EDA sells last lot in business park, approves business development grants
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EDA sells last lot in business park, approves business development grants

The Cook County/Grand Marais Economic Development Authority met on May 20 and discussed various agenda items, including the Cedar Grove Business Park, Taconite Harbor strategic planning, and business development grants.

Prior to the meeting, the EDA received an offer of $15,000 from Chris Skildum of Vesta Unchained for the final available lot in the Cedar Grove Business Park. The property is Lot 5, Block 4, which is adjacent to Skildum’s other business park lot. Skildum intends to use Lot 5, Block 4, for accessory access to his adjacent lot and parking.

During the May 20 meeting, the EDA board discussed the assessed market value for the property, which is $30,400, and some ongoing encroachment issues from a neighboring business park lot owner.

The EDA board agreed to counteroffer with $18,000 for the lot.

“There was some concern from several of the EDA board members on the pricing of that last lot and what would be the correct price,” Board Chair Peter Clissold told WTIP. “But in the end, they felt that with Chris Skildum’s history and purchasing and following the declarations and covenants in the business park, that he had shown great intent and he has been doing several economic development projects in the community.”

Clissold added that many of the business park lots have sold for less than market value, and the EDA’s goal “is to create opportunities for new businesses and existing businesses to expand. So it’s not just about the price.”

EDA Director Heidi Krampitz told WTIP that following the May 20 meeting, Skildum accepted the counteroffer price, and a public hearing is scheduled during the next regular EDA meeting on June 17.

The closing of the sale on June 17 means there are no more available lots in the business park.

While the EDA will no longer be responsible for selling lots, it will continue to provide oversight for stormwater management plans and civil engineering projects. The EDA will also provide oversight to ensure that the business park lots are utilized for business development. Existing declarations and covenants will remain in place when a lot is sold privately, Krampitz said.

The EDA is also exploring interest from business park property owners for a professional entrance sign that lists all of the businesses. “We’re working with current property owners to judge their level of interest,” Krampitz said.

Business Development Grants

During the May 20 meeting, the EDA board approved four business development grants totaling nearly $80,000.

The EDA’s business development fund is designed to support projects that contribute to economic development and job creation in Cook County. The program receives annual funding of $200,000, which is provided by the Cook County property tax levy. Business development fund grant applications are accepted on a year-round basis, based on availability, and reviewed by the EDA’s grant review committee.

The EDA’s grant review committee is primarily comprised of board members Mark Shackleton, Siri Anderson, and Alex Beebe-Giudice. However, alternates will fill in when needed if a conflict of interest arises.

The first business development grant application discussed during the May 20 meeting was Scruffy Dog Vintage Emporium, a shop that sells vintage apparel, dishware, pictures, furniture, and more. The business, located in the former Superior RV Parts & Service building along Hwy 61, opened in August of 2024.

Scruffy Dog Vintage Emporium owner Annette Block-Valdivia applied for a grant for $25,000. The grant application states that the grant funding is needed to update and repair the building to accommodate additional retail space and improve exterior aesthetics. The improvements outlined include roof and insulation replacement, improved exterior signage, enhanced interior lighting, and reglazing of the existing garage door.

Given a conflict of interest with the applicant, Anderson was not involved in the grant review committee. Clissold served as the alternate. The grant review committee recommended the EDA board approve the grant. The EDA board unanimously approved the grant application. Anderson abstained from the vote. While Clissold was involved in the grant review committee, he was not in attendance for the May 20 meeting. 

The second grant application the EDA board reviewed was for Sydney’s Pizza and Frozen Custard. Owner Bruce Block requested $24,562 to assist with reopening the dining room, adding a breezeway enclosure, and purchasing a grill to expand the menu offerings.

Given a conflict of interest with the applicant, Anderson and Beebe-Giudice were not involved in the grant review committee. Clissold and Dave Mills served as alternates to assist Shackleton. The grant review committee recommended that the EDA board approve the grant, as it aligned with the criteria of the business development grant guidelines, supporting economic development and job creation. The EDA board voted unanimously to approve the grant. Anderson and Beebe-Giudice abstained from the vote.  

The third grant reviewed and discussed during the meeting was for Raven Moon Ridge LLC, totaling $3,200. Owners Marybeth Garmoe and Caleb Mattison requested business development grant funding to install a solar panel system on an off-grid vacation rental yurt on their property.

The grant application states that the solar panel system will enhance and improve the guest experience by providing essential services, such as lighting, temperature control, and mobile device charging.

Mills made a motion to approve the grant application for Raven Moon Ridge LLC. Shackleton seconded the motion. The board then opened the floor for discussion before a vote.

EDA board member Tracy Benson asked for clarification regarding how the Raven Moon Ridge LLC grant request for a vacation rental differed from a previous vacation rental grant application from Timber & Tide Cabins.

Shackleton said vacation rental projects are not excluded from applying for a business development grant but rather that the application is based on specific criteria. “This one made sense to us.”

In January, Gina Joyce, owner of Timber & Tide Cabins, wanted to request funding for a roof replacement. The EDA grant review committee reviewed the application, but informed Joyce that the project did not align with the business development grant criteria. Joyce submitted a written public comment to the EDA on April 14 stating that incorporating a comprehensive list of criteria into the business development grant guidelines would be helpful for applicants.

Beebe-Guidice said the Raven Moon Ridge vacation rental yurt met the criteria because it was a short-term rental on an existing property where the homeowner resides rather than the short-term rental replacing or occupying a traditional long-term rental situation.

“Not necessarily a downtown house that’s being rented out for $500/night,” he said. Instead, he said, the yurt isn’t suitable for year-round living, and it’s a small, not permanent structure.

He also stated that the financial projections indicate the solar panel installation on the yurt would generate income and benefit the Cook County business owners.

Benson said, “When I look back at what we just read from our review of that, I don’t see that as defined in there.”

She added, “I’m still not clear that’s a good distinction, but at least I know what you were thinking.”  

Anderson, who is on the grant review committee, said the project also fits the criteria because it brings more solar installation to Cook County.

The EDA board voted unanimously to approve the Raven Moon Ridge LLC grant.

Following the meeting, WTIP requested additional clarification from the EDA about how a solar installation for a vacation rental yurt aligned with the criteria of the business development grant given that the project has minimal job creation and fairly limited economic development.

In a written statement, the EDA grant review committee said,

“Though the economic impact of a $3,200 grant is far less than that of a $25,000 grant, the case for economic impact in this application was proportional to the award amount. The committee agreed that the return on the investment was appropriate, and the revenue generated by the project supports the creation of part-time positions within the owner/operated company, and increases the tax base for this business.

The EDA has historically supported grant requests for projects from small businesses that are owner operated and have no additional employees.  Past owner/operated grant recipients have included medical providers, contractors, food producers, and creators.  Those businesses are an integral part of the economic landscape, and while a grant award may not create new jobs, it can help a small, one or two member LLC enhance the quality of their service or product, increase production, provide employment for the owner/operator, or otherwise expand their business.  

The Raven Moon Ridge Project does those things, albeit, in an emotive industry, without removing a long-term or permanent housing unit from the market. The business meets all eligibility requirements for the program and supplemented its application with a comprehensive business plan. This plan demonstrated how grant-funded equipment would increase sales, and included encouraging income projections, and reasonable expenditures for the next few years.” 

The fourth grant reviewed during the meeting was for Fika Coffee, totaling $25,000. Owner Josh Lindstrom included in the grant application that the funding would be used for the purchase of equipment for the business at its new location in the Cedar Grove Business Park. The equipment includes a weigh-and-fill machine, coffee loader, and continuous band sealer.

The grant review committee recommended to the EDA board to approve the grant application. The EDA board unanimously approved the grant.

During the meeting, the EDA board also approved updated business development fund grant guidelines. Guidelines for the business development grant were first created in April 2024.

There is a match requirement from the grant applicant for grant requests over $5,000. For a grant request of $5,001-$10,000, a 10% match is required, and for a grant request of $10,001-$25,000, a 25% match is required. Find more information about the business development fund here.

Taconite Harbor

During the May 20 meeting, the EDA board approved the hire of Stantec Consulting Services to conduct a strategic plan proposal for Taconite Harbor.

Stantec Consulting Services is an engineering and architecture firm based in Maple Plain, Minn., but has offices across the U.S. and internationally. The consulting firm was one of four applicants to apply following the EDA’s request for proposal earlier this spring.

Krampitz said Stantec stood out among the other applicants due to the firm’s extensive experience, its working relationship with Minnesota Power, and the involvement of a formerly retired senior advisor who wanted to be part of the project.  

“The senior advisor on the team is specifically coming out of retirement to help our community because he saw the incredible, intriguing, just excitement surrounding the site, how beautiful the site is, and what it could be and what it could bring to Cook County,” Krampitz said.

The EDA was awarded $200,000 in community energy transition grant funds from the Minnesota Department of Employment and Economic Development (DEED) in September 2024 to hire a professional consulting firm to facilitate the strategic planning process for Taconite Harbor.

Stantec will now begin putting together preliminary information and, in the coming months, host a kickoff meeting to establish a detailed schedule and stakeholder list. Krampitz said the next phase will be data collection and research and “understanding the physical conditions of the site.”

WTIP spoke to EDA Director Heidi Krampitz and Board Chair Peter Clissold about the role and responsibility of the EDA now that lots in the business park are sold, the approval of business development grants, and the hiring of Stantec to conduct a Taconite Harbor strategic plan. The audio from the interview is below.