Minnesota's tight budgets over the last several years have prompted state leaders to focus more on semiannual budget forecasts than on any lasting legacy.
A rare exception was Gov. Tim Pawlenty's proposal -- backed by bipartisan support in the Legislature last year -- to add the first new state park in 30 years.
The proposed park was to occupy 2,500 acres currently owned by the U.S. Steel Corp. on Lake Vermilion, adjacent to the Boundary Waters Canoe Area and Superior National Forest. The new park would abut Soudan Underground Mine State Park, and together the two parks would provide more than 10 miles of recreational shoreline on a lake that includes 365 islands spread over 40,000 acres of water.
But a dispute over the value of the land may have doomed the deal.
Not that the state is unwilling to pay a premium for such a premium piece of property. The state is authorized -- and willing -- to pay up to 12 percent more than the assessed land value.
Apparently that isn't enough for U.S. Steel. Negotiations with the state have broken down, and the company is pursuing a private development option, with the latest step in that process approved by the St. Louis County Board last Tuesday.
So instead of creating Lake Vermilion State Park -- which, according to initial estimates, would generate over $8.5 million in visitor spending and would be open not just to Minnesota's 5.2 million residents, but people worldwide -- the land could be sold off as 148 private lots.
The breakdown in negotiations is more a dollar dispute than a policy problem. Both parties are accountable to constituencies, with U.S. Steel a publicly traded company and the governor and legislators representing constituents. Like all private entities, it has the right -- indeed, may have the fiduciary responsibility -- to maximize revenue received for its assets.
