At the October 8, 2013, meeting of the Cook County – Grand Marais Economic Development Authority (EDA), board members discussed the need to have a director to oversee economic development activities.
EDA board members Scott Harrison, Heidi Doo-Kirk and EDA Chair Mark Sandbo said they had met and discussed the EDA director job description. Sandbo said they combined the old job description and a new one drafted by Harrison. Sandbo thanked Harrison for taking on the “lion’s share” of the work.
The minimum qualifications for an EDA director were discussed. Doo-Kirk asked if education could be listed lower on the job description, as an experienced person may be discouraged from applying if they feel they don’t meet the education requirements and they think the EDA feels education is more important than experience. “Someone may be four credits from a degree, but won’t seek the job because we’re saying education is more important than experience,” said Doo-Kirk, adding, “I would rather see a director with experience.”
The board also discussed how the position would be funded. Harrison said the EDA has budgeted $35,000- $40,000 for a part-time director. Harrison said the EDA could work with the U.S. Small Business Administration and the Minnesota Department of Employment and Economic Development and could possibly get ½ to ¾ of that money back through the economic development program.
Sandbo said, “We have ‘x’ number of dollars budgeted for a director, but it’s used up in other places. We have to make sure the person has control and this money is kept for this purpose. If we get the right person in here, we can get things done. I believe we’re turning the corner with the EDA and we’re heading in the right direction.”
The board agreed to accept applications for the EDA director position until December 1. Resumes should be sent to Chair Mark Sandbo at mjsandbo@boreal.org.
Doo-Kirk said the old job description is still on the website, as well as incorrect meeting times. The meeting time changed from 3 p.m. to 4 p.m. several months ago. EDA board member Abbey Toftey asked if the section with directors had been updated yet.
Toftey said the EDA’s website should be updated more often, like the Cook County YMCA, which updates its website or facebook page every day. “They have a beautiful website and it is creating a buzz.”
EDA board member Don Davison said he would contact the EDA’s web designer to see that the items discussed get changed.
It was also noted that the contact phone number for the Cedar Grove Business Park was for Gunflint Realty, which is no longer in business. The number listed on the website had been disconnected. The board agreed that Chair Mark Sandbo should serve as the contact person for now. Toftey wondered if the lots are listed at all. It was agreed to advertise for an “enthusiastic” realtor. It may unfortunately be too late, said Sandbo, for one pending sale in the business park. Fine Finish Painting, which had expressed interest in purchasing a lot, is apparently reconsidering its purchase.
Golf rounds down, construction costs up
Superior National at Lutsen Manager Bob Fenwick gave an update on Superior National at Lutsen golf course activities. He distributed a worksheet that showed that the number of rounds and revenue were down from last year. Revenue in September 2012 was $188,051; in 2013 it was $156,515. Fenwick said Superior National has gone one month with PR about construction under way and he said he is not sure how that affected play.
Fenwick said traditionally at this end of the year most of the rounds are purchased by seniors. Fenwick said the golf course cannot succeed with that demographic, which is why the golf course improvements need to be made, to attract younger golfers who want a more challenging course. Fenwick said the renovation to make Superior National a “resort-level” course has begun at the golf course and the work being done is “dramatic and fun.”
Mid-America Golf and Landscape of Kansas City, Missouri has been able to make better progress than anticipated, said Fenwick. He said work should be completed by September or October of next year. He said it is his hope that the 2014 North Shore Health Care Foundation golf tournament will be held on the enhanced course.
There was no discussion of the shortfall in funding for the golf course improvements. When bids were opened in August 2013, the lowest bid after value engineering was $4,160,015.42 from Mid-America Golf. That is $262,032 over the proposed budget of $3,897,982.59 as presented in the November 2012 business plan. The proposed budget of $3,897,982.50 was to be funded by $3.1 million from the Cook County local option sales tax for recreation and infrastructure, bonding and a grant from the Iron Range Resources and Rehabilitation Board (IRRRB).
When the EDA voted to proceed in August, other reductions were discussed, such as possible cost saving measures in the stormwater management plan and savings gained from obtaining tax-exempt status for construction materials. The EDA also discussed other possible sources of funding for the project, including other grant entities such as the IRRRB.
Golf course loan written off
Financials for Superior National at Lutsen were reviewed and EDA treasurer Scott Harrison proposed that the EDA “write down” its loan to the golf course by $100,335.27. He said there is no way that the golf course would be able to pay back the entire loan from the EDA of $375,335.27.
“Write down or write-off?” asked Doo-Kirk.
Harrison said write-off or write down, it was the same. “If and when the golf course makes the money, it is ours anyway,” said Harrison.
Mark Sandbo made a motion to write off $100,027 of the EDA’s loan to Superior National at Lutsen and Hal Greenwood seconded. The motion carried with Harrison, Sandbo, Greenwood, Toftey, Don Davison and Bob Spry voting in favor. Heidi Doo- Kirk voted nay.
Davison noted that the EDA used to get money from the golf course. Harrison said that is correct, “Yes, the golf course once brought in $700,000.”
In other business, Doo-Kirk said she noticed that the golf course does not recycle and she asked if a recycling program could be started. She said maybe a local resort could help with recycling. Bob Spry said it would cost something to begin recycling, but agreed it should be looked into.
The next meeting of the EDA is Tuesday, November 12 at 4 p.m. at Grand Marais City Hall.
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