A crowd of more than 20 people sat in the Cook County commissioner’s room at the courthouse while the county board discussed requests for help with Superior National at Lutsen Golf Course Tuesday, September 14, 2010. The discussion some thought might take place did not, however.
When the agenda item came up, golf course advocates Mark Sandbo and Hal Greenwood moved to the front of the room, thinking they were going to be allowed to present a formal proposal for use of the countywide 1% sales and use tax that will be used for numerous recreation-oriented capital improvement projects. Board chair Fritz Sobanja told them that after a meeting of golf course proponents with the county board, Grand Marais City Council, and the city-county Economic Development Authority the week before, he thought the plan was only for a board discussion rather than consideration of a 1% request or interaction with the public. Bruce Martinson said he had suggested that an application be submitted but not necessarily at this meeting.
“I just do not want to commit any funds—or a number—to the golf course at this time,” Sobanja said. He said he thinks a portion of the 1% should be allocated to the golf course, but he wanted to weigh the request against requests for six other projects that have been slated for funding.
The golf course advocates have appeared before the county board several times recently, modifying their original proposal to reflect feedback they were getting from the board. “We may be tired of hearing the same thing,” Commissioner Bob Fenwick said.
“Very tired,” Commissioner Sobanja added. He said he did not want to make any decisions on the application for 1% money at that meeting since he had not time to read it and think about it. He stated that the written proposal and statement of need brought to the board previously did not reference the source of its statistical claims. County Attorney Tim Scannell pointed out that the county has not established guidelines for applicants to follow.
Scannell recommended that the board set up a standard process for dealing with 1% project applications “so it’s not happening on a rolling, ad hoc basis,” he said. “These are large numbers.” The 1% tax can by statute generate $20 million plus the cost of financing.
The board agreed to set up a committee comprised of Scannell, Auditor-Treasurer Braidy Powers, and two commissioners to review 1% project applications. Appointed to the committee were Bob Fenwick and Bruce Martinson.
The committee will also look into hiring a golf course consultant to analyze the proposal and offer options for dealing with the course’s situation. Rounds played per year are significantly down from a decade ago, and revenue is not able to maintain the level of maintenance, capital improvements, and marketing that course proponents believe necessary for the success of the course.
A 1998 revenue bond funding the expansion of the course to 27 holes stipulated that if net revenues were less than 115% of annual debt service, a “nationally recognized golf course consultant” would be hired to recommend “corrective measures.” This has not been done, although revenue has been less than 115% of annual debt service most of the years between 1998 and now.
Theboard made no decisions on requests to loan the EDA $460,000 for payoff of the course’s revenue bonds or to help the course obtain an additional $375,000 over the course of nine years for operating expenses through an increase in the EDA levy.
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