Nancy Grabko, Cook County/Grand Marais Economic Development Authority (EDA) housing director, came before the EDA on Tuesday, August 9 with a proposal from a private company to build a 30-bed senior living facility in Grand Marais.
Merle Sampson, owner of Spectrum Community Health, has developed 16 similar facilities in Minnesota, many of them located in the northeastern part of the state.
“This is a win-win for everybody,” Grabko said, adding, “This falls under the 2007 study that clearly identified that people want to keep seniors here.”
Grabko said city officials and some members of the EDA have already begun preliminary discussions with the Iron Range Resource Rehabilitation Board (IRRRB) to secure a Public Works Grant to pay 100 percent of the public infrastructure improvements.
“They typically pay $10,000 per unit, which would be $300,000, but they said they could go as high as $350,000,” Grabko said.
That grant is contingent, however, on the City of Grand Marais donating the land to Spectrum Community Health for the structure.
Under the current proposal, Spectrum is looking at constructing a 32,000-squarefoot building. A projected opening date is the fall of 2012. While under construction,
30 full-time construction jobs will be created and once completed, 20 full-time employees will be needed to staff the facility.
The facility will have in-house memory and assisted living units available and the units will be priced $1,500 less than the nursing home. Residents will have the option to select the care best suited for their needs.
Grabko said that Spectrum recently completed a 30-unit facility in Silver Bay and said, “They filled it immediately. People that had been transplanted to the cities came back. I can see the same thing happening in Grand Marais.”
Spectrum is asking for a four-month “Mutual Exclusivity Agreement” with the City of Grand Marais as they move forward. This will allow them to work without competition coming in and trying to undermine their progress.
As people move from their homes into assisted living, those homes will be available for resale.
A current site being considered for the building is near the water tower on the Gunflint Trail, but this is very preliminary, said Grabko. When asked how much land would be needed by Spectrum, Grabko said about 5 acres or less.
EDA Board Member Hal Greenwood said he has spoken with Sampson and noted that Sampson’s reputation as a businessperson was excellent. “He is selffinanced and he does a great job. He has built lots of these places and he has an excellent track record. I have also talked with representatives Dave Dill and Tom Bakk and they are both in favor of this,” said Greenwood.
Greenwood also said that because Sampson has worked with the IRRRB on several occasions, “They have said that this will be an easy project for them.”
EDA Director
Matt Geretschlaeger said Grabko and Grand Marais City Administrator Mike Roth have done “90 percent of the legwork on this project, and they should get credit for their work. But we need to show our support.”
Grabko asked the EDA to agree to serve as the City of Grand Marais development representative for the project. EDA Board Chair Mike Littfin made a motion saying that the EDA would “show support in any way that we can for this project.”
The board voted unanimously to support the project.
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