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Sunday, December 23, 2001 Guest Editorial, Duluth News Tribune

It's time for a new vision for Spirit Mountain 

Perhaps now that the Duluth City Council has denied the work permits and land conversion request for the controversial golf course and hotel project at Spirit Mountain, this community should take a deep breath and develop a unified vision for Spirit Mountain.

The Spirit Mountain Recreation Area Authority would like to have the hotel to attract guests and to increase use and revenues. This is a reasonable thing.

The developers want the hotel to make a profit on their investment. There's absolutely nothing wrong with that.

The most controversial aspect of this project is the golf course. The course would greatly alter -- and some believe destroy -- the forest. The proposed golf course is not a forest-dependent use, but one that sees the forest as an encumbrance. It may also -- depending upon who you believe -- have deleterious impacts on the Stewart Creek watershed. And the Anishinabe people see the golf course as an insult to their religious beliefs, since it would be located in an area they consider sacred.

By removing the golf course from this scenario, controversy diminishes, and it is likely that the Land and Water Conservation Act issues can be more easily resolved. But what would then attract people to stay at the hotel during snow-free months?

One idea might be to work with the state of Minnesota to convert the area between Skyline Drive and I-35 into a state park. The best of the old growth could be designated as scientific and natural areas. Federal Land and Water Conservation Act money perhaps could be applied for by the state to make this acquisition, compensating the Spirit Mountain Recreation Area Authority and Duluth for the purchase.

The area already has a campground that could be upgraded, and the DNR has the expertise to develop hiking, biking and ski trails and an interpretive center, and to manage the forest for its old growth attributes. Perhaps a cooperative agreement could be worked out with the city of Duluth for DNR assistance in managing the adjacent Magney-Snively city forest property. Managed cohesively with nearby Jay Cooke State Park, this block of land would allow for serious study of old forest and act as a attraction for those interested in these attributes.

Since the forest would be left intact, it would also help preserve the interests of the Anishinabe -- but perhaps more could be done here as well.

The area below Skyline Drive could be maintained as the ski area and include the hotel site. The proposed "land swap'' could satisfy Land and Water Conservation Act issues, and with the developer's land left forested, I suspect opposition would be minimal. Visitors interested in forest-dependent activities could help fill the hotel in the summer. Conventions designed to attract ornithological groups, native people and others could help swell use. The vast parking lots used in winter for skiers could be attractively landscaped to be used as RV parks in the summer.

A second phase of development could include an aerial tram down to the Munger Trail, St. Louis River and Lake Superior Zoo. It could also include a golf course -- but to be located at the nearby abandoned U.S. Steel site. Hotel guests could be whisked by this tram down the hill and briskly transported by some sort of surface mode to the golf course, yet still be able to stay at the hotel on the mountain and enjoy its magnificent vistas.

Perhaps we could build boat docking facilities. The St. Louis River is a world-class fishery, and anglers outnumber golfers 2 to 1 in Minnesota. They too could stay at the hotel.

Is any of this workable? Hiking, biking, nature studies and bird watching are all growth "industries.'' State parks can be a big attraction. Angling is huge. Golf could still be a part of it. Marketing will be important, but the Duluth Convention and Visitors Bureau is the best there is. The U.S. Steel site has environmental clean-up issues involved -- but since resolution would benefit developers, neighbors, tourism, and the environment, surely these issues aren't insurmountable.

We have a lot of creative people in this city who -- freed up from fighting with each other -- might just figure out a way to meet everyone's interests. Not only would this be good for Spirit Mountain's natural assets, it would still create jobs and development. It would also be good for Duluth by fostering cooperation.

Or we can go back to "winner take all.''

MICHAEL FURTMAN, a Duluth resident, is vice president for conservation of the McCabe Chapter of Izaak Walton League of America.

 

11/29/01 DNR tells City of Duluth that environmental review beyond the developer's EAW of two years ago must be done, and meet federal standards.

From: Joe Kurcinka
To:
Allison Lutterman, Mike Conlan
Date:
9/26/01  12:17 p.m.

Subject: Spirit Mountain – Environmental Assessment and Conversion

 Allison, Mike and Bob,

I know that you are well aware that the Izaak Walton League of Duluth is opposed to the proposed project. What you may not know, is that they are pressing their points in weekly e-mails and letters to the DNR and the National Park Service. I spoke with Bob Anderson of the National Parks Service yesterday about this and the EAS process. As a result of that phone call, I would like us to meet to discuss the Environmental Assessment and the Conversion process. I will hit the highlights of my conversation with Bob A. in this e-mail and will call Mike to set up a meeting.

 1.      Bob Anderson reminded me that a request for a conversion is a federal action and as such all steps in the conversion process must meet federal standards. This is particularly important in highly contentious cases such as this. From his experience, he says that it is quite likely that this conversion request will end up in court.

 2.      At the federal level, the EAS requires and analysis of alternatives as well as clear presentation of all known environmental information. The Izaak Walton League has written to both the DNR and the National Park Service that new information has been developed since the state level EAW of the project. In his latest letter, Mike Furtman has requested that we examine the findings of the Izaak Walton League rare plant survey as well as new data that has been produced by the DNR Division of Fisheries concerning water temperatures in Stewart Creek. Additionally, the DNR has received from one of your citizens a report done by your city’s Environmental Advisory Council which raises a number of environmental questions. We will need to consider all relevant information in the EAS process.

 The Izaak Walton League is also requesting that attention be given to the content of the state EAW. They contend that the court ruling simply concurred that the process was followed and made no determination as to the content of the EAW. Yesterday, Bob discussed a case in Illinois where the Sierra Club was successful in court in overturning a Park Service conversion decision based on the inadequacy of the “content” of the environmental review.

 3.      Bob stated that because all development actions in this project are linked, it will be essential that environmental impact information be provided on all aspects of the development, not just the areas being requested for conversion.

 4.      Effective mitigation of potential environmental impacts is key in continuity to move this forward. Documents from the city need to clearly present what mitigation strategies are being used to address potential environmental impacts. The individual responsible for the EAW process for the city should likely have a good understanding of the mitigation strategies.

 5.      Finally, you may want to think about how to effectively address the interests of the Izaak Walton League and other environmental groups in your city and come to some sort of an agreement. Conversion decisions in other states have been taken to court by environmental groups.

 We need to discuss the details of all of this. I will contact Mike to set up a meeting.

 Joe Kurcinka

 

11/25/01 There will NOT be a meeting between the Ikes, and other conservationists, with the Spirit Mountain Developers as reported in a recent Duluth News Tribune article!

Spirit Mountain Update

By Michael Furtman

No doubt a few of you are confused about the reports in the press lately regarding our involvement in the Spirit Mountain issue.

First, it was reported that our rare plant survey found nothing. This simply isn’t true. For details, see the highlights of the report elsewhere in this newsletter.

Second, you probably were surprised by the front page article that said we were meeting with the developers and the city to negotiate a solution to the problem at Spirit Mountain.

You should know that yes, we did meet with Mike Conlan of the city of Duluth to discuss the possibility of other meetings. The meeting came about not because the administration suddenly decided that an open process was preferable, but because the Minnesota Department of Natural Resources (DNR), which has already ruled that the development of a hotel at the site is illegal, suggested to the city in an email message that “you may want to think about how to effectively address the interests of the Izaak Walton League” and also that “effective mitigation of the environmental impacts is key to continuing to move this (the golf course/hotel project) forward.”

Dave Zentner, Jan Green and I suggested to Mike Conlan at this initial meeting that while we were not sure if a compromise could be reached because doing so would require major reconfiguration of the golf course, we would be willing to further discuss the matter providing our concerns were taken seriously. We asked if Mike would ask the developers if they’d be willing to meet. In the meantime, the entire chapter Board of Directors discussed these possible meetings, and decided that, since we are reasonable people, Jan, Dave and I could continue to meet with the city and/or developers provided our partners were invited (MCEA, Trout Unlimited, and Nancy Nelson), and that we protect our interests in this matter which are 1) the trout stream tributary, 2) the old growth forest, and 3) full compliance with the letter and spirit of the Land and Water Conservation Fund (LWCF).

A week or so later, Mike announced to the city council – without notifying the League – that he was working with the Ikes, and characterized our concerns as limited to the “water quality issues.” The press at this council meeting picked up on Mike’s comments, and did the story you’ve read.

In that story, Kent Oliver characterized one of our most stalwart partners on this issue – Nancy Nelson – as a liar and a nuisance. In an earlier article (on the rare plant survey) his partner described us as obstructionists.

When Mike broke our trust in unilaterally announcing our meetings – and at a time and in a manner that furthered the city administration’s quest to get the city council to grant work permits for the project, and to support the proposed “land swap” that they believe will solve the LWCF issues – the Board of Directors was angered. But when the news story appeared, in which Mr. Oliver not only denigrated one of our partners, but claimed to have attempted to meet with us in the past (a complete fabrication), the Board then decided that it was no longer in our interest to meet with people who not only don’t take our concerns seriously, but also seem bent on using our good faith effort to further their goals.

We are happy that the DNR has told the city that it must address the environmental issues and local environmentalists' concerns before the project can go forward. We already knew that this project violated federal law, and raised significant environmental problems. It is up to the city now to resolve these LAWCON issues and environmental problems to the satisfaction of the DNR and NPS, and until then, there's nothing to negotiate.

So where do we go from here?

Despite what you may have heard from the city or in the local press, the LWCF issues are far from resolved. In order for the hotel to be built (a violation of the LWCF) the city will have to obtain other properties to replace this land – thus the proposed “land swap” in which the developers would give their half of the project land to the city, but then the city would immediately lease it back to them. This shell game is a clear violation of the intent of the LWCF which is to ADD to the public land base, and we intend to try to convince the MN DNR and the National Park Service (NPS) of the inappropriateness of this trade.

In any case, any land swap will require an environmental review. Because this is a federal action (the DNR is under contract to the NPS to administer the LWCF in this instance, but ultimately, it is the NPS that is responsible), the environmental review will need to meet federal National Environmental Policy Act (NEPA) standards – standards that are stricter than local or state requirements. The Environmental Worksheet Analysis (EAW) done by the developer and city is not adequate to this task, though it is likely that its information will be a part of the process.

Conversations with the MN DNR indicate that they too believe that the EAW is not sufficient, and we have reminded them that their own agency has raised significant concerns over the project, including work done by one of their forest ecologists on the old growth issue, and by local fisheries managers, who’ve confirmed (as we maintained) in the last year that the tributary in question is a major source of cold water for Stewart Creek. They concur that this information must be a part of their review.

The NPS representative on this issue recently stated “that because all development actions in this project are linked, it will be essential that environmental impact information be provided on all aspects of the development, not just the areas being requested for conversion (the “land swap” for the hotel site).

In addition, the federal environmental review will require an analysis of alternatives for the site, which the city has never done. In fact, one of the primary reasons we sued the city and developer was to have an Environmental Impact Statement (EIS) done (instead of the EAW which was done) precisely because a state-level EIS similarly requires that alternatives be considered.

The federal standards also require a clear presentation of all known environmental information. As you recall, in preparation for our lawsuit, we gathered environmental information from “pro-bono” environmental experts. Because the court did not rule on the environmental information, but instead confirmed only that the correct process was followed by the city in doing the EAW, we were not allowed to introduced this expert testimony. Now this information – and more – can be submitted for consideration.

This process will take at least six months to unfold. By the time you read this the city council may have – or will be shortly considering – granting the work permits for the project and deciding whether they support the land swap.

If they have not yet met on this issue, I urge you to contact your council member and tell them that you do no want work permits granted until the LWCF issues are fully resolved, and that you oppose the “shell game” land swap.

The chapter will continue to work with the NPS and the DNR to insure that the environmental review is all encompassing, that alternatives are fully addressed, and that any conversion meet the standards of LWCF, both in spirit and in law. If you have any questions or suggestions, do not hesitate to contact me or any officer or board member.

 

10/1/01 Rare Plant Survey Results Finds Many Rare Plants -- No Endangered Species

This is a report of the findings made during a rare plant survey of a proposed golf course site on Spirit Mountain in Duluth, Minnesota in July and August 2001.  One Minnesota state-listed Special Concern Status species (Torrey’s Manna Grass) was found, populations of two state-listed Special Concern Status species (Moschatel and Clustered Bur-reed) found during a survey in 1998 were relocated, a  new site for Clustered Bur-reed was found, and additional populations of a state-listed Tracked species (White Baneberry) were found.  No populations of a state-listed Endangered Status species (Pale Sedge) were found on the proposed project site and no new ones were found near it.  No Botrychium ferns with state-listing or of conservation concern found.

ENTIRE SURVEY RESULTS HERE: download Spirit Mountain Rare Plant Survey (.pdf file -- must have Acrobat Reader)

 

9/7/01 City & Developers offer proposed "land swap" to bring Spirit Mountain into compliance with the Land and Water Conservation Fund.

In a surpised announcement, Mayor Doty, the developers, and city councilor Ken Hogg proposed swaping the developers acres in Midway Township (the site of the west nine holes of the proposed golf course) in exchange for the properties on which the current Villas are located, and the site of the proposed convention center and condominium hotel. Under the LWCF, the Villas are illegal, and the building of a hotel would not be allowed.

Although they have touted this as a sure-fire way to end the debate, the city is again wrong. The law requires that any lands considered for a trade under LWCF be within the same political jurisdiction. The developers' acres are in Midway Township, not Duluth, and so are illegal.

Also, in examining the criteria for such an exchange, the Izaak Walton League has discovered that such transfer would require the DNR and NPS to do an environmental review. Since the DNR has to date not reviewed the proposal, and because their own field people have already raised concerns about the future of the trout stream and old growth forest if the golf course is built, the McCabe Chapter has officially requested that the DNR's own field analysis be the basis for any environmental review, NOT the developers EAW, which is self serving. Watch this page for future details on what this environmental review may entail. To read our comments to the DNR on this issue, please go HERE (you'll need Adobe Acrobat Reader to read this file).

On a related matter, the city council decided to table the work permits requests for the project, rather than reject them as they should have done, even though the land swap is very likely illegal, or could take months to complete.

In any case, although the developer would like to begin work this fall, the DNR and NPS tell us that it could take up to six months for this possible swap (if allowable at all) to unfold. We'll keep you posted.

 

9/02/01 Duluth News Tribune Editorial Pronounces Spirit Mountain Project Dead, Asks Council to Reject Work Permits

Sunday, September 2, 2001

In its current form, the golf course/resort hotel project proposed for Spirit Mountain is dead. It will have to be redone to comply with the national Land and Water Conservation Act, from which Duluth received more than $1 million for the Spirit Mountain Recreation Area.

That, in essence, is the message from Minnesota Department of Natural Resources Commissioner Allan Garber, head of the state agency that administers the Land and Water Conservation Act for the National Park Service in Minnesota.

In an Aug. 17 letter, Commissioner Garber informed Duluth that the proposed hotel is an "unauthorized conversion and a violation'' of the act. The golf course has to be brought into "compliance with all other Land and Water Conservation Fund rules, regulations and requirements'' regarding public access, pricing, public accountability, etc.

In general, notes Garber, the proposed lease for the golf course/hotel is "pushing the envelope'' for projects under the Land and Water Conservation Act because it "provides for the development, operations and maintenance by private developers.'' Garber reminded Duluth that under the law, "the City has the responsibility to ensure that it retains control and tenure of the area.''

In short, major changes are needed before the project can go forward.

Under the circumstances, it would be silly for the City Council to approve work permits for the old proposal when an overhaul is required.

Yet, because city staff recommended a developer request for permits before these issues were resolved, the council must make a decision at its Sept. 10 meeting in order to meet a 120-day deadline (Sept. 12) established when the city staff request was made. Under the circumstances, the council has little choice but to reject the current request for permits, making it clear that it will consider permits when a reconfigured proposal is submitted.

The Land and Water Conservation Act championed by President Kennedy and passed by Congress in 1964 is one of the most successful conservation and recreation laws in American history. Like other cities that have taken grants, Duluth, in accepting more than $1 million for the Spirit Mountain Recreation Area, agreed to maintain the entire site perpetually for public outdoor recreation use. City officials have known this since the 1970s.

To avoid redoing the golf course/hotel proposal, the city could seek approval to privatize the publicly owned Spirit Mountain Recreation Area and replace it with new public lands at a cost, it has been estimated, of $6 million to the taxpayers of Duluth.

A precedent for that would be the Shoreline Park in Long Beach, Calif. In that case, the city used a Land and Water Conservation Act grant for development of a 20-acre park. Later, the community decided to replace the park with a commercial aquarium, amphitheater and shopping mall. Working with the National Park Service, the city bought new land and built a new 24-acre public park.

So, that's where we are: Privatize the public Spirit Mountain Recreation Area and spend some $6 million in taxpayer dollars to replace it with comparable public outdoor recreation land -- or comply with the law and make significant changes to the current golf course/resort hotel proposal.

The fact is that the Land and Water Conservation Act contains very strong provisions to protect public investment in public outdoor recreation areas. The law discourages "casual discards'' of public lands by making changes bear a heavy cost -- as the Park Service states, "a cost that assures taxpayers that investments in the 'national recreation estate' will not be squandered.''

Much as the city would like, it cannot escape this choice, and until the choice is made, the council must deny the permits.

 

8/24/01 DNR Sends Strong Message to City -- Hotel, Time Shares (condos) are illegal.

Project will have a VERY HARD TIME meeting LWCF provisions!

 

August 17, 2001

Dear Mayor Doty,

Thank you for your letter of August 7 requesting a determination of specific issues related to the Land and Water Conservation Fund (L&WCF) grant agreement for the Spirit Mountain Recreation Area.

Before addressing the questions raised in your letter, I would like to offer five fundamental considerations that provide a context for the specifics that you raise. These considerations are based on our understanding of the L&WCF program requirements and information provided by the National Park Service (NPS) and of your overall project:

  1. Let us not lose touch of the original purpose of the program. As stated in the Land and Water Conservation Fund Act of 1965, “The purposes of this Act are to assist in preserving, developing, and assuring accessibility to all citizens … of present and future generations… such quality and quantity of outdoor recreation resources as may be available and are necessary and desirable for individual active participation in such recreation..” As described in the L&WCF Manual (Chapter 600.1.1) the program provides matching grants to States, and through the States to local governments, for the acquisition and development of public outdoor recreation areas and facilities.

  1. With regard to the applicability of the L&WCF conversion requirements, Chapter 675.9.3 of the L&WCF Manual states: “The conversion provisions of Section 6(f)3, 36 CFR Part 59, and this Manual apply to each area of facility for which L&WCF assistance is obtained, regardless of the extent participation of the program in the assisted area or facility and consistent with the contractual agreement between the NPS and the State. Responsibility for compliance and enforcement of these provisions rests with the State for both State and locally sponsored projects. The responsibilities cited herein are applicable to the area depicted or otherwise described on the 6(f)3 boundary map and /or as described in other project documentation approved by the Department of the Interior.”  As we discuss the specifics of the Spirit Mountain proposal, please remember that the rules, regulations and guidelines of the L&WCF program apply to the entire project area as described and depicted in the original grant requests.

  1. Based on the information available to us at this time, we are providing you our best interpretation of the guidelines and requirements of the L&WCF program. Please keep in mind that these interpretations and decisions are subject to final review and possible overrule by the NPS.

  1. In the mid 1970’s, the original grants were made to the City of Duluth. According to the terms of the grant agreement, a change in the jurisdictional authority would be required to transfer grant compliance responsibilities to another entity. This would require prior written approval by the Secretary of the Interior (NPS). The Department of Natural Resources recognizes that the Minnesota State Legislature created the Spirit Mountain Recreation Area Authority to operate the Spirit Mountain Recreation Area. We are left, however, with a contractual need to address the issues related to signatories on the grant agreements. We want to work with the City, the Authority and the NPSA to efficiently resolve this matter.

  1. In general, the proposed lease is certainly “pushing the envelope” in terms of what would normally be seen under the L&WCF program. Normally, local unites of government develop, own, and control recreational facilities and at times enter into maintenance and operations (concessionaire) agreements with other entities to operate the facilities. This lease provides for the development, operations, and maintenance by private developers. In this situation, we must strongly state that the City has the responsibility to ensure that it retains control and tenure of the area. The lease must contain the various provisions required by the L&WCF rules and regulations. The draft proposed amendment to the lease sent to us on July 31, 2001 begins to incorporate some of the required lease provisions.

In response to questions posed in your letter: 

  1. Golf Course:  Based on the information we currently have, it is the Department of Natural Resources determination that the proposed golf course wound not be a conversion.  While at this time we have concluded that it would not be a conversion, it would still have to be maintained and operated in compliance with all other L&WCF rules, regulations and requirements. Examples of some questions that need to be answered in regard to operation of the proposed golf course include whether any practices would be discriminatory or exclusionary; whether any individuals or groups would be given preferential treatment over the general public in regard to access or use of the golf course; whether operations and maintenance requirements of L&WCF will be met.

  2. Hotel/Convention Center; Time Share Units:  Though your question refers to a proposed “motel”, the lease agreement describes the proposed facility as a “ski in/ski out hotel facility” and identifies proposed “time share units” and the draft lease amendment states a “ski in/ski out hotel and convention facility” and that proposed fees would be comparable to “other convention center hotels.” Based on this information, the Department of Natural Resources has determined that the proposed hotel/convention center located within the boundary of Spirit Mountain Recreation Area would be an unauthorized conversion and a violation of the L&WCF requirements. Under Chapter 675.9.3.A, a conversion would occur if “(2) Non-outdoor recreation uses (public or private) are made of the project area, or a portion thereof” and “(3) Non-eligible indoor recreational facilities are developed within the project area without NPS approval.”

The Department has also determined that proposed time share units would be an unauthorized conversion and a violation of the L&WCF requirements. Under Federal rules 36CFR pars 59 “…a conversion occurs when…(1) Property interests are conveyed for non-public or non-recreational uses..”  It is our understanding that property interests would be leased by the developer to third parties for some degree of exclusive use. We believe that this is a violation.

Based on our current understanding of the project and of the applicable L&WCF rules and regulations, the hotel/convention facility and time share units as currently proposed would be an unauthorized conversion. We believe, however, that some consideration needs to be give to the original maps that show a proposed motel site, albeit at a different location. With that consideration in mind, the Department of natural Resources is willing to work with the City/Authority and the National Park Service to see if remedies to this issue are possible. Please keep in mind that final determinations of any likely remedies, to include authorized conversions, are made by the National Park Service. 

  1. Villas: We received a faxed copy of the lease agreement on August 16. We did not have time to thoroughly review the agreement, but a cursory review shows the same issue as seen in the proposed time share units. This situation will require further review and discussion between the City of Duluth, the Spirit Mountain Authority, the NPS, and the DNR.

 I hope this provides the determination of issues requested in your letter. We would be happy to answer any additional questions you might have on these issues.

 Sincerely,

Allen Garber, Commissioner
Department of Natural Resources 

C: Duluth City Council
     Spirit Mountain Recreation Area Authority

For an analysis of what the DNR letter means, go HERE to read our press release!

8/24/01 The Ikes Respond to the Garber Letter to Doty, Thank DNR for Tough Talk   

August 24, 2001 

Allen Garber
Commissioner
MN Department of Natural Resources
500 Lafayette Road
St. Paul, MN 55155

 Dear Commissioner Garber,

 On behalf of the McCabe Chapter of the Izaak Walton League of America, I want to thank you for your strong and concise message to Mayor Doty of Duluth and his staff regarding the proposed golf course/convention center development for Spirit Mountain in Duluth. 

It has been our experience in this debate that the administration seldom hears anything it does not wish to, but the clarity of your letter gives us hope that perhaps now they will address the significant Land and Water Conservation Fund issues that this proposed development raises. 

We particularly appreciate the manner in which you opened your letter – reminding the mayor of the importance and purpose of this truly landmark conservation law. We can tell by that comment that your experience as Commissioner has instructed you on just how painfully difficult is the passage good public policy. When such laws do indeed pass, it is up to all of us to insure that they are taken seriously, and that their intent and provisions are respected. We believe that the city administration will do whatever it can to squeeze this project through the technical cracks of LAWCON, even if it violates the spirit of the law. Consequently, we will be watching that very closely. 

We must confess that we were distressed to learn that Wayne Sames will no longer be the primary contact for us or the city on this matter. I do not know all the details behind this change, but I understand it arose because of a complaint by Mayor Doty. If you would be willing to share that letter, we would very much appreciate seeing it. Regardless, I am amazed that the Mayor, who refused to deal with the DNR until directed to by the NPS after trying an end run in Washington, DC, could have the gall to question the motives or propriety of others. However, I do appreciate that regardless of the legitimacy of his claims, when such issues arise, it puts you in a difficult position that may require personnel changes.  

That said, please be assured that in our dealings with Mr. Sames, he never did anything that could be construed as biased or inappropriate. In fact, in all my years of dealing with agencies and bureaucrats, seldom have I found a public servant as diligent in providing information, returning calls, grasping the nature of arguments, or adept at speaking in plain language so that your constituents might understand a situation. He never once shared with us any privileged information. 

I hope that Sames will continue to provide expertise on this matter, since he has the greatest familiarity with the law and this particular situation. Remarkably, it was the same day that I learned Sames had been replaced that Mr. Bob Anderson of the National Park Service told me in a phone conversation that “you should have complete confidence that the DNR will uphold the law. Wayne Sames is one of the best administrators of LAWCON in the country.” 

This morning I had a long conversation with Joe Kurcinka after learning it is he with whom we should now correspond on this matter. I was impressed by his excellent grasp of the issue and he was very helpful in explaining to me the main points of your letter to the mayor. Thanks to that conversation and the contents of your letter, I am reassured that the agency will do its best to administer the protection clauses of LAWCON. 

While I understand that it is very important that you work cooperatively with the city on this matter, there are a few points I’d like to make along those lines. First, the administration (supporters of the project) is not the sole branch of government in our city, and the city council (which is largely opposed to the project) is a co-equal branch of government. I realize this puts your agency in a very difficult position, but I point it out so that you know that city government itself is divided on this project.  

Second, although the League has no legal standing in this matter, we, as one of the main forces behind the creation of LAWCON over 40 years ago, have a long standing interest in its sanctity. Our chapter members, as volunteers, have been involved in this particular debate for nearly three years. We would very much appreciate the same level of information and cooperation as the city. The mayor continues to characterize us – an organization long recognized as one of the most reasoned voices in the conservation movement – as CAVE people (Citizens Against Virtually Everything) simply because we wish to see LAWCON’s protections fully applied. It is clear to us that because of his attitude, we will receive little cooperation from the city in finding out how this matter is being resolved, and therefore appeal to you that we be kept apprised of how the future of our public lands are being decided. 

Finally, although I’m sure the city administration will pressure the DNR to act quickly on this matter, we ask you to take whatever time is necessary to gather the information needed to fully assess the project and any possible conversions. The administration has known, or should have known, about LAWCON for years. Only recently have they decided that they must deal with it. Less that just two months ago, the Duluth Planning Commission characterized LAWCON as an arcane and outmoded law. The point is that any project delays arising from untangling this situation have not been caused by the Ikes, or by the DNR and NPS, but by the administration itself because they failed to take the law seriously.  

As you are probably well aware, the League has had a long, cooperative, and mutually beneficial association with the good people of the MN DNR. To that end, if there is anything that I or the Izaak Walton League can do to help you discharge your duties in this matter, we are at your service. 

Thank you again for your time, and for your response to the city and Mayor.

 

Sincerely,

Michael Furtman
VP Conservation
McCabe Chapter IWLA

 For an analysis of what the DNR letter means, go HERE to read our press release!

7/27/01 Rare Plant Survey Begins. Read About It HERE.

7/17/01 Duluth News Tribune Editorial Urges Oberstar to Stay Out of Spirit Mountain Debate.

Our View (Duluth News Tribune, Tues., July 17, 2001)

 

You may be puzzled by a request from the Duluth city administration for you to "facilitate'' a meeting with the National Park Service and the Minnesota Department of Natural Resources regarding a proposed golf course for the Spirit Mountain Recreation Area. So are we.

The Department of Natural Resources and National Park Service have been more than willing to meet and discuss matters. It has been the city that has avoided making contact.

It doesn't take a member of Congress to pick up the phone to call these agencies. An ordinary city staffer would do.

Duluth should have known long ago that the proposed golf course project at Spirit Mountain requires review by the National Park Service. And since at least April 23, the city has publicly known that the project as currently drafted violates provisions of the Land and Water Conservation Act.

Cities typically respond with cooperation: "We have been a beneficiary of Land and Water Conservation Act grants in the past and we'd like to continue to receive such grants in the future to enhance public recreation in our community. We will repair any violations as quickly as possible, so the project may proceed.''

Duluth, instead, sent a 12-page memo dated May 8 and signed by Mayor Gary Doty asserting that the city really has no responsibility for the Land and Water Conservation grants and, moreover, that the grants apply only to certain areas in the Spirit Mountain Recreation Area, not to the whole site. Both assertions are verifiably mistaken.

Grant documents clearly are made out to the City of Duluth. And, as you know, even a small grant for the development of a picnic shelter in a site of thousands of acres protects the whole site.

Mayor Doty further stated he met with Local Grants Program Manager Wayne Sames and John Gunther of the Minnesota DNR staff to "discuss these issues.'' Yet, Sames says, Mayor Doty has not ever met with him on the proposed golf course. The memo has other mistakes.

Though the city knew of this unresolved matter, the developers applied for work permits May 15. A June 6 letter from the DNR asked the city to postpone any request for permits for the developers until National Park Service has a chance to review the project, as the law requires, "and there is some clarity on the issues that have been raised.''

This request has been ignored. City staff recommended approval to the Parks and Recreation Board and Planning Commission. Both boards complied. The permits now go to the City Council, which passed a resolution that it will not consider permits until Land and Water Conservation Act issues are resolved.

Appealing to a member of Congress should be a last resort -- if, for example, the Department of Natural Resources and National Park Service were refusing to discuss matters. But everyone knows in this case that both agencies have been more than willing to resolve matters.

As a member of Congress who has been a supporter, you know the Land and Water Conservation Act championed by President Kennedy and finally passed by Congress in 1964 is one of the most successful pieces of conservation and recreation legislation in the nation's history. Like other communities that have accepted grants, the City of Duluth, in accepting more than $1 million for the Spirit Mountain Recreation Area, agreed to maintain the entire site perpetually for public use and to submit for review any proposed changes in use.

Review of the proposed golf course, which could have occurred long ago if the city had merely requested it, has not taken place. The city, it seems, would rather wait to late stages and rely on political influence than to follow normal procedures. All the city has had to do is pick up a phone and get the process rolling.

That doesn't need the involvement of a member of Congress.

 

 

7/14/01 New DNR Data Proves Tributary to Stewart Creek Is Important Source Of Cool Water! Developer's Expert Admits At Planning Commission Meeting He Knows Of No Way To Fix It If The Water Warms Up After The Course Is Built!!

Recently released information from the MN DNR reveals just how important the tributary  that flows through the west nine holes of the proposed golf course is to Stewart Creek, a designated trout stream. Five hourly recorders were placed in Stewart Creek and this tributary, and they took 2,904 readings during the summer of 2000. According to the report, it would appear that Stewart Creek logged some of the coolest water for the highest percentage of total readings relative to other Duluth trout streams. It would also appear that the tributary to Stewart Creek had the coolest water for the highest percentage of total readings relative to other Duluth trout streams. The tributary to Stewart Creek did not run dry during the summer of 2000, and it provided very cool water to the Stewart Creek system. Because the Stewart Creek watershed is so small, the DNR states it assumes that the tributary provides a very important function as a source of cool water for the main Stewart Creek.

Mayor Doty has referred to this tributary as a dry ditch, even though data now shows that it is not dry, and does provide significant benefit to Stewart Creek.

Also of interest is the fact that at the recent Planning Commission meeting, the developer's environmental expert, James Balogh was asked by a commission member what could be done, after the course is built, to fix the situation if indeed -- as we predict -- the water in this tributary warms up. He stood silently at the podium for several moments, before admitting he could think of no way to remedy the matter.

Of course, if the tributary warms it will be because the forest, and its shade and cool microclimate, are gone. The only way to fix it would be to restore the forest -- not a very likely option if you're a golf course czar!

7/12/01 Planning Commission and Parks and Recreation Board Approve Spirit Mountain Work Permits.

The Duluth Planning Commission and the Parks and Recreation Board both voted to advance the golf course and hotel project work permits on to the City Council for approval, despite the fact that the LWCF issues are unresolved. The council has passed a resolution stating they won't grant work permits until the LWCF issues are straightened out. Stay tuned!

7/10/01 Mayor Doty attempts to use Congressman Oberstar to pressure National Park Service for favorable ruling on the LWCF matter -- characterizes Ikes and other project opponents as "cave people -- citizens against virtually everything" on KDLH TV3 news report.

Apparently Mayor Doty and staff are unable to pick up the telephone and call the National Park Service (NPS) or the Minnesota DNR to resolve their lack of compliance with the Land and Water Conservation Fund (LWCF) at Spirit Mountain, since the Mayor recently asked Congressman Oberstar for help "to facilitate a meeting with the Department of the Interior (NPS)."

This is a curious request because citizens have easily called the LWCF administrators without congressional assistance. Though the city blames others for slowing this project, the fact is they haven’t called the DNR in the month since being notified that their lease with the developer was illegal and violated the LWCF contract. Given that, one wonders why such a request would be made unless it is hoped that a call made on your behest by someone of Oberstar's status might intimidate the LWCF administrators. Fortunately, I don’t think the Congressman would ever intentionally lend his office's stature to the Mayor's cause at the expense of citizens.

This is just another example of how the administration won't play by the rules. They can't stand the thought of making their case to these neutral agencies on equal footing with others. Instead of dealing with the DNR to see if the project can comply, they pursue an avenue hidden from view and use old fashioned power and connections to seek an inside track.

When a citizen uncovered this, the Mayor reacted on TV news by showing how little he thinks of his constituents’ rights to debate the future of their own public land by calling them "cave people -- citizens against virtually everything."  

For shame. It there’s Neanderthal behavior occurring, it sure isn’t on the part of Duluthians who only want to see the LWCF matter dealt with openly and without political influence.

 

6/26/01 Duluth City Council Passes Important Spirit Mountain Resolutions!!

On Monday night, 6/25, the Duluth City Council passed two resolutions by a 7-2 vote that go a long way toward leveling the playing field in this debate, and will insure, that if the project is built, the environmental safeguards promised to the public by the developer in his EAW, will indeed become reality.

The resolutions require that the city first comply with the provisions of the LWCF before issuing permits to the developer, and also require that the environmental safeguards and mitigation measures become a condition of the work permits. The latter resolution also establishes the Environmental Advisory Council as the primary judge of these matters. Finally, the developer must sign the amended lease before the council considers the work permit.

You can read the resolutions here: LWCF Compliance and Conditional Work Permits.

 

6/8/01 WOW -- MN DNR Sends Tough Letter to Mayor Doty -- City of Duluth notified it has already violated the LWCF provisions. All of the city's grant applications have been denied. Only redesigning the proposed project and adhering to the LWCF provisions will restore the city's chances to ever get another grant!

June 6, 2001
 
Honorable Gary L. Doty, Mayor
City of Duluth
Office of the Mayor
403 City Hall
Duluth, MN 55802-1199
 
 
Dear Mayor Doty,
 
Thank you for forwarding a copy of you letter to Mr. Anderson of the National Park Service regarding the Land and Water Conservation Fund (LWCF) issues related to the proposed Spirit Mountain project.
 
I have reviewed you letter and discussed the issues outlined in the letter with Mr. Anderson. Based on our conversations, I believe he concurs with my overall assessment that the proceeding with the proposed hotel and golf coursed development as presently conceived would violate the terms of the original grant agreements and could constituted a conversion of use. he is preparing a response and hopes to send it this week.
 
There are several areas of concern with the proposal, but some of the key issues are as outlined in your letter:
 
1) We believe the City has ultimate responsibility under the grant agreements to operate and maintain the Spirit Mountain areas as a public outdoor recreation facility. The property is owned by the City. Original rules adopted for the program indicate that eligible applicants are "local units of government." The rules define local units of government as cities, counties and townships. While the Spirit Mountain Authority is a signatory to some of the agreements, the two earliest grants are signed by the City only and the City is a signatory on most of the remaining agreements. There is no record of federal approval of a transfer of authority from the City to the Spirit Mountain Authority as required under the grant agreements. State action in creating the authority clearly cannot override federal contractual grant agreements entered into by the City.
 
2) Even if the Authority were the responsible grantee, there would be a violation of the grant agreement since the lease with the developer was signed without prior review and approval of the National Park Service. A grant recipient cannot transfer jurisdictional control or make a change in the original recreational purpose without prior written approval by the Secretary of the Interior.
 
3) The existing lease agreement does not conform to the requirements of the LWCF agreements. No mention of several of the LWCF requirements is made. In fact, there is no mention of the LWCF agreements at all.
 
4) The statement that "it obviously needed to be run more like a for-profit business and less like a public park" is a major concern. The purpose of the LWCF program is to provide for public parks, not for-profit businesses. The more a project begins to resemble a for-profit business, the more it is likely to violate the intent of the program and the terms of the grant agreements. The closer the operational plans for the golf course and hotel appear to be exclusionary or to stray from the public outdoor recreation use intended for this area, the greater the conflict with the grant agreements and the LWCF requirements. The time share units, in particular, appear to constitute a private use, which is not allowed under the LWCF program regulations.
 
Based on the concerns expressed in my conversations with Mr. Anderson and the state's contractual obligations to provide oversight of LWCF funded projects, the Department is concerned that the City may take steps that could lead to further violation of the agreements. I understand that the City Planning Commission will be meeting on June 12 to consider a request for a permit from the developers. I suggest that action on this request be postponed until the response from the National Park Service has been reviewed and there is some clarity on the issues that have been raised.
 
Given the fact that there has already been a violation of the grant agreements, the Outdoor Recreation Grant and Natural and Scenic Area Grant applications submitted by the City for the present round are ineligible for consideration. If the City takes positive actions to work with the National Park Service and the Department of Natural Resources to resolve these issues and correct any violations, the eligibility to receive such grants may be restored. (emphasis added by editor)
 
Potential options for resolving the issues may include, among others:
 
- Redrafting the lease agreement to include the information required under the LWCF regulations and submitting it for prior review and approval by the Secretary of the Interior;
- Modifying the development proposal so that it is consistent with the LWCF requirements;
- Developing and operations and management agreement between the City and the Spirit Mountain Authority that would meet the requirements of the LWCF program;
- Requesting a conversion review and determination by the National Park Service.
 
The pending letter from the National Park Service may provide some additional guidance for resolving these issues.
 
Sincerely,
 
Wayne Sames, Manager
Local Grants Program
 
CC: Duluth City Council
       Duluth Planning Commission
       Spirit Mountain Authority

 

5/27/01 Ikes Approach NPS on Spirit Mountain.

Since the National Park Service will have the final say as to whether or not the Spirit Mountain hotel and golf course proposal qualifies under the provisions of the Land and Water Conservation Fund, and because Mayor Doty recently wrote to the NPS asking for a favorable ruling, the League wrote to Mr. Bob Anderson of the NPS this past week, explaining our concerns. The letter is as follows:

 

May 26, 2001

Bob Anderson
Grants Program Leader
National Park Service
1709 Jackson
Omaha, NB 68102

Dear Mr. Anderson, 

I am writing to you today on behalf of the John McCabe Chapter of the Izaak Walton League of America, located in Duluth, Minnesota. 

I am sure that Mr. Wayne Sames of the Minnesota Department of Natural Resources has made you aware of the situation involving the proposal to build a championship golf course and resort hotel at Spirit Mountain, a public recreation area in our city partially built with Land and Water Conservation Fund (LWCF) monies. I have corresponded and spoken with Sames, and continue to be impressed with his diligence in protecting the integrity of the LWCF in this instance. 

It is the integrity of this landmark conservation program which brings me to write to you today. As you know, the city and a private developer have entered into a lease agreement for this property which, if carried out, will result in the construction of a championship golf course and resort hotel (which is to offer “time-share” condo-like facilities). Half of this golf course will be built on public lands governed by the protection clauses of LWCF, and the remaining nine holes will be on land owned by the developer. 

The fact that this is a championship golf course designed to compete with other similar championship courses in the region, charging fees far in excess than those of the other two existing city-owned golf courses, and that the developer expects to offer package deals to tourists as well as golf course fee discounts to hotel guests that will be unavailable to residents, and that it will be operated by a non-government entity, and that it will be built half on public lands and half on private, should raise red flags as to whether this should be allowed under LWCF. It appears to us that this is nothing more than a “quasi-privatization” of public lands. 

Compounding these rather odd circumstances is the fact that this golf course will be built on the headwaters of a viable trout stream with wild, reproducing brook trout (in the heart of a city!) in a forest described by a MN DNR forest ecologist as one of the most significant stands of maple/basswood old growth in the entire Great Lakes region. The golf course – even if it somehow could otherwise meet LWCF provisions – will displace the forest-dependent public use already occurring there. People currently cross-country ski here because the trails wind through this magnificent old forest, and the area is well used for hiking and nature study. It is also a place the public regularly visits to admire and study old growth forest and the birds and plants dependent upon this land type. 

Conversion to a championship golf course, however, dramatically changes the availability of this land to the public, as well as greatly alters the experience, essentially substituting a heavily manipulated human-made environment for the natural one now enjoyed by our citizens. To add insult to injury, not only will a golf course destroy these rare ecological values, it will displace current public use while charging extremely high fees for those who do want to use the new facility (a ski pass for the trails in the winter is the only fee currently charged to use these lands). There still remains to be resolved whether or not the course and hotel will even truly be public, and offered to all at the same price. 

The League has opposed this project for several years, largely based on the environmental ramifications. It wasn’t until relatively recently, however, that our chapter became aware of the LWCF provisions, and indeed, the long history of our own organization in the passage of this legislation which can only be described as one of the truly important conservation laws of all time. It has made us proud, in researching the history of the LWCF, to learn that our executive director at that time, Joe Penfold, was a principle architect of the Act. It is also humbling to see the wisdom of these visionary conservationists who foresaw not only the need to provide public open space, but the pressures that would only grow more intense over time to develop these open places, or to privatize them. Thus, not only did they struggle and succeed to give us such a useful tool, they built “teeth” into the Act to insure a lasting legacy. 

Though we still hope that this unwise project will fail, our intent now is primarily focused on protecting the integrity of the LWCF. If, in doing so, we also protect the old growth forest and the trout stream, that would be a bonus. We fear, however, that the City of Duluth will continue to ignore their legal obligations to the people of the United States, and that in thumbing their nose at the LWCF provisions, create a dangerous precedent that will weaken the application of these protection clauses elsewhere. All across our great nation, the lands purchased by, or improved with, LWCF grants are being encroached upon by development, and eyed by those who wish to turn this legacy into cold, hard cash for the benefit of the few, and at the expense of the public. And as you also know, the LWCF has rarely been fully funded. We simply can not allow those monies that have been secured for the public good to flow into the hands of private development, or serve a goal contrary to the intent of the Act. 

It is to this end I write. We very much want to see the letter of the law, and its noble intent, fully applied to Spirit Mountain. We can not see how a championship golf course, with expensive greens fees and a condominium hotel, could possibly be what the founders of this Act envisioned when they sweated blood to usher it through the convoluted halls of Congress. We are further very deeply troubled by the City of Duluth’s attitude that they are somehow immune to this law. While we understand that there are ramifications for failure to comply – loss of future grants and perhaps the requirement that the City replace these lands – in both instances those penalties will only hamper future City administrations and preclude the use of grants to set aside additional public space. In other words, those of us who would wisely use LWCF monies to further open space protection will suffer because the City would no longer qualify for grants, while those who wish only to see these lands developed – the same cadre of people behind the Spirit Mountain golf course/hotel project – will remain unscathed.

Because of this, it is our sincere hope that the NPS, in conjunction with the MN DNR, will be very clear to the City, before it ever gets to the point of clear transgression, that they are in danger of violating the law (and of suffering the repercussions). So far, the City has been able to sweep this under the carpet. The press has not done a good job of alerting the citizens of Duluth what we stand to lose should we suffer the loss of future grants. Mr. Sames tells me that Duluth is second only to St. Paul in receipt of grant monies. The NPS, with the MN DNR, need to help us raise the visibility of this issue so that we have a fully informed populace. 

In addition, it is our hope that the NPS and the MN DNR can find it within your legal powers to stop the City from proceeding, so that we do not have to suffer both the loss of the forest, and later, the loss of future grants. Surely there must be some kind of preemptive action that the agencies can take. 

We appreciate that this is much to ask, and that government entities most often strive to cooperate, rather than deal confrontationally. But it is our opinion, based on past dealings with the City and the comments we’ve read and heard from its officials in just the past week, that they continue to maintain that the protections built into the LWCF do not apply to this situation, and have essentially said that if the state and feds don’t like it, they’ll just have to do something about it. 

We hope that you will. 

We also hope that you will contact the Army Corp of Engineers, who have just this past week received requests for wetland permits for this project (Tim Peterson, Two Harbors Field office, 218-834-6630). As you may know, the MN DNR is withholding Division of Waters permits for this project until the LWCF situation is resolved. We hope that you can work with your sister federal agency to insure that no permits are granted to a developer whose lease is clearly not in compliance with the provisions of the LWCF. To have one federal agency grant permits while another is questioning the legality of the project will allow the City to claim that they had received some level of tacit approval.

In closing, let me state that although this is just a “local” issue to many of us here in Duluth, the League at both a state and national level is beginning to view this as one that could set a horrible precedent should it not be resolved in favor of the public interest and the intent and rules of the LWCF. I know that the League’s national Executive Director, Paul Hansen, recently sent you a letter expressing this concern.

We intend to continue to closely monitor the situation, and to provide input at every appropriate opportunity. We are pleased that Mr. Sames takes the charge of protecting the integrity of the LWCF so seriously, and he leads us to believe that you do as well. We thank you for that, and we offer our assistance to you in every way that we can.

Future generations will judge us by the legacy we leave. This legacy can be publicly held and accessed old forests and singing brooks full of trout, or it can be a law bereft of authority, and a golf course for the privileged few. 

We hope that you will consider these, and all our points, in your future dealings on this matter. We urge you to force the City to comply with the LWCF provisions, and to rule against this project. Please do not hesitate to contact us should you have questions or if we can be of assistance. Thank you very much for your time.

Sincerely,

Michael Furtman
Vice-President for Conservation
McCabe Chapter
Izaak Walton League of America

P.S. – Since we assume that this is an open, public, process, we hereby request that we receive copies of any correspondence between the NPS and the City of Duluth on this matter. Correspondence to our Chapter should be mailed to me at 502 Leicester Avenue, Duluth, MN 55803. You may also fax or phone me at 218-728-1991, or reach me via email at mfurtman@michaelfurtman.com. 

We would also like to inquire whether or not there are public review, or public hearing, options, and if so, what they are, and how we would request that these steps be taken, should they become necessary. 

Finally, although it is unclear to us how significant a roll the land’s ecological features play in your decision, if they are to be considered, might we suggest that you have a NPS staff forest ecologist from nearby Voyageurs National Park view the area with the DNR forest ecologist who has already drafted a report on the significance of this forest.

cc:
Wayne Sames
Brad Moore
John Guenther
Paul Hansen

 

5/21/01 In the past week, we've all heard or read the developer state that they're getting ready to break ground, and that they will receive a favorable ruling on the LWCF problems.

REALLY?? We'll, they've not talked to either the MN DNR, or the NPS, and neither agency is anywhere near giving them a favorable ruling. After hearing the same stories as you, we contacted the MN DNR and asked if we'd misjudged just how far the developer was from meeting the provisions of the LWCF. Here is what Wayne Sames of the MN DNR wrote in response:

"In regard to the Land and Water Conservation Fund issues, I think it is safe to say that these are serious issues that need to be resolved before the project can proceed, in part because the DNR has placed a hold on issuing permits until we get some clarity on the issues.  In regard to my discussions with Bob Anderson of the National Park Service, I can tell you that he also takes the issues seriously.  How much of a stumbling block this may be to the project depends partly on the willingness of the City, the Authority and the developers to adapt their plans so that the project might meet the requirements of the grant agreements.  It might prove to be more of a change than they are willing or able to make. (emphasis added by editor)

I haven't seen much detail on the pricing structure, but the City staff are describing the proposed project as a "championship caliber" facility with greens fees "significantly higher than the public golf course in the immediate area.  However, they will be expected to be competitive with other high quality golf facilities in the region, such as Giant's Ridge and Lutsen..."  This is a red flag for the Park Service. The higher the anticipated fees that will be charged, the more scrutiny  will be given to the proposal.
(emphasis added by editor) We will probably need more details on fees in order to make a final determination."

4/20/01 Judge Heather Sweetland ruled yesterday that she is awarding Kent Oliver's development corporation (Spirit Ridge LCC) $1750.00 in "expert witness fees" to be levied against the Izaak Walton League and the other plaintiffs. The plaintiffs have sixty days to decide if they will appeal this ruling (see story below).

4/11/01
When the League asked Wayne Sames, Local Grant Manager for the MN DNR, whether or not "time share" hotels are legal on LWCF properties (as is the current development plan) he gave us this response in writing:

"You raise a good question.  I only became aware of the time share idea after getting a copy of the lease agreement a few weeks ago.  I would consider time shares to be private uses.  I brought that question up this morning in a conversation with Mr. Bob Anderson of the National Park Service and he concurred with that assessment.  Any preferential access to the golf course, whether associated with the time shares or not, would be a violation of the grant agreements.  The hotel has to be public at least to the extent that it provides equal access by the general public to the facilities offered. It can potentially be operated by a private entity, but must provide services to the general public.  Further elaboration on this may come from the National Park Service."

 

4/10/11         The Debate Goes National!

The Izaak Walton League of America's national office outside Washington, DC weighed in on this seemingly local issue. Executive Director Paul Hansen has sent a letter (see below) to both the Minnesota DNR and the NPS asking them to scrutinize this project thoroughly:

Thanks to our McCabe Chapter in Duluth, Minnesota, the national staff of the Izaak Walton League of America has been made aware of a curious situation involving Land and Water Conservation Funds (LWCF) at Spirit Mountain in that city.

Since you are no doubt already familiar with the circumstances around a proposal for a privately built golf course to be located on property protected by Section 6(f) of the grant guidelines, I won’t go into detail. But I did want to write to say that we are concerned whenever we see a situation that might involve the privatization of public lands, especially those for which LWCF grants were in part responsible. 

I’m sure you are well aware of the League’s long history with the Fund, and our instrumental role in its creation. Because of this, we watch for, and are wary of, situations that may be seen as precedents for the erosion of the public use status of LWCF projects. Clearly the authors of this landmark legislation foresaw the day when development pressures would try to subvert the noble cause of public spaces for public use, which is why the safeguards you are entrusted to enforce were quite wisely built in. 

This proposed project requires the highest level of scrutiny. Although we understand that sometimes a golf course would be an allowable change in use, the private developer relationship with the city seems, at the very least, to be a quasi-privatization of public lands. The fact that this is to be a “championship” golf course with a suggested $70 per round fee, and a hotel designed to draw tourists utilizing “package deals,” suggest that the public who currently uses this area at low cost (cross country skiing) or no cost (hiking, birding, etc.) would be restricted, if not eliminated, from use. The fact that nine of the eighteen holes will be on private land also makes one wonder how this course could be considered “public.” 

With these inconsistencies in mind, I write merely to ask that you pay your normal high level of diligence to the Spirit Mountain development so that the interests of the public are preserved through full application of the letter, and spirit, of the Land and Water Conservation Fund protections.

Thank you for your time. 

Sincerely,

Paul Hansen
Executive Director
Izaak Walton League of America


Point of View (appeared in the Duluth News Tribune, Sunday, 4/15/01)

By Michael Furtman
VP Conservation
McCabe Chapter
Izaak Walton League of America

When Wayne Sames of the Minnesota Department of Natural Resources (DNR) appeared before the City Council on April 2, he told them what the City Attorney already should have – the lease with the developer of the Spirit Mountain golf course is invalid.

 Sames was referring to the fact that the City received Land and Water Conservation Fund (LWCF) grants three decades ago for building the Spirit Mountain Recreation Area. These grants require that any change in use must receive state and federal approval. 

The LWCF is a forty year old federal program that uses a portion of off-shore oil drilling receipts for the purchase of public lands and recreation areas. In Minnesota the grants are administered by the DNR, but if questions arise, the National Park Service (NPS) has final authority. To date, neither agency has seen the full plans or the type of financial information needed to judge the Spirit Mountain project’s legality. 

In addition, to insure that public areas don’t become privatized, protections are written into LWCF grants. These must be (and haven’t been) included in the lease. For Spirit Mountain these protections would mean: 

  • Any change in use of the land must first get approval of the DNR and NPS.
  • Even if approved, uses must remain public – a similar Wisconsin golf course proposal was declared unallowable by the NPS.
  • A public golf course might qualify, but all promotional material – brochures, signs, TV ads – must declare it a public recreational facility.
  • No users may receive preferential treatment – guests of the proposed hotel can not receive discounts or preferential tee-times, and no package deals are allowed.
  • The City must retain the authority to review the developer’s performance regarding these protections, as well as the authority to terminate the lease.

If the City fails to comply with the terms of the LWCF program, the law requires the lands at Spirit Mountain be replaced with lands of equal appraised and recreational value. They can not be lands the City already owns, they must be within city limits, and must be approved by the NPS. The City would also risk losing similar state or federal grants. Three such grants requests by the City are now awaiting approval. In Minnesota, Duluth is second only to St. Paul in receipt of such grants, to the great benefit of our parks. Disqualification would be serious, and unfair to future administrations and generations. It is also likely that neither state nor federal agencies would grant the necessary wetland or other permits for the project if the lease is considered invalid. 

These revelations raise some interesting questions. Can a golf course, built half on public land and half on private land (as now planned) qualify as a public course and receive NPS approval? If the golf course must remain public, will it be the economic engine that proponents have touted? Will people travel from the Twin Cities to play a course they’ll share with 16 year olds with borrowed clubs? Can the developer compete with Lutsen or Giants Ridge if he can’t offer guests discounts and package deals? If it is a public course, who gets the profits?

Proponents have repeatedly stated the course would be built in compliance with all laws and permits. If they are to uphold their promises, they must meet the requirements of the LWCF provisions – and they should do so in a manner that meets not just the letter of the law, but the spirit. 

Nearly a half century ago, the LWCF was conceived within the Izaak Walton League of America. It took years to usher through Congress, and when finally passed, it was given teeth so that public’s investment would be permanent. It was not intended to be used to acquire lands so that they could be turned into quasi-private developments. Failure to obey provisions willingly signed, or subverting the intent so that profits from public lands flow into the pockets of the chosen few, is wrong.

Until now, the destiny of the Spirit Mountain project has been steered by the “insider elite” of Duluth. That has changed. The City has been put on notice that it must meet the criteria of federal law, and any legal lease must recognize that the NPS will always be the final arbiter. With so many unanswered questions, and the possibility of significant repercussions, the City Council must refuse to grant any work permits until the DNR and NPS rule whether the project is legal under the LWCF provisions.

 

 

FACT SHEET

Spirit Mountain Development Must Honor LWCF Grant Pledges Made in 1970s

 

The proposed Spirit Mountain Golf Course and Hotel would, if built, occupy lands developed with monies originating with the Land and Water Conservation Fund (LWCF), a federal program largely originating within the Izaak Walton League and passed into law in 1964. The act was designed to help federal, state, and municipal agencies purchase land for public recreation. Most of the income deposited to the Fund has come from offshore oil leasing revenues, based on the idea of recycling the proceeds of natural resources development back into natural resources protection. Congress clearly indicated that the new Federal program should have a lasting effect on the supply of recreation sites and facilities by requiring that sites assisted be added permanently to the national recreation estate. As a result, Section 6(f)(3) of the Act states unequivocally that grant-assisted areas are to remain forever available for "public outdoor recreation use," or be replaced by lands of equal market value and recreation usefulness.

The National Park Service (NPS) is the agency mandated to carry out the provisions of the LWCF. It works with state agencies (in this case, the Minnesota Department of Natural Resources – MN DNR), who act as intermediaries between the federal and local governments.

 The League is concerned that the golf course and hotel may violate the tenets of this Act.  

Some points are: 

1) Four federal LWCF grants and additional state grants were given the City for Spirit Mountain's creation, for a total of $1,083,227.00 -- one of the largest investments in a single project in the history of the Local Grants Program. In Minnesota, Duluth is second only to St. Paul in the receipt of such grants..

2) Grant agreements the City willingly and knowingly signed in the 1970s provide that there can be no change in public to private use, and further obligate the City to honor the intent and restrictions of the LWCF, which requires approval for any substantial change of use, even if it remains public.

 3) The entire property, as shown in the Section 6(f) maps, fall under the clauses of the LWCF provisions, not just those properties or facilities on which the money was spent.

4) Any changes in use on those lands from that provided for in the grant agreement must be approved by the MN DNR and NPS. The grant maps show most of the “golf course” area as cross country ski trails -- any golf course would be a change in use, requiring NPS approval (signed by the Secretary of the Interior). Public golf courses are sometimes allowed; private golf courses are not – this would be considered a “conveyance.” 

5) If a conveyance occurs, the City must replace the lands with lands of equal or greater appraised and recreational value. They can not be lands the City already owns, and must be within the City. Since the original grants totaled in excess of $1 million, this could cost the City $3-5 million in today’s dollars. A conveyance occurs when: 

·          The facilities are transferred to non-public use;

·          The facilities change to non-outdoor recreation use (i.e., a city garage or some other non-recreational facility is built on the land in question);

·          The facilities are changed to non-eligible indoor recreation use; or

·          Public use is terminated.

 6) To retain its public use status and avoid violating the terms of the grant protection clauses, the facilities must be managed to insure there is no favoritism. That is, if a golf course is built, it essentially has to be operated like the other city public golf courses. Discounts to hotel guests, preferential Tee-times for guests or “members,” package trips to tourists bundling golfing fees, hotel discounts, etc., would be illegal, violating the terms of the grants.

 7) If the City violates these terms of the grants, not only must they replace the lands as outlined above, they could lose all future eligibility for LWCF and State grants. Currently the City is seeking grant monies for the purchase of Chester Creek area parklands.

 8) A similar golf course proposal in Wisconsin with private development on public LWCF lands was recently rejected by the NPS.

9) The City is the responsible party as far as grant agencies are concerned, not the Spirit Mountain Authority. The provisions of the LWCF protection clauses must be written into any lease the City signs. They are not in the lease with Spirit Ridge LCC.

 10) It is possible for the city to contract with private parties to manage public areas, but the following terms must be met:

 ·          All lease documents must include the LWCF Section 6(f) protection clauses;

·          The sponsor (City of Duluth) must retain in this lease the clear ability to review the lessee’s performance regarding LWCF protections as well as the ability to terminate the lease agreement;

·          Reaffirm in the lease that these lands are public and will remain public; and

·          Acknowledge and stipulate that all literature, brochures, other promotional materials, and signs at the facilities clearly inform the public that the golf course is a public recreation area (the current lease does not include any of these points).

 11) The final authority on this matter is the NPS, in consultation with the MN DNR, and not the City of Duluth. Before work permits are issued, or any further legal agreements are made with the developer, the city must amend the lease agreement to reflect their contractual LWCF grant obligations, submit the lease, development plans, and other relevant materials to the NPS and DNR, and await the ruling.

 12) It can take up to a year for the NPS to rule on this matter. Although there is no requirement for a public meeting, it can be requested.

  

For more information on the LWCF, visit http://www.ncrc.nps.gov/lwcf/

 

Spirit Mountain Developer Sues Ikes, Other Plaintiffs For “Expert Witness Fees”

As you may have heard by now, Spirit Ridge LCC has filed a bill of costs for $ 43,000 with the Court Administrator. If awarded, this amount would be split among the four plaintiffs.

As there appears to be no legal basis for them to recover the expert witness fees since we did not go to trial (a normal condition for such recovery), this action almost appears to be nothing more than retaliation. Spirit Ridge LCC had offered to hold us immune to the seeking of such fees if we would sign a waiver saying we’d never again seek redress over this project or its impacts on the stream or forest. The Chapter’s Board of Directors refused to sign the document.

Attorney Anne Roeser represented the League at the Monday, March 19 hearing before Judge Heather