City Planning Commission seeks more information on Bjorkberg project before moving forward

A proposed 19-unit townhome project is still on hold after the Grand Marais Planning Commission reviewed a conditional use permit and requested more details during the May 7 meeting.

The Bjorkberg project is a proposed planned unit development (PUD) located at 601 and 651 West 3rd St. in Grand Marais, a location commonly referred to as Birch Mountain. The property totals approximately 2.4 acres.

The proposed housing project has appeared on various City Planning Commission and City Council agendas in the past year, but has not yet been approved.

In July 2024, the Bjorkberg project and one of the developers, Jon Petters, went before the Grand Marais Planning Commission for a conditional use permit (CUP), which was unanimously approved. Then, the project progressed to the city council on July 31. After reviewing the CUP, the council ultimately decided to table the matter until details regarding accessory dwelling units and improvements to 3rd St. were explored. On Aug. 14, the Bjorkberg project returned yet again to the city council with some slight changes, where the city council voted 3-2 to deny the CUP, stating the proposed solutions were insufficient.

Nearly a year later, the proposed housing development has now returned to the planning commission, under the name Bjorkberg 2.0. During the May 7 meeting, Petters presented an updated conditional use permit and preliminary plat showing clusters of townhome units with colored lines depicting utilities and easements.

Bjorkberg Preliminary Plat presented on May 7

During the meeting, the planning commission discussed whether the presented updates and changes were substantial enough to approve and pass on to the city council for the final vote.

“The only thing that I’m concerned about is have there been enough substantive changes from 1.0 to 2.0,” Commissioner Ben Peters said.

Given that the planning commission approved the CUP in July 2024, but then the city council voted to deny the CUP, Peters said, “Clearly, we’ve been asked to vet this differently.”

Commissioner Michael Garry said he felt there were enough changes between Bjorkberg 1.0 and 2.0. However, he was still concerned about easements and ensuring neighboring property owners can access their property.

One of the main issues is the development of utilities on the property, where exactly the utilities would be, and how neighboring property owners would gain access to those utilities.

Petters and the Bjorkberg developers will be financially responsible for installing the utilities at no cost to the city. The utilities will be privately owned but built to city standards.

City Administrator Mike Roth said during the May 7 meeting that the city will ensure the utilities are “designed by a licensed engineer, one that we trust and that we use for our own purposes. But we’re not responsible for the maintenance of them. So we’re not going to have the same stringent requirements on construction and inspections, for instance, like we would if they were owned by us.“

While the preliminary plat outlined where desired utilities would be, the planning commission said a formal engineered plan was not included in the CUP documents, leaving the commissioners without a complete understanding of how it would work.

Roth said the other question that needs to be answered is how neighboring property owners gain access to those utilities, what legal rights they have, and what it would cost. “All of those details need to be worked out.”

Furthermore, the updated Bjorkberg 2.0 plans raised concerns about easements, access to the property and needed improvements to 3rd St. According to the preliminary plat and the CUP, four of the units will be accessed from 8th Ave W on 4th St. The remaining units will be accessed from 3rd St. via 7th Ave W and 6th Ave W.

Roth said, “I think the easements are a great concept to talk about how to handle this issue. But I don’t really understand how they would work yet.”

Following the Bjorkberg discussions in August 2024, the city hired LHB, an engineering firm, to conduct a feasibility study on 3rd St. The narrow, mostly one-lane road has raised concerns about its ability to handle increased traffic from the 19-unit housing development. The Bjorkberg developers have stated they will help with road improvements and have committed to providing a $50,000 contribution.

Petters addressed some of the concerns and said he was willing to work with the city to explore the answers to many of the remaining questions. He said many of the details discussed would be worked on during the developer’s agreement process, following approval of the CUP. He suggested making the CUP contingent on including those details and information in the developer’s agreement. During the meeting, Grand Marais resident Howard Hedstrom joined Petters as a representative of the project to present the CUP to the planning commission and answer questions about the project.

After some discussion, the planning commission also mentioned that an updated stormwater management plan was not included in the CUP packet, and the commission would like to review an updated stormwater management plan prior to voting on the matter.

Numerous commissioners mentioned during the meeting that because the city council denied the CUP proposal in August 2024, it is their job to ensure that all of the information is included in the packet and they have a complete understanding of every aspect of the project before sending it back to the city council.

Commissioner Stacey Johnson said, “I just want to make sure we have good information to make sure this is the best project for this property – because it’s going to work.”

Peters said, “Everybody wants the best for this project.”

Towards the end of the discussion, Roth suggested scheduling a special meeting in two weeks, on May 21, to allow the Bjorkberg developers to collect the additional information and plans requested by the planning commission.

Roth told Petters the planning commission wants an updated stormwater management plan that reflects the new preliminary plat arrangement, more details on the concept of utility easements, and an updated plan for 3rd St. based on the city’s feasibility study.

Nearly 20 people attended the May 7 planning commission meeting, with many members of the public speaking during public comment period about the proposed Bjorkberg project. At the start of the meeting, City Communications Director Patrick Knight read four submitted letters to the planning commission. Two letters expressed support for the project while two of the letters expressed concerns and were against the project. Afterwards, 11 individuals spoke during the public comment period, sharing a variety of thoughts on the housing project.

Many spoke in support of the project expressing satisfaction with the aesthetics and design of the project and the need for all types of housing in Grand Marais. Concerns were also addressed from others about traffic and congestion on 3rd St and that given the proposed prices of the townhomes, the housing project is not an affordable option for younger families or workforce staff.

View the May 7 Grand Marais Planning Commission meeting here.

Kalli Hawkins May 9, 2025