The Cook County – Grand Marais Economic Development Authority (EDA)’s space in Grand Marais City Hall looks a bit different now that Small Business Development representative Pat Campanaro will start doing business there on April 1. Campanaro’s role with the EDA was one of the main topics of discussion at the March 11, 2014 EDA meeting.
Campanaro thanked the EDA for the modifications that separate her and the other occupant of the EDA space, Jim Boyd, executive director of the Cook County Chamber. Treasurer Scott Harrison in turn thanked his board colleague Howard Hedstrom for taking the remodeling request to the EDA’s landlord, the city of Grand Marais. The city paid a portion of the cost of renovation, $1,975 of the total $3,950.
Campanaro updated the EDA on her activities and noted that now that the office renovation is complete, the community should be made aware of the integration of Small Business Development Center to the EDA.
She asked if the board wanted to have an open house. The board agreed to hold an open house at 4:30 p.m. after the May EDA meeting on Tuesday, May 13. The open house will allow the public to come meet Campanaro, as well as a chance to talk to the new EDA board members.
Scott Harrison said the contract with the University of Minnesota Small Business Development Center, which will fund Campanaro’s services is nearly complete and should be available for the EDA board to sign at the April EDA meeting.
Hedstrom said the personnel committee had discussed the EDA bylaws and what they say about staffing. He said the EDA is not required to have an executive director. However, Hedstrom said, the personnel committee agrees that the EDA board needs administrative help. He said the personnel committee recommended hiring Pat Campanaro for up to 10 hours per month at $30 an hour to assist the EDA as needed. A unanimous motion passed to hire Campanaro, who will work under the supervision of EDA board president Mark Sandbo.
Hedstrom noted, “This doesn’t reflect what the job could be. It reflects what Pat has time for.”
Campanaro added, “And it’s what we have money for.”
Realtors for business park considered
John and Sandra McHugh of Red Pine Realty appeared before the EDA to talk about becoming the Realtors handling sales at the Cedar Grove Business Park. They asked questions about how the EDA had marketed the business park and offered suggestions on what they could do to help the EDA sell lots. John McHugh noted that it is currently hard to find information on lots for sale.
Sandra McHugh said, “With us, you’d have the power of the Red Pine Realty brand behind you.”
“And there are two of us,” added John McHugh, “So someone would always be available.”
It was agreed that board members Mark Sandbo and Abby Tofte and Consultant Pat Campanaro would meet with the McHughs to work out the details on the Realtor contract.
Golf course bonds
Following up on the resolution passed at the February meeting allowing Treasurer Scott Harrison to work with Ehlers & Associates and bond counsel Fryberger, Buchanan, Smith & Frederick on the issuance of bonds for $2,350,000 for improvements and additions to the Superior National at Lutsen golf course, Harrison reported that Ehlers had only two replies to the RFPs.
The bond rates from those firms were high, ranging from about 5½ to 6 percent. Harrison said Ehlers suggested that the golf course seek a tax abatement bond, which would drop the rate to 2½ percent.
“In short,” Harrison said, “We’re going back to the county.”
By obtaining a tax abatement bond, Harrison said the golf course would see $1.4 million in savings over 15 years. He explained that the rate is significantly less because of the certainty. He said, “Golf course revenues are pledged to pay the bonds, but if those revenues are not sufficient, the bonds are backed by the county. Basically, taxpayers are on the hook.”
However, Harrison asserted that the golf course has covered bond payments since they were first issued in 1998. He said the cash load for the new bonds would be the same.
Harrison and bond attorney Bob Toftey appeared before the county board on March 18 to introduce the idea to the commissioners. Commissioners asked for more information such as examples of successful tax abatement bond projects, options for other collateral, and the possibility of reducing the cost of the project.
In other business:
. Superior National at Lutsen financials were reviewed. Treasurer Scott Harrison said he thought the golf course would have enough cash to make it to opening and not have to borrow anything. However, he said there is still the outstanding loan of $260,000 from the EDA to pay back.
. Scott Harrison said he had talked with Tim and Beth Kennedy of Beth’s Fudge and the commercial rehab work on their building has been completed. Harrison said the way the contract with Community Fundraising Solutions (CFS), which is overseeing the grants for the commercial rehabs, was written, they will be paid out pro rata as projects are closed out. A unanimous motion passed to pay CFS $3,200 for the first 30 days of their contract.
. Howard Hedstrom said he had talked to EDA attorney Baiers Heeren about the proposal to allow living quarters above businesses in the Cedar Grove Business Park. Heeren said this is possible, but would require a zoning change. Hedstrom said the EDA could request that change from planning and zoning.
Leave a Reply