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Expansion at Silver Rapids faces opposition from group, DNR
Plans for a major expansion at Silver Rapids Lodge have encountered two significant legal roadblocks.
Lake County has been hit with two lawsuits - including one from the Minnesota Department of Natural Resources - that could stop the project in its tracks.
On successive days, the county was sued both by a recently formed group backed by more than 400 petitioners, and the DNR.
Both contend that Lake County shirked its duty by approving the proposed expansion and foregoing the county’s own rules. They’re also demanding that an environmental assessment worksheet be completed before moving forward with the proposed $45 million development on White Iron Lake.
Filing suit along with the DNR is Community Advocates for Responsible Development (CARD) - Silver Rapids.
The group is represented by a Twin Cities attorney, and says over 400 people signed a petition against the development, calls for 49 cabins, 68 boat slips, employee/workforce housing and more as part of a proposed expansion that has been cleared both by Lake County’s planning commission and the county board.
Joe Baltich, who represents Fall Lake Township on the county board, declined comment Wednesday on the specifics of the lawsuit but reiterated his support for the project.
State Rep. Roger Skraba (R-Ely) has also shown support for the project and contacted the DNR in what he believes is on the first times the agency has filed suit against a county.
Lake County, along with Silver Rapids and county planning and zoning administrator Christine McCarthy, are named as defendants in the litigation.
In the suit filed by CARD, plaintiffs allege that the county had a duty to determine if Silver Rapids’ applications for a conditional use permit ran afoul of current ordinances.
They also contend that the Silver Rapids’ plan runs counter to development density provisions already in place and that the county had a duty to allow development densities “at or below those maximum allowed.”
They also maintain that the current county provisions were adopted to “preserve the rural character of shoreland areas and in Lake County and maintain maximum environmental protection” and that the project as proposed is “environmentally injurious to White Iron, Farm and Garden lakes, the Superior National Forest and the Boundary Waters Canoe Area Wilderness.”
The litigation was filed last week in State District Court at Two Harbors.
It comes after months of debate, and some citizen pushback to the plan to renovate and revitalize one of the Ely area’s most historic resorts.
Opponents contend the project will have a significant impact on people who live in Fall Lake Township, citing Silver Rapids’ plans to create “the largest resort in the area” will have an impact on traffic, the region’s housing shortage and fire suppression efforts.
The petitioners also contends that “this project will likely have a significant impact on the natural and human environment of the White Iron Chain of Lakes, groundwater resources, ecosystems and the food chain, and the Boundary Waters Canoe Area Wilderness.”
Silver Rapids sought and obtained a conditional use permit from Lake County for the redevelopment and expansion, which would be completed in three phases.
Plans call for the demolition of the main lodge, five existing cabins, other buildings on the property and the removal of RVs and mobile homes onsite.
Seven existing cabins would be remodeled along with the motel, garage and fish cleaning house.
Silver Rapids would also add a new main lodge building that would include a check-in facility, bar/restaurant, gift shop, pool, sauna and spas.
The new cabins which would be timeshare units, would be constructed over the three phases.
What’s proposed is a joint venture between Silver Rapids’ current owners and Storie Company, which focuses on independent resorts in the Midwest with an emphasis on recreational tourism.
The CARD group had previously collected signatures on a petition opposing the project and pushing for additional environmental review:
https://static2.elyecho.com/data/wysiwig/20240730_Silver%20Rapids%20Petition_Signatures.pdf
