Two Harbors Council Hears Input on Lighthouse Point Road, 3rd Street Reconstruction

At Two Harbors City Hall, a packed chamber heard City Engineer Andy Brotzler present an overview of the Lighthouse Point Road and 3rd Street Reconstruction Project during a Feb. 23 public hearing, and councilors opened the floor to public comment on the scope, costs and proposed funding for the work. Brotzler led the discussion and the council extended debate after the presentation, but the hearing transcript available to reporters ends before any detailed budget figures were disclosed.

Council members and speakers referenced an expectation that the upgrades could proceed soon; a local headline described the road upgrades as “set for spring,” but no definitive start date, cost estimate or funding source was presented at the Feb. 23 meeting. City staff did not provide line-item estimates or a confirmed funding plan during Brotzler’s overview, leaving questions about whether the city will pursue state or federal grants, special assessments, bonds or another mechanism.

Separate but related controversy over Lighthouse Point development continued to shape public comment in recent weeks. A development proposal first made public at a January hearing has prompted standing-room-only turnout at council meetings, with residents objecting to developers’ requests to increase density and to use tax-increment financing. One resident, Elliott Crompton, warned: “We need a much more comprehensive plan than putting in a bunch more high-income townhomes and obliterating an area that has been an important part of the lives of those of us who live in this area." Jay Cole added that the city still needs housing, saying “even if it's high-end housing. We are in a housing crisis, and this could be the catalyst that could drive more housing to be built."

Developers have signaled they want special allowances and public subsidy tools. The proposal includes a request for tax-increment financing; as described at recent meetings, a TIF subsidy would use additional property tax revenue generated by a project to pay for the public infrastructure required to build it. Developer Ted Stocke said the team pitched housing “thinking it would be one of the least impactful” uses of the land and that he expected some pushback.

Council members signaled mixed views and a desire for more detail before any approvals. Mike Kasell said he “love[s] the fact that somebody actually is willing to invest in it,” but added “I personally don't feel that's the right choice for Two Harbors. I'd like to see some other options as far as the development of it. But, they own the property," and a councilor identified as Ronning said many residents could support a restaurant on the site.

The debate over development echoes an earlier legal saga over Lighthouse Point waterfront parcels. After a 2002 purchase by a developer named Cave and years of litigation, a court order by Cuzzo required turnover of wooded areas at Lighthouse Point, Van Hoven Park, the land around the community center and roadways; Cave complied on June 27. City Attorney Steve Overom called that outcome “This is huge for the city.” and later described the resolution as a “win-win,” Mayor Randy Bolen said “This is a long time coming,” and former mayor and later council member Robin Glaser said “It was like déjà vu.” Overom has said the city envisions using Lighthouse Point and a planned marina in Agate Bay, along with zoning changes, to encourage waterfront economic development.

Several council members told the chamber they want more detailed plans from engineers and developers and discussed scheduling another meeting to gather additional information before deciding whether either the reconstruction or any development-linked incentives should move forward.