The EDA is requesting that the county commissioners okay a plan where, if the rental units in the West End do not provide enough money to pay the loan, the taxpayers of Cook County will be liable for the $106,000 per year.
The EDA has already “given,” or committed $140,000 to the project. EDA money comes from the same taxpayers. This would be on top of that $140,000. In addition there will be a tax abatement – no tax money coming from this project – and for how many years? No other part of the county has benefited from tax abatements as has Lutsen.
Looking at the apartments: eight one-bedroom units renting for $850 per month ($10,200 per year); and eight two-bedrooms for $1,050 per month ($12,600 per year). If you applied for a mortgage of that amount you would be required to have an income of $40,000 and $50,000. Just who are the employees who make that kind of money? The option, of course, is to cram a number of unrelated individuals into the units, but historically there is a greater amount of damage as a result.
I do strongly believe we need housing for workers but this plan is not viable, nor should the taxpayers be the ones on the hook. Lutsen Resort, Lutsen Ski Hill, Bluefin Bay, Caribou Highlands, who need the housing, should be the ones to provide it. There are tax benefits for this, “write offs” if you will. If you do this for them, what are you going to do when Grand Marais, the Gunflint, Grand Portage or Schroeder come to call?
Pat Zankman
Hovland
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