Bonding Worksession and City Council Meeting

Sue Hakes and all City Councilors were present for today's Worksession and City Council Meeting. Also in attendance were Mike Roth, Kim Dunsmoor and Carolyn Drude, Senior Financial Advisor/Executive VP of Ehlers & Associates.

Worksession to Re-finance EDA Infrastructure Debt
Just about 3 years ago (January 2007) the City of Grand Marais issued $1,630,000 General Obligation (G.O.) Temporary Improvements Bonds to provide financing for the Sewer, Water & Street infrastructure improvements in the EDA Business Park. The plan at that time was for the EDA to sell lots in the Business Park and repay the City $60,000 for each lot sold until the debt was repaid. Lot sales have not occurred as planned and the EDA is unable to repay this debt. This 3-year G.O. Temporary Improvement Bond is now due in January 2010 and the City is responsible for this payment.

The City Council once again met with Ehlers & Associates to discuss options for refinancing this Temporary Bond including the sale of 10, 15 or 20-year G.O. Improvement Bonds . Carolyn Drude of Ehers & Associates also offered for consideration a 20-year Build America Bond which the Council is considering. In general, Build America Bonds bear a higher interest rate, but the Federal government will pay 35% of the interest payment through an annual rebate reducing the cost to the City. Council requested time to consider more fully the Build America Bond and will meet again at 12:00 Noon on Friday to decide.

City Council Meeting

Open Forum
Nobody from the Public opted to address the Council at the Open Forum.

Variance Request
Council unanimously approved the request from Alyssa and Jonathan Hedstrom for a variance from the setback from residentially zoned property to construct an addition to the South and West side of their commercial building located in the H61 District.

EDA Business Park Discussion
Even though Council is working to refinance the $1.63M debt owed by the EDA on the Cedar Grove Business Park, they will continue to hold the EDA accountable for repayment. As agreed by the Council previously, Mayor Hakes wrote to the EDA on behalf of the City asking them to explore all options for this debt repayment. The City has also asked for a comprehensive marketing plan to sell lots in the Business Park. Jan Sivertson reported that the EDA has published a Request for Proposals soliciting bids from licensed real estate brokers to list, sell and market 31 lots in the Business Development Park.

Cairn Signs Maintenance Agreement
The City has agreed to provide the maintenance for the Cairn signs at the entrance to the City of Grand Marais and the Gunflint Trail. Details are being worked out between the City and the Arrowhead Regional Development Commission.

Noise Ordinance Public Hearing
A Public Hearing was promised and has been scheduled to allow the Public to check in with the Council regarding the Noise Ordinance that was established in 2009. The Public is encouraged to attend this Public Hearing at 5:00 on Wednesday November 18.

Council & Staff Reports
Mike Roth asked for Council to approve replacement of the Liquor Store awning that blew down in the storm. Council approved the purchase.
Tim Kennedy reported that the PUC has agreed to extend their contract with SMMPA through 2050. A presentation will be provided to Council for review and support. Kennedy also raised the issue of the Shoreline sign and the danger it caused during the recent windstorm. Council agreed that the City should send correspondence to the owner asking that the sign be removed or restored to a safe condition.
Jan Sivertson gave an update of the on-going efforts to pass the One Percent Sales Tax. Ballots will be mailed to all registered voters in the County on Friday October 16. Jan also asked each member of the Council if they supported the One Percent Tax. Each member of the Council shared their support for this proposed tax without hesitation. Sivertson also raised the need for more public restrooms downtown. And, Sivertson shared the CCEVB plans to make Cook County a December holiday destination. Council agreed to explore ways to support this effort including the possibilities of providing a large holiday tree in Harbor Park, lights and electricity.
Bill Lenz reported on the revenues for the Park Department including an increase in Pool, Campground and Marina revenues and a decrease in Golf Course Revenues, mostly due to weather. Lenz also reported that the Park Board voted to de-ice the docks at the Marina by moving water around them as opposed to removing the docks in the Fall and putting them back in the Spring. De-icing is less expensive than taking the docks in and out.
Kay Costello reported that the Library has begun their strategic planning and has (2) full day sessions planned.
Sue Hakes reported that she has also heard requests from both the Lions Club and GMATA for more public restrooms downtown. Hakes has encouraged these groups to come before the Council with their requests; Mike Roth confirmed they have asked to be on the agenda for October 28. Hakes also shared that several community members have asked for Community Garden Space and Council discussed various possibilities including the Business Park.

Meeting was recessed and will resume at Noon on Friday October 16, 2009.

Mark Your Calendars
Please note that there are several changes to the usual meeting schedule:

FRI October 16 at Noon City Council will resume Council Meeting to discuss Bonding options
WED October 28 at 4:30 City Council Meeting
MON November 9 at 3:30 Council Worksession to discuss Liquor Store & Golf Course Budgets
MON November 9 at 4:30 City Council Meeting
WED November 18 at 4:30 City Council Meeting (will authorize Bond Sale)
WED November 18 at 5:00 Noise Ordinance Public Hearing
THUR November 19 4:00 Joint City/County/School/Tribal Council Meeting at Courthouse