The Cook County – Grand Marais Economic Development Authority has tentatively agreed to donate two lots in the Cedar Grove Business Park to the Arrowhead Economic Opportunity Agency to develop an affordable rental complex. The lots are across the road from the Cook County fueling station on the Gunflint Trail.
The Cook County – Grand Marais Economic Development Authority (EDA) took steps at its November 12, 2013 board meeting to meet the need for “safe, decent, affordable rental units” in Cook County. The first step was a commitment to donate up to 4.03 acres of land in the Cedar Grove Business Park (CGBP) if funding is found to construct 24 units of affordable rental housing.
Leah Hall of the Arrowhead Economic Opportunity Agency (AEOA) returned to the board with more information on the concept she introduced to the EDA in May 2013. Hall distributed a sample resolution to be used in case the EDA decided to donate land for the project. She said, “The resolution is something for you to look at and to talk to your attorney about. It basically explains the project and states that the EDA gives its support if we are funded.”
The resolution states that AEOA proposes to develop and become owners of approximately 24 rental units on two lots on the southern end of the business park for the purpose of creating affordable rental options for low/moderate income households in Cook County.
Hall said the need for affordable rental properties was identified in the Cook County Housing Study completed in 2009, a community survey completed in by the AEOA in 2010, and community discussions and an economic analysis conducted by the Cook County Go Team in 2012.
Hall explained that the rental units would be in a lodge-style apartment complex, consisting of two floors with walk-up entry options or a townhome style complex. She said, “We won’t know what the design will look like until further down the road.”
Also to be determined is the combination of one-, two-, and three-bedroom apartments. As an example of the possible layout, Halls said a breakdown of the 24 units could be six one-bedroom units, 10 two-bedroom units and eight three-bedroom units. “The goal is to have at least 75 percent of the units targeted toward families,” said Hall.
Hall said the target population will be a combination of low-and moderateincome singles and small families. Rent will be at 50 percent of the HUD median rent, as determined by Minnesota Housing Finance Agency, which would be $578 for a one-bedroom; $695 for a two-bedroom; and $802 for a threebedroom.
If the EDA passed a resolution of support, Hall said the next step would be for AEOA to create a draft operating plan and secure pre-development funding. She said AEOA would submit applications for funding from the Minnesota Housing Finance Agency (MHFA) and the Greater Minnesota Housing Fund (GMHF).
“When do you want this from us?” asked EDA Board Member and County Commissioner Heidi Doo-Kirk, telling her EDA colleagues that she appreciated the language in Hall’s proposed resolution stating that the project is contingent on AEOA’s ability to secure funding and that AEOA will “front the money.”
EDA Board Member Don Davison asked if the next meeting would be soon enough. He said Hall and/or the EDA would have to go to the city and county for approval as well. He pointed out that it would be likely that there would have to be a zoning change approved by the city. EDA Chair Mark Sandbo turned to City Administrator Mike Roth and County Commissioner Sue Hakes, both sitting in the audience and asked, “What do you think?”
Hakes said she and Doo-Kirk could not speak for the entire county board. “I think the county board needs more information. Leah needs to come to a county board meeting.”
Roth said he could not speak for the Grand Marais city council.
Davison made a motion, seconded by EDA Board Member Hal Greenwood to approve the resolution presented by Hall, contingent on approval of the EDA’s attorney Baiers Heeren, as well as the city of Grand Marais and the county board. The motion carried unanimously and Doo-Kirk asked how soon the project could get started.
Hall outlined the lengthy process— conducting a formal MHFA market study, a physical study of the land, hiring an architect, conducting public meetings on building plans and design, site planning and final funding. “I’d like to see if we could pull this off by June 2014, but it will more likely be June 2015,” she said.
The EDA had taken initial steps toward donating the land to AEOA for this project when it asked Attorney Heeren to review the Cedar Grove Business Park declaration to see if housing could be built in the business park. Heeren reported to the board that the proposed AEOA project would not be allowed under the CGBP’s current declaration. However, he said the declaration could be changed by a vote of 75 percent of the landowners. “Which is basically us,” said Chair Sandbo.
The board asked Heeren to draft an amendment with new language to allow a multifamily housing complex in the CGBP.
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