A dollar can’t get you a cup of coffee in most restaurants, but it is enough to buy two lots in the Grand Marais Business Park.
On June 14, Grand Marais city councilors agreed to sell Spectrum Health Companies two lots in the business park for one dollar. The sale is contingent upon Spectrum building an assisted living/ memory care facility on the land.
Spectrum owns and operates 19 assisted living/memory care facilities in the state. Most of their newer ones are located in the state’s Northeast corner, with facilities in Babbitt, Cook, Aurora, Silver Bay, Ely, Virginia, Hibbing, Duluth, Orr, Brainerd, and Grand Rapids.
John Monacelli, senior vice president finance, planning development, came before the council with Cook County-Grand Marais Economic Development Authority (EDA) Director Mary Somnis and EDA Board President Howard Hedstrom.
Somnis said the EDA had been working with Spectrum for about one year and engaged a citizen committee, “A good group of people that have a background,” in assisted living. They concluded, said Somnis, that an assisted living facility would be a good fit for the community.
Somnis said the EDA believes there are older adults that would like to remain in the community, and by building this facility, it would enable them to move to an assisted living building where they receive services and open up housing for others.
Another selling point was the creation of 25 to 30 full-time jobs Monacelli brought up. He said Spectrum had just finished a 36-unit carefree assisted living/memory care center in Virginia, and they would probably model the one in Cook County after that.
Regarding any default, “Is there any type of clause or contingency that the property reverts to the EDA?” asked city councilor, Tim Kennedy.
“If we don’t begin developing within X amount of days, the project reverts. If we can’t secure financing, the property returns to the EDA,” said Monacelli.
“What we [EDA] bring to the table is the land and the development agreement to act as the infrastructure agent with the Iron Range Resources Rehabilitation Board (IRRRB),” Somnis said. “We will write grants to the IRRRB to help pay for the infrastructure costs.”
It was noted that Spectrum Health is a for-profit company and that they hadn’t spent any money in the county as of this time.
“If this (agreement) is approved, then we will start spending money, but until then, we are reluctant to do so,” Monacelli said. “The only problem I can see is if we drilled and the whole thing is bedrock. We couldn’t afford to blast,” he added.
When asked why two lots were needed, Monacelli said the company is looking at developing workforce housing, probably an apartment building, on the upper lot. The other lot is large enough to allow for geothermal heating to be installed. If there is too much rock and the company can’t put in geothermal, they will look for other pieces of the property, said Monacelli.
Councilor Dave Mills made a motion to approve the sale, and Tim Kennedy seconded the motion. Kennedy said this new service was needed in the community and it would not only improve the tax base, but it would help stimulate economic growth “that we haven’t seen in a long time. People that have questions should talk to us,” he added. The vote was unanimous, but Councilor Tracy Benson wasn’t in attendance.
Both lots are located across from the Law Enforcement Center on County Road 7.
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