfin said the EDA was most likely looking at a temporary layoff. He said it was something to consider “until finances reach a reasonable level.”
Board Member Bruce Martinson suggested that instead of a lay-off, the EDA cut the director’s hours. Attorney Hero agreed that may be a good solution, noting that negotiations with the contractor and engineer regarding the Cedar Grove Business Park and Minnesota Pollution Control Agency (MPCA) violations were at a “critical juncture.”
EDA realtor Tim Kennedy of Gunflint Realty, at the meeting to give an update on a possible lot sale to G&G Septic of Grand Marais, also expressed concern about the EDA director being laid off. He said the lot sale is progressing and wondered how it would proceed without the director’s assistance in setting up the necessary building design review committee meeting and public hearing prior to the sale. Chair Littfin said in the interim, he would serve as the contact point for matters. “It might take two hours to get something done instead of two minutes, but we’ll get things done,” said Littfin.
Invoices were reviewed and the board again debated which bills to pay and which to postpone. Board member Jan Sivertson asked if the county had been contacted to discuss obtaining another loan. Martinson said that all discussion were on hold until a joint city-county- EDA meeting. Thatmeeting is yet to be scheduled.
It was finally agreed to pay the director’s two outstanding paychecks to return to compliance with state employment laws. Littfin said, “We still have a situation. There is not enough money to have Matt on staff, at least not for the near future.”
Board member Don Davison moved that EDA Chair Littfin inform the director that he is laid off until further notice. Martinson asked if the option to reduce the director’s hours
” could be included in the motion. Martinson said it would be extremely helpful to at least have the director one day a week, if that proved economically feasible. His colleagues agreed and the motion, with that addition, passed unanimously.
In other business:
» Hero also talked to the board about the “best, most efficient” way for the
EDA to use legal counsel. He noted that the EDA had a dramatic increase in legal fees in 2009, but he said most of those were related to the Cedar Grove Business Park and should be significantly less in the future. However, he suggested the board call him to meetings when there are questions. “It’s a lot cheaper to keep you out of trouble than get you out of trouble,” he said.
Hero said he could review the agenda before each meeting to see if
there is anything he believes may require legal consultation. He will then
remain available at his office,so the EDA can contact him for discussion.
» T he board also discussed its budget crunch with Housing Coordinator
Nancy Grabko, asking her if she could continue offering services to Cook County if the EDA cut its contribution to the joint Cook-Lake county program by 20%. That would be a reduction from $30,000 to $24,000 for next year’s contract with Grabko’s company, Community Fundraising Solutions (CFS). “Since we’re trying to save money everywhere, like reducing Matt [Director Geretschlaeger]’s schedule, we would like to reduce the money to contract with you. This savings could help the EDA get over the hump,” said Chair Littfin.
No motion was made by the EDA board since the housing contract has been paid through March 2010, but Grabko agreed to the change. She expressed concern however, about Director Geretschlaeger being laid off. She noted that he is part of the Minnesota Housing Partnership Housing Institute training program. “Matt is a key person on our team,” she said.
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