City seeks grant money to help finance condo development

FEBRUARY 13, 2017 — Following a request by the newly reorganized Tower Economic Development Authority (TEDA) the Tower City Council, at its February 13 regular meeting, unanimously voted to seek a grant from the Iron Range Resources and Rehabilitation Board (IRRRB) to help fund the proposed Tower harbor condominium project planned by Orlyn Kringstad. Although the resolution, (No. 2017-06), approves the application for a grant for “any and all economic development projects within the City of Tower” the city specifically hopes to use any forthcoming grant specifically for covering a shortfall in the private investments necessary to get the harbor project started. Marshall Helmberger, President of TEDA said, at the authority’s reorganization earlier in February, that there was “a funding gap” in investments and that Kringstad needed $125,000 to complete architectural work and develop marketing materials for the project.

The city council noted that, should it be successful in obtaining the grant, the proceeds could be loaned to Kringstad to finance part of the harbor development and when repaid could be used to make loans for other future projects.

Mayor Josh Carlson expressed his concerns about allowing too many entities to seek IRRRB funding on behalf of city projects. “TEDA did not solicit this grant,” Carlson emphasized. He explained that Kringstad, TEDA President Helmberger and Steve Peterson, also serving on TEDA as treasurer, met with IRRRB Commissioner Mark Phillips as private citizens and that the IRRRB was “uncomfortable” in considering the request for funding to a private developer and would, rather, prefer to work with the city on the grant. It should also be noted that Marit Kringstad, the wife of developer Orlyn Kringstad, was also appointed to the TEDA board at the city’s reorganization earlier this year.

The city council also discussed the upcoming need to seek funding to assist Lamppa Manufacturing in establishing a new industrial manufacturing facility in the immediate future.

“The IRRRB has been generous to Tower, however, occasionally cities go back to the well too many times and this could hinder Tower in the future,” Mayor Carlson said. “This isn’t to discourage outside groups (from seeking IRRRB funding) — I just think they need to be sure that they are aligned with the city,” Carlson added. He said that he was aware of an ordinance that the City of Ely created to alleviate similar concerns and that he would soon bring a proposal on the issue to the city council for its consideration.

Hoodoo Point Campground

The city council unanimously voted to move forward with a seven campsite expansion at Hoodoo Point Campground. The project will include providing electrical, sewer and water infrastructure for each site and add additional pumping capacity to handle the increased seasonal population. Work on the project infrastructure is expected to commence in the spring, pause during the summer peak season, and commence again in the autumn making the new sites ready to be leased in 2018. In previous city meetings, the council discussed issuing bonds to pay for the campground improvements and amortizing the bonds with the proceeds the additional campsites would generate.

City Reorganization

The city council continued with appointments to city boards. At the Monday City Council meeting, the council:

• Appointed Jesse Gornick to serve a three-year term, expiring at the end of 2019, on the Gundersen Trust and to a seat on the city’s gambling commission

• Appointed Doug Carter to the Forestry Board and also a three-year term, expiring at the end of 2019, on the Gundersen Trust

A seat on the Public Utilities Commission and a seat on the Public Property commission remain unfilled.

In other action, the council:

• Held the second reading of an ordinance to extend the Mid Continent Cable franchise rights

• Acknowledged the receipt of the pay equity report

• Transferred the Hoodoo Point Campground credit card processing from PayPal to Central Payment, a San Rafael, California company

• Approved allowing the Fourth of July committee to operate under the city’s insurance for one more year and to handle the funds for the event until the committee is able to establish itself as a non-profit organization

• Increased the deputy clerk’s hours, from 38 to 42 hours per week. The deputy’ clerks hours are budgeted through the Tower Ambulance Service

• Certified the 2017 sewer and water budgets

• Received the monthly reports from the:

— Ambulance Director

— Fire Chief

—Emergency Mangement Director

— Breitung Police Department

— City Engineers

— TEDA

• Noted that the Tower-Breitung Joint Fire Department committee will meet on March 1, 2017

• Received correspondence from the Vermilion Country (Charter) School about upcoming mental health workshops for students and the public

• Authorized the payment of monthly claims presented to the city.