“ I love my job. I just can’t afford to work for you. EDA Director Matt Geretschlaeger ”
As the Cook County – Grand Marais Economic Development Authority (EDA) meeting was called to order on Tuesday, December 14, the fact that the Cook County commissioners had turned down the EDA’s request for an increase in its levy earlier that morning weighed heavily on the EDA board members. The EDA board now faces the challenge of cutting approximately $8,000 from its proposed 2011 operating budget, as well as conducting business with a half-time director.
EDA Board Member and County Commissioner Bruce Martinson reported that the county board had not approved the EDA’s levy request of $276,081. It approved an EDA levy of $148,566, which is up from the 2010 levy of $144,566 because of overall increased property taxes. However, the levy amount is $8,000 less than the EDA estimated it needed for barebones operations in 2011—and that amount was calculated earlier this year using a salary for a part-time director.
Martinson, a member of the EDA budget committee, said that committee would meet at the end of the week to talk about what could be eliminated from the budget. However, he said there was a new problem. The whittled down budget did not include a line item for the cost of rent and office support at Grand Marais City Hall, where the EDA office is housed. At the time that the EDA was working on its 2011 budget, it was hoped that the city would reduce or not charge for rent to assist the EDA. EDA Chair Mike Littfin said, “I suggested that the city could help out, since the county was helping support the EDA with the levy.”
However, the city did not agree and the EDA board agreed it must have an
” officeand officesupport. Although it is not known where the money will come from, a motion passed to continue paying $500 rent to the City of Grand Marais in 2011. Littfin cast a nay vote. Another motion passed unanimously to continue to pay $500 per month for office support.
Counteroffer for EDA director
Martinson then asked if Director Geretschlaeger still planned to resign on December 31, as he had announced in July 2010. At that time, Geretschlaeger said it is very difficult to do the job of the EDA director on a part-time basis, as he had been doing since May 2009, when his hours were cut to 4/5th time from 40 hours per week to 32. Geretschlaeger’s benefits were cut accordingly. In June and July 2010, he exceeded those hours and the EDA board agreed to pay him for extra hours worked. According to the EDA’s financial records, Geretschlaeger received $2,379.60 at that time. In fall of 2010 Geretschlaeger’s hours were cut back again to half time and benefits were again cut accordingly.
In 2007 and 2008 Geretschlaeger was paid $55,000 annually. In 2009 he was paid $48,653.83. His 2010 salary, through November is $30,201.64 ($27,923.04 in regular wages plus the $2,379.60 paid in July).
According to the director’s contract, either party can terminate the director’s services with only a 30-day notice.
EDA Board Member Mark Sandbo said with the stringent EDA budget, there is no way to return the director to full-time. Littfin said the EDA had not made any effort to counter Geretschlaeger’s resignation. He made a motion to ask Geretschlaeger to stay on at the current arrangement in which he receives 50% of his pay and benefits. The vote was split with Board Member Jan Sivertson absent. Mark Sandbo, Mike Littfin, and Hal Greenwood voted in favor of keeping the director on half-time; Jim Hall, Don Davison, and Bruce Martinson, voted against and the motion did not pass.
Discussion turned to the future of the EDA and the need for a director. Board Member Greenwood asked, “What is your desire? Do you want to stay on part-time or not?”
Geretschlaeger answered, “I’ve been clear since day one. I want to build that business park and get affordable housing for this county. I think I’ve done a damn good job. I’m tired of all the bad press and lack of county support.”
Geretschlaeger said it was not his fault that the economy soured, but added, “I love my job. I just can’t afford to work for you.”
Sandbo expressed frustration over the county’s denial of the levy increase. “When I look at the amount of money brought into this county by the EDA, all the grants, etc., I can’t fathom this,” he said.
Greenwood said he would like to retain Geretschlaeger, but said there just isn’t the money. Chair Littfin said since the motion did not pass, there was no other choice than to accept the director’s resignation. Martinson asked if Geretschlaeger would consider modifying his resignation to stay on for a few months “to see what happens.”
Martinson made a motion to accept Geretschlaeger’s resignation—not on December 31, but on March 31, 2011. The motion carried, and Greenwood asked Geretschlaeger, “Are you okay with that?”
Geretschlaeger nodded and said, “I don’t want to quit, fellas. I want this to work.”
Hopes set on lot sales
There may be some good news on the horizon for the EDA. Geretschlaeger announced that an offer had been made to purchase the remaining 3.2 acres of wetland credits belonging to the EDA for $9,250 per acre for a total of approximately $30,000. He said it would take approximately 30 days to close the deal.
Geretschlaeger also reminded the board that there had been a great deal of discussion about the “highest and best use” of the Cedar Grove Business Park property. He said there has been a lot of interest in Lot 1, Block 3, which is across the new Gunflint Trail from the Cook County Law Enforcement Center and county gas pumps. Geretschlaeger said the EDA’s realtor, Tim Kennedy, suggests that the best use for this property would be residential. He said the property could be subdivided to four lots and each lot would likely sell for $50,000. Geretschlaeger said that could bring $200,000 to the EDA. It would require rezoning to residential, so Geretschlaeger asked the board for direction. EDA Board Member Bruce Martinson said he supported the idea especially because it would help the city make the bond payments. The board passed a unanimous motion directing Geretschlaeger to pursue rezoning and subdivision.
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