Construction season off to a busy start for Cook County HRA

Kirsten Wisniewski | May 20, 2024

The Housing Redevelopment Authority (HRA) is slated to be a major part this year’s construction season. When the HRA met on May 15, Executive Director Jason Hale gave updates on projects at all different stages of the construction process, ranging from those still in the planning phases, to those already in progress.

At the board meeting Hale announced that there is an official groundbreaking date for the Gunflint Vue housing project. The ceremonial groundbreaking is planned for Jun. 14, but the site has already been cleared of trees in preparation for construction. The parcel for Gunflint Vue is on the Gunflint Trail on the northern end of 5th Avenue in Grand Marais.

New building projects

The board also received updates on the Bjorkberg and The Heights projects. Both developments are still in planning phases. The Iron Range Resources and Rehabilitation Board (IRRRB) and awarded each grants to each project. The developers for the projects are currently working on finalizing funding and development agreements. The Heights developers were part of conversation at the Board of Commissioners meeting that took place on May 14.

The county board opted to transfer ownership of a parcel of land that the county possessed through tax forfeiture to the City of Grand Marais. The land is currently vacant and lacks a legal access route, and Hale explained that the intent with that land is for the developers of The Heights to acquire it to build a storm water retention pond. He said that the developers plan to use that parcel for storm water retention in order to preserve space on their existing plot for a potential future expansion of The Heights, if the complex is successful.

Existing housing

There were additional updates on existing affordable housing units in the county. Hale mentioned the Birchwood Apartments rehabilitation project during the board meeting. Renovation work began on those buildings at the end of April. He also touched on the HRA’s efforts to preserve affordable units. He told WTIP about the ongoing work he is doing with the new owners of the Harborview Apartments, in an effort to keep some of those units affordable to current residents. The complex was purchased in October 2023, and the new owners are not seeking to renew the contract with Housing and Urban Development (HUD) which has provided funding for the subsidized rents. The sale caused local concern over the potential loss of the affordable units. Hale said he has been working with the new owners on an agreement to preserve some of the units as affordable housing.

Hale said that the HRA is pursuing a couple of funding sources to maintain the affordability of as many units as possible. In the meantime, as county departments and organizations are drafting their 2025 budget proposals, the HRA has opted to include additional money in their budget request to the county Board of Commissioners. The requested $300,000 would act as a guarantee for the Harborview developers and residents.

“The amount was increased in the budget to as a act as, honestly, a second backstop in the event that the two sources that we’re planning on using to preserve those units don’t come forward for some reason or don’t go through,” Hale said. He added, “We are trying to figure what can we do to guarantee that we’ll preserve some of those units for Section Eight voucher tenants.” Hale went on to explain that if the HRA is able to secure the funding that they hope to, they will have the chance to amend their budget before the levy is finalized by the county board, removing the additional $300,000 from their budget request.

Envelope and Energy pilot program

Beyond Birchwood and Harborview, the HRA has been working with other local groups to preserve other existing housing units. The Envelope and Energy pilot program has been a joint effort by the HRA, the City of Grand Marais, Cook County Local Energy Project (CCLEP), and Cook County Public Health and Human Services (PHHS). It aims to support homeowners looking to make improvements to the envelopes of their homes. Hale said that the program has identified nine projects to receive support. They are currently taking bids from local contractors for those projects. He said that the program funds up to $5,000 per project.

This is only a pilot program at this time, but Hale said that this initial year has shown that there is local interest in improving the envelopes of homes. The future of the program is yet to be determined. However, Hale said, “It’s really a unique partnership, which, as one of my commissioners mentioned in the meeting, may make us eligible for some other funds down the road.”

Regional housing concerns

One additional topic that Hale brought up for discussion at the HRA meeting was prevailing wage. Prevailing wage establishes a rate of pay a worker doing a specific type of job in a specific area. Hale told WTIP that any state or municipal building project is required to pay workers prevailing wage. He explained that it protects workers from underpayment, but can also pose difficulties for smaller building companies. He said that for small contracting businesses, it can both be an administrative and economic burden.

Hale said that while prevailing wage can be a valuable tool in ensuring that workers are paid appropriate wages, it is important to consider what the impact may be in smaller communities. He said, “It means you’re going to unintentionally cut off local contractors from being a part of certain projects.” He went on to say, “There are always unintended consequences when you’re doing legislation or trying to prescribe something that makes sense in one area- it may not make sense in other areas.”

WTIP’s Kirsten Wisniewski spoke with HRA Executive Director Jason Hale about the May 15 HRA Board meeting. Audio from that interview is below.