Closed state campground creates hardship for East Grand Forks

The city of East Grand Forks may be losing some money because its state campground is closed, but it’s way ahead in the government shutdown economics game.

The state forced the closing of the Red River Recreation Area in the Greenway on June 30. EGF profits about $4,000 a week from the campground, administrator Scott Huizenga said.

That amount doesn’t include the local economic impact loss from not having visitors to the campground, which is within walking distance of the city’s shopping district downtown.

But the big picture looks brighter for the city than a week ago. The judge overseeing the shutdown terms said that the state has give cities their Local Government Aid. For EGF, that means $1.4 million coming later this month. It also is slated to receive a similar-sized check in December. City officials were concerned that they wouldn’t receive any LGA until after a settlement.

Ironically, the state shutdown could mean more LGA for East Grand Forks. That’s because a conference committee had agreed to two payments of $1.1 million each.

When analyzing the local impact before the government stoppage, Huizenga said the city could operate on its reserves until September, when “council members would have to start making tough decisions.”

However, with the city getting $1.4 million it wasn’t expecting, any “tough decisions” will be delayed further.

Ryan Bakken is a reporter at the Grand Forks Herald,

which is owned by

Forum Communications Co.

Tags: news, minnesota, government, shutdown