The county board votes 3-2 against merging HRA and EDA

After a lengthy discussion about merging the HRA and EDA, Cook County Commissioners voted 3-2 to keep the HRA and EDA separate. Voting for the resolution proposed by Commissioner Stacey Hawkins were Deb White, Ginny Storlie, and Hawkins. Voting against was Ann Sullivan and Dave Mills.

In a separate vote, Board Chair Ann Sullivan called for the merger, with her and Dave Mill supporting and Hawkins, Storlie, and White voting against, causing the motion to fail.

Long before any vote was taken, Commissioners opened the floor to public comments at the board’s Tuesday, May 9 meeting.

Only two came forward, former EDA Director Mary Somnis who chairs the HRA board and Steve Surbaugh, who chairs the EDA board.

Somnis pointed out that there have been five EDA directors in the last ten years. “We need to stop doing that,” she said, adding that she favored the merger. Surbaugh recalled that over the previous few months, there have been listening sessions with the public and various boards, and a lot of good questions and concerns were noted. “We believe we have addressed those issues,” he said, adding he fully supported merging the two entities.

Both boards of the Cook County/Grand Marais Economic Development Authority (EDA) and Cook County Housing and Redevelopment Authority (HRA) passed resolutions in favor of the merger, which, if approved, would dissolve the HRA and transfer those assets and property rights to the EDA. In addition, both boards recommended making the HRA Director Jason Hale the EDA director and then finding and hiring a person with a suitable skill set to work with him.

But, before any of that could happen, the County Board and Grand Marais City Council would both have to vote in favor of making the switch. That’s a moot point now with the commissioners’ vote.

Concerns were raised at the April 12 Grand Marais City Council meeting as some worried that momentum gained on housing projects could be slowed if Jason shifts to the EDA. Some suggested that Jason would be overworked, and others voiced concerns that economic activity could be missed or not given the attention projects disserved.

Other questions raised were about combining the two budgets, the makeup of the two boards, and what would become of those boards if the merger happened?

In making a case for joining the organizations, County Administrator James Joerke noted in a memo to the board, “an organization that has two people that collaborates can continue the work of the organization if the other takes a vacation, becomes ill, or leaves for a different job. An organization with two employees is protected against the risk of losing continuity and covers gaps while employees are replaced.”

During commissioner discussions, Hawkins said that when the HRA was formed, it was noted that the EDA could take on that task, but the board voted against it. Hawkins added that the HRA had broad community support and, “I don’t want to do anything to distract from that.”

Commissioner White agreed. “I am not in favor of combining the two organizations at this point. It’s just too early.” She also said, “The history of the EDA is not a real positive thing.”

Commissioner Storlie had asked for job descriptions to be put in the board packet for the two positions in a merged EDA/ HRA organization, but they weren’t there. As for Jason Hale, Storlie said he had done “fabulous work” in his position as HRA director. Still, she thought it was too soon to consider moving him to the EDA, adding the EDA work is in “a different vein” and has other things like marketing the Superior National golf course, managing the Cook County/Grand Marais BDA business park, etc.

Board Chair Ann Sullivan said she had served on the EDA board for several years. She thought merging the two organizations under the leadership of Jason Hale would bring “Integrity and transparency” to the EDA, as well as efficiency. Therefore, she was strongly in favor of the move.

Commissioner Mills talked at length about how he had finally gotten to the point of supporting the merger plan. There has been “too much waiting for too long. We really need to act,” Mills said, adding that finding and hiring a new EDA director could be a lengthy process. And, “If we deny this (plan), I think we are inhibiting,” Jason.

“I totally believe Jason Hale could do both jobs. He’s got the skills,” said Hawkins. But she returned to her first point, saying this was too soon, “No houses have been built yet,” she added.

In his memo to the board, Joerke explained, “None of us want to see the need for housing lose focus in a merged organization, nor do we want to lose the forward motion the EDA has in completing the sale of lots at Cedar Grove, the operation of Superior National at Lutsen, or the upcoming opportunities that may emerge at Taconite Harbor and the Coast Guard property. Redevelopment of the lots in downtown Grand Marais where three businesses were lost to fire in 2020, is another opportunity where business and housing needs can be addressed with a more strategic development approach. The City and County will have seats at the table. The merged organization will not operate in a vacuum.”

When the commissioners finished speaking, Administrator Joerke broke in and addressed another concern. He said Jason Hale was being paid $80,000 annually, “Which sounds like a lot but isn’t” for his background and experience. If Jason were to become the EDA Director, he would be up for a raise. But instead, that issue will have to be addressed by the county board in the future if the county intends to keep Jason working in our community.

The administrator also advised in his memo, “There is a risk that a search for a separate EDA executive director will not result in finding a qualified individual already living in the community or that someone from outside the area will find a place to live if they are offered the position. The same could be said for the project manager/ development director position. While the second position requires the right qualities in an applicant, it is not the lead position and could more likely be found within the local community.

“Jason is already here; He has the knowledge, skills, and abilities to do the work. He has learned a lot about the community in his first year here. He can hit the ground running, as he did with the HRA in April 2022.”

Bur for now, Jason will remain Director of the HRA, with a focus on developing much needed housing for the county.

In other county business:

*Ty Backlund was hired as Deputy Sheriff at Grade 170, Step 2, based on his prior law enforcement experience.

* Envirotech Services, Inc. of Greeley, Colorado, was the low bidder at $295,800 to apply 200,000 gallons of liquid calcium chloride on various county roads. A Knife River, Minnesota bidder was about $600 higher than the Envirotech Services bid.

* Commissioners approved a yearly grant from the Minnesota Department of Natural Resources (DNR), which provides boat inspections for rental watercraft in Cook County. The grant also allows Cook County law enforcement to use some of the grant funds for patrol, water search and rescue operations, and water recovery operations. Funding received totals up to $17,891.

* Commissioners approved the 2023-2024 Curling Club lease at the Community Center at $2,700 monthly. The lease is for 5.75 months, starting in October 2023 and running to March 31, 2024. The total cost of the lease is $15,525 for the curling season.

* Commissioners approved the purchase of a 2023 Chevrolet 1500 LT from Sonju for $51,920 for the Highway Department. Money to pay for the truck, said Highway Engineer Robert Haas, will come from approximately $68,000 of Great Lakes Restoration Initiative grant funds that are set to expire in 2024. Haas said his department could use those funds to help pay the salary of the department’s environmental specialist/ agricultural inspector.