A developer proposing townhouses in the heart of Grand Marais faces pushback, as the small tourist town on Lake Superior’s edge wrestles with a housing crisis.
With a project estimate of $10 million, Jon Petters hopes to build 19 Scandinavian-influenced townhouses on a largely undeveloped bedrock-filled block on the city’s hillside. Five of them would be designated for buyers who meet income requirements and are employed in Grand Marais, a stipulation that helped Petters secure more than $400,000 in local grants and apply for a larger state housing grant. That money would be lost if the Grand Marais City Council rejects an official rezoning request Wednesday, after initially denying the project earlier this month, Petters said.
“I don’t know if it was the attack of the NIMBYs [not in my backyard] or what,” Petters said. “They just don’t want it.”
Neighbors of the proposed project site say they are anything but NIMBYs, arguing that it’s a fight to preserve cherished green space and avoid long-term changes to the fabric of the community, which also serves as the gateway to the Boundary Waters Canoe Area Wilderness. Allowing projects of this type to begin filling Grand Marais neighborhoods would lead to more second-home owners and subsequent vacation rentals, resident Linda Bauer said, threatening the town’s tight-knit feel.
“At what point do we draw a line in the sand and say ‘no’?” she asked. “Because now we’ve become the official playground for everybody else, and we’ve got to move because we can’t afford to stay here anymore.”
Mayor Tracy Benson declined to comment for this story but said during an Aug. 14 meeting that she had uncertainties about the project and whether what’s envisioned will help the community, with concerns about a narrow nearby street accommodating more traffic. The city’s planning commission had earlier approved the project.
The 1,100-square-foot townhouses that would make up the development, called Bjorkberg, are of the denser infill sort that would be relatively new for Grand Marais, where many people build at greater distances to the city center. A 2022 Cook County Economic Development Authority study showed a housing shortage of all types both countywide and in Grand Marais — about 600 units are needed through 2026 in the county that is home to fewer than 6,000 people. It also found that more than half of the county’s homes are seasonal properties.
Jason Hale director of the county’s Housing and Redevelopment Authority, said only one building permit for a single-family home in Grand Marais had been pulled so far this year. Construction costs are about $300 per square foot, Hale said, making it tough to build a home for less than $400,000, considering other expenses. Most Cook County homes being built are high-priced and outside city limits, on an inland lake or along Lake Superior, making Petters’ project an opportunity to offer something different, he said.