Cook County/Grand Marais Economic Development Authority (EDA) Director Mary Somnis came before the county commissioners on September 13, 2016 and asked them to approve a sale to the EDA of five county-owned tax forfeit lots located in the City of Grand Marais for $8,400.
Somnis said the EDA plans to use the lots as part of its workforce housing project in Grand Marais.
The Cook County Assessor determined the price of the property said Auditor/Treasurer Braidy Powers.
The tax-forfeited lots are too small to build on, but because they are located adjacent to buildable lots construction is feasible when the properties are joined.
The EDA Work Force Housing Committee—Commissioner Heidi Doo-Kirk and EDA board members Scott Harrison and Anton Moody— have been working on phase 1 of a housing plan which could result in seven homes and eventually three additional multi-family dwellings on West 2nd Street and 14th Street, west of the Homestead Housing Cooperative. The homes would be two-bedroom, one bath with walkout basements. It is anticipated that the homes will feature either wood grain or log interiors.
Somnis stressed that this wasn’t low-income housing, but workforce housing. Two-bedroom homes will be sold at $140,000 and three-bedroom homes at $215,00.
“These are working budgets so the numbers might wiggle before the budget is done,” she added.
The first phase calls for construction of seven single-family residential homes, with a mix of homes—three available for people at 80 percent of the county’s median income (AMI) and four for families at 115 percent of the AMI.
According to the EDA committee, research done leading to the housing project puts Cook County’s median income at approximately $65,000. So, to be eligible for the 80 percent AMI home, a single person could earn up to $36,000; two people, $41,150; a family of four, $51,400.
For the four homes at 115 AMI, an individual could earn up to $62,300; two people, $71,200 and a family of four, $89,000.
The EDA committee has started discussion with architect Doug Zaun regarding potential housing vendors, such as Dynamic Homes.
One Roof Community Housing will build the homes. The Duluthbased nonprofit provides housing services in the Northland, which includes building affordable homes. The merger of Northern Communities Land Trust and Neighborhood Housing Services formed One Roof in 2012.
When the residences are purchased, Somnis said covenants are in place to make sure they can only be re-sold within the price range they were purchased for, and they won’t be offered to seasonal residents, but only to people who live and work in the area.
Sale approved, with reservations
Commissioner Frank Moe said he had concerns about the project but thought the EDA was moving in the right direction. He noted that one young couple he had talked to who both work in the service industry said they wouldn’t be able to afford to buy a $140,00 house. “They are looking at moving to Silver Bay,” said Moe. “I would encourage you to keep moving in that direction, but we are not there yet.”
County Board Chair and EDA liaison Doo-Kirk said there was some confusion over what kind of housing was going to be built.
“We are not doing low-income housing, and it keeps getting called affordable or workforce housing, but in all of the studies that we did we found that the lower housing was full and the upper housing was, well, it’s probably not full because there are a lot of seasonal people in there, but it opens up the middle gap,” Doo-Kirk said.
That middle gap is housing in the $145,000 to $200,000 price range, said Doo-Kirk. She added that “people that have bought a $250,000 to $300,000 home that they cannot afford, they can sell that and step down to where it’s more comfortable to them.”
Moe replied, “I know that’s the theory. But those that are most in need of housing, at least those that live in the district that I represent, still cannot attain the housing that is proposed.”
Commissioner Garry Gamble said this conversation about affordable housing had been ongoing for a lot of years. He looked back at notes he took from a discussion held in 2012 and said it didn’t look like they (the community) had come very far.
“The most important thing to do is not to be weary in the well doing with what our intention is,” Gamble said.
One of the main drivers pushing housing prices up has been the onslaught of seasonal homebuyers who purchase homes at a higher price than locals can buy them for, said Gamble.
Still, said Gamble, he appreciated that there was some development in the discussion and some progress was being made.
“In the West End we do have affordable housing,” said Commissioner Ginny Storlie, who pointed to an affordable housing project on the Mink Ranch Road in Lutsen where new homes were built and were to be sold for $130,000, “but they are sitting empty. We tried. Maybe it’s the wrong direction. But where do we go with that?”
Gamble moved to approve the sale of the tax-forfeited lots upon review of the contract by the county attorney. Storlie seconded the motion and Doo- Kirk voted for with Moe voting against leaving the motion to pass 3-1 with Commissioner Jan Sivertson absent.
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