Matt Geretschlaeger
Matt Geretschlaeger received unexpected bad news this week when the county’s Assistant County Attorney Molly Hicken informed him and his attorney, Baiers Hereen, that the Cook County Revolving Loan of $250,000 granted to him last July was being voided because Geretschlaeger hadn’t finished the necessary requirements for him to get the money.
When contacted, Geretschlaeger said he didn’t know why his loan was being voided.
“I would like to know. All the letter said was that I didn’t meet the guidelines. I got it three days ago and I guess right now I’m licking my wounds. I don’t know what I’m going to do now. I was willing to risk 50 years of assets to create 35 jobs and make $17,000 a year. This was truly my attempt to help the community.
“I guess I would like to say that I’m hurt but not down,” Geretschlaeger said.
On July 23, 2013 Cook County commissioners approved the $250,000 loan to Geretschlaeger for his Superior Zip Line project. The money was to come from the county’s Revolving Loan Fund, which was established to help new and existing businesses in the county that may not qualify for all of the money they need to complete a project from more traditional loans.
To receive funds from the Revolving Loan Fund, Geretschlaeger had three pieces of property he would be using for collateral. The county would be in the second position on Geretschlaeger’s home, valued at $535,000 two summers ago and he also had two other pieces of property the county would be in first position on with appraised value of $46,800 and $82,400.
Last April 25 Grand Marais city councilors voted to enter into a purchase agreement with Geretschlaeger for 20 acres of city-owned land on the Gunflint Trail near the water tower. Geretschlaeger paid the city $75,000 for the land.
On August 14 Geretschlaeger broke ground for the $825,000 project. At that time Geretschlaeger planned to do the work in phases and said he had fixed contracts in place with fixed prices for construction. Geretschlaeger’s plan called for employing 33 part-time and two full-time people and operating two zip lines and a main lodge for customers.
To date, Geretschlaeger has gotten a loan of $266,000 from the U.S. Small Business Administration and a grant of $191,000 from the IRRRB. He also received a $9,000 grant from the Cook County – Grand Marais Economic Development Authority Immediate Needs Fund, which was established to assist with projects that receive funding from the IRRRB.
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