The Tuesday, June 12 meeting of the Cook County – Grand Marais Economic Development Authority (EDA) was the last for Director Matt Geretschlaeger and it started with a closed session to discuss potential litigation. The EDA’s attorney, Baiers Heeren, said it was his opinion that the meeting could be closed in accordance with Minnesota Open Meeting law to discuss a summons received by the EDA from Short, Elliot, Hendrickson Inc. (SEH).
When the meeting reconvened, a unanimous motion passed to authorize Heeren to submit the potential litigation to the League of Minnesota Cities for review. The EDA board said the matter could not be discussed further at this time.
In 2006, the EDA became embroiled in a dispute with the Minnesota Pollution Control Agency (MPCA), KGM Contractors Inc. and Short, Elliot, Hendrickson (SEH) over alleged construction violations at the Cedar Grove Business Park.
In August 2010, Director Geretschlaeger reported that the dispute had been settled. He said the MPCA had released the EDA from all complaints and confirmed that the business park was in compliance with MPCA regulations. At that time, Geretschlaeger told the board that 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 environmental attorney Kenneth Podpeskar of Minneapolis. SEH was also to pay a share of the attorney’s fees.
The EDA board would not confirm whether or not the potential litigation is a continuation of that matter. However at the May 8 EDA meeting at which it was announced that Geretschlaeger’s employment would be ending, he told the EDA that he would be available to finish up matters such as the legal wrangling related to Cedar Grove Business Park construction.
Changes for housing coordinator?
EDA Board Member Mike Littfin suggested that it is time for the EDA to reconsider how its housing program is administrated. He noted that Nancy Grabko of Community Fundraising Solutions (CFS) worked for both Cook and Lake County for four years. The partnership with Lake County ended last year, so Grabko’s contract was basically cut in half, said Littfin. Littfin asked if the EDA should bring the position “in-house,” establishing an EDA housing position versus a contracted position. “We’re at kind of a turning point because we’re looking at hiring a new director,” said Littfin.
EDA Board Member Bruce Martinson said the matter should be left to the EDA personnel committee. He said that committee will be looking at the EDA director applications and how the office is staffed depends on who is hired. EDA Chair Mark Sandbo said eight applications had been received for the director position.
Nancy Grabko of CFS said, “We’ve committed to being here and helping out during this transition.”
At the end of the meeting, the board expressed appreciation to Geretschlaeger for his hard work. He is leaving the EDA to pursue a private business enterprise, Superior Zip Lines Grand Marais.
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