A developer hoping to build eight moderately priced homes on the western edge of Grand Marais appeared before the Cook County – Grand Marais Economic Development Authority (EDA) on Tuesday, June 13, seeking its endorsement and support for potential grant funding. Since then it was determined that grant funding will not be available, however the property owner still plans to proceed.
At the June EDA meeting, Director Matt Geretschlaeger introduced Richard Dewitt and explained that Dewitt owns 2.166 acres on the upper side of Highway 61 at 1821 West Highway 61. The property was once the site of Sunset Cabins. The property is dual-zoned with the first 250 feet off of the highway, where the Dewitt home sits, zoned commercialindustrial. The remaining 2/3 of the property is zoned R-1. According to Grand Marais City Administrator Mike Roth, the city allows multiple unit dwellings in R-1 zoning with a conditional use permit (CUP).
Geretschlaeger said Dewitt has submitted applications to the city of Grand Marais for a planned unit development (PUD) and conditional use permit (CUP) to construct eight housing units. He has also spent the money to bring power and utilities to the site.
The plan, Dewitt told the EDA board, is to rent the housing units for $600 per month.
At the June EDA meeting, it was thought that grant funding from the Iron Range Resources (IRR) might be available to help with infrastructure costs so rents would remain affordable. Geretschlaeger said up to $250,000 in assistance could possibly be available.
Dewitt expressed appreciation for Geretschlaeger’s assistance to date and said he planned to move ahead with the project either way. Geretschlaeger asked the EDA board if he should continue to assist Dewitt through the process.
EDA Board Member Hal Greenwood asked, “What does the EDA have to do with this?”
Board Member Don Davison said it is a low-cost rental housing project.
Geretschlaeger said, “I thought that was my directive—to try to bring affordable housing to the community. Housing that young families can afford. Thisseems to do that.”
EDA Board Chair Mike Littfin agreed, “I believe this falls under the EDA’s purview. We’re involved in this by helping this developer navigate the waters,” he said.
EDA Board Member and County Commissioner Bruce Martinson asked who would complete the IRR application. Geretschlaeger said EDA consulting engineer, Dick Grabko of SEH, could assist with the application. Greenwood asked what dollar amount is being requested. Geretschlaeger replied that SEH is still calculating the potential development costs and hoped to have bids ready if the city agrees to apply for the IRR funds.
EDA housing coordinator Nancy Grabko reminded the board that its 2007 Housing Study definitely showed there is a need for rental housing in the county. “If this is approved, I would also offer any assistance that I could,” said Grabko.
Also on hand was ISD 166 Superintendent Beth Schwarz who said there are several ISD166 teachers eligible for retirement in the next few years. She said that could mean a need for rental housing for new teachers. “If we want to recruit quality teachers, we need homes for young families,” said Schwarz.
The EDA board eventually passed a unanimous motion to support the project and directed Geretschlaeger to work with Dewitt on the IRR grant.
Littfin said, “It’s nice to see someone stepping forward, looking for a solution to this problem.”
However, at press time it was learned that Dewitt’s project did not meet the IRR’s criteria. City Administrator Mike Roth said the grant funding is available only for infrastructure that is owned by a public entity.
Dewitt is scheduled to appear at the Grand Marais Planning Commission on Wednesday, August 4 at 4:00 p.m. at Grand Marais City Hall. The plan is to construct eight dwelling units in close proximity, somewhat like townhouses. The city’s minimum lot size requirement (with CUP) for eight units is 22,000 square feet. Dewitt’s exceeds that minimum. City Administrator Roth said a drawing of the proposal is available at city hall for the public to review.
In other news:
. In other business at the July EDA meeting, EDA board members agreed to approach the Cook County board of commissioners to
request a $32,500 advance on its November
2010 levy. . Budget committee member Don Davison distributed a tentative 2011 budget for discussion. The budget predicts a county levy of $148,566 and income from Cedar Grove Business Lots of $120,000 for total revenue of $268,566. The expense side of the proposed
budget totaled $247,435, which would leave the
EDA with a balance of $21,131. . Mayor Sue Hakes asked the EDA to add the cost of the bonds for the Cedar Grove Business Park (CGBP) to its 2011 budget. Hakes noted that the bond payment for CGBP is $135,000, which the city is liable for. Repayment of the bonds was to come from sale of business park lots, however few lots have been sold.
Hakes asked that the EDA formally institute a moratorium on bonding debt until the existing $1.6 million bonds are paid. The EDA board passed a unanimous motion agreeing not to incur any further bond debt until the business park is on “stable footing.”
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