DNR unwilling to relinquish bonding dollars for proposed state park
by T.W. Budig
ECM Capitol Reporter
Department of Natural Resources Commissioner Mark Holsten today (Monday, Nov. 16) told a House/Senate natural resources committee his agency had no intentions of relinquishing $20 million in bonding lawmakers approved for a proposed state park.
Gov. Tim Pawlenty many months ago proposed the creation of Lake Vermilion State Park on land currently owned by U.S. Steel — about 3,000 acres near Soudan Underground Mine State Park and the Boundary Waters Canoe Area.
But Holsten told lawmakers that talks with U.S. Steel about purchasing the land, which the company is proposing to develop, have been suspended.
“We are still hopeful we’ll be able to come to terms with United States Steel,” said Holsten.
Still, the commissioner explained that the land negotiations and an environmental review the DNR is completing on a proposed expansion to a U.S. Steel facility in the state had become wrongly merged in public perception.
Those two issues must be seen as separate, Holsten said.
But some lawmakers suggested that negotiations had played out long enough.
It’s time to fish or cut bait, said Sen. Elllen Anderson, DFL-St. Paul.
“We are still fishing,” insisted Holsten.
He dismissed Anderson’s assertion that the governor had washed his hands of the park project, saying that would be a grossly inaccurate statement.
“We need some time,” said Holsten, a former state representative from Stillwater.
Rep. Denny McNamara, R-Hastings, praised Holsten for keeping the appraised value of the U.S. Steel land a secret — currently the state can offer 12 percent above appraised value in land deals.
McNamara asked whether a third party — an environmental group, for instance — could add funding for the park land purchase.
“Sure,” said Holsten.
One lawmaker suggested that perhaps the 12 percent purchase cap could be altered.
Rep. Melissa Hortman, DFL-Brooklyn Park, suggested that the conflict of interest the negotiations presented the DNR could be avoided by having the Department of Administration negotiate with U.S. Steel instead.
Holsten indicated that there was no conflict of interest, as different sections within the agency are dealing the issues.
