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Re: Lutsen Resort failed inspections; cabin owners file lawsuits

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Feb 9, 2024, 7:05:03 AM2/9/24
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In <t2papp$3pht9$5...@news.freedyn.de> forging pothead
<jtho...@gmail.com> wrote:

> Democrats are the biggest cheats there are.

LUTSEN — Findings from the most recent State Fire Marshal inspection
at Lutsen Lodge were released following the Tuesday fire that
destroyed the building.

According to the Minnesota Department of Public Safety SFM division,
statute required the 32-room lodge to be inspected for fire safety
once every three years.

An inspection conducted by State Inspector Tony Clafton on July 6,
2023, found seven violations at the resort, 5700 W. Highway 61. Four
of the violations had since been repaired by the property owner
Bryce Campbell, the report state

The three remaining unresolved violations were for failure to
provide the most recent inspection reports by a licensed contractor
on the sprinkler system, as well as reports for the resort's fire
alarm systems and equipment. Repair/replacement of an emergency
light was also unresolved.

Although the resort was initially flagged for not maintaining the
proper clearance surrounding the water heater, the violation was
listed as "repaired" in the report.

According to a news release, it is too early in the investigation to
determine if the three outstanding violations played a role in the
fire. Details of the active investigation are not yet available as
the case remains open.

The SFM is partnering with the Lutsen Fire Department to investigate
the fire.

As crews continued to extinguish hot spots on the scene, SFM
investigators are also sifting through debris and ashes to review
any physical evidence. They will also review paperwork, such as
business and financial reports, and conduct a multitude of
interviews.

"We understand the public wants answers," said State Fire Marshal
Chief Investigator Jim Iammatteo in the news release. "However, it
would be irresponsible to offer any insights until the conclusion of
this investigation."

Cabin owners unpaid
Before the fire Tuesday, the News Tribune found there were a handful
of financial and legal discrepancies tied to Lutsen Lodge and
Campbell.

Several cabin owners have recently filed lawsuits against Lutsen
Resort and/or its parent company North Shore Resort Co., both owned
by Campbell.

Each of these conciliation cases filed with Minnesota's Sixth
Judicial District Court were for unpaid rental income and fees for
their properties managed and rented out through the resort.

On Feb. 1, Robert and Karin Nagel, both of Eden Prairie, Minnesota,
claimed they are owed $12,935.

"Lutsen Resort and their management company has not paid us the
rental income owed to us for our cabin for the months of September,
October, November and December of 2023," the Nagels reported.
The Nagels also claimed the agreed-upon electric bills were unpaid,
and cleaning did not occur which left their property "in total
disarray."

On Feb. 5, Joanne Stohl, of Dundas, Minnesota, claimed she is owed
$11,050.

"I was paid my rental money through July. After that nothing was
paid to me," Stohl reported.

On Feb. 6, Jay and Peggy Halvorson, both of Edina, Minnesota,
claimed they are owed $15,075.

"We have not been paid for any business past July 31 even as the
townhouse has continued to be marketed and rented," Jay Halvorson
reported.

On Feb. 7, Cliffhouse Townhome owners Lee and Helen Brudvig, both of
Andover, Minnesota, claimed they are owed $14,293.30.

The Brudvigs reported the resort acknowledged an amount due on a
September statement and it "could not be paid because of financial
shortfalls."

"Please note that I and other homeowners (of) our HOA reached
agreement to terminate the Rental Management Agreement on Jan. 7,
2024," the Brudvigs reported.

Unpaid renovations
On Feb. 16, 2023, Minnesota's Sixth Judicial District Court found
that Donald Holm Construction Inc., a Duluth-based construction
company, filed a claim for breach of contract and unjust enrichment
against Campbell and his companies (Superior Shores Resort, North
Shore Resort Co. and Shores Resort Co.) in November 2022.

Superior Shores hired the construction company in fall 2019 to
perform remediation and reconstruction work. The work took place
from February 2020 to January 2021 and was billed at $309,918.
According to court records, Campbell paid $125,963.

Donald Holm Construction began taking action by filing claims for
unpaid work at the resort July 15, 2021. Superior Shores filed a
counterclaim Sept. 3, 2021, for slander of title.

The construction company was awarded $146,000.

Bridge over troubled waters
The flooding of the Poplar River from late April 2022 through late
June 2022 damaged bridges on the resort property. Although Lutsen
Resort had not initially applied for the proper permit from the
Minnesota Department of Natural Resources to repair the damages, it
had already begun unauthorized work on them, according to DNR
Director of Communications Gail Nosek.

DNR Officer Kylan Hill issued a cease-and-desist order Sept. 7,
2022, to halt the unpermitted work.

Nosek said Lutsen Resort then requested permission to operate
machinery in the river to access one of the bridge decks to address
safety issues. To address the immediate public safety issue, the
Minnesota DNR provided a limited-term emergency authorization (not a
permit) for the sole purpose of operating equipment necessary to
reach the damaged, unsafe bridge.

A six-day authorization was issued Sept. 9, 2022, to protect
important fall fish spawning in the riverbed beyond that date, Nosek
explained.

Officer Hill returned to the Poplar River location Sept. 15 and
found the work was beyond the scope of what was allowed under the
emergency authorization and ordered all work stopped at that time.

In June 2023, Lutsen Resort applied for an after-the-fact
authorization to replace one of the covered bridges destroyed by
flooding, which it was granted by the DNR that October. Lutsen
Resort paid the increased fee.

Following the resolution of the cease-and-desist order, no other
fees and no fines have been associated with this project, Nosek
said.

Lutsen Resort contracted a consultant to design repair of the
unauthorized excavation conducted in the Poplar River, but has not
yet applied for a permit to perform the repair work.

"It’s Minnesota DNR’s understanding that Lutsen Resort decided not
to replace the second damaged bridge," Nosek said.

Resort hasn't paid liquor taxes
Lutsen Resort has also been listed to the Minnesota Department of
Revenue Posting of Tax Delinquencies Liquor, Wine and Beer Sales
report since November.

By state law, this means "no wholesaler, manufacturer or brewer may
sell or deliver any product to these taxpayers while their names
remain on the list."

This story was updated at 7:24 a.m. Feb. 8 to include Lutsen
Resort's unpaid liquor taxes. It was originally published at 6:02
p.m. Feb. 7.

https://www.duluthnewstribune.com/news/local/lutsen-resort-failed-
inspections-cabin-owners-file-lawsuits
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