The Tuesday, September 8, 2015 meeting of the Cook County/Grand Marais Economic Development Authority (EDA) started off with good news and an optimistic tone, but ended on a sour note with frustration over a suggestion by two members of the Cook County Board of Commissioners that the EDA receive no levy monies at all.
Business interest in business park
Jack McHugh, the Realtor working with the EDA to sell lots in the Cedar Grove Business Park (CGBP), brought news of several business inquiries. He said he has heard from two parties interested in establishing a business with the owner-occupied housing option.
McHugh said George Carlson, who lives on the Gunflint Trail and operates a successful wildfire sprinkler installation company, is still interested in a lot in CGBP for his new enterprise, Wildfire Solutions, a company that designs, manufactures and distributes ultraviolet flame detectors.
He has also received inquiries from a pallet production company; from a contractor who wants to build a shop and storage facility; from a heavy equipment operator who needs a place to store equipment; and from a sled dog business.
Realtor Tim Kennedy joined the discussion for his client, N&L Samari, LLC. He and McHugh presented a draft purchase agreement for CGBP Lot 3, Block 5. Kennedy said the lot would be used to build and operate a veterinary clinic and hospital. EDA Board Member Anton Moody, who said he would have to recuse himself from a vote on the lot sale because he had bid on the project as a contractor, told the board that the plan calls for a 970-square-foot clinic and a 800-square-foot residence.
EDA board members expressed excitement about such a business in the CGBP, but balked at the $22,500 offered. The lot is currently listed at $44,000.
Kennedy pointed out what he believed were “limitations” on the lot in question. EDA Board Member Heidi Doo-Kirk said, “Truthfully, $22,500 is hard to swallow.”
The EDA board closed the meeting to discuss a counter offer with McHugh. When the meeting reopened, a motion passed asking McHugh to negotiate a sales price, with Moody abstaining. McHugh returned before the meeting adjourned with a message that the seller would agree to a purchase price of $27,500.
The board passed another motion to accept that offer, with Moody again recusing himself. A public hearing was set for 4 p.m. on Friday, September 18 to accept public comment on the sale.
Community business changes hands
Small Business Development Center Representative Pat Campanaro shared the news that Nate Sheils and Jeff Buetow, both of Grand Marais, had completed the purchase of Lyle’s Ace Hardware (formerly Superior Lumber). She said it was a pleasure to work with the men, both who have “extensive knowledge of the hardware and lumber business.”
Campanaro said they will be renaming the business Cook County Home Center. It will continue to be an Ace Hardware store, but Sheils and Buetow plan to bolster their products for building contractors as well.
Levy bombshell dropped
The cheerful mood at the meeting changed when Doo-Kirk, also a county commissioner, reported on recent county board budget talks. The EDA has asked for a levy of $180,070. Last year the EDA received $163,000.
Doo-Kirk said that although there was some support from her board colleagues for a slight levy increase for the EDA, two commissioners said the EDA should not only receive no levy increase, it should receive no levy dollars at all.
Doo-Kirk said, “I’ve been asked what the EDA would do if the county board gave the EDA zero.”
Looking shocked, EDA Board Chair Howard Hedstrom said his interest in serving on the EDA was to “make Cook County a good place to live; to develop affordable housing for young families; assisted living for community elders and to help businesses so we have jobs. If we are no longer funded to do these things, I won’t be here.”
EDA Treasurer Scott Harrison asked if the EDA were not funded, “Who would deal with finishing the construction of the Superior National Golf Course?”
Harrison continued, “What about the business park and negotiating these sales? Who would oversee the AEOA and workforce housing projects? What would happen with the funding the county gets from the SBDC for Pat [Campanaro]’s job?”
At the mention of the Arrowhead Economic Opportunity Agency (AEOA), Doo-Kirk said some commissioners believe the EDA is duplicating AEOA’s efforts. She said since we have the Cook County Chamber of Commerce and AEOA, the board asked, “Do we really need the EDA?”
Board Member Mark Sandbo shook his head and said the AEOA works with community EDAs and Housing Rehab Authorities (HRAs). Sandbo said AEOA wouldn’t be working in Cook County without its partnership with the EDA.
Hedstrom reiterated his frustration and quipped, “Since we have the chamber and the EDA, do we really need the county board?”
Board members laughed, but questioned what they could do to erase the negative impression so many people have of the EDA. Doo-Kirk said, “We cannot continue with the perception out there about the EDA. This is B.S. and I’m sick of it!”
Doo-Kirk said she would like the public to understand that the EDA levy would cost $13 for a property valued at $100,000. “So the average cost to taxpayers for the EDA is about $50 a year.”
Hedstrom asked the board to remain positive. “We’re doing good work. I feel bad that we have to be distracted by this. I have to believe this can be worked out. We need to keep moving ahead.”
The board asked Campanaro to see if the EDA could be placed on a future board meeting to again give a presentation on what the EDA does and to appeal for a reasonable levy amount.
In other business
. At the start of the meeting, the board met Ida Rukavina, regional outreach director for Senator Amy Klobuchar’s office. Rukavina lives in rural Aurora and works out of Virginia. She works with citizens from Isanti to Grand Portage and the Iron Range. She said she attends meetings that Senator Klobuchar cannot and updates the senator on local concerns.
. Reviewing EDA financials, Treasurer Harrison said, “We’re in good shape and we have some liquidity, due to the change in the administration of our housing program.” As of August 31, the EDA had a total of $181,208.96 in checking and savings.
And regarding Superior National at Lutsen finances, Harrison said rounds were down slightly from what was budgeted for in August, but added, “I’m still not feeling uncomfortable.”
He said hopefully things would pick up in September and October, especially after the new 9 holes open for play on September 28.
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