FALL LAKE TWP— Two years ago, the proposed redevelopment of Silver Rapids Lodge generated fierce opposition from neighbors and lawsuits by a local citizens group and the Department of Natural Resources. But on Monday night, a slightly revised proposal won approval by the Lake County Planning Commission with barely a whisper of opposition.
No one from the public spoke at Monday’s hearing in Two Harbors and only a handful of Fall Lake residents spoke to the commission via a live feed from the Fall Lake Town Hall, and most of those expressed varying levels of support for the project. Two years ago, the town hall had been filled to overflowing for the hearing, but this week just over a dozen members of the public turned out to see how it would all turn out.
Modifications to the original plan, such as a reduction in the number of new cabins, mooring slips, and the elimination of the tiki bar, along with the completion of an environmental assessment worksheet, or EAW, appears to have helped build local support for the multi-million-dollar project. Lake County also loosened its lakeshore ordinance to allow greater density, which helped bring the project into legal compliance.
The proposal did generate about two dozen comments from residents and property owners in the area along with agencies like the DNR, but the tone was considerably different than in 2024. Even those who had strongly opposed the proposal two years ago, offered comments this time that seemed designed to improve the project, rather than oppose it. County planning staff incorporated many of those suggestions into more than two dozen conditions that the commissioners ultimately imposed on the project’s permitting.
Planning commissioners noted that the project, assuming it now moves forward, would appear to be the single biggest development in the county’s history, at least since the construction of Reserve Mining and Silver Bay back in the 1950s.
The details
The planning commission gave approval to a conditional use permit and a preliminary plat for the project, which entails the redevelopment of the roughly 60-acre site, which has served as home for Silver Rapids Lodge for more than a century.
The plan calls for demolition of the existing main lodge, six existing cabins, along with several related structures. The developers, operating under the banner of Silver Rapids Resort, LLC, also proposed to remove 18 RV sites and several mobile homes along the Farm Lake portion of the lakeshore. They also propose to clean up former underground tank sites where there is known soil contamination and any additional contamination discovered during construction.
The plan calls for construction of a new main lodge with a bar and restaurant, pool, sauna, hot tub, and gift shop, along with 44 new fractionally-owned cabins to be sold as quarter shares. The area will be served by three new mid-sized sewage treatment “cluster” systems along with a single existing sewage treatment system.
Water demand at the site is expected to run 7,936 gallons per day, or about 2.9 million gallons annually. That will require a DNR water appropriations permit, which will require an aquifer study to determine if it can supply that volume of water. As a condition of the CUP approval developers must also demonstrate adequate well yield for each phase of the project.
Construction is expected to proceed in phases, with the first phase comprising construction of half of the new cabin units along with the main lodge and related facilities. When the cabins are not in use, owners would have the ability to place the units in a rental pool that will be managed by Leisure Hotels & Resorts, which will manage the overall development. A homeowners’ association will also have a role in managing the property.
Conditions and findings
While the redevelopment plan won approval, the commission placed at least 24 conditions on the conditional use permit and another eight on the preliminary plat. Conditions covered a range of issues, including road access and traffic safety, docking and shoreland structures, vegetation and erosion control, fire and life safety, and environmental contamination. Among the conditions is a requirement for a Phase I archeological assessment of the site, and that all pool and hot tub water be drained into a holding tank for later removal from the site. The developers will also need to develop and submit a stormwater pollution prevention plan, or SWPPP, to the county prior to the start of construction of each phase.
An initial requirement that all ATVs and snowmobiles on the site be trailered was eliminated, to allow the use of those motorized vehicles. No use of fireworks or firearms will be allowed on the property.
Among the conditions set on the preliminary plat is a written acknowledgement by the developers that the roads within the development are private and will not be maintained by the county or township.
In approving both the CUP and the preliminary plat, the commission confirmed ten findings of fact to support their decision. Those include:
• Measures have been taken, financially assured by the applicant, and approved by the road authority to provide safe and efficient access, off-street parking and loading space to serve the proposed use.
• The proposed use will comply with the hydrology and impervious surface requirements of the ordinance.
• The topography, vegetation and soil conditions are adequate to accommodate the proposed use.
• The proposed use will not impact public waters during or after construction or impact wetlands without appropriate consideration.
• Adequate utilities, access, drainage, stormwater retention, and supporting facilities have been provided or are being provided backed by appropriate financial assurance.
• The proposed use will not create potential health and safety, environmental, lighting, noise, signing, or visual problems.
• The proposed use or development will not be detrimental to the rightful use and enjoyment of other property in the immediate vicinity, nor substantially diminish or impair values within the vicinity.
• The proposed use is consistent with the comprehensive plan and with the spirit and intent of the ordinance.
• The types, uses, and numbers of watercraft that the project will generate are compatible in relation to the suitability of public waters to safely accommodate these watercrafts.
• The visibility of structures and other facilities as viewed from the water is limited.