At the Tuesday, August 11, 2009 meeting of the Cook County – Grand Marais Economic Development Authority (EDA), the housing administrator hired by the authority expressed frustration at hearing that some local government officials had referred to the Cook – Lake County Housing Program as a “shell game.”
Nancy Grabko, whose company, Community Fundraising Solutions (CFS), was hired in early 2008 to coordinate a housing program in Cook and Lake counties, expressed frustration that there were questions about the effectiveness— and necessity—of the program.
Grabko was hired, with the approval of Cook and Lake counties, after the EDA learned about potential grants available from the Small Cities Development Housing Rehab loan program. In January 2008, Steven Griesert of Community Partners Research, Inc., of Fairbault, MN, who completed a housing study for Cook County, told the EDA that the Small Cities grant requires counties to have a housing administrator in place in order to qualify for funding.
In March 2008, the EDA interviewed potential employees and found that the salary range for such positions was approximately $65,000 plus benefits. CFS was hired because it was deemed more affordable to contract for the housing coordinator position than to hire an employee. Cook County’s share of the CFS contract was for $20,000 for 2009 and is budgeted to be $30,000 for 2010, if the county approves the EDA proposed budget. Lake County matches the Cook County contribution to fund the position.
Grabko pointed to the successful efforts to bring rehab and abatement assessment funding to Cook County. She said there are 14 rehab projects completed or underway under Arrowhead Economic Opportunity Agency contract (five in Silver Bay, five in Two Harbors, and four in Grand Marais) and the eight new projects underway by another contractor HTP (one in Silver Bay, two in Two Harbors, and five in Grand Marais). Grabko said the scope of the five Grand Marais projects ranges from rehab work of $12,000 to the largest at $38,000. Rehab projects range from replacing windows and insulation to new furnaces and home safety improvements. She said she could not divulge the locations of the homes or names of the property owners who benefit from rehab funds because of privacy issues.
Grabko also said the Small Cities Development Program (SCDP) funds for income eligible households in Creechville are now available. Seven households in Creechville will receive abatements on their sewer/water assessments, for a total of $235,000.
Grabko reiterated her frustration that the county board had not expressed its concerns directly to her. She said she was willing to talk to the county board on a quarterly basis, but had not been invited. She did appear before the county board in April. She noted that concerns had not been expressed in those face-to-face meetings.
The EDA board assured Grabko that it was very happy with her work. EDA board member Bruce Martinson is also a county commissioner. He said the board is being especially critical in light of county budget tightening. “The reality is right now, we have to look at everything very closely,” he said.
EDA board member Hal Greenwood said he thought the county board would be reassured by a simple report listing the number of rehab and abatement projects that had been completed. Grabko said she would provide the report.
Director Matt Geretschlaeger said he had been stopped on the street by someone who had benefited from a housing rehab. “A family walked up to me and said, ‘Thank you.’ I asked why, and they said they had benefited from the housing program. That makes it all worthwhile,” he said.
Geretschlaeger said whoever works with the EDA has to have a “thick skin.”
Grabko replied, “What I care about is getting funding for this program, for getting information to clients, and for getting homes rehabbed.”
“From my viewpoint you are doing a phenomenal job,” said EDA board chair Mike Littfin. “It took awhile to get the program off the ground, but we are seeing progress; we’re seeing some projects going.”
Grabko also continues to work with Stephen Holtz and Chris Norman of Advanced Housing Concepts regarding an affordable housing project on Cedar Grove Business Park Lot 2 of Block 3. Holz asked for a variance from the business park funding source, the Department of Employment & Economic Development (DEED), to allow residential development within the business park. Dick Grabko of Short, Elliot, Hendrickson (SEH), the EDA’s engineering firm, contacted DEED asking if a variance would be considered. Pat Armon, Community Development Representative, indicated a willingness to allow residential development to occur in areas that did not benefit from DEED funding. Dick Grabko said it appears the property in question appears to meet the requirement.
Director Geretschlaeger said he had also contacted Iron Range Resources (IRR) to see if there were any restrictions on its part, as it also provided funding for the business park development. Geretschlaeger said he was informed that there were no restrictions on residential construction.
Geretschlaeger said the EDA board now had to decide whether it wanted to support Holz’s project as it goes to the Grand Marais Planning Commission for rezoning to residential.
After discussion it was agreed that the EDA did not want to set a precedent for residential use of the business park, but that it wanted to get some lots sold and this may get things started. Board member Greenwood moved to endorse the Holz housing development and to recommend to the Grand Marais Planning Commission that it approve the rezoning of Lot 2, Block 3, of the Cedar Grove Business Park to residential. The motion carried unanimously.
In other business:
» Superior National cart paths
Superior National at Lutsen (SNL) Grounds Supervisor Mike Davies said he, Director Geretschlaeger, and engineer Jamie Mehle of SEH have made progress on the project which will pave cart paths at SNL. He said they have finalized the specs for contractors for cart path bidding. The bid opening is set for August 17 at 2:00 p.m. It is hoped that whoever gets the bid will start the work immediately.
Davies said it should take two – three
weeks to finish the work.
» EDA seeks levy increase
Martinson distributed a copy of the proposed 2010 budget report developed by the Budget Committee. He said it was the same as what was presented in July and asked if anyone wanted to make any changes. He said under the proposed scenario, the EDA is asking for an $8,000 increase in its levy. He said the budget includes no increase in pay for the director and reduction in hours for the administrative assistant. It does include an increase for marketing of Cedar Grove Business Park, for the housing coordinator, and to fund the UMD Economic Development business visits. There was discussion of possible changes, but none were made and a unanimous motion passed to present the budget to Cook County as is.
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