The Grand Marais, Minn., City Council denied a proposed townhouse project Wednesday night, with no commentary after voting.
A developer had proposed 19 Scandinavian-influenced townhouses on a largely undeveloped block on the city’s hillside, a few blocks from downtown. Five of the homes would be designated for buyers who meet moderate income requirements and are employed in Grand Marais, a stipulation that helped developer Jon Petters secure more than $400,000 in local grants and apply for a larger state housing grant.
The North Shore city has experienced a housing shortage for years.
Petters said Wednesday night that he’d move ahead with a different proposal.
“We respect the city’s decision and we are looking forward to working with them on our new plans,” he said.
Under current zoning, Petters can still build single-family homes but needs certain city permissions to move forward. New plans will likely not include homes priced lower than market rate.
Mayor Tracy Benson didn’t immediately respond to a request for comment Thursday morning. But she said at a recent meeting that she was unsure whether what’s envisioned would help the community.
Neighbors say they are concerned about a lengthy construction period, city assessments for road improvements, the blasting of the region’s signature bedrock and increasing density in the neighborhood. Some say it’s the wrong site for that kind of development and fear long-term implications of more second-home owners in the city of about 1,400 residents.
