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Greenwood must repay $100k of federal grant

Posted 5/21/26

GREENWOOD TWP — A yet-to-be-spent federal COVD-era grant the township received at least four years ago will need to be repaid to the federal government. That was the surprising news offered to the …

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Greenwood must repay $100k of federal grant

Posted

GREENWOOD TWP — A yet-to-be-spent federal COVD-era grant the township received at least four years ago will need to be repaid to the federal government. That was the surprising news offered to the town board last week by Chairman Paul Thompson, who said the funding was received in 2021 and 2022, and had been set aside for a future broadband expansion project.
“Because of our recordkeeping, we are not sure of the exact amount received,” said Thompson. The funds came with rigorous reporting requirements, including that the funds must be legally obligated by Dec. 31, 2024, and then spent by Dec. 31, 2026.
“If we missed either of those deadlines,” he told the board, “our funding is clawed back.”
While the township did dedicate the funds and place them in a separate account, they did not legally obligate them, which would have required signing contracts for the work. The broadband expansion project in Greenwood, which is part of a Bois Forte project, did not include several areas in the township. The township had hoped to use these funds to help pay for those areas, but no specific project has been fully developed.
Thompson said previous township officials did attend the required meetings on the American Rescue Plan Act funding, passed a resolution, and included the ARPA funds in the township budget.
The required paperwork on the grants were filed in 2023 and 2024.
“But no broadband projects were ever identified to fund,” Thompson said. “There were no vendors, no contractors, and no legal agreements.”
“Our leadership failed the community,” he said. “They didn’t understand the ARPA rules, and $100,000 was wasted. The money is gone.” Current board members said they were never told about the legal requirements.
Thompson said the board recently reached out to the offices of both Sen. Tina Smith and Rep. Pete Stauber, and they have been told that the money needs to be returned and there are no other options.
“The whole thing is confusing,” said former Chair Lois Roskoski. “I was under the impression the money was already spent and we’d done the reports.”
“The previous staff wasn’t informative to the board,” said treasurer Jill Clark.
The funding could have been used for other infrastructure-related projects, board members noted.
The township is now waiting for official notice from the federal government to return the funding. The board had previously voted to put this funding into a higher-yield CD, but Clark said she did not invest that money, so it is available to return.
“It isn’t Greenwood taxpayer money, at least,” said Supervisor Steve Bradach.

Fire department
Greenwood Fire Chief Brian Trancheff said the department has two new potential members. The board approved hiring them contingent on background checks. One is an EMR, and the other is a firefighter and EMR.
Trancheff asked the town board for permission to use some of the woods adjacent to the town hall for training required for the wildland firefighting class currently underway. The board did grant permission for some trench digging exercises but is waiting for more information on the request to use a 100 by 100-foot area in the woods for clearing, fuels mitigation, and a possible test burn. The burning would only take place if conditions were favorable, and Minnesota North instructors and the DNR would be on site.

Drinking water
After a visit from a local plumber, the town board is hopeful that the water filtration system can be fixed. The plumber found that the pressure tank had a leak, and this meant the filtration media were not being properly washed overnight. The plumber also installed two water meters so the township can track water usage both inside and outside the hall. The township will be conducting another water test to see if the arsenic levels drop, and once they are sure the pressure tank is working properly, will see if they need to replace the filtration media.

Other business
In other business, the board:
• Hired low-bidder Swanson Outdoor Services to do mowing at the town hall. Their bid was $220 per mow. There were three other bidders, all well qualified, the board noted, with quotes ranging from $250 to $275 per mow.
• Hired Mike Nystrom for town hall cleaning, noting he also could do light maintenance. The board also approved a job description for the position. The job pays $30 per hour, and the township had received multiple applications. Nyland is also the videographer for the town board meetings.
• Voted to join the new Tower Airport Zoning Board and will try to recruit two township residents as members. The motion also mentioned that no township funds are being obligated.
• Approved a $100 donation to the Tower-Soudan Fourth of July. Tabled a donation request from the Tower-Soudan Joint Powers Recreation Board to research past donation amounts. They also tabled a donation request from the Tower Cemetery Association, to which they have not donated in the past. The township had budgeted $1,000 for donations this year so the board wanted to see how much had already been spent.
• Will be setting a special meeting with their attorney to discuss the upcoming court case, scheduled for August, on the right-of-way land dispute on Birch Point Extension. This meeting will be closed due to attorney-client privilege.
• Noted the township email addresses are being changed from .org to .gov, effective May 13.
• Discussed developing an email retention policy and voted to back up all old emails and continue archiving at this time.
• Passed a letter of support for the Y Store intersection safety project. Bois Forte is applying for a $6.9 million grant from the Safe Streets and Roads for All program for this project. Tentative plans for the intersection include construction of a roundabout. The intersection has been the location of several serious accidents, including fatalities.
• Heard that clerk Theresa Martinson has appointed Gwen Potter as deputy clerk. Potter also serves as deputy clerk in Eagles Nest Township. The board approved up to four hours a month of time for ongoing training. The deputy clerk fills in if the clerk is unable to work or is on vacation.