A developer had high hopes when the ground was broken for a commercial recreational project on the Sawtooth Mountain ridge overlooking Grand Marais in August 2013. Matt Geretschlaeger of Grand Marais expected his Superior Zipline Adventures project to be off the ground by spring of 2014. Construction, including excavation of the hillside got under way, however, funding fell through and the project was eventually dropped in June 2014. The property has sat idle since then—until last week when the 21.40-acre property showed up for sale, listed by a commercial realtor in Minneapolis for $399,000.
The zipline project was complicated from the beginning. In March 2012, Geretschlaeger first approached the City of Grand Marais for rezoning of property west of Grand Marais, near the former Tomteboda Motel. The plan to construct a zipline there met with opposition from adjacent property owners and the city council would not approve the plat without the neighbors’ support.
Geretschlaeger regrouped and returned to the city council in April 2012 with a new plan, this time using land owned by the city on the hill adjacent to and east of the city water tower. After an appraisal by Ramsland & Vigen, Inc. of Duluth, the city agreed to sell the land on April 25, 2012 to Geretschlaeger for $75,000.
It took some time for financing to be found, but Geretschlaeger felt he had the necessary funding—approximately $825,000—and ground was broken on August 14, 2013. Geretschlaeger worked with Geronimo Construction of Biwabik and several local contractors to clear the land and to construct a driveway to the site where two ziplines were to be installed. In addition to the zip line, long range plans called for the possibility of a snowboard park, campground and restaurant.
Part of the funding for the zipline project—$ 250,000—was to come from the Cook County Revolving Loan Fund, which was approved by the Cook County Board on July 23, 2013. However approval was withdrawn on January 28, 2014, because Geretschlaeger did not secure a loan of $350,000 from the Iron Range Resources and Rehabilitation Board, a contingency of the revolving loan fund loan.
Geretschlaeger did receive a grant of $191,000 from State Taconite Funds and a loan of $266,000 from the Small Business Administration. The funds not used for construction— approximately $35,000 according to Grand Marais City Administrator Mike Roth—remain in the hands of the City of Grand Marais. Roth said the money was being held in anticipation of eventually using the funds to bring electricity to the site.
The project also received $9,000 from the Cook County/ Grand Marais Economic Development Authority (EDA)’s Immediate Needs Fund.
Geretschlaeger made a large personal financial commitment to the project, telling the county board in June 2014 that he was using $100,000 in personal funds and listed five personal properties he was using 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 he said he was also working to secure a $329,000 bank loan.
In June 2014, an additional blow to the project came with charges of damage to a protected wetland, which Geretschlaeger said was being restored. However, at that time he also told the Cook County News-Herald he planned to sell the property. In a phone interview, Geretschlaeger said he wasn’t sure what price would be asked, but said he wanted to recoup his losses.
The property, currently listed at $399,000 by Minneapolis commercial realtor Jeffrey Meehan, can be seen on the KellerWilliams Realty website as well as on Craig’s List. The property is described as: Recreation/Commercial Land – Gunflint Trail. This property is located at the gateway to the Gunflint Trail and immediately adjacent to the Superior Hiking Trail. The driveway and building pad was cut into the hill, with dynamite, to give access to this commanding view of Lake Superior and the city lights of Grand Marais below.
Although the City of Grand Marais does not have any right of first purchase, there are some issues to be worked out before the lot can be developed, namely wetland permit issues, said Roth. Roth said the original conditional use permit was issued based on a specific location for the zipline tower and building. Somehow during construction these structures were erected in a wetland. Roth said the structures were removed. However, if a purchaser wanted to build a zipline and wanted to move the structures, he or she would have to reapply for another conditional use permit. “Any deviations would require a new public process,” said Roth.
And if the developer wanted to follow Geretschlaeger’s plan, he or she would have to address the wetland issue.
What the property can be used for is also to be determined, said Roth. He confirmed that the land is zoned recreational/commercial. The city zoning ordinance says the only use possible without a conditional use permit is “public and private parks, playgrounds and recreation areas.”
However, there are a number of uses allowed if a conditional use permit is granted, such as golf course and clubhouse, riding stables, ski areas, private commercial recreational uses, resort or lodging facilities, grocery restaurants, Laundromats, gasoline sales, gift shops or planned unit development.
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