Leah Hall of the Arrowhead Economic Opportunity Agency (AEOA) gave an overview of an AEOA Grand Marais rental housing project proposal to the Cook County-Grand Marais Economic Development Authority (EDA) on Tuesday, May 14. Part of the proposal would mean allowing the AEOA to construct a 16-24 unit housing complex on EDA land.
The AEOA conducted interviews with 64 community leaders last year and determined that lack of affordable housing is a grave concern. After looking for solutions, Hall said it was decided that it would be too expensive for AEOA to acquire property to construct single-family duplexstyle housing, so AEOA researched constructing a multi-unit facility.
However, acquiring land is still a roadblock. Hall and other AEOA representatives visited Cook County on April 18 to look at land near the Cedar Grove Business Park.
Hall said the target population for the housing complex would be a combination of singles and small families and perhaps even older retired adults in low/moderate income households (i.e., $34,550 for a single; $39,500 for a family of two; etc.).
Hall said the project would be operated as an LLC by AEOA, so property taxes would be paid. She said at a similar Virginia, Minn.complex, about $15,000 was paid in taxes per year.
Hall stressed that the AEOA would not approach potential funders unless the EDA agreed this was a community need and asked AEOA to proceed.
EDA Chair Mark Sandbo said the EDA had been criticized in the past when it considered giving land for another housing project.
EDA housing administrator Nancy Grabko of Community Fundraising Solutions (CFS) said the EDA has statutory authority to develop something like a housing complex.
Hall said with AEOA being the developer, it would handle putting together the design and the funding package. AEOA would take the risk and in return would get a 10 percent developer’s fee.
Hal Greenwood asked if AEOA could assist the EDA housing coordinator with a similar project. Hall said AEOA could lend some assistance, but it would not be able to bring any funding to the project.
Mark Sandbo said he thought it might be worth exploring but needed to be looked at carefully. Housing Administrator Nancy Grabko reiterated that she was not convinced that the EDA couldn’t do such a project as developer.
Hall said that would be great if the EDA chose to pursue an affordable housing project. She said AEOA’s goal is to get housing for people. She asked the EDA to contact her if it wanted her to continue to work on this and left the meeting.
There was no further discussion until the meeting was ending and Board Member Abby Tofte asked if the EDA was going to respond to Hall’s proposal. Chair Sandbo said what they are proposing is sorely needed but questioned why AEOA had not been involved with Cook County for many years. Sandbo said it seems that now that the EDA has had some success in obtaining funding for housing rehab and commercial projects, AEOA is now interested.
Board Member Heidi Doo-Kirk said it would be good to work with a new person who is excited to move this proposal forward. She said EDA housing administrator Nancy Grabko has enough on her plate at this time.
Bob Spry said all the AEOA needed right now was an answer on whether or not to look for financing. Spry said he was in favor of proceeding if the EDA keeps title to the land.
After further discussion, Chair Sandbo asked if his directive is to call Hall at AEOA to tell her to proceed. The board agreed. Doo-Kirk asked Sandbo to contact housing administrator Grabko as well to let her know the EDA’s decision.
Hal Greenwood noted that this never would have happened if Nancy Grabko and her company Community Fundraising Solutions had not worked so hard in Cook County.
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