Lake Vermilion Minnesota Articles

Building or buying a lake home or cabin will always be an expensive task. Between the cost of land, building materials, permits fees, and labor, a person can expect to spend several hundreds of thousands of dollars easily. If the cost of routine maintenance and upkeep is added, the cost can climb to amounts that even the most diligent of savers might have difficulty reaching. But there is an old financial adage that goes, “Don't work for your money. Make your money work for you.” The same goes for lakeshore real estate. Many try to rent out their home or cabin when it’s not in use, but they still have to contend with the hassle and costs of maintenance and repair. But what if you could take those costs for your investment cabin out of the equation?  National Park Condos offers investors the unique opportunity to own premium lake property and earn money all without the cost and worry of upkeep.

Located right on the “Canadian Shield” (the border lakes between Minnesota and Canada) and surrounded by the forests and water of Voyageurs National Park, National Park Condos (NPC) is a commercial common interest community owned and operated by Northern Lights Resort and Outfitters (NLRO). The popular destination resort controls the 13 acres and 1,270 ft of shoreline surrounding the development making it one of the largest private lakeshore parcels in the area of a National Park and therefore extremely valuable. The development consists of 9 North Country style cabins facing the expansive waters of Lake Kabetogama. Each unit comes fully furnished and ready for personal use or to rent out. Cabin ownership includes the structure and the surrounding lot, one or more boat slips, a parking space in a common garage, a share of the 1,270 ft of Kabetogama lakeshore, use of a private laundry facility, use of a guest apartment, and all the services available to guests of the resort.

Like other common interest communities, the owners share the cost of regular upkeep, maintenance, and use of common facilities by paying a monthly fee ($100 - $120/Mo) to a resident association, in this case Northern Lights Resort and Outfitter.  Owners will be free to use and improve their cabin as often as they want, but they will be required to place their cabins in the rental pool for a minimum of 6 out of the 10 prime weeks during the summer. (2^nd week of June through 3^rd week of August) On the average, each unit can generate $9,200 to $43,000 per summer, 50 – 75% of which goes in pocket. Owners that choose to make their cabins available for rent an extra two weeks during the prime season will get a 75% share of the rental profits where as minimum availability will net a 50-50 split.

“Considering that the average lake home property outside of National Parks Condos can cost a private owner an average of $23-29 thousand dollars a year in payments and expenses to operate it’s easy to see where the real benefit lies,” says Tom Ossell, a representative of National Park Condos. And that doesn’t even take into account the expenses you can claim on your taxes (i.e. association fees, interest expense, depreciation and driving to the property). It’s almost like being paid to take a vacation.”

Simply put, owners enjoy the benefits of owning and operating a lake rental property in a prime location without the responsibility of the day to day operation. With the limited supply of lakeshore in the area and the appreciation values climbing at a steady rate, a commercial common interest community like National Park Condos is an ideal way to get your foot in the door of the market. While Northern Lights Resort and Outfitters will continue to operate as a destination resort and will not support full time habitation, the profits and appreciation earned from owning one of the rental properties can keep up with appreciation of the surrounding lakeshore and land. So when a purchaser is ready to retire or use their lake property full time   they’ll have a sizeable amount of money to purchase their own lake home or do what they please.

More information is available at nationalparkcondos.com along with the resorts activities and rates at nlro.com.  The owners invite interested parties to rent a cabin and experience the resort and environment before they consider buying.  Any dollars paid in rent shall be treated as a credit against the purchase.

 Al Josef is the editor of LakeshoreDreams.com. Photo provided by National Park Condos.

A Short Survey History Lesson

Back in the days of Lewis and Clark, government surveyors were sent to map the land, using existing features and landmarks to establish monuments (or corners) that would be used as reference points as the land were divided and sold as settlers moved into the region. Boundaries were drawn and changed as more and more people settled the area, but all of those changes, from 1880 to 1930 were made in accordance to the corners established by the original government survey.

Fast forward to post WWII through 1975. Those years saw a huge boost in the real estate development market. Surveyors still were basing their new boundaries on the original corners, but by now few of the originals existed and the surveyors were having difficulty placing them accurately. Couple the lack of original references with inaccurate equipment and a constant demand for new surveys, and the result is corners and boundaries that were technically placed incorrectly.

Since the 1980’s, new equipment and better survey techniques have improved the accuracy of most surveys. Many counties, like St. Louis County, have ordered new surveys to correct the inconsistencies of the previous of the previous surveys. However, when boundaries start changing over properties that have existed for decades, serious problems can and will occur. Just such a problem is brewing in a section of land near Lake Vermilion.    

Section 10, Township 63, Range 18

A 1973 land survey established a corner in the east quarter of section 10, Township 63, Range 18. Subsequent surveys established this corner as the center point of the entire section. All the lots south of this point were platted using this point as one of their major reference points.    

In 2004, St. Louis Co. hired a new survey team to confirm the corner established by the ’73 survey. They discovered that the corner was indeed misplaced—113 ft further north than the actual corner. When the survey team presented their findings to the board they recommended that the county recognize the corner established in ’73 as the legitimate corner, even though it is technically incorrect; the reason being because it had been relied upon for the past 30 years, and many lots and properties have already been bought and developed around it. To change it now would lead to border disputes and throw the entire section into chaos.

However, St. Louis County refused to do it. In a similar border dispute case a St. Louis County Surveyor’s office official wrote “We cannot alter the basic rules of surveys for the sake of convenience. We do not have the option of ‘pretending’ that an erroneous monument is correct.” While they are technically correct, their hard line could lead to some staggering complications.

The Real Inconvenience

Attorney Mark C. Weir represents the owner of the lot adjacent to the corner. According to Mr. Weir, he has owned and paid taxes on this property for ten years. With the county correcting the corner, he stands to lose a significant portion of his property—2 acres and 100ft of frontage on Lake Vermilion.

“Not only will this affect his client but all the other owners to the south of him stand to lose property and lakefront as well.” says Weir. It would be a chaotic domino effect with all the surrounding properties losing or gaining acreage as the boundaries shift to compensate.

Besides the potential property loss, the shifting property lines could lead to a planning nightmare. Any improvements like boat slips, docks, or even homes could technically wind up on another person’s property.

Solutions

According to Mr. Weir, St. Louis Co. offered to allow the original owner to buy back the property from the county for the current market price. First off that solution is ridiculous. An individual shouldn’t have to buy back something that he already owns. Secondly, it offers no solution to prevent the domino effect that would result.

There is a compromise on the table that would give the owner the option to lease the land from the state. However, litigation seems the most likely outcome.

It’s frustrating to see this have to go to court. Why should anyone have to lose land that they worked and saved for just because a line was misdrawn. A person’s home and property should be more important that some imaginary line on a map. Occupation and ownership should trump a theoretical line. And what exactly would be the problem with leaving well enough alone? The property lines are already there, nothing has the change except making the “incorrect” corner the official one. It’s not like they haven’t done that before.

Mr. Weir points to the St. Louis Co. Corner Correction Report of 2004. He said that the county has changed erroneous corners from 3/4ft up to 250ft and made them official. Why should this case be any different? The corner may not be right, but it’s the just thing to do.

Representatives from the St. Louis County Surveyors office refused to comment.

 
All opinions and analysis expressed by Al Josef doesn’t necessarily reflect the views and opinions held by LakeshoreDreams.com If you would like to weigh in on this matter, Al may be reached at al.josef@lakeshoredreams.com

Raised in Eveleth, Angelo Poaletti has been helping clients find their ideal home for the past 15+ years. Before turning to real estate, Angelo worked as a banker for 22 years specializing in real estate loans, commercial lending, and appraisals. Naturally, the transition into real estate business seemed the next logical step. He earned his license in 1991 and has sold many different kinds of property ranging from single family homes to resort properties located along the Minnesota Iron Range.

LakeshoreDreams.com had the opportunity to speak with Angelo and learn more about him and his work.

LD: You've worked with a lot of different property throughout your career. What kinds of developments are you working with now?

Poaletti: Mainly I've been selling residential and second homes on various lakes in the area. I have also been working on several developments, namely some subdivisions and common interest communities.

LD: Where have most of them been?

Poaletti: Vermillion and Burnside in Ely. Birch Lake, between Ely and Babbit, is a popular lake. Pelican Lake, Crane Lake and a lot of lakes in-between.

LD: How much have those properties been selling for?

Poaletti: Prices vary from lake to lake. Vermilion, Burnside, and Crane Lake properties appear to be the most popular to date, so those tend to sell for a little more than the others.

LD: So Vermilion and Burnside are the most popular lakes in your area?

Poaletti: All the lakes are good. It depends on what the client wants to use it for. Some people don't use the lake, they just look at it, and so the view is very important to them. Some families like to use the lake for recreation. They like to fish. They like to ski. They like to swim. Some people just like to fish and some people just want privacy. Once you find out what people are looking for, you can narrow it down to certain lakes and certain areas, and certain price ranges, things like that.

A lot of times, people think they are looking for one thing, but they are actually not. What they are looking for isn't necessarily on one lake, but they may think it is. The biggest questions that families or individuals have to answer are what they want to use the water for and what they want from the property they are buying? Answering those questions save both the client and agent time, money, and frustration in the long run.

LD: What is the most important obligation an agent has to his or her client?

Poaletti:  "Always work in the client's best interest at all times." Understanding what they want and getting them what they want. Ideally, you want them to have full use and enjoyment of the property they're getting. That includes making sure everything they need is already on the property, can be built there, or added to the parcel.

LD: How do you make sure that happens?

Poaletti: Agents have to be thorough. Generally, they need to be knowledgeable about county planning/zoning, township planning/zoning, septic rules and regulations, building rules and regulations, setbacks, what kind of lake it is and what kinds of buildings can go on that particular lot and lake.

We should be knowledgeable about the lake and its particulars. Is it deep or shallow? What is the structure? How does the depth vary from spring to fall? Is it fed by rivers, streams or springs? All those things people ask you, and hopefully you can help them. But you don't know everything, but you can find the answers or let them know where they can get the answers.

LD: That's a lot of information to keep track of.

Poaletti: Yes, but it's not just about looking up the answers. I think you have to go out there. You can get a lot of information off the computer, but there is no better information than going out there and seeing it for yourself. I've been raised on these waters and am very familiar with them, but I still go out to see what's changed, what hasn't, what's new, or what's different. I try to notice things that would be beneficial to my customers and to me.

LD: Do you make it a point to take your clients out and look at these properties in person?

Poaletti: I try to take clients out as much as possible, especially if they aren't familiar with the area. All the clients are different, with different needs and wants. I do different things with different clients depending on what needs to be addressed. I'm not pushy with my clients. Unfortunately, that's a common misconception of agents and most people in sales. What I want to do is facilitate the sale. Show them what they want, occasionally help set up the financing and when they are ready to buy, they will buy. I just try and help the process move forward in an orderly and timely manner. The property sells itself. We just help it along. The last thing I want to do is sell something to somebody that they don't want. I'll probably not see them again. If I truly help them, I will see them again.

For more information on properties in the Lake Vermilion/Voyageurs National Park region please visit Angelo Poaletti's listing page on LakeshoreDreams.com.

Rumors of gold that had prospectors scouring the Lake Vermilion area in the 1860s, but it was the discovery of iron ore to which Tower and Soudan owe their existence.

The deposits they found were rich and plentiful, leading to the establishment of the Soudan Mine in 1884, from which more than 15.5 million tons of iron ore were removed during its operation.

The city of Soudan grew up around the mine. Nearby a town site was surveyed to serve the business needs of the residents. Named Tower, it was incorporated in 1884, making it the oldest city north of Duluth. Today, Soudan still holds many of the area's residents and Tower remains the commercial district.

With nearby Lake Vermilion, the towns' populations swell during the summer. During the rest of the year, it's quite small.

Jodi Summit, editor of the local newspaper the Timberjay, calls it a classic friendly community. "Everybody knows each other. It's the kind of place where nobody locks their doors."

There are no fast food restaurants and no chain stores. Downtown Tower is home to locally owned businesses, including a small grocery store, the Good Ol' Days Bar and Grill, North Country Quilts, and Bonita's Nordic Imports.

Nearby attractions include Fortune Bay Casino. In addition to gambling, there's a scenic 18-hole golf course along the shore and the Bois Forte Heritage Museum.

In 1962, the Soudan Mine ceased operation, and the U.S. Steel Corporation donated the mine and surrounding land to the state. That same year, the legislature voted to turn the mine into a state park, which was later designated a National Historic Landmark.

The Soudan Underground Mine State Park features old mining buildings, hiking trails with views of the open pits, and two tours of the underground mine. The first is a historical mine tour, which takes visitors one-half mile underground and then by train three-quarters of a mile to where the miners worked.

The other is a tour of an underground laboratory where the University of Minnesota, along with scientists around the world, is conducting two major physics experiments: the Main Injector Neutrino Oscillation Search (MINOS) and the Cryogenic Dark Matter Search.

MINOS is an experiment where tiny subatomic particles, called neutrinos, are transferred from the Fermi Lab in Chicago to the lab in the Soudan mine via energy beam in order to determine if these particles have mass. The second project is the search for WIMPs or weakly interacting massive particles. Both experiments could have implications regarding the origin of the universe if scientists can prove they make up part of the "dark matter" created after the Big Bang. James Pointer, interpretive supervisor for the park, calls the experience a once in a lifetime opportunity. "There are not many places you can go and see what you can see here."

Because of mining's role in Minnesota, Pointer says the site is historically important because it's the oldest, deepest and richest grade ore in the state. "Here you can learn about the processes and innovations that went on here and the impact it had on the United States as a whole during its industrialization."

Nearby Lake Vermilion is more than 40,000 acres in size and holds 365 islands. It is bordered by the Boundary Waters Canoe Area Wilderness and the Superior National Forest.

Tower is beginning a multimillion-dollar project to restore the old harbor and landing and expand the town toward the water. Work is slated to begin spring of 2007.

Locals believe Lake Vermilion is one of the most beautiful lakes around. In the 1940s, the National Geographic Society agreed, calling it one of the top ten most scenic lakes in the country. Its name is derived from a translation of "Onamuni," Ojibwe for "lake of the sunset glow."

Summit says the lake is characterized by classic northern boreal forests, ledge rock and big pine. She also notes that large portions of it are fairly undeveloped. "You can spend a lot of time on the lake and feel like you are in the wilderness."

Contributed by Kelly Harth. Kelly is a freelance writer based out of Duluth, MN.

In the 1940's, Lake Vermillion earned the unique distinction of being named one of the top ten most scenic lakes in America by the National Geographic Society. Today, this lake known for its trophy muskie and brilliant red sunsets still holds the imagination of the outdoorsmen, artists, and writers that gaze across its magnificent waters.

With its 40,000 acres of water, 365 islands, and 1,200 miles of shoreline, Lake Vermillion offers some of the best fishing and boating all year round. Walleye, pike, bass and many other varieties await your cast as you travel her waters. Be sure to keep an eye out for the lake's favorite summer resident, the loon. Their haunting cries during early morning and late hours are hard to forget. 

Its nearby neighbor, Rainy Lake, is also teaming with a wide variety of game fish. Walleyes are the order of the day here, but don't forget the perch, white sucker, and sauger make for tasty meals.  Rainy Lake is also a main gateway to the only national park in Minnesota, Voyagers National Park. With less than ten miles of road in the park, visitors must leave their cars behind and explore the park via boat, canoe, or kayak. Enjoy one of their guided boat tours, interpretive programs, or nature walks. Be sure to keep a look out for one of the park's more elusive residents, the black bear.

Crane Lake is the southern entrance to Voyager's National Park. Be sure to look around and observe the natural splendor of the forest and centuries old rock formations as you cruise her waters. The area is abundant with white and pink granite with veins of quartz running through them. For a wonderful panoramic view of the area, be sure to visit Vermillion Gorge, Vermillion Falls, and Grassy Bay Cliffs. Breathtaking views, crystal blue waters, verdant forest, and impressive rock formations truly make this area a photographer's paradise.

Lake Kabetogama is the final major lake that borders on Voyager's National Park. Like the other surrounding lakes, the fishing here is phenomenal. Sauger, smallmouth bass, and perch are well known in these waters and will challenge even the most seasoned angler. Adventurous types might want to try exploring the back wood trails of the Peninsula. Located deep in the heart of Voyagers, the Peninsula separates Kabetogama from Rainy Lake and is only accessible via boat. It's a great adventure for any outdoorsman.

Lake Vermillion is a great place to visit, and even a better place to live. Communities like Tower and Cook, combine the charm of a small town along with the comforts of home.  Begin your journey by exploring many of the great lakefront and recreational properties available on LakeshoreDreams.com.

For Lakeshoredreams.com, the counties grouped in Lake Vermilion MN include:

St. Louis County MN

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