Making a case for Vermilion park
By Marshall Helmberger
July 30, 2007
State Sen. Tom Bakk, DFL-Cook, called on the Legislature and Gov. Tim Pawlenty this week to approve funding for full acquisition and development of the proposed new Lake Vermilion state park.
Bakk made his comments as part of a tour of the proposed site with state officials and statewide media last Friday.
The tour came just three days after Gov. Tim Pawlenty announced his proposal to purchase 2,500 acres of remote property on Vermilion’s east end from US Steel for creation of the park. US Steel is currently planning to develop the land for lake homes and cabins but company officials have agreed to give the state one year to negotiate a purchase before moving ahead with their development scheme.
The tour of the proposed park site was an opportunity for state officials to make their case for the park against the dramatic backdrop of the park itself. They couldn’t have ordered a more picture-perfect day, complete with cavorting loons, bald eagles, and fisherman working island shorelines for muskies—all under blue skies.
Perched high above the lake on a rocky promontory, DNR Commissioner Mark Holsten, State Parks Director Courtland Nelson and Bakk outlined the opportunities and potential pitfalls of the park proposal to about a dozen reporters from around the state.
Holsten said the next 12 months are critical ones. “One year from now, this will either be a state park for the use of all the people of Minnesota or it will be developed for housing. That’s pretty much the choice,” said Holsten. “Right now, we have a window of opportunity to do something significant,” he said.
Bakk acknowledged that the park proposal will be competing against many other critical state needs, many of which are already underfunded. “It’s going to be a huge challenge to convince the Legislature to put more money into parks,” he said. Unlike many other DNR divisions, which receive much of their funding from dedicated accounts, the state parks rely on general fund dollars, which means they face competition from things like hospitals, schools and roads. “Personally, I think the biggest competition will come from transportation,” he said.
Bakk said all those competing priorities make it essential that the development dollars be appropriated along with the acquisition money. If not, he said, the park will likely never be developed as state officials currently envision. “How does that new visitors center compete with the needs of nursing homes?” he asked.
Bakk said many residents of the region harbor a natural skepticism of government promises. “I understand that apprehension,” he said. “We’re not going to take another 2,500 acres and lock it up. We’re going to develop it so people can use it. That’s why the development dollars need to come with acquisition and we need enough to do it right.”
But even some local legislators will likely need some convincing. While Rep. David Dill has voiced his support for the proposal, Rep. Tom Rukavina, DFL-Pike, said state parks are seriously underfunded as it is and he questioned whether the state couldn’t do more with the Vermilion shoreline it already owns as part of the Soudan Underground Mine State Park. “That’s really the issue here,” said Rukavina. “We already have a state park on Lake Vermilion. What have you done with it?” he asked.
Soudan Mine Park Director Jim Essig agreed that the park is underdeveloped, but not for lack of interest on the part of park managers. He said the Stuntz Bay boathouses have limited the park’s development options, a situation that is almost certain to continue for years to come. Essig said the park has added a day use picnic area on Swedetown Bay and has considered campsites there as well. But getting funding for additional developments has been a problem at the park, he said. “Really, the reason why there’s not much development, is that we do underground mine tours. That’s our emphasis. It’s already an expensive operation and we have had trouble getting funding for other things.”
No guesses on price
Money was on the minds of many of the reporters who attended Friday’s tour, but Commissioner Holsten said that was one question he wasn’t ready to answer. “There’s been a lot of stuff in the papers about price. I’m not going there and I don’t think it serves our purposes to put a number down,” he said.
While one recent news story quoted St. Louis County Assessor Mel Hintz suggesting US Steel’s property could be worth $40 million if developed for lake homes, Hintz said that figure didn’t account for the substantial costs US Steel would incur in developing the property.
The land’s current county assessment is about $13 million, according to Hintz. Under state law, that valuation must be within 90 percent of the market value of similar property in the area, which means a more reasonable market value could be closer to the $15-20 million range, not the $40 million some have suggested.
Tax base an issue
The proposal to swap a planned housing development for a state park has drawn support from local residents, but also concerns about the potential loss of tax base. While state payments in lieu of property taxes would make up for the roughly $200,000 a year that US Steel currently pays on its Vermilion holdings, those payments would fall far short of the potential tax base from the proposed Three Bays on Lake Vermilion development.
St. Louis County Commissioner Mike Forsman said he’s generally supportive of the park, but he remains concerned about the loss of critical tax base. “That’s easily $75 million in tax base that would go to Breitung Township, the school district and the county. Such a tax base would generate about $1.1 million annually in tax payments to local units of government, or about $900,000 more than is generated from the undeveloped property.
Breitung Township officials appear less concerned about the tax base issue and have voiced solid support for the park plan. Township residents have pushed for expansion of the existing state park for some time as a way to preserve the east end’s undeveloped character. “Protecting the lake and the water quality— that’s been one of our goals,” said longtime town supervisor Tim Tomsich.
But Bakk noted that the township will incur additional expenses for police and emergency medical coverage if the park is created and he said the state should help the township cover some of those costs— as it has done in other communities that serve state parks. “We’ll need to explore that idea,” said Bakk. “There’s going to be a lot of people coming here.”
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