The road that was going to lead to the Superior Ziplines is padlocked when wetland mitigation work is not being done. It made a dreary picture on the foggy morning of June 12, 2014.
Grand Marais developer Matt Geretschlaeger has confirmed the widely circulating rumor that he will not build a zip line on 22 acres of land he purchased from the city of Grand Marais in April 2012.
Reached by phone on June 9, and asked what was happening with his Superior Ziplines development, Geretschlaeger replied, “Absolutely nothing.”
Geretschlaeger said the obstacles to completing the project were insurmountable. He said, “There was too much of a path of resistance. I’m not going to deal with it anymore. I’m completely selling out.”
The property, which Geretschlaeger purchased from the city on April 25, 2012 for $75,000, is located about a quarter mile up from the city’s water tower just off of the Gunflint Trail on the hill overlooking Grand Marais.
At the time of the sale some citizens voiced concerns that Geretschlaeger, the former director of the Cook County/Grand Marais Economic Development Authority (EDA), would like to see the property used for a highend housing development.
Geretschlaeger assured the community and his funders that was not the case.
In the business plan for Superior Ziplines, Geretschlaeger hoped to give 26 people part-time work and two full-time people work, as well as draw more people to the area with two zip line experiences. One line was to offer a “high flight” experience and the other was to be designed for children and the “faint of heart.” Plans also included a small lodge building and a parking lot that would fit 34 vehicles.
Geretschlaeger broke ground on the zip line project on August 14, 2013, working with a civil engineer and Geronimo Construction of Biwabik, which were helping with the planning and design. Some of the land was cleared and a driveway put in.
Geretschlaeger’s business plan relied on a $250,000 loan from the county’s revolving loan fund, which the county agreed to lend in July 2012. The agreement was contingent on Geretschlaeger securing a loan of $350,000 from the Iron Range Resources and Resources Board (IRRRB).
On July 23, 2013 Gerestchleager returned to the county board seeking a renewal of its approval because his financing had not been finalized within six months as required by county guidelines and because it was different from what had been stipulated. Geretschlaeger had not gotten a loan from the IRRRB, but he did get a grant of $191,000 from State Taconite Funds instead. He also acquired a loan of $266,000 from the U.S. Small Business Administration. Geretschlaeger also received a $9,000 grant from the Cook County – Grand Marais Economic Development Authority Immediate Needs Fund.
The Superior Zipline project was to be done in three phases at the original cost of $929,300, eventually lowered to $825,000.
Geretschlaeger told the county board he had made a huge personal financial commitment to the project, saying he was using $100,000 in personal funds and listed five personal properties he would use for collateral: his home, a piece of property with a pole barn on it, a vacant lot, a cabin, and the zip line parcel itself. At that time, Geretschlaeger said he was also working to secure a $329,000 loan from the Security State Bank.
In the end, on January 28, 2014, the county board decided to void the agreement to loan $250,000 from the county revolving loan funds, stating that Geretschlaeger hadn’t met all of the criteria.
After that meeting, Geretschlaeger told the Cook County News-Herald, “I don’t know what I’m going to do now. I was willing to risk 50 years of assets to create 35 jobs and make $17,000 a year. This was truly my attempt to help the community.
“I guess I would like to say that I’m hurt but not down,” Geretschlaeger said.
The final blow for Geretschlaeger came when he was contacted by Cook County Planning & Zoning Administrator Dave Demmer, notifying him that some of the work conducted last fall had caused damage to a protected wetland.
Demmer said Geretschlaeger has until June 30, 2014 to resolve the issue or face a fine, said Demmer.
Geretschlaeger said the violation was his error. “I was in violation by about 400 feet. When you’re working with a bulldozer, it kind of mushrooms.”
Geretschlaeger was quick to add that the excavating contractor did “absolutely nothing wrong.”
Geretschlaeger also told the News- Herald that mitigation is under way. “I’m tearing the road that went to the upper tower out. I’m tearing out the improvements and returning it to the county’s standards,” he said.
City Administrator Mike Roth said the land purchased by Geretschlaeger received a variance and conditional use permit only for a zip line, and anything else that might be planned for that property would have to be reviewed by the city’s planning commission and then approved by the city of Grand Marais.
“That is the reason I’m selling,” said Geretschlaeger. “The zip line was my plan. It was the zip line or nothing. I don’t want to be accused of ‘bait and switch’”
When asked about any public money the Geretschlaegers had received, Vicki Geretschlaeger replied in an email to the News-Herald. “The city still holds about $50,000 of the $199,000 from the Taconite Fund money. Funds were directly sent to the City of Grand Marais and the EDA.
“…Whatever draws we made against the Taconite Fund will be passed on to the next owner as incentive. We intend to recoup our costs and not benefit from the Taconite Fund,” she said.
The Geretschlaegers said the zip line property and all of their other properties will be listed for sale. Asked what price will be asked for the zip line property, Matt Geretschlaeger said he wasn’t sure. “I haven’t figured that out yet. I just want to recoup my costs,” he said. Rhonda Silence also contributed to this report.
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