The November meeting of the Cook County/Grand Marais Economic Development Authority (EDA) ended with some lively debate over what the EDA should request as its levy for 2015.
EDA Board Member and County Commissioner Heidi Doo-Kirk said the current levy amount proposed for the EDA is $162,320. Doo-Kirk said Auditor Braidy Powers asked her if that was the EDA’s final levy request.
Howard Hedstrom asked his EDA board colleagues, “Are we happy with that?”
EDA Chair Mark Sandbo emphatically said, “I’m not! We don’t get the full amount we are authorized to levy for. We have to work like dogs to get the EDA budget to balance.”
Doo-Kirk asked Sandbo if he wanted to ask for the full amount for which the EDA could levy, which is approximately $386,000 and, she said, which the county board would surely deny. Sandbo said no, but stressed that the EDA needs more. Doo-Kirk asked for suggestions.
Sandbo said the EDA needed to ask for enough to hire a director. EDA Treasurer Scott Harrison questioned whether that was necessary. He said the EDA has worked hard to obtain some “liquidity.” He said the EDA should invest in programming, to which Sandbo declared, “We don’t have a director! We can’t run this as a board. That doesn’t work.”
Sandbo noted that the EDA is still working to come to an agreement with KGM Contractors on environmental concerns raised during construction of Cedar Grove Business Park in 2006. He said that would likely have been resolved if the EDA had a director.
Harrison replied, “There are some who believe we have those problems because of the director we had.”
Sandbo reiterated that the EDA needs a director, noting all the work that Harrison had done regarding the Superior National at Lutsen golf course construction bonding. “Scott has worked his tail off,” Sandbo said to the board. “And he’s not getting paid and that’s not right.”
Hedstrom said he was okay with upping the EDA’s levy request but he didn’t think the EDA had the “body of work” to hire a full-time director at this time. Sandbo agreed, but added, “That is what directors do—they find projects to promote economic development.”
Hedstrom said the county may not agree to allow the EDA to levy more, but said it didn’t hurt to ask. He moved to request an additional $30,000 for the EDA levy for administration, bringing the levy request to $192,329. EDA Board Member Hal Greenwood seconded and the motion carried unanimously, with Board Member Abby Tofte absent.
The county board will discuss the EDA levy again at its December 2 meeting.
Superior National at Lutsen struggling during construction
Harrison gave an update on construction at Superior National at Lutsen golf course (SNL), reporting that Phase 1 is essentially complete, but there are a few things to be dealt with in the spring before work starts on Phase 2. He said it is believed that work on Phase 2 will begin in August. Hedstrom asked if it would be completed next year. Harrison said no.
Harrison distributed a handout on the source and use of funds for the SNL renovation as of October 31, 2014. He said income for 2014 was down $62,864 from 2013. Harrison said it was a really bad year but said some operational reductions helped “save” the golf course. He said the course made a number of reductions, such as $65,000 in payroll expenses; $24,000 in administration and general; and $13,160 in clubhouse expenses.
Harrison said the golf course was also reimbursed $21,029 from the Poplar River Water District pipeline project; $49,987 from 1 percent funds that were spent in 2012 at the county’s request; and $14,000 for the sale of 14 golf carts.
Harrison said after all that, the golf course had a “positive variance” of $22,152. Harrison said it was a “lousy year” but could have been worse.
As of October 31, 2014, the SNL balance sheet showed a balance of $66,708.74 in checking and $50,017 in savings. The balance sheet shows total fixed assets, consisting of golf course land, buildings and equipment, at $3,233,574.71.
New golf pro hired
Harrison reminded the board that SNL’s golf pro Greg Leland had submitted his resignation notice several months ago. Leland recommended hiring Logan Dahlke who had been hired as the assistant golf pro for the 2014 season.
Harrison said an offer was made to Dahlke and he accepted. Harrison said the employment period is restricted to when the golf course is open, plus monitoring the golf course website and email traffic when it is closed. Dahlke will be paid an hourly rate of $20 for those activities. The contract will be in effect for one year.
Hedstrom asked who supervises the golf pro. Harrison said the newly formed golf course management company, CRMGC.
Hedstrom asked who makes up the CRMGC. Harrison said it consists of three Lutsen-Tofte Tourism Association board members: Mike Larson, Scott Harrison and another to be named; a county staffer: Auditor Braidy Powers or designee; and an EDA representative to be named.
The EDA board unanimously approved hiring Dahlke.
In other business
. Small Business Development Center representative Pat Campanaro said Grand Marais City Administrator Mike Roth had been contacted about the possibility of lot owners building housing above their business in the Cedar Grove Business Park. Before considering this at the Grand Marais Planning Commission, Roth said he needs a complete packet explaining just what the EDA is proposing. Sandbo said Roth also requested information on other business parks where this has been done. Campanaro said this needs to be completed so the EDA can go before the Grand Marais Planning Commission. . Sandbo said the wetland re-delineation was done at Cedar Grove Business Park. The original delineation was done in 2005 and the new delineation was required because significant work had been done on several lots. The board reviewed the documentation from Hayes Surveying & Mapping PC. The report is for a 55-acre delineation. The firm found 16 type 2, 6 and 7 wetlands with two new areas of wetlands of 0.25 acres each. The wetland delineation is valid for three years. The total due for the wetland delineation was $2,640. . The agenda called for a closed meeting to discuss mediation with KGM Contractors with League of Minnesota Cities attorney Kim Kozar of Hoffberry & Kozar. . Campanaro said the committee to review and select commercial rehab projects had met. Six locations were identified as possible projects and they will receive invites to complete a final application. . Scott Harrison said Cook County Visitors Bureau/ Visit Cook County Director Linda Kratt had contacted him. CCVB is thinking about hosting a Fat Bike Tire Race next year and would like to use the Superior National at Lutsen golf course area. The EDA board enthusiastically endorsed the idea.
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