The Cook County/Grand Marais Economic Development Authority (EDA) made its first official request for reimbursement of Superior National at Lutsen golf course renovation costs at the April 10 county board meeting, but questions arose as to what exactly the renovation plan is.
So far, four businesses have billed a total of $47,886.87 for pre-design and site evaluation work. Commissioner Sue Hakes did not protest paying those bills out of the $3.1 million the board has committed from the county’s 1 percent recreation and infrastructure sales tax, but she did say, “I’m very vague on what’s happening here, and I’m nervous about it.”
Hakes said she didn’t know what the overall plan was and did not want the 1 percent revenue to “trickle away” without a plan. She also said she wanted to know how the value of the golf course would be affected by the investment.
“I see this as trying to define the big picture,” Commissioner Jim Johnson said. “If you don’t do proper planning, you’ll really be in trouble later on.”
Commissioner Fritz Sobanja wondered how these expenses fit in with the projected costs of the project. Golf Course General Manager Bob Fenwick said they were in the budget.
Commissioner Hakes wondered if an outside manager would be hired to run the course and where the rest of the estimated $6 million cost of the project would come from.
“No one worries about that more than I do,” said Fenwick. He reminded the board that the goal is to create 18 holes of “resort-quality” golf. He said these issues would be discussed with the 1 percent committee, which consists of commissioners Bruce Martinson and Sue Hakes, Auditor-Treasurer Braidy Powers, and County Attorney Tim Scannell, later that day.
Commissioners Jan Hall and Sobanja concurred with Commissioner Hakes’ concerns. “…By all means, we will address these questions,” said Fenwick.
EDA Chair Mark Sandbo said he agreed that the project must be done right. The EDA will be watching the planning process and the budget, he said.
The board unanimously approved payment of the bills from the 1 percent funds.
In other county news:
Judy Motschenbacher, representing the seven-member Citizens for Cook County Committee, read a statement during the public comment period of the meeting. “In the interest of encouraging wise stewardship of the 1 percent funds,” she read, the committee recommended the following policies: “One percent funds must be collected prior to spending. There should be no liability—this would include bonding— created for the taxpayer without a public referendum. All 1 percent projects must be self-sustaining and shall not require additional funds to be levied to support the project. If the county board is asked to make an expenditure that has not been budgeted for, it must not be approved/passed without an opportunity for public comment, emergency measures to be excluded.”
Committee member Garry Gamble said the county could pay less by saving up for projects ahead of time and then spending tax revenue that has already been collected.
Commissioner Jim Johnson said he could not support waiting to collect the revenue before starting a project. “It could delay these projects a lot longer,” he said.
“Personally, I agree with you 100 percent,” said Commissioner Martinson, “but I am bound to go with the will of the voters.”
Motschenbacher said it was unwise to expose the public to financial risk for “a want and not a need.”
The other members of the committee are Rick Austin, Evelyn Larsen, Sam and Diane Parker, and Lloyd Speck.
The board approved the release of the last of the former North Shore Hospital 1 percent sales tax that had been implemented for capital improvements. A payment of $174,276.43 for digital mammography equipment would zero out the account.
“It was a wonderful thing,” said Commissioner Hakes. “We can be grateful to whoever put that collection in place on behalf of the hospital.”
The board agreed to loan the Cook
County Senior Center $16,500 to help pay for a handicap-accessible front door and rest rooms and energy efficiency upgrades that will include new windows, siding, and insulation. The rest of the $55,000 cost is being covered by a Minnesota Department of Employment and Economic Development (DEED) Small Cities Development Program grant.
Smith Construction of Grand Marais will perform the work. The terms of the county’s loan are 15 years at 0 percent interest.
After a public hearing, the board passed a resolution supporting the EDA housing program’s application for another Minnesota DEED Small Cities Development Program grant application for $291,000 for rehabilitation of five homes and four commercial buildings in Grand Marais. The grant required demonstrating need in a defined geographic area, and Grand Marais was the only place in the county with enough buildings in one place to qualify for the grant.
A survey of homeowners in Grand Marais demonstrated that 50 percent of the homeowners in the targeted residential section demonstrated the required level of need.
Other funds would be used as leverage to cover the cost of these projects, expected to total about $425,000. The board agreed to consider applications for $16,000 of Cook County Revolving Loan funds from each the four potential businesses that could benefit from the grant. This $64,000 is being used as leverage to help the EDA’s housing program qualify for the grant.
“I just want to thank the board for your support of [EDA Housing Coordinator] Nancy [Grabko] and the EDA and the housing program,” said Mike Littfin of the EDA. The program has helped a lot of people over the last four years, he said. “We’re doing things in six months that it’s taken a lot of counties two years to do.” This program is standing out among the grantors, he said.
“Nancy Grabko is the shining star of the EDA,” said Commissioner Martinson.
Schroeder Fire Chief Phil Bonin requested a loan of $80,000 from the Revolving Loan Fund for the purchase of a new fire truck. Their newest truck is a 1979 model requiring costly repairs and their spare is a 1954 model.
The department has been looking for the best deal on a used truck, Bonin said, and they have found two trucks dating back to the 1990s being offered for $76,000-78,000, both of which would need to be equipped at a cost of about $12,000. The department currently has $21,000 in its truck fund.
“Fire equipment is terribly expensive,” said Bonin. One nozzle can cost $1,000, he said.
The board authorized a loan of up to $80,000 to be repaid over 20 years at 0 percent interest.
“Money, money money!” quipped Commissioner Hall at one point in the meeting. “We’re running out of money.”
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