As in previous years, Superior National at Lutsen golf course has requested a loan to help pay bills until the next golf season starts generating income.
A shortfall of about $200,000 has always existed this time of year, said County Commissioner Bob Fenwick at a county board meeting Tuesday, February 23, 2010. This time, Economic Development Authority (EDA) board chair Mike Littfin and director Matt Geretschlaeger only asked for $125,000, however. That’s because the course still owes $100,000 from last year.
The golf course’s short-term cash flow issue is not unusual, said Fenwick. The amount the course needs to carry it from one season to the next seems to be growing, however. Eventually, Commissioner Fenwick said, the annual shortfall “needs to go away.”
The county board approved a motion to loan the golf course $125,000 at 1% interest, to be repaid in full by October 31.
TheEDA is hurting for cash right now, too, to pay bills and make payroll. “The best solution to that,” said Commissioner Fenwick, “seems to be to advance the levy amount…half of that.” The board approved a motion to advance the EDA $74,283, half of this year’s EDA levy, which would otherwise be paid in May.
Director Geretschlaeger’s hours have been reduced to half-time, said Commissioner Bruce Martinson, and the EDA has authorized Littfin to reduce Geretschlaeger’s hours further if necessary.
“Thelong-term solution is a way aways from us yet,” said Geretschlaeger. The EDA has reduced its expenditures to “the bare bones minimum,” he said. Theboard continues to look at ways to reduce expenditures even further.
“We’re looking at every expense to basically get us over the cash flow problem that has arisen over the last six months,” said Littfin. He believes they are “on the right track,” and if the city and county work together, he said, they can “get us over this hurdle.” In other news, the board approved an agreement with the State Auditor’s Office for an audit of Cook County’s 2009 financial statements. The county is required to let the state audit its books, and it will pay over $7,000 for the state’s services.
The board approved purchase of a new, energy-efficient freezer for the commercial kitchen in the Community Center at a cost of $2,713. The previous freezer, 17 years old, gave out. Community Center Director Diane Booth hopes someone might want the old one for use as a smoker. She said the center’s fridge and beverage cooler are also 17 years old and on their last legs. Theboard asked her to get quotes on replacing them. Booth had hoped she could put off these purchases until a new community center could be built.
Commissioner Jim Johnson reported that the Septic Committee, which had finished its draft of a county septic ordinance, will continue to meet to work on “unresolved issues” related to the ordinance. Numerous counties have protested changing MPCA rules that will affect septic ordinances counties have been required to develop. While counties iron these issues out with the state, the local committee will work on details in the local ordinance.
The county received $12,350 of $17,105 it requested from the Minnesota Department of Veterans Affairs to help pay mileage for transporting veterans to medical appointments.
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