Added to the county board agenda at the beginning of its October 25, 2011 regular meeting was a request from the Cook County/Grand Marais Economic Development Authority (EDA) for $225,000 to help Superior National at Lutsen Golf Course meet payroll and pay bills as it heads into the winter months. But the last-minute, off-the-cuff way it was brought to the board did not sit well with two out of the three commissioners in attendance.
Although Superior National has always been self-supporting, the county has for the last three years been granting “bridge” loans to help the golf course through the months when it does not generate income. The course previously obtained bank loans but was eventually required to seek loans from a municipal source rather than a bank. According to EDA Treasurer Jim Hall, who was at the meeting with EDA board member Hal Greenwood, “It’s nothing new.”
EDA liaison Bruce Martinson brought the request to commissioners Sue Hakes and Fritz Sobanja, saying the request needed board action that day because the course would be out of funds without an immediate transfer of money.
Why was there no paperwork? Commissioner Sobanja wondered, calling this a “fly by the seat of your pants” approach. Everybody else has to follow procedures when making such requests, he said. And why was EDA Director Matt Geretschlaeger not there to formally make the request?
Geretschlaeger is not involved with Superior National at all, Commissioner Martinson said. A need for this money did not become apparent until late the previous week, he added.
“Where’s the planning?” Sobanja asked.
Commissioner Hakes agreed with Sobanja. “Come on, you guys,” she said. “You want half a million dollars. It’s not on the agenda. The EDA owns the Superior National Golf Course, Matt’s the director, and he’s not here?”
“Start doing it the way you ought to be doing it,” Sobanja said.
The golf course’s finances are complicated, Commissioner Martinson said, and Geretschlaeger is not expected to be involved in them.
“I’m with Fritz,” said Hakes. “I’m not going to okay this loan until I see something in writing.” She said she was not opposed to the loan; she just wanted it “done right.” She said she would consider approving the loan, however, if someone could “scribble down” an application and submit it later in the meeting.
Commissioner Martinson said that he had suggested to the EDA that they use the last of the money they had in their account to pay a bill for clubhouse roof repairs and pay off their last year’s loan from the county. “I really have to take a lot of the blame,” he said. “I really pushed to pay the county off in full.”
Superior National General Manager Bob Fenwick, also at the meeting, apologized on behalf of the EDA and offered to go find EDA Chair Mike Littfin and ask him to write up a request immediately.
Later in the meeting, Matt Geretschlaeger walked in with a written request authored by himself and Mike Littfin. It said, “This serves as Cook County/Grand Marais EDA’s formal request to the county board of commissioners, a 12-month bridge loan in the amount of $225,000 for the balance of 2011 Superior National operations and operations for upcoming year 2012.
“The terms and conditions of this loan will be determined by the county auditor and authorized by the county board.
“We are pleased to report that we have paid off the previous loan for 2011 in full and on time.
“We thank you for your consideration of the request.”
A motion to grant the loan request at 1 percent interest as in previous years passed unanimously.
“Don’t do it again,” Commissioner Hakes said.
“Don’t do it again, don’t do it again, don’t do it again,” echoed Commissioner Sobanja.
Rehab grant application
The EDA will be applying for another large grant from the Minnesota Department of Employment and Economic Development (DEED) Small City Development Program, and Housing Coordinator Nancy Grabko is hoping it will fund seven housing and five commercial rehabilitation projects.
Cook County is applying for $343,000, and despite the fact that the partnership between Lake County through its Housing Rehabilitation Authority fell apart last year, Grabko and the Arrowhead Economic Development Agency (AEOA) are working together to submit the grant as a joint application from Cook and Lake counties.
EDA Chair Mike Littfin told commissioners that DEED is steering Cook County toward requests it is mostly likely to grant. Grabko said DEED is recommending that the two counties increase the number of commercial rehabs they propose in their grant application.
“Performance and local support are key. It’s going to be a very competitive application environment. It always is,” said Grabko. “We do have a good track record, and we’re hopeful.”
An independent commercial rehab review committee comprised of Hal Greenwood, Vicki Wenz, and Anna Hamilton recommended two projects for this year’s grant funding: weatherization and repairs to the Cook County Senior Center plus improvements to make the building ADA (Americans with Disabilities Act)-compliant and upgrades to The Garage, making it more useable yearround.
The Senior Center will be the first project to be completed. “This is just a perfect joint cooperative effort,” Grabko said.
Projects that need things like repairs on leaky roofs or handicap accessibility will take precedence over less pressing projects such as replacement of drafty, inefficient windows, Grabko said.
If the EDA makes it through this pre-application process, a final application will need to be submitted.
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