1

July 16, 2015

Tom Watson, President

2

Agenda

1. WAPOA – Who are we?2. WAPOA Programs and Services3. Whitefish Chain of Lakes/Crow Wing

County Economic Overview4. Challenges5. Questions

3

Whitefish Area Property Owners Association

Known as WAPOA Long-standing mission of conservation and

stewardship of our natural resources In existence 45 years; formed in 1970 Tax exempt non-profit MN corporation (501c3) Member driven organization (over 1,100) Largest (members) lake association in MN Coalition of area lake associations among

geographically connected lakes systems

4

5

6

WAPOA Mission Statement Stewardship of the natural world throughout the

Whitefish Area and the Pine River Watershed is the mission of Whitefish Area Property Owners Association.

The Association shall lead and work with citizens, groups, associations, and government units to conserve and improve the quality of our waters, shoreland, fishery, wildlife resources, and general welfare for the benefit of present and future generations.

7

Whitefish Chain of Lakes Whitefish Chain of Lakes consists of 14

connected individual lakes 14,280 Acres, 119 miles of shoreline 9th largest lake/lake chain in MN 3,700 parcels, 2,700 Property Owners 7 Public Accesses, over 25 private accesses 3 cities, 3 townships Impact of riparian property on the Whitefish Chain

1/3 of the total equalized valuation for Crow Wing County is riparian property on the Whitefish Chain;

about 20% of the tax-paying properties a major economic driver for Crow Wing County;

especially northern Crow Wing County

8

WAPOA Membership

Nearly 1,200 member families; increased in 2014 Members are dues paying property owners in the

Whitefish Chain and the Pine River Watershed area, businesses, groups, and individuals

Individuals (1,150) -- $30 to $100 per year Businesses (70); increasing

Stewards $500 per year Sponsors $250 per year Friends $100 per year

9

WAPOA Focus on Opportunities & Threats Opportunities

Sustain Whitefish Chain of Lakes and Crow Wing Cty lakes as popular tourism, travel & recreation destinations

Sustain economic impacts – jobs, employment, local business, State and local tax revenue, etc.

Travel and tourism is a significant contributor to business sales, employment, and taxes in Minnesota Travel and tourism is not a single industry Travel and tourism is lodging, retail, food & beverage, etc. The travel/tourism industry had $13 billion in gross sales in 2013 The 183 resorts in Crow Wing and Cass counties accounted for

$95.1 million in gross sales and $6.1 million in state sales tax.

10

Threats in the Whitefish Chain Area Continued deterioration in water quality;

both surface & ground water Land use decisions

Lakeshore development; septic systems; stormwater; and more

Public apathy about AIS and water quality Human beings; popular destination; recreate Watercraft; docks/lifts

Non-native Aquatic Invasive Species (AIS) 18-20% traffic violations in 2013 & 2014

11

WAPOA Scope of Services

Water Quality water testing on 38 lakes; see trends in water quality working with Cass Farm Bureau and Univ of MN on

upstream Pine River water quality and farm runoff Aquatic Invasive Species (AIS)

Boat inspection at 7 public accesses Inspection training for volunteers & service providers Annual inspections for AIS plants and animals

Shoreland Restoration Annual contest; provide matching grants to property

owners

12

WAPOA Scope of Services (cont’d) Natural Resources

Work with the MN DNR on fish & habitat Natural resources plan for Whitefish Chain “Grandpa’s Run for the Walleye” 5K/10K races

Land Use Participate with property owners and local govts on

variances, ordinances and land use decisions Encourage applying state and local land use laws

Communications Publish 4 publications annually Maintain a regular local media campaign

Business Relations Connect with the business community

13

“Latest News” from WAPOA

AIS present in the Whitefish Chain of Lakes Zebra Mussels – present, low quantities, spreading;

Cross Lake – major issue; other lakes; veligers Eurasian Watermilfoil – none; Bay Lake experience Curly Leaf Pondweed – small patch; not an issue Other species threatening – an issue!

Expand watercraft inspection in 2015 State AIS aid enacted in 2014; was subject of repeal

Expand water quality testing – TSI, calcium & pH Initiated a Preservation Trust in 2013

14

“Latest News” from WAPOA “Challenge” for WF Chain of Lakes

Highly popular destination area for recreation Lake trout research on Big Trout Lake

Negative impacts on sustaining cold water fish and other game fish

Education and information re: deteriorating lake quality Impacts of stormwater runoff; oils, salts, phosphorus Engage local governments in analysis and solutions

Local elected persons appeal to locals (voters) re: cut spending; reduce taxes; approve variances and permits

Lake associations and majority of property owners Seasonal and second home owners Don’t vote in local elections

15

“Latest News” from WAPOA AIS threat to the Whitefish Chain of Lakes

Eurasian Watermilfoil Spiny water fleas Faucet snails Hydrilla Next species in Great Lakes

AIS introduction - human carelessness AIS threatens local economy Funding for AIS – inspections, education, etc

WAPOA will continue to spend a significant amount of its funds on AIS & inspections

Allocation of AIS state aid by County; doesn’t follow law

16

WAPOA – So?? Where do we go?

How do we sustain the “tourism affect” for the local economy?

How do we combat the threat of AIS? What can we do? What must we do? Our “shared vision” for the WF Chain Join us @WAPOA if you agree with our

mission and scope of services

17

Whitefish Area Property Owners Association – Economic View MN House Legacy Committee – Fall 2013 Expand focus on addressing AIS :

Economic Impact of travel and tourism in the Whitefish Chain Area

Get attention of business community, Chamber

Build a “case” for local commitment to water quality, denying or controlling AIS, “total effort”

18

Research on Property Values and Water Quality

LAKESHORE PROPERTY VALUES AND WATER QUALITY: EVIDENCE FROM PROPERTY SALES IN THE MISSISSIPPI HEADWATERS REGION Submitted to the Legislative Commission on Minnesota Resources By the Mississippi Headwaters Board and Bemidji State University.(June 2003)By: Charles Krysel Elizabeth Marsh Boyer Charles Parson, Ph. D. and Patrick Welle, Ph. D.

The purpose of this study was to conduct research (similar in design and format to the Maine studies) to determine if water quality of Minnesota lakes located in the Mississippi Headwaters Board region affects lakeshore property prices.

The hypothesis is that it does. Collectively, changes in lake water clarity will

result in millions of dollars in property values—lost or gained—in this lake region of Minnesota.

Clearly, for economic reasons alone—not to mention the ecological health and social benefits at stake—it is important to protect the water quality of all Minnesota’s lakes.

19

Economic Impact of travel and tourism in the Whitefish Chain Area Whitefish Chain and Crow Wing County lakes are a

popular destination for tourism, travel & recreation Travel & tourism expenditures in CW County and WF

Chain; only Metro, St. Louis & Olmsted Counties larger Univ of MN Extension/Tourism Center study

2007-08: direct expenditures on travel & tourism = $110 M with 49% spent during June, July & Aug (about $54M)

Indirect expenditures = additional $150M Economic development impacts – jobs, employment,

local business, State and local tax revenue, etc.

20

Economic Impact of travel and tourism in the Whitefish Chain Area (cont’d) 3 hours north of the Twin Cities, area is a major tourist

and vacation destination. Univ of MN study of tourist said "Brainerd lakes area....the premier vacation destination for Minnesota."

2008 MN DNR Boating in North Central MN; "boaters" originated -- 43% from Metro Twin Cities, 34% in the North Central area, 9% other MN and 14% out of state 66% originate from out of North Central MN area.

Crow Wing County reports the County population of 62,700 triples to over 187,000 in the summer.

Q - State resource allocations for managing public waters consider the “travel and tourism” impacts?

21

Economic Impact of travel and tourism in the Whitefish Chain Area Travel and tourism is a significant contributor to

business sales, employment, and taxes in Minnesota Travel and tourism is not a single industry Travel and tourism is lodging, retail, food & beverage, etc. The travel/tourism industry had $13 billion in gross sales in

2013 The 183 resorts in Crow Wing and Cass counties

accounted for $95.1 million in gross sales and $6.1 million in state sales tax.

22

Economic Impact of travel and tourism; State of Minnesota 2011 Traveler spending by industry

• One-quarter of traveler spending goes to food & beverages.

• Nearly 20% goes to both the lodging and the retail sectors.

• Higher fuel prices increased the share of spending on transportation, reaching 16% in 2011.

• Lodging and retail – 18+% each

Food24.8%

Lodging18.7%

Retail18.5%

Transport16.0%

Recreation15.9%

By Industry

Second homes 6.0%

23

Economic Impact of travel and tourism in Our Area

2012 Gross Sales Sales Tax Rev Employment

Crow Wing County $201,073,526 $12,686,611 3,892

Aitkin County $ 20,692,436 $ 1,425,354 497

Cass County $102,411,781 $ 6,196,420 1,736

Hubbard County $ 29,955,194 $ 2,018,357 741

Total $354,132,937 $22,326,742 6,866

24

Economic Impact of Second Home Owners in the Whitefish Chain Area Univ of MN Extension Service study, October 2014

30% of Crow Wing County housing with seasonal residents (includes seasonal, occasional, recreational)

Majority are owner-occupied 1/3 owned for more than 20 years Plan to transition to second homes permanently Median annual local spending = $3,252 per home

With property taxes, close to $10,000 per home Views on Development and Future

Single largest = environment and water quality Impact = economic development impacts – jobs,

local business, State and local tax revenue

25

Is there a significant Economic Impact of travel and tourism in the Whitefish Chain Area?

Travel and tourism is a significant contributor to business sales, employment, and taxes in Minnesota

Why is this a destination for travel & tourism? Water quality Large body of water Recreation during vacation and weekends Fishing, boating (and snowmobiling) Quality of life matter Minnesota and Upper Midwest “thing”

26

WAPOA – So?? Where do we go?

How do we sustain the “tourism affect” for the local economy?

How do we combat the threat of AIS? State and local government responsibility What can we do? What must we do? Our “shared vision” for the WF Chain Join us @WAPOA if you agree with our

mission and scope of services

27

Whitefish Area Property Owners Association

Thank you Contact us at:

President@wapoa.org Google “WAPOA” http://minnesotawaters.org/whitefishareapropertyown

ers/

Tom Watson, President, 218-543-6064