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Serving Northern St. Louis County, Minnesota

Bay View Lodge may be demolished

Resort in bankruptcy; bank may sell as lots

Jodi Summit
Posted 2/13/10

The likelihood of Bay View Lodge reopening as a resort/restaurant is not very good. Jim Ertz, from Dennis Frandsen and Company (the same group that owns Queen City Federal) spoke at the Greenwood …

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Bay View Lodge may be demolished

Resort in bankruptcy; bank may sell as lots

Posted

The likelihood of Bay View Lodge reopening as a resort/restaurant is not very good. Jim Ertz, from Dennis Frandsen and Company (the same group that owns Queen City Federal) spoke at the Greenwood Town Board meeting, Tuesday, to discuss various options for the sale of the property, which is now owned by the bank. The property has been appraised at between $1.8 and $1.9 million, but Ertz said the bank is looking to get about $1.2 million in a sale.

“It just doesn’t seem like it is financially feasible to operate the property as a resort,” he told the board. He noted the resort had not been kept up over the past few years, and that the kitchen does not meet county code, and would require significant upgrades to reopen.

The property consists of about 14 acres on 650 feet of shoreline. Ertz said they have been showing the property, and will continue trying to sell it as-is for a couple of months. But at some point, he said, they might consider removing all the buildings from the site and dividing the land into lots.

Ertz said there is grant money available from Iron Range Resources to help pay half the costs of demolition, but such a grant would have to be applied for through the township. Ertz said another possibility would be having the fire department burn the structures as a training exercise.

Greenwood Planning Director John Ziegler noted that the property is currently zoned as a resort, and this would allow for renovation and even expansion of the current cabins. But if the buildings are torn down, he said, any new construction would have to meet the requirements of the Lake Vermilion Plan zoning. Zeigler estimated that the property could be divided into three lots under current zoning, and perhaps four or five if a cluster mound system was constructed. Ziegler also noted that if the dock portion of the shoreline was maintained as a joint access, the backlots could be sold with guaranteed lake access, thus adding to their value.

Frandsen Financial also owns land at Moccasin Point and on Oak Narrows.

“We know this market will come back and stabilize,” Ertz said, “We just don’t know when.”

Road maintenance

Mark Drobac, of Breezy Point Road, again challenged the town board to address the inequity of having the township pay for snowplowing on the Birch Point Road Extension, but not for other privately-owned roads. He maintains that Breezy Point is an established legal public cartway, and thus the township has the responsibility for providing maintenance.

“You can assess residents for the costs,” he told the town board. “But then everyone is treated fairly.”

Drobac maintains that the road, which is maintained by a private road association, does not always have the funds needed to pay for private plowing and grading. Since the road association payments are voluntary, some residents do not contribute.

“We are at the mercy of the road fund to get access to police, fire and ambulance services,” he said.

Board Chair Kirsten Reichel said they would need to have their township attorney research the issue, but Mark pointed out this issue has been on the table for the last five months.

Drobac also questioned the board as to how much they were spending on attorney fees for the Waters of Vermilion litigation. Trancheff noted that the township insurance is covering the cost of one attorney, but the township is responsible for charges from local attorney Scott Neff.

Other business

‰ Noted that the contract for the final portion of the Highway 77 upgrade was awarded to Ulland Brothers.

‰ Approved the Board of Audit for 2009.

‰ Approved the purchase of a new computer for treasurer Delores Clark, whose computer is almost eight years old and won’t run the latest version of the required software. The cost for the new computer, to be purchased at Rogers Online, will be $1,456.

‰ Will request an opinion from their insurance carrier and the Minnesota Association of Townships on liability issues relating to having the Cook Fire Brigade fire boat respond to calls in Greenwood Township. Greenwood would not be calling the boat out, but since the Fire Brigade has an agreement with the Cook Fire Department, conceivably Cook could call the Fire Brigade to a call in Greenwood Township. The Fire Brigade is privately-run and is not part of the Cook Fire Department.

‰ Passed a resolution to oppose the new Coast Guard rules that are going to be enforced on Lake Vermilion. Supervisor Wally Snyder noted it is a stretch to call Vermilion a border lake, but the Coast Guard considers the Vermilion River navigable to the Canadian border.

‰ Set extra town clerk office hours for absentee voting prior to the township election on March 9. The clerk’s office will be open Saturday, March 6 from 10 a.m. - 12 noon and Monday, March 8 from 9 a.m. - 5 p.m.

‰ The township election is on Tuesday, March 9 with polls open from 7 a.m. - 8 p.m. The Township Annual meeting will be held Tuesday, March 9 at 8:15 p.m.

‰ There will be a Board of Adjustment meeting on Monday, Feb. 22 at 6:30 p.m. to hear three variance requests.