The county board has puts its money where its mouth is in regard to funding improvements at Superior National Golf Course at Lutsen. On November 13, the board committed $3.1 million of the county’s 1 percent recreation and infrastructure sales tax revenue that it had previously agreed to reserve for the golf course.
The project had been downsized from over $6 million to $4.5 million. The difference between the county’s funding and the rest of the cost is expected to be made up with revenue bonds and up to $600,000 from the Iron Range Resource and Rehabilitation Board (IRRRB).
A memo in support of the project from Gunflint Hills Golf Club president John Lindell states, “Of all the 1 percent projects in process or proposed, this presents the most real prospect of an economic upside for the county.”
Consultant John Wait of Sirius Golf Advisors reminded commissioners that the purpose of building Superior National was to draw tourists to Cook County. “Golfers come for the golf but stay because of the beauty,” he said. Superior National benefits the county in the form of sales tax, property tax, and lodging tax, he said.
Superior National is one of the most spectacular locations of any golf course in the country, Wait said. If you took away the scenery, however, you would have a “very, very average golf course” that is substandard in some ways, he said.
Not enough money has been invested in either marketing or maintenance in recent years, Wait said, and the cart paths, tees, irrigation system, greens, and sand traps are all in serious need of repair. The course is nearing a “death spiral,” he said, and unless they upgrade it in addition to repairing it, he expects it to start running at deficits of $150,000 a year.
Golf course architect Jeff Brauer of Golfscapes said that 2/3 to ¾ of the need is for repair of the infrastructure, and ¼ to 11/3 of the need is for improvements to the design of the course. With improvements, he said, it could be one of the top 150 municipal courses in the country. This crossroad is an opportunity to “rebrand” the course, he said, saying it is “a chance to realize your full potential.”
The overhaul of the golf course will take three years and will include the addition of four acres of land that will be acquired from Lutsen Mountains. During that time, the most popular holes will remain open while new ones, just as exciting, according to Wait, will be built.
When the work is done, the course will seasonally employ the full time equivalent of almost nine people, Wait said. The business plan Wait developed will include a capital improvement fund to keep the course from returning to a state of disrepair.
Superior National Manager Bob Fenwick said they have asked the IRRRB for $600,000 over two years, and State Representative David Dill has assured them they would get the funding they need. “We feel very optimistic that that will happen,” Fenwick said. A commitment of funding from IRRRB was one of the conditions the county board laid out when it agreed to set aside $3.1 million of the 1 percent funding.
Commissioner Jan Hall asked what kinds of matching funds the business community has committed, another of the board’s conditions for funding. After a moment of silence, Cook County/Grand Marais Economic Development Agency (EDA) Chair Mark Sandbo said the Lutsen-Tofte Tourism Association (LTTA) has committed $50,000 a year for the next three years.
Commissioner Sue Hakes pointed out that the current funding plan does not include sources other than the county providing at least 50 percent of the funding as stipulated previously. She said they had been told that the course should be either 18 or 36 holes but not 27 holes as is being planned now and that it should be managed by an outside firm.
“Thirty-six holes would certainly be the ideal situation,” said Wait. “Subsequent investigation” revealed that neither 36 nor 18 holes would be practical at this point, he said. “We just have to play the hand we’re dealt.”
Wait said $4.5 million is “the very minimum required to get that resort-quality experience” that would be competitive with the best municipal courses in the region. He said he would still recommend outside management, but his consulting role with the EDA is a “hybrid” and is better than how they have been operating.
Commissioner Hakes said she would approve a lesser amount for the project but would not approve $3.1 million. A motion to commit $3.1 million passed with three ayes by commissioners Bruce Martinson, Fritz Sobanja, and Jim Johnson and two nays by Sue Hakes and Jan Hall.
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