There's definitely excitement over a proposed new state park on Lake Vermilion.
But the question lingers: How to pay for it?
Mark Holsten, Department of Natural Resources commissioner, proposed using state lottery money from the Environment and Natural Resources Trust Fund to finance bonds that would be issued to pay for the 2,500 acres near Tower.
But the Legislative-Citizens Commission on Minnesota Resources (LCCMR), which recommends to the Legislature how Trust Fund dollars are spent, rejected the request. Money for the park wasn't included in the LCCMR's 2008 recommendations, which included 36 projects totaling $22.8 million.
Holsten's request was unusual in that it would have required about $6.6 million a year for more than 20 years for principal and interest for a $97 million bond, which also would have paid for wildlife management areas, forests and trails.
"We recognized ... that it was a deviation from traditional uses," Holsten said last week. Despite the setback, Holsten said the state is moving forward to try to make the park a reality.
The state still must negotiate a purchase price for the land from U.S. Steel Corp. Appraisals still are being done. And various ways to pay for it are being discussed, he said. The Legislature must approve LCCMR recommendations, and it's possible the DNR will ask legislators to reconsider the agency's funding proposal.
Holsten said there is growing support for the park, but the window of opportunity is small. The state must close on the deal by Aug. 1, or the company has said it will develop the land.