Cook County Grants First-Ever Tax Abatement for Housing Project: Construction Set for Spring
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Meeting Type:
Community Redevelopment Agency
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Meeting Date:
10/16/2024
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Recording Published:
10/16/2024
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Duration:
25 Minutes
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State:
Minnesota
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County:
Cook County
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Towns:
Grand Marais, Lutsen Township, Schroeder Township, Tofte Township
- Meeting Overview:
In a decision for Cook County, the Housing Redevelopment Authority has approved a tax abatement for a housing project known as “the heights,” marking the first time such an approval has been granted in the county. This tax abatement was the final public approval needed to secure financing for the project, which is expected to begin construction in the spring, subject to weather conditions.
Only one bid was received, a fact that was met with optimism by the board, as it sets the stage for the selection of a contractor and further refinement of project costs. The project is subject to prevailing wage regulations, a point of inquiry during discussions. The contractor is based in the Arrowhead region.
Another noteworthy development discussed during the meeting was the approval of a $1.3 million grant request from Minnesota Housing for a 16-unit project on Highway 61. This funding acceptance is critical for the project’s next steps, although planning cannot advance until the financing is fully confirmed. Staffing shortages at Minnesota Housing were noted, but the board remains hopeful that discussions with the developer will continue over the winter, with construction anticipated to start in the summer.
Earlier in the meeting, Resolution 2414 was approved. This resolution authorizes a First Amendment to a development agreement with Gunflint View LLC. The amendment terminates the Infrastructure and Transportation Resources portion of the original agreement due to the developer’s inability to meet its terms, redirecting those funds to fill a funding gap. The developer remains committed to a mixed-income project with rent-restricted units, and the board expressed confidence in the authority’s financial health to support this initiative.
Resolution 24:15 also gained approval, allowing the director to apply for up to $400,000 in grant funds for new single-family homes in Grand Marais. This resolution pertains to the Noris Kogan project, which has encountered cost challenges related to infrastructure and earthwork. The resolution passed swiftly without further debate.
The board also discussed the application for the District 3 HRA seat, favorably considering the candidate’s qualifications and commitment to energy efficiency in housing. The candidate’s engineering background and ongoing housing projects were seen as assets, leading to a motion to forward the application to the county board for approval, which passed without opposition.
Transitioning to future leadership, there was acknowledgment of the need for new director applications. The board addressed constraints related to district representation but focused on moving forward with the current agenda and responsibilities.
The director’s report provided updates on the Economic Development Authority, mentioning the ongoing search for a permanent executive director, with interviews progressing and a special meeting planned to finalize candidates. This search has yielded a greater number of qualified applicants due to improved compensation recommendations.
The finance committee presented a draft audit from Red Path for the fiscal year 2023, with no material irregularities found, promising a clean audit in November. A progress payment to Red Path was authorized. The meeting concluded with a mention of a legislative luncheon hosted by the chamber, offering an opportunity for informal discussions with local representatives about legislative goals for the upcoming year.
James Joerke
Community Redevelopment Agency Officials:
Lawrence Doe, Richard Olson, Chris Skildum, Bill Hansen, Mary Somnis, Chris O’Brien, William Gabler, Stacey Johnson, Ann Sullivan, Jason Hale (HRA Executive Director)
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Meeting Type:
Community Redevelopment Agency
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Meeting Date:
10/16/2024
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Recording Published:
10/16/2024
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Duration:
25 Minutes
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Notability Score:
Routine
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State:
Minnesota
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County:
Cook County
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Towns:
Grand Marais, Lutsen Township, Schroeder Township, Tofte Township
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