City council explores bonding for city hall/liquor store and approves mixed-use commercial building

The city council held its first meeting of the new year on Jan. 10. The meeting included a handful of items, including selecting an acting mayor, bonding discussions for the city hall/liquor store, and approving the conditional use permit for a mixed-use commercial building. 

Craig Schulte will serve as acting mayor again in 2024. The councilors discussed minor changes to board assignments and will resume the conversation in an upcoming meeting. 

After some discussion regarding parking, the city council approved the resolution for a conditional use permit for Joel Saint John to construct a mixed-use commercial building in downtown Grand Marais. It was a 4-0 vote. Councilor Aaron Carlson was absent from the meeting. 

On Jan. 3, the city planning and zoning commission recommended the approval of the conditional use permit to the city council with a 5-0 vote. 

Following the meeting, Grand Marais Mayor Tracy Benson said she looks forward to having businesses back downtown in the location of the current vacant lots. “That’s important. No one wants to walk around and see vacant lots.”

While preliminary plans were included within the agenda, Benson said, “We’ll have to see how that changes.” She added, “It’ll be interesting to see the impact of the architects who have all the ins and outs and requirements and are well aware of what needs to be fitted and how it all works.”

During the meeting, the council reviewed a bonding presentation from Bruce Kimmel of Ehlers regarding financing for the city hall/liquor store. “That’s the final piece. Where’s the money to begin this project, which hopefully will begin later in March,” Benson said. 

The city intends to use $6,155,000 in general obligation bonds for the project. Benson said most of that money will go towards city hall costs. The bonds are being issued for a term of 21 years. The city council will hold a public meeting for the property tax abatement program during the upcoming Jan. 31 meeting. The closing date for the bonds is Feb. 15. 

The total estimated cost of the city hall/liquor store is $8.5 million. The cost of a temporary location for the liquor store and city operations is not included in the $8.5 million price tag.

Towards the end of the Jan. 10 meeting, Benson acknowledged and celebrated the work of the 59 city employees plus the work of the volunteer fire department. ‘We sit there, and we’re the ones that appear on TV, so to speak, with these meetings,” she said. “But you know, it’s 59 people that are making our city work. And that’s pretty amazing.”

WTIP’s Kalli Hawkins spoke with Grand Marais Mayor Tracy Benson following the Jan. 10 city council meeting. Audio from the interview is below. 

Kalli Hawkins January 17, 2024