Following the affordable housing information and strategy meeting at Lutsen Resort on Tuesday, April 29, Scott Harrison (left) and Cook County Administrator Jay Kieft discuss housing options for not only West End residents, but all residents of the county. Harrison, who owns Lutsen Resort, is also on the Cook County/Grand Marais Economic Development Agency (EDA) board, which has for several years looked for ways to make housing more affordable for new and existing residents.
“On the issue of affordability of single family homes, 83 percent of respondents said they were dissatisfied or very dissatisfied,” said West End Cook County Commissioner Bruce Martinson to a group of about 50 people who attended an information and strategy session on affordable housing and buildable lots in the West End of the county.
Martinson was referring to a survey completed by the Go Cook County Team, which conducted interviews with 90 community leaders as well as an online community perceptions survey that received 400 responses confirming that most respondents believe housing is too expensive in Cook County.
The meeting was held at Lutsen Resort in the conference room on April 29. It also included information on starting or growing a business.
Martinson cited more information gleaned from the Go Team survey: “The county’s median inflation adjusted home price increased 78 percent—from $107,000 to $240,000—between 2000 and 2010. These figures show Cook County’s affordable housing challenges to be daunting.”
Cook County Commissioner Bruce Martinson led a group of speakers from the area and region who talked about a wide range of topics that pertain to making housing more affordable in the county and the West End. The meeting was held at Lutsen Resort on Tuesday, April 29. (L-R, front) Commissioner Martinson, Barb Ackerson and Leah Hall of AEOA, EDA Board Member Abby Tofte. (L-R, back) Scott Zahorik, Lutsen Supervisor Andrew Beavers, Realtor John Oberholtzer, County Administrator Jay Kieft.
John Oberholtzer of Timberwolf Realty said he used $200,000 as a limit when he searched for homes for sale in the West End. He said he found five under $200,000 in the West End and 10 in the county.
“These aren’t dream homes. You can’t get too picky and you have to realize that you will need to put some sweat equity into a house to get it the way you want it,” said Oberholtzer.
Oberholtzer said he looked at lots priced at $29,000 and said there were quite a few out there and many at $50,000. One attendee said that by the time one paid for the lot, put in a road, power, and built a septic system that they would have spent $100,000 and still not have a place to live. Oberholtzer agreed and said that many people build a small structure first and then build a bigger home on their land as they can afford it.
Schroeder offers successful model
Martinson shared information about the affordable housing project that he and Supervisors Bill McKeever and Steve Schug helped put together for Schroeder Township in 2002 at the Fradenburg Creek sites.
“The township wanted to increase the number of homesteaders after losing 73 residents in 1985 when LTV Mining closed the housing development at Taconite Harbor.
“In 1999 LTV donated 90 acres of land and the Iron Range Resources Board (IRRRB) provided $80,000 to construct a road and provide power to the newly developed lots. “With other costs incurred to survey, plat, pay attorney fees and delineate wetlands, development expenses totaled $111,676. The lots averaging about 10 acres were priced at below market rate of $7,000 to $12,000. A very conservative appraisal stated the value was at least $12,000 over Schroder’s selling price.
“With 21 interested applicants for eight lots, a lottery was held to determine the new owners of each lot. Some of the buyers were in a lower income bracket. The original conditions were for the property to be homesteaded within five years with a $12,000 mortgage on the property forgiven in seven years if the property was not sold before hand. The township removed the conditions a few years after the sale and seven of the eight lots are now developed with livable structures. That might be a model we might want to revisit,” said Martinson.
AEOA and EDA offerings
Leah Hall from the Virginia office of Arrowhead Economic Opportunity Agency (AEOA) said AEOA was available to assist buyers of existing homes with a down payment, financing and even mortgage payments and would assist the Cook County/West End in developing affordable lots.
“We can’t work with someone trying to purchase a home off of the grid. If you don’t have running water or electricity, you won’t qualify,” Hall said.
“We are here to meet with folks no matter where they are on the home buying spectrum,” Hall said, adding that AEOA was going to have a free firsttime homeowner workshop on June 7 in Grand Marais at the Cook County Higher Education office.
“People have gone through some tough times. If you’ve got problems, talk to us. There are many things [energy assistance, furnace repair etc.] that we can do to help people stay in their homes,” Hall said.
Cook County/Grand Marais Economic Development Agency (EDA) Small Business Development Coordinator Pat Campanaro said, “If you are interested in starting a business or taking your business to the next level, I would be very happy to help, I am here to help you.”
Campanaro also works with the University of Minnesota Duluth Center for Economic Development helping with start up ventures and existing businesses through professional consulting, training seminars and finding capital.
“You might have to put in some sweat equity into your business. Despite what you read on the Internet, there is no free money out there, but the county has a revolving loan fund and there are other agencies that can help,” said Campanaro. Looking to the future
Martinson ended the night by saying that the county may acquire property through a proposed land exchange of county land within the Boundary Waters Canoe Area Wilderness for U.S. Forest Service land outside the wilderness. He said although the priority for acquired land is currently for fire halls, communication towers and gravel resources, some land was put on a list for housing development—60 acres east of Birch Grove school property is one of the parcels on the list.
Martinson said after appraisals are done at the end of August, Cook County will know which parcels will be acquired in the trade. However, the USFS doesn’t expect the final deed to transfer until June of 2015.
Martinson also said he had talked to a Minnesota Power representative about the availability of land owned by the company for affordable housing.
And, Martinson added, “I have just learned that the Northspan group on behalf of the Go Team Housing Task Force has submitted two grant requests to fund a study that would assemble a team of affordable housing experts to study the feasibility and best practices of developing affordable workforce housing in Cook County.”
The meeting ended with a starting point. Martinson said, “Your comments will be important to the Go Cook County Team and the West End housing advisory/work group.”
Leave a Reply