Financials, grants, and an update on Cedar Grove Business Park discussed at EDA meeting

Numerous items were discussed during the recent Oct. 18 Economic Development Authority (EDA) meeting. The agenda included IRRR grant opportunities, an update on financials, the sale of Cedar Grove business park lots, and One Roof rent discussions. 

The EDA began the meeting by discussing three Iron Range Resources and Rehabilitation (IRRR) grant opportunities for Cook County organizations. IRRR provides financial assistance to northeastern Minnesota communities to foster business development and growth. 

Two organizations seeking IRRR funding are the Great Expectations Foundation and the Cook County Real Estate Investment Fund.

The Great Expectations Foundation is seeking $350,000 to fund an addition to the existing building. Great Expectations plans to expand to provide adequate space for teaching, learning, and play space for children. 

The other organization seeking IRRR funding for two projects is the Cook County Real Estate Investment Fund. The first project is for the demolition and redevelopment of the Birchbark Gifts building in downtown Grand Marais. The real estate group purchased the Birchbark Gifts building this summer and will convert the building into multiple rental offices and retail space. The Cook County Real Estate Investment Fund is seeking a total of $125,000 for the project.

The real estate investment group also seeks funding for the Grand Marais Heights project. The project is a forty-five-apartment complex with mixed-use commercial office space to be constructed immediately east of Harbor Light on Highway 61. The developers are seeking a total of $500,000 for infrastructure and other site work. 

The EDA unanimously approved all three funding requests and will move forward to submit applications and accept funding.

In other EDA news, discussions resumed regarding the Superior National golf course and EDA financials. 

During the meeting, Treasurer Scott Harrison provided an update on the golf course and factors contributing to reduced rounds and revenue this season. Harrison said the late spring played a detrimental role, “last year, we opened in April. This year we started on the 12th of May.”

In addition to poor weather conditions in spring, staffing was also an issue this year. Similar to other businesses in Cook County, the golf course experienced a reduction in staff and, in particular J-1 visa employees. 

Harrison also provided an update on EDA financials following a request for additional information from the County Commissioners during a Sept. 20 committee of the whole session. During the meeting, additional paperwork was provided, including EDA cash flow data from 2018 to 2021, IRRR grants received for projects dating back to 2016, and a more in-depth look at the 2023 budget. 

Beth Drost, executive director of the EDA, said discussions with the commissioners would continue. “They’re asking for a specific amount of information, and we’re able to provide that,” she said. 

“As many know, we’ve had challenges switching over bookkeepers after our longtime bookkeeper retired,” Drost said. However, she added, “We’re on a good foot now. The EDA financials are in great shape.”

To alleviate previous delayed financial reports during EDA meetings, the board recently decided to move its regularly scheduled meeting back a week to the 3rd Tuesday of each month. The Oct. 18 meeting was the first meeting held on the new date. The financial reports were not accurately completed. 

Harrison said during the meeting that it would take an additional two months to solidify accurate financial statements for the monthly EDA meetings.

“I know I’m working on it daily with our accountant. And Scott has said to give him two months. So we’re hoping to set a goal of two months to get everything in order,” Drost said. 

Harrison’s six-year term on the EDA Board of Commissioners ends in Dec. of 2022. He is not seeking reelection. Commissioner Mark Shackleton expressed interest in the treasurer position.

During the meeting the board approved the sale of Lot 8 Block 4 to Forrest Parsons of Hungry Jack Outfitters. Lot 8 Block 4 sits adjacent to Parsons currently owned lot in the business park. He intends to operate his business, A Superior Storage on both lots. The board approved the sale of the lot to Parsons.

WTIP’s Kalli Hawkins spoke with Drost following the Oct. 18 EDA meeting. Audio from the interview is below. 

Kalli Hawkins October 26, 2022