New Silver Bay development provides more housing options along Lake Superior

SILVER BAY, MN. (Northern News Now) - Silver Bay’s largest housing development in decades broke ground Wednesday.

Minnesota State Senator Grant Hauschild, Iron Range Resources and Rehabilitation Commissioner Ida Rukavina, and other northern Minnesota leaders gathered by the shore of Lake Superior for the monumental moment.

Boathouse Bay will be a recreational residential property stretching from Highway 61 to Lake Superior near the Black Beach campgrounds.

John Anderson is the developer for Boathouse Bay.

He lives by the Twin Cities but has owned property in Silver Bay since 2006.

“That lake is magical, I mean it takes your breath away,” said Anderson.

Originally, Anderson was going to only develop his own land until the city approached him with a bigger idea in mind.

“We asked him if he had the ability and the desire to help support the city’s vision and expand his development to include that area of the city,” said Lana Fralich, Silver Bay City Administrator, as she gestured toward Highway 61. “So we also provided him that property.”

Boathouse Bay is now the largest development project since 1954.

There will be 54 total housing units featuring townhomes, single-family homes, vacation bungalows for rent, and other amenities like storage and an event center.

The entire project cost $25 million.

$1.5 million is funded by the Iron Range Resources and Rehabilitation Board and the rest is from private investment.

However, the high-end housing project has raised concerns among community members.

“Change is hard,” said Fralich. “I think there’s different diversities that maybe people have of what they want for housing. I think the majority of the community had supported it. Otherwise, I don’t think our our elected officials would have voted for it.”

Anderson said creating economic opportunity does not have to create negative environmental impacts.

“We have to protect the land at the same time,” said Anderson. “I think we’re taking a piece of property that people would still be driving by 10 years from now and see it and ignore it. I think this is the start of something really big.”

Construction for Boathouse Bay will begin in summer 2024 and is expected to be completed within five years.

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