We’re getting close to a point where the bonds will be paid off and the golf course will be profitable. Eda Chair Mike Littfin
The Cook County – Grand Marais Economic Development Authority (EDA) held a special meeting on Tuesday, January 25 to hear recommendations from the recently established Superior National at Lutsen golf course committee. The meeting began—and ended—with questions.
As a first order of business, EDA Chair Mike Littfin welcomed new board member Bob Spry, who will be taking the place of Jan Sivertson as the Grand Marais City Council representative. Spry will be officially sworn in at the February EDA meeting.
One recommendation brought forward by the golf course committee was that a general manager be hired for Superior National. Jim King of Tofte, spokesperson for the committee presented a draft position description for a general manager.
After a few questions about how this person would interact with the current staff at Superior National and about how the advertising for the position would be handled, a motion was passed to adopt the job description, which led to considerable discussion of how such a position would be funded.
The golf course committee presented potential changes to the budget, primarily in staffing, that could make it possible to fund the general manager position—an estimated expense of $70,000 – $75,000, which would include employment taxes, PERA, travel, and other related expenses. With those potential personnel adjustments and with the carryover of funds from the 2010 season, the committee said there would be $38,400 for the new position. They asked if the EDA could assist the golf course in funding the position with $31,600 – $36,600.
Present at the meeting was Grand Marais City Administrator Mike Roth who cautioned that before any tax money is earmarked for a golf course expense, the EDA should seek approval from the county.
Chair Littfin asked if it would be possible to hire a manager for less than $70,000 – $75,000. He said the public might not agree with the need to pay this salary, comparable to a county department head, for a golf course manager.
King said, “The golf course director has the capability to bring tax dollars into the community. I’ve looked at the head of the Cook County Visitors Bureau, the Community Center Director, the Parks Director— they are all in the same range.”
Bruce Martinson, an EDA board member and Cook County commissioner representing the Lutsen area, asked what golf course directors are normally paid. King said the current staff is underpaid by industry standards. He said he didn’t think the proposed salary was outlandish for a revenue-producing job.
Littfin agreed that this position is needed, but said the EDA has to find a way to pay for it. Martinson asked if the EDA should consider combining the golf course manager and the EDA director position. EDA Board Member Don Davison agreed this would be a good time to consider this. “If you had a really good manager, they could do both,” he said.
Littfin said the EDA should take a close look at its budget and see if any money can be reallocated. “We’re getting close to a point where the bonds will be paid off and the golf course will be profitable. I look at this as a temporary investment,” he said.
Board Member Mark Sandbo agreed, noting that the golf course bonds would be paid off in four to five years and then the golf course would be a very profitable enterprise.
Golf Course Committee Member Marland Hansen of Lutsen said, “The EDA owns the golf course, right? You’d simply be investing in your future.”
King agreed, “We need to view Superior National as a business that provides jobs; provides a tax base and provides tourism dollars to the community.”
Sandbo made a motion, which passed unanimously to accept the recommendation of the golf course committee to look into the hiring of a general manager for Superior National and that the EDA look into the financial steps necessary to make this a viable option.
Sandbo made another motion, which was seconded by Board Member Hal Greenwood to advertise for a general manager for Superior National.
Davison said he could not support the motion. “I don’t know how you can advertise for a position if you don’t know how you will pay for it,” he said.
New Board Member Spry noted that the EDA should first address the possible loss of its director before it considers funding a new position at the golf course. “Will we have Matt [Geretschlaeger] after March? If not, can we find a director who will work for the budgeted $34,000?”
Sandbo and Greenwood withdrew the motion to advertise for a golf course general manager and discussion turned to EDA staffing.
Littfin said the EDA needs to decide what it wants to do after March. He said the options are to maintain Geretschlaeger’s employment, if he agrees to stay on. “But should it be full-time or part-time? Or do we look for an EDA director and begin that search?” asked Littfin.
Davison repeated Martinson’s suggestion of hiring a fulltime person who also serves as golf course general manager. Martinson said it could work if the right person were hired. However, Littfin maintained that the golf course should be its own entity, separate from the EDA.
Greenwood said the golf course should be the EDA’s top priority at this time. He said the major mission is to get it back on track and to clarify to the public the benefit to the community of the golf course.
Regarding his EDA director position, Geretschlaeger said most of the work he has been doing is clearing up historical matters. Sandbo asked what will happen if March 1 arrives and Geretschlaeger does not stay on. He said no one else has the knowledge of all that has taken place with EDA projects.
Littfin said he would like to make an offer to Geretschlaeger to stay on half time, to get the EDA through all its unresolved issues. However, as the meeting entered its third hour, the board agreed to table the matter to review finances and other questions before making a decision.
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