Transcripts

RACHEL REABE: In the late 1950s, Helen and Cully Grigg of Virginia, Minnesota found their piece of heaven here on a Rocky Point of Lakeshore on Minnesota's northern border that they leased from the state of Minnesota. They hacked a road through the rocks and trees to get to this property on the Western shore of Lake Kabetogama, where they eventually built a modest cabin with the help of neighbors and friends.

After 31 years of summer weekends and family vacations and hunting expeditions, the Griggs decided to put the lot up for public auction in the hopes they could buy it from the state of Minnesota. Instead, they were outbid by a stranger who had never stepped foot on their beloved property, Helen Grigg.

HELEN GRIGG: It was a nightmare for me and my kids. We all hugged each other and cried because it was gone, you know? I mean, this is awful to lose something that we worked so hard to get and make the sacrifices that we did. We did.

RACHEL REABE: The Griggs' lot was one of about 1,700 half acre lots owned by the state of Minnesota on some 90 Northern Minnesota lakes. Leaseholders, like the Griggs, put pressure on the state legislature in the mid 1980s to give them an opportunity to buy the land from the state of Minnesota. The law required those lands to be sold at public auction, though, and leaseholders ran the risk of losing their lots to a higher bidder.

But many took the chance during land sales in 1988, '89, and '90, where over 500 lots were sold. In almost every case, lease holders were the only bidders able to buy the property for the state assessed value. But for the Griggs' lot, a choice piece of real estate at the end of a road with a panoramic view of the island-studded Lake Kabetogama, there was competitive bidding. The property was eventually sold to someone else for $20,000 more than its appraised value.

Alan Davison, a college professor from Cold Spring, Minnesota, was thrilled to come away with a beautiful piece of Minnesota Lakeshore, complete with a cabin for what he says was a reasonable $70,000. Davison says he was apparently naive, though, to assume that the public auction they attended in 1989 was in fact a public auction.

ALAN DAVISON: One of the clerks came and gave us a piece of paper that indicated that we'd bought it, and they hustled us right back to close with the state. And there was kind of a rumbling and roaring and a few nasty remarks from the audience here and there. We got to the back of the room, and some young kid came pounding out of the room, hollering at us about what we'd done. And I said, what have we done?

RACHEL REABE: The excitement over the Davison's new vacation home dissipated almost immediately in a blizzard of threatening, mostly anonymous letters they received. "You and your family are not welcome on Kabetogama and never will be," reads one letter. "Give back the cabin that belongs to the family that built it." Another says, "Your wife and child will deeply regret you bought that cabin. Give it back before any more damage is done."

A lawsuit filed by the Griggs against Davison in the state of Minnesota eventually resulted in an out-of-court settlement. The Griggs bought the land back from Davison and paid his attorney's fees. Davison, who eventually bought another piece of Kabetogama Lake shore from a willing seller says changes need to be made in the lease program so the situation he was put in won't happen again.

ALAN DAVISON: It just created a lot of discomfort for people. Created a great discomfort for us, and I suspect that anybody who thinks they're going to buy this will probably think twice. It's a land auction with hooks. But Stephanie Warren, supervisor for the department of natural resources land sales, says the state constitution dictates that school trust land deeded to the state by the federal government at the time of statehood can only be sold by public auction.

STEPHANIE WARREN: It's very cumbersome and very time consuming. However, the only other alternative that's been proposed to get out of this big auction procedure is to go through a condemnation procedure.

RACHEL REABE: Warren says that would be a lengthy and costly option. And not all lease holders are unhappy about the auction process. Some like Sid and Susan Whitethorn, a retired couple in their 70s from Saint Paul, were happy to let the state sell their cabin built on leased lake shore north of Grand Marais at last year's sale. Susan Whitethorn.

SUSAN WHITETHORN: We thought, you know, we'd probably have to buy the lot and then get a realtor to sell it for us, and that would have been harder.

RACHEL REABE: Another land sale is scheduled for August 5 through the 8th of this year to sell 150 lots in Itasca, Cass, Hubbard, and Cooke counties at the request of the lease holders. Most will be taking a gamble that they will be the successful bidder.

Another 250 lease holders are signed up for future public auctions, which will continue to be held annually until 1993. After that, the DNR and state legislature will have to decide what to do with the 800 remaining lease Lakeshore lots. Stephanie Warren says she'll breathe a huge sigh of relief when the long chapter of lease Lakeshore lots comes to an end.

STEPHANIE WARREN: It's just been so controversial and so emotional. This has probably been one of the most difficult land management issue that has come along in many, many years.

RACHEL REABE: Stephanie Warren of the Department of natural resources. I'm Rachel Reabe.