Tuesday, March 25, 2025. Lake County Board of Commissioners’ regularly scheduled meeting was called to order at 2:00 p.m. by Lake County Board Chairperson Rich Sve. Chairperson Sve led the recitation of the Pledge of Allegiance. Unless otherwise stated, all actions have been approved by unanimous yea vote. Lake County Board members present in the Lake County Service Center, Split Rock River Room, 616 Third Avenue, Two Harbors, Minnesota: District 1 Commissioner Joe Baltich, District 2 Commissioner Derrick “Rick” L. Goutermont, District 3 Commissioner Richard “Rick” C. Hogenson, District 4 Commissioner Jeremy M. Hurd, and District 5 Commissioner Rich Sve. Board member absent: None. Others present: Lake County Administrator Matthew Huddleston, Lake County Environmental Services Director Christine McCarthy, and Clerk of the Board Laurel D. Buchanan.
MOTION HURD, SECOND HOGENSON: 01 – Approval of the agenda. Absent: None
Lake County Board Chairperson Rich Sve opened the floor for public comments. Two main topics were brought forward during public comments by different parties. The first public comments were made by Veterans on the Lake (VOTL) volunteer board members who requested Lake County’s help in moving forward with VOTL’s applications for building permits and a permit for the construction to replace an existing septic system. Currently, the septic system is nonconforming. VOTL has received an estimate of $178,000 for the septic system. VOTL members discussed project plans and costs. The land is leased from the United States Forest Service (USFS). VOTL is seeking to make improvements to its structures and needs permission from the USFS and from Lake County. Lake County Environmental Services Director Christine McCarthy advised that the USFS approvals are needed before Lake County can issue permits. VOTL seeks support from Lake County, to work with the USFS, and issue the permits.
The next public comments were made by Tim Costley, an attorney attending on behalf of his client John Poucher. Tim Costley provided information about an access issue and requests that Lake County provide a Road License across tax-forfeited property, for 330 feet for access to Poucher’s property. Tim Costley provided maps of Tanner Road (West Christianson Lake), Twp 55 Rng 11. Lake County Land Commissioner Nate Eide arrived at 2:21 PM and advised that Lake County’s policy with respect to Road Licenses is based on the standards for issuing easements as laid out in Minnesota State Statute. The maps provided show current access and approximate historic access. Tim Costley advised that a neighboring property owner also denied the access request. Tim Costley advised that if the parties cannot come to an agreement, then cartway proceedings may be necessary. Tim Costley requests that Lake County issue the Road License, rather than having to go through the cartway process. Land Commissioner Nate Eide clarified the difference between a Road License and an Easement. Commissioners advised that additional review is necessary and that we will take it under advisement.
Lake County Administrator Matthew Huddleston provided an update on several items of county business. The County Administrator and some of the County Commissioners are providing input to legislators on legislative bills. Two of the bills are Senate File 2530 (S.F. No. 2530 – Gas Development Permitting and Regulation) and House File 2447 (HF2477). The description for HF2447 is “Orderly and environmentally responsible development of the state’s gas resources facilitated, rulemaking required, and money appropriated.” Both bills have been introduced. SF2530 is moving through legislative committees. It is anticipated that HF2477 will be heard at a committee in the coming weeks. Lake County Commissioner Jeremy M. Hurd left the meeting at 2:45 p.m. and returned at 2:54 p.m.
MOTION HOGENSON, SECOND HURD: 02 – Approve Consent Agenda as follows:
1. Approve Board of Commissioners’ regular meeting minutes of March 11, 2025.
2. Approve Health and Human Services claims payments in the following amounts:
a. Region III Payments $ 95,895.21
b. Special Payments $ 16,179.46
3. Authorize payment to Impact in the amount of $5,372.00, invoice P-216456, for 2025 tax and valuation notice postage.
4. Adopt findings and conditions by the Planning Commission for Interim Use Application I-25-002r, submitted by Marguerite Cutchey at 1615 Hwy 3, Two Harbors MN 55616.
5. Adopt findings and conditions by the Planning Commission for Interim Use Application I-25-003r, submitted by Luke and Jenn Carlson at 1831 Silver Fox Lane, Two Harbors MN 55616.
6. Adopt findings and conditions by the Planning Commission for Interim Use Application I-25-004r, submitted by Virginia Jensen at 683 Point Drive, Ely MN 55731.
7. Adopt findings and conditions by the Planning Commission for Interim Use Application I-25-005i, submitted by Erik & Melanie Peterson-Nafziger at 5758 Little Marais Road, Finland MN 55603.
8. Authorize Highway Department purchase of a replacement hydraulic pump for equipment unit number 5020, a 2002 CAT 315 excavator from Ziegler Companies at a cost not to exceed $15,000.00 plus any additional delivery, tax, title, or registration fees.
9. Authorize Highway Engineer to sign the Special Event Permit for The Fox Bikepacking Race scheduled for June 26 and 27, 2025 beginning at the Finland Community Center and moving through Lake County utilizing Cramer Road (CSAH 7 and CSAH 8).
10. Authorize the Board Chair to sign a Contract Renewal for calendar year 2025 with Envirotech Services, LLC for furnishing and applying liquid Calcium Chloride dust control treatment at a unit cost rate of $1.37 per gallon, not to exceed $281,398.
11.Approve closeout of project CP 911- 024-001 (2024 Pavement Patching) and final payment of $2,480.21 for the work completed to KGM Contractors, Inc. for a total contract work value of $248,020.56.
12.Approve closeout of project SAP 038-627-003 (Reconditioning of Waldo Rd, Cardinal Rd, & Ski Hill Rd) and final payment of $28,720.11 for the work completed to KGM Contractors, Inc. for a total contract work value of $2,706,680.62.
13.Approve closeout of project SAP 038-600-019 Lakeview Drive, City of Silver Bay and final payment of $74,721.78 for the work completed to Ulland Brothers, Inc. for a total contract work value of $1,697,642.76.
14.Approve closeout of the following Bituminous Seal Coat (Chip Seal) projects completed in 2023 and make final payment of $30,901.53 to the St. Louis County Auditor for a total contract work value of $482,182.63 and a total project cost of $482,932.63.
– SAP 038-603-041 – Airport Road (CSAH 3), Beaver Bay Township
– SAP 038-605-014 – Penn Blvd/ Outer Drive (CSAH 5), Silver Bay
– SAP 038-632-002 – Horn Blvd (CSAH 32), Silver Bay
– SAP 038-633-003 – Horn Blvd (CSAH 33), Silver Bay
15.Authorize Highway Department payment to Forestry for Gravel Pit Royalties at a cost of $54,475.38. $35,674.40 was actually payment from others (KGM, DNR, and City of Two Harbors & Silver Bay).
16.Approve Lake County Attorney to pay invoice for Minnesota Counties Computer Cooperative (MNCCC) in the amount of $9,100.00. Absent: None
Lake County Administrator Matthew Huddleston read two proposed resolutions with respect to Payment in Lieu of Taxes (PILT), that were brought forward by the Arrowhead Counties Association (ACA).
MOTION GOUTERMONT, SECOND BALTICH: 03 – The Lake County Board of Commissioners approves the following resolution calling for Full Restoration of Governor’s Detrimental PILT Cut:
WHEREAS, the 2023 Legislature passed a significant increase in PILT Funding,
WHEREAS, this increase in PILT Funding helped counties grapple with the predominance of state school trust and tax forfeited land within each county,
WHEREAS, approximately 95% of PILT land exists in just 20 counties in the northern one-third of Minnesota,
WHEREAS, these same counties provide many essential services to these state lands, including; road access, solid waste, law enforcement, search and rescue, and other vital services,
WHEREAS, this PILT funding helps reduce or maintain local property tax increases
THEREFORE, BE IT RESOLVED that Lake County strongly urges the 2025 Legislature to reject our Governor’s detrimental proposal and fully restore PILT funding. Absent: None
MOTION BALTICH, SECOND HURD: 04 – The Lake County Board of Commissioners approves the following Resolution to Equalize PILT Funding for Northern Minnesota Lakeshore
WHEREAS, Minnesota contains over 12,000 lakes; and
WHEREAS, over half of these lakes and lakeshore is contained in just ten counties in northern Minnesota; and
WHEREAS, unlike other parts of the state, northern Minnesota counties only receive $3 dollars per acre in PILT funding for this much higher value lakeshore; and
WHEREAS, the 2025 Department of Revenue Lakeshore Valuation Report clearly indicates that if PILT payments were paid on the actual lakeshore value in northern Minnesota, counties would be receiving from three to ten times as much reimbursement; and
THEREFORE, BE IT RESOLVED that the 2025 Legislature pass SF 2108 (Hauschild) and HF 1780 (Skraba) which will equalize these unfair rates and stop the short-changing of northern Minnesota’s tax base. Absent: None
MOTION HURD, SECOND BALTICH: 05 – Adjourn Board meeting of the Lake County Board of Commissioners at 3:33 p.m. Absent: None
The Lake County Board of Commissioners will convene for the following meeting to be held in the Lake County Service Center, Split Rock River Room, 616 Third Avenue, Two Harbors, Minnesota:
• Agenda meeting at 2:00 p.m. on Tuesday, April 1, 2025.
• Regular meeting at 2:00 p.m. on Tuesday, April 8, 2025.
ATTEST:
Laurel D. Buchanan
Clerk of the Board
Rich Sve, Board Chairperson
Lake County Board of Commissioners
