The Cook County/Grand Marais Economic Development Authority (EDA) had an item of new business on its April 14, 2015 agenda introducing just that—a possible new business in the community.
EDA Board Member Hal Greenwood introduced George and Marilyn Carlson of Grand Marais. Greenwood said George Carlson was one of the founders of the Gunflint Trail Volunteer Fire Department, had a distinguished career with Motorola and after moving to the Gunflint Trail, started his own company, the very successful Wildfire Protection Systems.
Carlson noted that many of the problems in Cook County—lack of living wage jobs, the affordable housing shortage, declining school enrollment and the exodus of young families—can be traced to the fact that Cook County has a mono-economy, based primarily on tourism. Carlson said the county—the EDA— needs to create economic diversity.
Carlson shared a copy of his business plan for Wildfire Solutions, a company that will design, manufacture and distribute ultraviolet flame detectors. Carlson said a detector such as he is manufacturing is not currently available directly to consumers. He passed around samples of the product’s components.
Carlson said in 2014, more than 1,900 primary structures were lost to wildfire. In 2012, the U.S. saw $595 million in insured losses due to wildfire. “With the growing threat of wildfires exacerbated by extreme drought in areas like California, there is an opportunity to market early detection flame sensors to protect lives and property,” he said.
Carlson has created his new company, has obtained the license to develop the flame sensors and has begun testing and production. The initial location is his home on the Gunflint Trail, but in 2016 he plans to relocate to larger facilities in Grand Marais.
Carlson’s business plan notes that electronics manufacturing is a “knowledge-based growth industry offering greater than average payroll and benefits.” The plan states that electronics production tends to produce few pollutants and be relatively quiet.
Carlson said he believes the EDA’s Cedar Grove Business Park would be the perfect location for his new business, and he added, it could serve as a magnet to attract other electronics manufacturing businesses.
Carlson urged the EDA to make some of the business park lots eligible for the JOBZ program, which gives businesses a tax break for bringing jobs to the community.
Board Member Anton Moody said it does sound like a good fit, noting that with FedEx and UPS, shipment of small electronics parts is not prohibitive.
Greenwood pointed out the importance of the product for safety. “We don’t want to go through another Ham Lake wildfire without something like this available,” he said.
Greenwood added that Carlson could possibly receive support from the Small Business Administration and the Iron Range Resources and Rehabilitation Board. “I’d like to see this happen here,” he said. “This could go in over in Ely or somewhere else. We need this business here.”
Jack McHugh of Red Pine Realty, whose contract to sell the Cedar Grove Business Park lots was renewed at the meeting, said he would do some research for the EDA on the JOBZ program.
A unanimous motion passed to endorse Carlson’s business and the board asked Carlson to keep them apprised of his progress. “It’s definitely a cool idea,” said Moody.
Working and living at business park?
The EDA has received inquiries from potential business owners who would like to purchase Cedar Grove Business Park lots if they would be allowed to have residential space upstairs or at the back of the business to serve as owner occupied housing.
EDA board members have expressed willingness to allow this to happen in a section of the business park, but doing so would require a change in the business park covenants as well as a zoning change.
Before proceeding the EDA polled current business park lot owners. Of the five businesses that own lots, one supported fully, two supported (with some concern); one did not support and one did not reply.
Two business owners—Cook County Towing and G&G Septic— said they were in support of the concept as long as potential residents were aware that there is business traffic, and in the case of the towing business, that takes place round the clock as needed to respond to accidents.
Responding for Nordic Electric, Karen Kritta expressed concerns about how this would impact the electrical contractor’s property values. Kritta said because lot prices had been reduced by the EDA, Nordic Electric’s property value fell.
The Nordic Electric and Cook County Towing responses also included concerns about the wetlands on the proposed properties. Both businesses said they had encountered difficulty completing construction because of stormwater requirements and asked the EDA to be aware of this as they proceed.
In a draft letter to the Grand Marais city council requesting a zoning change to Block 5, Lots 3-8, (the lots on Cedar Grove Crossing, above the Cornerstone Community Church) the EDA wrote, “…To fully develop the park a new approach is needed that considers today’s current economic drivers that differ significantly from those in 2008 that spawned the development of the business park development.”
After some discussion, a motion passed to approve the draft letter and to move forward with the re-zoning request.
The EDA also heard another update from Randy Lasky of Northspan on the ongoing affordable workforce housing study being commissioned by the EDA. Lasky said his company has completed an index of 50 properties that could be appropriate for workforce housing. Lasky gave his report over the phone, but will be at the Tuesday, May 12 EDA meeting in person to discuss the housing study in more detail.
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