At the November 9, 2010 meeting, Jerry Baker from the state auditor’s office presented a report of the Grand Marais – Cook County Economic Development Authority (EDA) audit for the year ending December 31, 2009. He explained some of the findings and said that overall, the audit disagreements had been resolved. However, after he left, some of his findings led to further discussion by the EDA board.
Davison ” One of the concerns was that some employees are related to members of the Superior National at Lutsen managers. Baker acknowledged that this is a small community so this is not something that can always be avoided, but he cautioned the EDA board to be aware of this and to develop a written hiring policy that addresses potential nepotism concerns to ensure fairness for all staff members and potential employees.
After giving his monthly report, Superior National Grounds Supervisor Mike Davies responded to the auditor’s concern regarding nepotism, as his daughter and son worked at the golf course in the past. His son still does. Davies said, “My son likes it up here; he has a house up here. He’s qualified, he’s a hard worker—and he’s our pesticide spray tech.”
EDA Board Member Mark Sandbo, a member of the EDA golf course subcommittee, said it is just a matter of addressing the situation when hiring. “I agree—if a family member is the best qualified person, he should be hired. But it’s the law. I don’t think we’ll change anything, but we need to have a written policy.”
EDA Board Member Jan Sivertson asked if this should be handed off to the new management board. But EDA Board Member Bruce Martinson reminded his colleagues that the EDA wanted Swanson’s Law Office to set up policies and procedures for the new board. “Has that been done?”
EDA Director Matt Geretschlaeger said the law office had been contacted, but to work out the details would take a meeting with the attorney, the EDA chair, and new management board member Jim King. Geretschlaeger was directed to set up the meeting and the matter of nepotism was dropped, at least until the golf course management is clarified.
Superior National at Lutsen management came up again as the board discussed another auditor concern— employment contracts. Baker told the EDA that an employment contract should be completed for the EDA director. The last time this was done was in 2005. Baker said contracts should be completed for all employees.
Sivertson said it was a good time to get this done. “With the change of golf course management and the winding down of the business park, this seems to be a turning point for the EDA.”
However, Martinson said it would be premature to be signing employee contracts until the EDA knew what it would receive in 2011 for operations. Sivertson agreed, “Once we know that we can decide what direction we need to be heading.”
Commissioner Fritz Sobanja was sitting in on the EDA meeting and Martinson told him that the county needed to decide on the EDA levy “the sooner the better.”
Sobanja said the county decision was a “two-edge sword.” He said some of the county board wants to hear the EDA’s vision for the levy funds before granting an increase.
“So you want us to direct the traffic?” asked Sivertson. “Do you want us to come up with our vision and bring it to you?”
Sobanja replied, “I don’t know that the EDA should come up with a hastily devised vision to use that to justify the numbers of the levy.”
EDA Board Member Don Davison interjected, “We need to hear their answer. We need to know how much we’ll have to work with.”
No agreement was reached on whether the levy or the vision should come first and the EDA moved to discuss the request for proposals for a golf course consultant to review Superior National at Lutsen. Geretschlaeger asked Sobanja and Martinson the status of selecting a consultant, a matter being handled by the county. Martinson said a selection had not been made yet, but interested parties had submitted proposals.
Geretschlaeger asked how the RFP was being paid. “Is it your intention to use the 1% sales and use tax to pay for this study?”
Martinson said that County-Auditor Treasurer Braidy Powers told him that was an acceptable use of the sales tax money. However, depending on the proposals received, Martinson said, “We may reject them. We have the right to reject any or all of them if they are really high.”
The EDA meets again on Tuesday, December 14 at 3:00 p.m. in the Grand Marais City Council chambers.
In other business:
. Nancy Grabko, housing coordinator, reported that the Tofte Township Assisted Living Market Study is underway. Her company, Community Fundraising Solutions (CFS) is assisting Community Partners Research Inc. Stakeholder interviews are taking place now. The final draft of the study should be available January 5, 2011. . Superior National Grounds Supervisor Davies said Superior National at Lutsen closed October 25 after the windstorm that hit the county and downed 26 – 27 trees. He said it would have been too much work to get it cleaned up quickly for just a few more days of golf. Some shingles also blew off the clubhouse roof. . It seems as if nothing is easy regarding the Cedar Grove Business Park. Director Geretschlaeger followed up on the fact that the final paving of the business park cannot be completed by KTM Paving this fall. Geretschlaeger said the EDA has requested a price reduction because of the delay until spring 2011. He said he has not heard anything, which is very disappointing. KTM did complete repairs to the paved golf cart paths at Superior National in early November. . The board reviewed the option for purchase of a perpetual easement for the Gitchi-Gami Trail across the golf course property. This should have been done earlier this year, but it was delayed by negotiations with other property owners. A unanimous motion passed to grant a permanent easement for a payment of $2,240.59. . Commissioner Sobanja also encouraged the EDA to consider becoming involved in the ongoing bioenergy projects. He said other EDAs are partnering in such projects.
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