Grand Marais Planning Commission Approves Conditional Use Permit for Mixed-Use Development

The Grand Marais Planning and Zoning Commission approved a conditional use permit for a mixed-use development at the Stone Harbor MH site, including residential units and retail space. The approval includes a stipulation regarding parking arrangements on city-leased property.

In a discussion, the commission addressed the proposed development’s use of the second and third floors for residential units, with the first floor continuing as retail and outfitting space. The developer plans to create three residential units: one studio, one two-bedroom apartment on the third floor, and another two-bedroom apartment on the second floor. The focus will be on providing both workforce housing and short-term rental options.

A central issue was the parking arrangement, as the site has limited space. The developer intends to prioritize parking for the residential units, potentially using a nearby shed for kayak storage and exploring off-site storage options. Concerns were raised about the adequacy of the proposed parking, particularly for short-term renters with varying schedules. One commissioner expressed skepticism about the practicality of the parking setup.

The commission discussed the lease agreement with the city for additional parking space, which is important for meeting zoning requirements. The lease is perpetual, but if it were to expire, the conditional use permit would need to be revisited. The commission approved the permit with the condition that the lease agreement must remain in place; otherwise, the developer would need to apply for a new permit or find alternative parking solutions.

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