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HRA, EDA discuss pursuing assisted-living proposals for Cedar Grove business park; commissioners weigh scale challenges
Summary
The HRA and EDA discussed requesting proposals for assisted-living at Cedar Grove Business Park after staff and EDA members identified demand; commissioners noted past studies and economy-of-scale challenges and suggested updating the 2018 analysis before issuing an RFP.
Cook County HRA commissioners discussed pursuing assisted-living development on two lots at Cedar Grove Business Park and asked staff to explore a request-for-proposals process in partnership with the Economic Development Authority.
Jeff said the HRA has an agreement with the EDA for two Cedar Grove lots and that county and EDA members have previously expressed interest in assisted living as a local need. He said he spoke with Howard Hedstrom (EDA) and that the EDA “brought up yesterday” the idea of using an RFP to solicit developers. Jeff suggested updating a 2018 study by a Duluth organization (WIPFLEE) to reflect 2025–26 demand and to consider sharing study costs with the EDA.
Commissioners discussed prior attempts: staff and commissioners recalled a 2018 effort that progressed far but failed mainly because the developer could not find housing for construction workers and because the project economics required a much larger scale — staff said an earlier developer concluded they would have needed about 50 units for the project to be economically viable. One commissioner noted that assisted-living demand in the region could draw residents from outside Grand Marais and the surrounding area, increasing the potential market.
Several commissioners recommended refining the scope of any new study so it answers specific questions about the demographic and affordability makeup of prospective residents (for example, whether retirees who “import wealth” would be the primary market or whether there is unmet demand among lower-income local residents). Jeff suggested the EDA and HRA could request updated cost estimates for a study, then review whether an RFP is warranted based on an updated market assessment.
Ending
Staff said they will research the cost to update the 2018 assisted-living study, coordinate with the EDA on possible cost-sharing, and return with recommendations on whether to pursue an RFP.
