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Wednesday, January 22, 2025 at 2:53 AM

Judge hears Silver Rapids case

Another chapter in the legal battle over the proposed expansion at Silver Rapids Lodge was written last week.

A judge in Two Harbors has yet to rule on efforts to dismiss lawsuits brought by petitioners opposed to the project as well as the Minnesota Department of Natural Resources.

The defendants in the suit, Silver Rapids Lodge and Lake County, are seeking summary judgment and an end to the proceedings, given the Silver Rapids’ decision to surrender permits approved by Lake County earlier this year.

In a Nov. 20 filing, Silver Rapids notes that it surrendered all rights obtained by those permits and “that no pending application exists.”

A supplemental surrender filed the day before “makes clear that the termination of the approvals is a final disposition of the applications and that no pending application exists.”

Silver Rapids gave up its permits after being hit by two lawsuits, one by the DNR and another by Communty Advocates for Responsible Development, which is represented by at Twin Cities attorney and says over 400 people signed a petition against the development.

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.”

Amid the legal dispute, Silver Rapids subsequently gave up its permits, although the developers retained their rights to submit future applications for conditional use permits or planned unit developments “in a manner consistent with applicable state law and local ordinances.

Lake County also sought summary judgment and noted Silver Rapids’ secondary surrender “addresses all the DNR’s alleged deficiencies,” and that the arguments made in the lawsuit are subsequently “moot.”

But the plaintiffs argue that the case should continue, claiming a “mootness exception” and “that “the challenged action was in its duration too short to be fully litigated prior to its cessation or expiration” and “there was a reasonable expectation that the same complaining party would be subjected to the same action again.”

While the plaintiffs say there’s a reasonable expectation that the same issues will be litigated again should Silver Rapids resubmit request for permits, the county counters that’s “mere speculation” and that “the DNR clearly acknowledges that Silver Rapids has stated any future application would be for a scaled down project with fewer units than were approved in the approvals.”

Silver Rapids had first proposed a $45 million development that called 49 cabins, 68 boat slips, employee/ workforce housing and more at the resort.

The proposed expansion was cleared by both Lake County’s planning commission and county board, but there was pushback during the permitting process and afterward.

Opponents say 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.

Opponents 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.”

Plans initially called for the demolition of the main lodge, five existing cabins, other buildings on the property and the removal of RVs and mobile homes on site.

Seven existing cabins were to 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.

It’s not clear what portions of the original project would be cut and what would remain in a revised permitting request.

The project 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.


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