Proposed zipline property goes up for sale

A property originally being developed as a zipline has gone up for sale as of the first of February. Superior Zipline, in the person of former Economic Development Authority Director, Matt Geretschlaeger, was purchased from the City of Grand Marais in April of 2012.

After a series of financial transactions, and near transactions, the property on the Gunflint Trail above the city, (but within its limits), ground to a halt in October of 2013 due to a Cease and Desist Order issued by the Minnesota Department of Natural Resources.

The 21-plus acres is listed by KW Commercial at $399,000. Geretschlaeger purchased the city property for $75,000.

Geretschlaeger originally proposed a zipline set back from West Hwy. 61, but soon dropped the idea after failing to persuade adjacent property owners to accept the development. He then turned to the city for the property on the edge of town along the Gunflint Trail. On April 25, 2012 in closed session the city council voted to sell the land for $75,000.

In May of that year Geretschlaeger announced his intention to resign his EDA position “to avoid the appearance of conflict of interest.” The EDA board agreed to lay off Geretschlaeger. From this point on, the ensuing financial dealings become many and difficult to follow.

Geretschlaeger asked the city council to apply for $300,000 in IRRRB public works grants. Council agrees with one “no” vote. He then requests $250,000 from the Cook County Revolving Loan Fund, to which the county agreed, contingent upon the IRRRB grant and a bank loan of $329,300. In June the IRRRB request was denied, but Geretschlaeger was able to leverage about a third of that amount in taconite funds through the Legislature.

In September, the bank loan was denied and the project cost was lowered from $929,300 to $825,000, which includes $110,000 in contractor promissory notes. In October, the county board agrees with one dissenting vote. In the meantime Geretschlaeger is collecting unemployment, inasmuch as he was “laid off” and had not resigned.

On July 17, 2013 Geretschlager again went to the Revolving Loan Fund Committee, this time to request an extension on the loan agreement. The financing now consisted of $192,000 of taconite money, the $110,000 contractor equity and a $266,000 Small Business Administration loan. The loan committee gave its OK, but a firm business plan had not been presented by the end of July. After strenuous discussion, the loan request is approved with a number of conditions and with one dissenting vote.

Next month in August, the EDA approved a $9,000 grant to “get the ball rolling” with site prep and clearing, which subsequently started on August 14. In October the DNR issued its Cease and Desist Order due to wetlands issues that had not been mitigated beforehand.

To date, the best estimate of money paid to contractors is a total of just under $150,000. There still remains the wetlands issues, due to road re-routing, and some question regarding the subsurface suitability to accommodate the zipline towers. Geretschlaeger at that time estimated the value of the property without zipline equipment at over $530,000.

The realtor lists the property zoning as Recreation/Commercial with potential uses to include recreation, resort, lodging, restaurant and planned unit development. Additionally, the listing states, “This property is located at the gateway to the Gunflint Trail and immediately adjacent to the Superior Hiking Trail. The driveway and building pad was cut into the hill, with dynamite, to give access to this commanding view of Lake Superior and the city lights of Grand Marais below.”