Twenty-eight people gathered in the Commissioners’ Room Tuesday, June 22, 2010 during a presentation on the potential future of Superior National at Lutsen golf course.
Thegroup included employees and board members of the Cook County/ Grand Marais Economic Development Authority (EDA), the Cook County Visitors Bureau (CCVB), West End business people, and city councilors: Sally Nankivell, Mark Sandbo, Hal Greenwood, Matt Geretschlaeger, Jan Sivertson, Mike Prom, Scott Harrison, Mike Larson, Sue Hakes, Bill Lenz, Mike Davies.
“We really believe Superior National is an important asset to our tourism industry,” said Sandbo, on both the EDA board and the golf course committee.
Sixty percent of the county’s economy is directly related to tourism, said Mike Prom, owner of Voyageur Canoe Outfitters at the end of the Gunflint Trail. That’s the highest percentage in the state, he said, adding that for every dollar spent on lodging in Cook County, tourists spend another two dollars on other things.
CCVB Executive Director Sally Nankivell asserted that insufficient tax funding for marketing and infrastructure have caused a decrease in the Cook County tourism industry over the last decade. The golf course proponents also believe that Cook County is losing its “North Shore brand” to Duluth and Lake County. Prom said the problem also affects real estate sales and results in fewer telecommuters and retirees moving up here.
Superior National revenue has been declining since 2000, said Sandbo. Prom pointed out that golf has been declining across the nation. In Cook County, however, he said, the drop in cash flow is in direct proportion to the decline in capital and marketing outlays. According to Nankivell, an average of $101,000 a year was spent on maintaining Superior National infrastructure between 1995 and 2002, whereas only about $29,000 a year has been spent since 2006.
The course is in jeopardy of defaulting on its revenue bonds, Sandbo said. He and Nankivell made several recommendations to turn the situation around:
. Leasing the golf course to
a new nonprofit management corporation, just as the DECC is leased out by the City of Duluth and as ski areas around the nation are
leased out by the federal government
that owns the land.
. Using $400,000 of county
PILT money (payment-inleu
of-taxes) for paying off
golf course bonds.
. Securing $140,000 of county
funding per year for future capital needs through an increase in the EDA levy.
Commissioner Jan Hall asked why they have continued to build out since 1999 when they saw tourism dollars start to fall. Sandbo replied, saying they hoped tourism would make a comeback.
Hall added, “To compare Cook County to Duluth, that’s a big stretch to me.”
Superior National Head Superintendent Mike Davies outlined some of the capital needs at the course. “We have sand traps on the course that some people consider gravel pits,” he said. They need new mowers and new irrigation equipment. The only things holding the equipment together right now are the excellent skills of mechanic Jim Zunker, he said.
“One good fairway mower is $30,000,” said Sandbo. The needs Davies suggested would cost $1.2-1.5 million, he said.
Capital improvements at Superior National constitute one of the seven projects slated for income from the new 1% Cook County sales and use tax.
“We need closer to $2.1 million,” said Jim King, Friends of the Golf Course member and Tofte town supervisor. “We’re asking for considerably less…to bring things up to standard.” He pointed out that the golf course also benefits Cook County residents, many who moved here because of amenities such as the golf course. Two days ago, he said, 24 senior citizens played golf there as they do regularly and then went out for dinner together. In the rain the night before, 70 men participated in league golf. “It’s a treasure and it’s a resource that we all use,” he said.
Commissioner Fritz Sobanja said he wanted to speak on behalf of some community members and constituents. He asked for a breakdown of costs and a business plan that showed where the profit would be. “We’re talking about spending taxpayer dollars here,” he said. “Where’s the return on this? I wish you guys would get it together and bring this information when you come here and take up our time.”
Accountability will be necessary, Commissioner Bob Fenwick maintained. “Thatgolf course will not be profitable for a long, long time,” he said. The board was told the course would be profitable if the bonds were paid off, and now they were being told the course needs a $140,000 a year subsidy, he said. A subsidy would be okay if it results in a quality asset to the county, but it needs to be state-of-the-art in order to draw tourists. “Golfers go where they have good golf courses,” he said.
Fenwick said he would need to see a 10-year business plan before he would be willing to talk about granting an ongoing subsidy. In light of decreased state funding, PILT funding should be considered part of the county’s general revenue fund, he said.
Commissioner Bruce Martinson said he supports the concept of a new management structure. Thegolf course needs to be run by a group that has a lot of passion for it.
Mark Sandbo agreed that they need to develop a business plan and purported that they are promoting the entire county and not just the West End. “It’s the Cook County
Visitors Bureau,” he said, indicating that promoting the golf course would help everyone. He referred to a story Mike Prom had told regarding customers of his who showed up for a Boundary Waters canoe trip with golf clubs in their trunk. Their plan was to golf at Superior National on their way out of the county.
Sandbo asked the board to appoint a point person, and Jan Hall suggested Fritz Sobanja. Sobanja said he would be willing to do it but said that wouldn’t stop him from asking hard questions. Sandbo said he would be happy to work with Sobanja, because if they could sell him on the golf course, they could sell the rest of the county. Commissioner Martinson recommended Bob Fenwick for the job instead. The board decided to have both Sobanja and Fenwick work with the group advocating for the golf course, with Sobanja as the point person.
A new golf course management organization should not be blended with the CCVB, Fenwick said, and they should be very careful about who would be involved.
It appears that new directions may be ahead for Superior National. The energy to carry it into a brighter future is definitely on the rise.
Leave a Reply