Scott Harrison came before the county board on October 11 and asked the county board to consider increasing the Cook County/Grand Marais Economic Development Authority (EDA) levy from the $180,000 they received in 2016 to $269,290 for 2017.
Harrison cited several significant projects that the EDA needed help with this year but added he didn’t think the EDA would request as much in funds from the county next year because these projects would be one-time costs.
The largest project is the assisted living facility Spectrum Health wants to build in Grand Marais.
Spectrum Health has shown interest in coming to Cook County in the past. They made presentations in 2011 and 2012, searching for assistance in building a 38-unit assisted living facility in Grand Marais, but they could not secure a “Mutual Exclusivity Agreement” with the city at that time. They also asked for help with getting grants and a donation of five acres of property to build on.
Spectrum Health Companies own and operate 16 Carefree Assisted Living Facilities throughout Minnesota. In the Northland, they have businesses in Duluth, Silver Bay, Ely, Cook, Babbitt, Grand Rapids, Virginia, and Orr.
In Silver Bay, the 30-unit facility had an in-house memory and assisted living available for residents, and units are priced $1,500 per month less than the cost of a nursing home. Residents have the option to select the care best suited for their needs.
Spectrum plans to have an assisted living facility building in Grand Marais up and open for business by the fall of 2017. The company is seeking 3-5 acres of land for the building and room enough for a geothermal field and parking. So far options include property near the Horse/ Dog Park and across from the law enforcement center or behind the Grand Marais Apartments.
Harrison said the assisted living building would cost $5.5 million to build and the return in tax dollars to the county would be significant.
Under the 2012 proposal, Spectrum was looking at putting up a 32,000 square foot building. While under construction 30 full-time construction jobs would have been created and once completed 20 fulltime employees would have been needed to staff the facility.
Harrison also said the EDA was working to develop a workforce housing project near the Homestead Housing Cooperative in Grand Marais. Initially, seven homes will be built by One Roof Housing from Duluth, with an additional three more multi-family dwellings planned for the tax-forfeited land purchased by the EDA from the county for $8,400.
Last, the EDA is working to develop a $2.4 million housing project for Lutsen. All told, said Harrison, once all of these projects are built, the county would receive property taxes on more than $9 million EDA-sponsored projects, “Which is a heck of a payback,” he added.
As Harrison went over the proposed EDA budget, he noted that the KGM settlement would be paid off next summer, meaning they would need $20,000 fewer dollars from the county.
But Commissioner Frank Moe, who had asked about a proposed Mountain Bike Support position the EDA would like to create for $20,000 per year to hire someone to assist the Superior Cycling Association to develop mountain bike single track trails and races, might use the money it is now paying to KGM to fund that position. He also suggested that the EDA better define the job and bring it back to the county board next year for consideration.
At the end of Harrison’s presentation commissioners said they would take Harrison’s EDA budget request under review, but they cautioned him that with the levy increase now sitting at 19.9 percent, they were going to have to find cuts somewhere.
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