TOWER— The city’s harbor committee hopes to have a development agreement with Nordic Business Development Inc. ready for possible approval by Feb. 1. That’s following the committee’s meeting on Tuesday, during which members of the committee dissected and offered changes to the tentative memorandum of understanding the NBDI CEO Orlyn Kringstad offered to the city last month. Those changes will be incorporated into the development agreement, to be prepared by the city’s legal counsel.

The major change to the document is likely to be the role of the two parties to the contract. While the two sides originally envisioned that the city’s economic development authority would assume the role of lead developer, that approach ran into some legal hurdles, which could limit the city’s role mostly to assisting with infrastructure and ancillary developments, such as sidewalks, roads, and trails. It now appears the NBDI will be taking on a more significant role, essentially becoming lead developer on the project.

Kringstad, on Wednesday, said that change isn’t a deal-breaker by any means. “The best of all worlds would have been to be full partners in all ways,” said Kringstad. At this point, Kringstad said his group is waiting to see the development agreement after the latest changes. Regardless, his group is moving forward rapidly on developing project drawings, including aerial overviews, floor plans, and facades. The team’s architect, Dewey Thorbeck, is well-known in Minnesota, having been involved in several high profile projects, including the International Wolf Center and the Bell Museum of Natural History. He is also the founder and director of the Center for Rural Design at the University of Minnesota.

Kringstad said his group will want input from Tower residents to ensure that the designs are consistent with the original vision for the harbor.

The city and NBDI are expected to set an initial goal of ten pre-sales, which they anticipate will make it possible to finance the first phase, which should include 20 condominium units.

“That’s the drop-dead point,” said consultant Gary Lamppa, who is advising the city on the project. “If we can do the pre-sales, it will move forward. If not, it won’t.”

Kringstad doesn’t think the pre-sales will be difficult, especially since the city already has a few names of interested parties. He said his group is actively talking to potential investors and condominium purchasers and that they are finding substantial interest in the project as well. “People like the idea that they have direct access to Lake Vermilion and also will have access to what is going to become a thriving town,” said Kringstad. The condominiums could be purchased as residences or, possibly, as investments to facilitate a rental pool. Kringstad said he’s already heard interest in both possibilities.

In addition to the condominium development, the parties are also exploring the options for associated commercial space, such as for retail and dining, within the project. Lamppa said he’s spoken to individuals who are interested in locating businesses around the harbor.

While the initial focus of NBDI is around the harbor, Kringstad made it clear that his group sees potential for redevelopment elsewhere in the city. Kringstad said his team wants to help the city craft a master plan focused on sustainability, a plan that Kringstad believes could make Tower a “global model” for rural sustainable development. Kringstad wants the city to establish a citizen-based steering committee to oversee the development of the sustainability plan.