Timeline pressures prompt shift in developer for proposed Grand Marais workforce housing project

The Cook County Housing Redevelopment Authority (HRA), the City of Grand Marais, and the Cook County/Grand Marais Economic Development Authority (EDA) are reassessing a proposed workforce housing project after concerns about project timelines and design progress led to a change in developers.

The proposed project at the former Tomteboda Motel site next to the WTIP Radio Station has been discussed at city and county meetings since early 2024.

Initially, the project presented in February 2024 included a 16-unit workforce housing development. The parcel is currently a vacant lot, and in past city council meetings, the city has stated it would sell the land to the HRA for $1 for the proposed project.

Since the design plans were presented by developer Duval Companies in early 2024,  progress on the project has been slow. A deadline is fast approaching to complete the project in order to retain state funding from the Minnesota Housing Finance Agency.

In 2025, the Minnesota Housing Finance Agency awarded the project $1.3 million in funding, to be administered by the EDA. The caveat is that in order to use the granted funds, the project must be completed by January of 2028.

“I’ve been a little bit concerned about this project, just in terms of timeline,” said HRA Executive Director Jeff Brand.

With progress remaining slow over the past year, city and county officials have decided to pivot and begin searching for a new developer who, Brand hopes, can quickly take on the project and move into the planning and design phase.

“We’ll need to see the same things that we asked the previous developer,” Brand said.

That would include a timeline, ensuring completion by January 2028, review of designs and architectural blueprints, financing, and a projected outline of the rental cost per unit. With the project receiving state funding, rental costs per unit are set by Minnesota Housing on a county-by-county basis using Area Median Income (AMI) guidelines.

The newly selected developer would also need to go through the HRA’s vetting process. Brand said there has been interest in the project from other developers.

“I do want to make sure that we get this done on time and on budget,” Brand said.

WTIP’s Kalli Hawkins spoke with HRA Director Jeff Brand following a recent June 17 HRA board meeting. Audio below.

Kalli Hawkins June 20, 2026