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Sen. Hauschild, Rep. Skraba push for flood monies for Babbitt Golf Course
Funds set aside nearly two decades ago to spur economic development in four area towns will be used to help Cook businesses recovering from the impacts of a devastating flood that occurred last month.
During the meeting Sen. Grant Hauschild (DFL-Hermantown) asked the agency staff to look into helping the Babbitt Golf Course which was damaged by flooding after the June 18 storm. He said the non-profit club that operates the course sustained over $10,000 in damages.
“We will work together to help Babbitt and determine what their needs are,” said Rep. Roger Skraba (R-Ely). “This is flood related so we should be able help the golf course as well.”
Whitney Ridlon, of Iron Range Resources and Rehabilitation Development, said staff has been in touch with the golf course and is exploring potential assistance.
Monday, members of the Iron Range Resources and Rehabilitation Board set aside up to $2.5 million in economic recovery funding for the newly- established City of Cook Economic Recovery Fund.
Those monies will come from what was initially a $4 million pot, established in the late-2000s by then State Sen. Tom Bakk, to fund any imitative that promised 200 jobs for a project in Ely, Cook, Tower and Babbitt.
While no project of that sort has materialized to free up money from what was dubbed the Highway 1 Corridor Fund, the account has generated interest and has been used by the IRRRB several times in the last decade-and-a-half for much smaller projects.
Ely once was able to tap into the fund for $110,000, but to date no major project has come to fruition, despite some initial job-recruitment efforts by economic development officials in Ely and the surrounding communities.
Skraba, who served as Ely’s mayor when the fund was first established and is now on the IRRRB in his role as a state lawmaker, said Tuesday that the fund “hasn’t moved. It’s been collecting interest.”
Skraba added that he believed the fund “was created for a specific business.” “They had a taker, and wrote the language so it was specifically for that but it didn’t work out,” said Skraba.
This week’s action will used more than half of the remaining $4.3 million to aid Cook, which is reeling from the impacts of June 18 flooding.
In downtown Cook, floodwaters rose as high as five feet in some areas, significantly disrupting the lives of residents and businesses.
The flooding also severely damaged community infrastructure, businesses and homes in Cook and several other communities within the agency’s service area. The natural disaster ranks as the second-largest in St. Louis County in the past 30 years.
“Over the past several weeks, our staff has been directly engaged with the city of Cook to better understand short- and long-term needs of businesses,” said IRRRB Commissioner Ida Rukavina. “After hearing from city officials and business owners, we developed two funding programs that involve both grants and loans. Our agency’s mission centers around supporting communities and businesses. The new program will deploy financial relief as these small business owners begin to rebuild and reopen.”
The IRRRB authorized $300,000 in Quick Start Recovery Grants and another $2.2 million in forgivbale loans.
To be eligible for the City of Cook Economic Recovery Fund, a business must intend to reopen in the city of Cook, demonstrate need for financial support and utilize available insurance.
The Quick Start grants are $25,000 per business and may be used once. Eligible uses of grant funding include replacement of lost inventory, replacement of machinery/equipment/furniture, supplies, building rehabilitation, architectural/engineering services related to building repair or building new, full or selective demolition, utility bills, operational and other expenses.
The loan program is open to business owners who were operating in the city of Cook at the time of the flood, whose business is located in the commercial business area, and who will reopen by rebuilding in the same or new location or by rehabilitating the building on the existing site.
The loan funding will be distributed by IRRR to the city of Cook who will in turn work with an alternative lender to administer the funding to the business and service the loan. Any loan repayments will be recaptured by the city and used for future economic development projects. Loan forgiveness will be contingent upon business remaining open for five years.
While funds beyond interest and including the original principal will be used for the first time since the project’s inception - the use is far different than originally intended.
Skraba said he wants to see other monies put back into the fund to support future economic development.
“We’re talking about replenishing that,” said Skraba. “I would like to see it filled back up. We’ll see where we go with that.”
