Bjorkberg 2.0: Developers seek to overcome previous setbacks

Kirsten Wisniewski | February 10, 2025

Despite obstacles arising last summer, Grand Marais residents may yet see a version of the proposed Bjorkberg housing project.

Bjorkberg 1.0

The 21-unit development was originally proposed as a Planned Unit Development (PUD) on 3rd St. between 6th and 7th Avenues. It would have included many of the units built as townhomes, intending to reduce the footprint of buildings on the site and streamline utilities.

In July of 2023, the Grand Marais Planning Commission unanimously approved the request for a Conditional Use Permit (CUP), which is required for PUDs. The application then went before the City Council later that month. It was tabled before ultimately being denied in a 3-2 vote in mid-August.

Since August, the project has remained in limbo.

Jon Petters, the developer behind the Bjorkberg project, told WTIP that he is still committed to building something on the site, and is hoping to get answers about what his options are from the City of Grand Marais, soon.

Minnesota Housing Finance Agency grant

Despite the city’s denial of a CUP, in December Bjorkberg received a grant from the Minnesota Housing Finance Agency (MHFA). The funds would provide the project roughly $275,000 to bring down the cost of five homes. Those units would be made available to income-qualified households, with the specific goal of increasing accessibility to home ownership.

Two other grants, one from the Iron Range Rehabilitation and Resources Board, and one from the Cook County Housing Redevelopment Authority, have expired as the developers wait to find out the fate of the project, but Petters said he hopes to still be able to use the MHFA grant.

Benjamin Olsen is Bjorkberg’s project designer. He is an architect and visiting adjunct professor at the University of Minnesota. His work focuses on entry-level attainable housing across the state. He and Petters both said that any redesigning of Bjorkberg would still include those five units. Olsen said, “This is a kind of very strategic way that we can make homeownership attainable within reach for families making, in this case, area median income.”

Designing Bjorkberg 2.0

Since the City Council rejected the plan in August, the development team has been looking at their options. Moving forward, however, is proving complicated.

“We’re here six months out, and we’re not really sure what the next steps are to bring this project to fruition,” Olsen said. “We’re no longer interested in pursuing a PUD. We have no interest in coming before the planning commission or city council again and seeking special permission. We have a project that can be done by-right according to the existing ordinances.”

Olsen said that the parcel is platted for 21 single-family units, so the new design will reflect that, likely with detached houses. He said that the amended plan would probably eliminate the option to coordinate stormwater management and the individual houses would have a larger collective footprint than “Bjorkberg 1.0.”

One goal of townhouse-style construction was also to minimize disturbance to the existing trees and vegetation on the lot. With detached homes, Olsen said that meeting that goal will be difficult.

“What we need is permission or a license from this city to hook up to municipal sewer and water,” Olsen said. “That’s probably the clearest next step for us would be to secure that approval.”

Petters pointed out that the request to connect to municipal utilities is similar to the one recently approved by the city council for the Norra Skogen development on the east side of Grand Marais. That development will comprise of 12 single-family homes on just over two acres.

Concerns about 3rd St and municipal utilities

One of the project’s stumbling blocks over the summer was the condition of 3rd St. Vehicle access to the proposed development would be on 3rd St, and several city councilors and area residents raised concerns that the road was neither big enough nor in good enough condition to handle the increase in traffic that an additional 21 residences would bring.

Redesigning Bjorkberg, Petters said, will include supporting whatever decision the city makes regarding 3rd St. He also said that his development team is committed to covering the cost of any changes that would have to be made to connect Bjorkberg to city utilities.

Petters summed it up, saying, “Our message now is basically, we just want to hook up to water and sewer. We’ll pay for everything and it’s as simple as that because we want to provide housing. It’s not Airbnbs, it’s for people that live there.”

The developers also provided more information on one of the other points of concern raised by community members this past summer. Some were worried about a high-density development in the middle of their neighborhood. According to Olsen, however, the actual density of the planned development is no different than the established allowed density in the city ordinance. This goes for both the original design and Bjorkberg 2.0. Petters added that the parcels the homes would be built on are much larger than they may look from the street.

Planning road blocks

Though the redesign has been underway since Bjorkberg 1.0 was denied a CUP, final plans have not been made. “We have been reluctant to take the next steps toward finalizing Bjorkberg 2.0 until we have secured a commitment from the city to hook up to sewer and water municipal sewer and water infrastructure,” Olsen said. He added, “Design work is expensive, engineering work is expensive, and we know that the city won’t allow us to do anything until we’ve been granted that approval.”

While Olsen and Petters are making what they see as a much simpler request of the city – a license to connect to utilities, rather than a conditional use permit – they said that communication with city officials has been frustrating.

The developers report unresponsiveness from the city after requests to set a working session to allow the Bjorkberg team to speak with city officials. Olsen said that no “defensible reasons” were given by the city council for the denial and that he and Petters were advised to be patient while the city evaluated the concerns raised about 3rd St. and municipal utility needs.

At this point, however, Olsen said patience is running low.

“We trusted for a while that things were underway, that there was maybe a plan, and I think we’re not so sure that’s the case anymore,” Olsen said, “I mean, we feel like it’s been six months, and we would love to have something lined up to begin in the spring. Construction season is short in Cook County, and it just seems like there’s no sense of urgency, or there’s really no sense of decorum around communicating with John or I, as professionals that are interested in investing in Grand Marais.”

The city’s perspective

WTIP reached out to the City of Grand Marais for comment on the Bjorkberg project and what stumbling blocks have come up throughout this process.

Communications Director Patrick Knight responded by email, writing, “The City Council has prioritized a high-level conversation about infrastructure this year, including the best ways to support additional utility extensions. They will continue this year with a series of work sessions studying how best to take care of existing assets, how new infrastructure can support the City vision, and financial implications. These conversations are essential to help the Council respond to any prospective projects.”

Knight added that residents who are interested in the decision-making process can view videos of both the City Council and Planning Commission meetings through the city’s website and YouTube channels.

“Each decision is made through a resolution that outlines the legal considerations and findings that guide our actions. We encourage residents to stay engaged and reach out with any questions or concerns about infrastructure planning,” Knight wrote.

WTIP’s Kirsten Wisniewski spoke with Bjorkberg developer Jon Petters and project designer Benjamin Olsen about how they are seeking to move forward with a redesigned Bjorkberg. Audio of that interview is below.