In an anti-climactic end to a nearly four-year-long debate, Director Matt Geretschlaeger announced to the Cook County – Grand Marais Economic Development Authority
EDA) board on August 17, 2010, that the dispute with the Minnesota Pollution Control Agency (MPCA), KGM Contractors Inc. and Short, Elliot, Hendrickson (SEH) Engineers over alleged construction violations at the Cedar Grove Business Park had been settled. “It’s finally over,” said Geretschlaeger.
The wrangling over whether MPCA allegations were correct and regarding who was responsible for payment of penalties began when citations were issued by Cook County Planning & Zoning staff, working on behalf of MPCA, on December 14, 2006. According to the MPCA, inspections in 2006 identified nine violations of the permit issued by the MPCA—a National Pollutant Discharge Elimination System (NPDES)/State Disposal System (SDS) general permit, which “authorizes the discharge of storm water associated with construction activity.” Thepermit area was for 6.75 “disturbed acres” and the creation of 2.75 acres of new impervious surfaces. The entire business park is 70 acres.
At the August meeting, Director Geretschlaeger happily reported that the negotiations were finally complete. He said KGM Construction paid the MPCA fines, which according to a letter from Lisa Thorvig of the MPCA totaled $40,000. KGM also completed projects totaling $80,000 and paid $14,000 of the EDA’s legal fees from Kenneth Podpeskar of Minneapolis.
Engineering firm SEH will also pay $14,000 of the Podpeskar legal fees. Geretschlaeger said the EDA was ultimately out $30,000 in attorney’s fees and all of the time the director spent in negotiations all those years.
Geretschlaeger added that he was displeased with SEH’s “hold harmless clause.” He said the EDA had
been harmed and he will continue to negotiate to see if the EDA can recoup any more of its expenses, however, he said it is great news that the MPCA has released the EDA from all complaints and confirmed that the EDA is now in compliance. Geretschlaeger said it is good that it is over and the results are positive, as the original fines were approximately $100,000.
EDA Chair Mike Littfin said, “It has been a long, drawn-out, expensive process. Theamount of hours our director put into this—directly and indirectly—is incredible. Thankfully, it’s behind us.”
Board Member Mark Sandbo agreed, adding, “This debate put the EDA in a negative light.”
“Hopefully we can now move forward,” said Littfin.
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