EDA revamps lot prices in business park

How to sell Cedar Grove Business Park lots was the question at a meeting of the Cook County-Grand Marais Joint Economic Development Authority (EDA), Monday, Nov. 23.

The board adopted a proposal from Realtor Tim Kennedy to list lots as a real-estate agent and to temporarily reduce lot prices.  Sales at the park have been stagnant, with only 3 of 37 lots sold.  Kennedy suggested bringing prices down to reflect current market value.  Lot prices, once set at $75,000 each, will now range from $10,000 to $50,000.   However, this presents a problem for the EDA because of an agreement to pay the city of Grand Marais $60,000 per lot sold for infrastructure improvements.  To make up the shortfall, board members decided to assess each lot, on top of the selling price.  Assessments will be based on buildable area and payable to the city over a 20 year period.  The board will also attempt to renegotiate the payment agreement with the city.

Tim Kennedy of Gunflint Realty was the only real estate agent to respond to the EDA’s request for proposals (RFP) last month.  He said his knowledge of the project would give the EDA “a sales agent with hands on experience with the development of the property.”  The board agreed and moved to award Kennedy a one year contract, subject to approval from the EDA’s attorney.

The next regular meeting of the EDA is scheduled for 3 p.m., Thursday, Dec. 10 at City Hall in Grand Marais.