Letter from the President

Our Mission: To protect Minnesota’s lake and river

heritage for current and future generations by forging powerful

links between lakes, lake advocates and policy makers.

UpdateOctober 2015

© Copyright October 2015Minnesota Lakes and Rivers Advocates

MinnesotaLakes and Rivers

Advocates

Dear MLR members,It is my honor to serve as President of the Board of MLR and to work with so many dedicated, motivated and passionate members who care about the lakes and rivers of Minnesota. We are grateful for all of those who choose to join us in our initiative to protect Minnesota’s lake and river heritage for current and future generations. As you know, we are a grassroots organization that achieves results by building relationships with individual lake property owners, local government entities, regional consortiums of lake associations and at the state government level. But this only works when we obtain a critical mass of members working together to express our viewpoints and concerns. As our Executive Director likes to say, What happens in St. Paul affects each of us at the ends of our docks. So it’s imperative we raise our voices to ensure that our opinions on topical issues that impact each of us are heard and acted upon. By joining us you have exhibited your love for your own little piece of paradise. But our current membership is a small percentage of the total number of citizens with interests in protecting our natural resources, lakes and rivers. I encourage you to talk to your neighbors and share our success stories. Explain why it’s important to join MLR and raise their voices in unison with our organization, to protect our lakes from over-development, pollution and Aquatic Invasive Species.

- Let them know that our advocacy resulted in the first state level budget of $10 Million to fight AIS.

- Explain that our organization lowered the tax rate on seasonal property from 2.25% of value to the same as a Homestead, 1%.

- Remind them that our efforts helped create the rural woodlands tax class of 0.65% to preserve forests and shore line.

We appreciate everything you do to protect our waters and lands in alliance with MLR. Thank you for your continued support and advocacy.

Susan Henken Thielen

New Advocacy Model Gets Results but Could Stall Without Your Support 2

Economics of Quality Water for the Whitefish Area Lakes 3

2015 Legislative Session Update 4

Dick Wray, Founder of MSRPO, Leaves Lasting Legacy 5

MLR Receives National Attention at the Pacific Northwest Economic Region Summit 6

Keep the Good Times at the Lake Going for Future Generations 7

MLR 2016 Annual Meeting at the Lake Home and Cabin Show 8

Mille Lacs - A Postcard from the Future of Minnesota’s Lakes 8

Civic Governance: A New Approach to Lake Protection 10

Cabin Owners Make Huge Contributions to Lake Districts 11

MN Lakes and Rivers Membership Form 11

In Your Corner - a note from Executive Director Jeff Forester 12

MLR Board of Directors and Staff Members 12

lakes and rivers are where family happens in minnesota www.MNLakesAndRivers.org • 952-854-1317 1

These are exciting times for lake associations and lake lovers. In the last few years the legislature has created a $4.5 mil-lion grant program to fund innovative AIS pilots as well as established an annual $10 million County AIS Prevention Aid program. A gathering of lake associations and their local gov-ernment partners drew close to 400 people in St. Cloud - the 2015 Aquatic Invaders Summit. Gov. Dayton pushed his new Riparian Buffer program in Minnesota that is a great first step towards reducing agricultural runoff into our lakes and riv-ers. Funding has been increased to provide low and no cost upgrades for sub-surface sewage treatment systems, penal-ties for violating AIS laws have been increased and new rules passed to prevent the spread of AIS on transient boats, docks and lifts. Legislation in process next session would remove the State General Tax on cabins and small businesses, raise the estate tax exclusion and remove the sales tax for non-profits doing lake management work. Lake related issues have been in the news more than ever before.So what is different now? Minnesota Lakes and Rivers Advocates (MLR) has been working to combine Lake Associations and lake home and cabin own-ers across the state in a horizontally and vertically integrated advocacy model.In 2009 MLR held a 3-day strategic planning session that included our board, some mem-bers, and a number of legislators with whom we had good relationships (all of them cabin owners.) We were frustrated by the lack of progress on lake issues.For instance, despite the threat of zebra mussels in 2009, there had not been any major revision of the AIS regulations or funding in nearly two decades.MLR developed a new advocacy strategy that combined state-wide grassroots with lake associations at the local level and Coalitions of Lake Associations (COLAs) at the county level… what we have come to call a vertical advocacy integration. Many State Senators and State Representatives were once County Commissioners, local board members, mayors of small communities, etc. When they get to St. Paul, they rely heavily on their old contacts at the local level for information and election support.Lake Associations are active at the local level with local politi-cians. COLAs are active at the county level with county gov-ernments. When this energy is combined with statewide grassroots, MLR reasoned, we would increase the momentum behind lake issues.MLR implemented its vertically integrated advocacy model in 2010. The results have been profound.Today the MLR members network is believed to be the largest in Minnesota. MLR electronic Citizen’s Action Alert (C.A.N.) emails generate THOUSANDS of correspondence from indi-viduals to legislators. The MLR database of email contacts has

doubled in the last three years, not because we have bought emails as so many non-profits do, but because people have voluntarily signed up to receive and act on our emails. Every legislator at the capitol knows that MLR has a broad grass-roots base and engaged local community engagement. Legis-lators have heard the MLR message from local mayors, county commissioners, local voters and in the press. MLR has become the “go-to” organization for the MN DNR when they are work-ing on lake related issues.But there is one problem. Some people assume that since their lake association is a member they do not need to join MLR. This is wrong for two reasons; advocacy and economics.Lake Associations cannot financially carry a statewide orga-nization like MLR. This is why they had never been organized before. There are about 400 lake associations in Minnesota - if each contributed an average of $150 they would gener-ate about $60,000 in revenue annually. This is not enough to cover the mailing expenses, communication needs, lobbying fees and office staff of a statewide organization.

But 5,000 individuals, contributing $70 a year (the current average), less than one fill-up of the boat or a monthly Starbucks, would fund professional media campaigns, intense lobbying efforts, communications and partnership building that would make lakes one of the most potent constituencies in the state.The other problem is that grassroots re-quires individual members. Only a broad base (every legislative district in Minnesota,

even those without lakes) of individuals acting in orchestrat-ed grassroots can have significant impact at the state capitol. Not all lake association members live and vote in the legisla-tive district where their lake association is located. These vot-ers need to communicate to urban legislators, and legislators in western and southern Minnesota the importance of lake is-sues. Effective grassroots requires individual members.The best way to protect lakes and advance lake and river issues is for every person that cares about lakes to become an active and financially supporting member of MLR. With-out the energy and financial support of ALL lake lovers, MLR cannot continue to advance lake issues - and there is much that needs to be done. Even if your lake association is a mem-ber, please encourage your friends and neighbors to join - tell them they can contribute at whatever level they can afford, and take action on the action alerts we send out. The average membership contribution is about $70 a year.Encourage your contacts at the lake to make this investment in the lake they love today. What happens in St. Paul does im-pact all of us at the end of our docks.Anyone can join online at www.mnlakesandrivers.org or call the office and we can send you some membership forms to distribute. If you have any comments or questions please call me on my personal cell phone at 612-961-6144.

New Advocacy Model Gets Results but Could Stall Without Your Support by Jeff Forester

Riparian Buffer Program

lakes and rivers are where family happens in minnesota2

Economics of Quality Water for the Whitefish Area Lakes

The Whitefish Chain of Lakes is a healthy body of water in a region of Minnesota that the MN Department of Natural Resources identifies with “good quality lakes.” The “good, quality lakes,” in North Central Minnesota, Crow Wing County and the greater Whitefish Area Chain of Lakes are highly sought-after destinations by tourists and lake home and cabin owners. The local economy of the region, county, and the Whitefish Area benefits significantly from travel, tourism, second homeowners and the expenditures they make.The water quality in our lakes is presently stressed with (1) intensive use, including overuses in some instances; (2) natural forces and stormwater; (3) land use decisions by property owners and local governments; (4) persons transporting watercraft with non-native aquatic plants and animals (AIS); (5) poorly managed on-site septic systems, and (6) roadway practices of our state and local governments. Water is the attraction and key element for “going to the lake” or “going up north” and “good quality lakes” are the base of the tourism economy. Based on University of Minnesota research during the recession travel and tourism spending was nearly $300 million in Crow Wing County.

2007-08 Traveler Exp State Revenue FTE JobsCrow Wing $294,295,204 $135,953,389 7,218Aitkin 74,257,356 30,992,479 1,556Cass 245,867,979 113,581,822 6,033Hubbard 99,248,707 45,849,199 2,431

Total $713,669,246 $326,376,889 17,238Source: Univ of MN, Extension Service, June 2007-May 2008, Davidson-Peterson AssociatesThe combined travel and tourism annual revenues in Aitkin, Cass, Crow Wing and Hubbard Counties exceeds every Minnesota county except Hennepin and Ramsey Counties. Travel and tourism expenditures in this study are composed of spending on food and beverage (24.8%), lodging (18.7%), retail (18.5%), transportation (16.0%), recreation (15.9%), and second homes (6.0%). Leisure and hospitality spending as a measure of direct tourism spending (used by the State of Minnesota Departments of Revenue and Employment and Economic Development) in Crow Wing County, along with Cass, Hubbard and Aitkin Counties, for calendar year 2013 gross sales, sales tax revenue and employment is very significant as shown in this table:

2013 Gross Sales Sales Tax Rev FTE JobsCrow Wing $205,526,213 $12,933,542 3,871Aitkin $ 19,782,724 $ 1,363,440 487Cass $100,740,225 $ 6,295,129 1,785Hubbard $ 30,563,260 $ 2,031,545 754

Total $356,612,422 $22,623,656 6,897Source: Tourism and the Economy Fact Sheet – 2015, State of MN, Explore Minnesota

By Tom Watson, President, Whitefish Area Property Owners Association (WAPOA)

Statewide, travel/tourism industry gross sales was $13 billion in 2013. In the Central Minnesota region, the spending in Crow Wing County was 18% of the regional total; the county with the most travel and tourism spending in the region. The “good quality lakes” of the Whitefish Chain of Lakes and lakes of northern Crow Wing County are the destinations for second homeowners, vacation visitors, and recreation travelers as measured by this economic data. The “economic impact” of second homeowners was addressed in a research report last fall from the University of Minnesota, Extension Service. They reported that the median annual local spending was $3,252 per home. When combined with property and sales tax revenue, we estimate the household spending amount is closer to $10,000 per year.Is there an applicable “balance” between maintaining quality water in our lakes, using our quality lakes, continuing to be an attraction for second homeowners, and routing oil pipelines with their known spill risk?Is there a biological carrying capacity for lakes? I have discussed with the Minnesota Department of Natural Resources the natural resources concept “biological carrying capacity” and applying it to the Whitefish Chain of Lakes in order to protect this critical economic and way of life engine. The “biological carrying capacity” or the density of use of our lakes would consider the biological impact of the quantity of watercraft and motor size, land use and lawns on riparian and upstream lots, fishing tournaments, pipeline construction and oil spills, and on-site septic systems against a water quality sustainability standard or index. The water quality sustainability index would be a measure of uses and impacts that does not harm the ecosystems in this area, degrade water quality or compromise the water needs of future generations.What is the proper “balance” between maintaining quality water in our lakes and continuing increasing use? What is the “balance” between sustaining our area as an attraction with our quality lakes and the threat of non-native AIS, pipeline oil spills, and overuse? What would a “biological carrying capacity” for our Whitefish Chain of Lakes and other area lakes accomplish for quality water? What is and how do we effectively “balance” the shared responsibilities of the DNR, local governments, and property owners? WAPOA continues to advance strategies for the thoughtful management of our pristine lakes and waters.

lakes and rivers are where family happens in minnesota www.MNLakesAndRivers.org • 952-854-1317 3

The 2015 Legislative session was dynamic. Legislators pushed many Omnibus Bills up to the final moments of the Constitutional deadline for the end of session. Bills were passed by both the House and Senate in the late hours as the deadline for adjournment loomed. Legislators had no time to debate or consider, let alone read some of these bills before the House and Senate bodies were required to pass them and send them on to Governor Dayton.In the end a handful of bills that were passed in these fi-nal moments were vetoed by Governor Dayton, including the Environment Bill, which contained language to address Aquatic Invasive Species (AIS).The tax bills in the House and Senate contained language changing the State General Tax on cabins and commercial/industrial property and school funding, and language that removed the sales tax for non-profits doing AIS manage-ment on lakes. No conference committee report was com-pleted and a final tax bill was not sent to Governor Dayton. Legislative leaders had agreed not to pursue a tax bill in the regular session. This was a lost opportunity. But it is believed that the Taxes Conference Committee will pick up their conference committee report early in the 2016 Leg-islative Session, pass it out of committee and send it to the Governor. Then they will assemble another bill. 2016 is a tax bill year, and so Minnesota must pass a tax bill in 2016 or risk shutting down many government functions.At the end of May and into June, Governor Dayton, Speaker Daudt, and Senate Majority Leader Bakk met to address Governor Dayton’s concerns and craft a compromise to ad-dress them in order to prevent a shutdown of some areas of government, like the State Parks, the MPCA and other governmental functions funded by the vetoed budget bills.With these compromises in hand, the Legislature met briefly in a special session called by the Governor on Fri-day, June 12 and passed the legislation, which was signed by the governor on June 13, 2015.County AIS Prevention Aid UnchangedAt the start of the session bills were introduced in both the House and the Senate that would have repealed the County AIS Prevention Aid put in place by the Legislature in 2014. Neither repeal bill had strong support within the legisla-ture and were vigorously opposed by the electorate. MLR members, Lake Associations and County Coalition of Lake Associations (COLAs) flooded the Legislature with nearly 2,500 emails shortly after the repeal bills were in-troduced. The MLR Facebook page had over 4,000 hits in three days on this issue. Public reaction to these repeal bills was immediate and overwhelming.The bills to repeal this critical tool in fighting AIS within the Counties were dropped and neither came to a vote in

their committees. The vigilance, hard work and passion of so many people who care about Minnesota’s lakes and rivers was evidence of the good work that is starting as a result of this funding mechanism.

- Schools in Crow Wing County, led by their task force, have educated over 700 Jr. High school students in a two day, hands on course on AIS and best management practices which includes a day of activities in the gym and a day on the water working with AIS out in the field. There are plans to expand the program.

- AIS infested boats in counties across the state have been stopped before launching by inspectors funded with this appropriation. These lakes remain zebra mussel free as a result.

- Dozens of counties that had no AIS program in the past are now developing programs and getting them up and running.

- Counties adjacent to Itasca State park, concerned that the MN DNR lacked budget for inspection/decontamination at the headwaters to the Mississippi River pooled funding and ensured that the waters in this iconic State Park, and the waters downstream are protected.

- Regional meetings of counties, facilitated by DNR planners, have been held across the state at which counties and private sector partners are building greater communication, consistency and competence in AIS work.

- The Pacific Northwest Economic Region invited Jeff Forester, Executive Director of MLR, to speak at their Annual Meeting in July to present this program and its impacts.

There will be no disruption to the County AIS Preven-tion Aid Program. County Governmental Units and their Lake Association partners will continue to build out pro-grams and best management practices that are protect-ing our lakes and lowering the risk of AIS spread within Minnesota.Mandatory, Certified DecontaminationThe main goal of an Aquatic Invasive Species program is to prevent the spread of AIS like zebra mussels from one lake to the next. That means making sure that no infested watercraft or equipment is put into a clean lake or river.Under current law, when an infested boat is identified, en-forcement officers or inspectors cannot order decontami-nation, even if there is a decontamination unit on site. New changes in the Environment Bill allow officers to order con-taminated watercraft or equipment to be decontaminated at the decontamination unit on site if available. Or they can “tag” and issue a notice that specifies a time frame for com-pleting the removal or decontamination and re-inspection

2015 Legislative Session Update

lakes and rivers are where family happens in minnesota4

This year we bid farewell to Richard G. Wray, the founder, President and Executive Director of Minnesota Seasonal Recreational Property Owners Coalition, MSRPO from 1993 to 2000. Dick passed away on December 4, 2014 in Minneapolis of heart disease. He was 81 years old. He had left his island home a few weeks earlier, and came to Minneapolis to be closer to his children Bryan (Kari), Damon (Susan), and Nicole (David), and grandchildren Connor, Andrew, Jessica and Dillon.In 2012 MSRPO became Minnesota Lakes and Rivers Advocates, but our roots go back to Dick Wray and his vision of active citizen engagement protecting Minnesota’s lake heritage. Dick’s passion, and his perennial success remain in the DNA of MLR. The last time I saw DIck Wray was at his place out on Pine Island, Lake Vermilion. His Brittany spaniel Jenny was at his feet. It was a beautiful day, the wind lite, and the sun on the water. When I think of Dick now, I will picture him at his cabin, and this is as it should be.Dick became outraged one day in 1993 when he took his property tax assessment to his local assessor in an effort to dispute the valuation. He was told that if he was rich enough to own a cabin, he could pay the taxes, and if he didn’t like it, sell. This was the core of the cabin owner problem in Minnesota - they owned property and paid taxes in areas where they could not vote.It was taxation without representation. “Dad’s passion was that cabin owners paid taxes where they couldn’t vote, even after his own property was homesteaded. He just felt this was wrong.” So Dick walked the trails around Lake Vermilion, sharing his story, and encouraging people to get involved. His pitch was simple. Cabin owners needed to come together as an association, and work at the State Capitol to change the tax laws themselves, create a more transparent

and fair assessment procedure, and speak up for a unique Minnesotan value - time spent with family and friends at the lake.Said his daughter Nicole, “Whether or not people agreed or disagreed with his opinion, he believed people really needed to engage in political process in support of that idea. Politicians rely on people not acting.”Together they formed MSRPO. By 1996 MSRPO was a statewide organization with a few thousand members and cabin owners had a big voice at the Capitol.From 1993 to the year 2001, MSRPO, led by Dick, was able to lower the tax rate on a cabin property from about 2.25% of value to 1%, the same rate as a homestead.Dick was an Army veteran of the Korean War. He was buried at his hometown in Pocatello, Idaho. His daughter Nicole said, “MSRPO remained an important part of his life until the end.” Even though Dick was not involved in the day to day operations of Minnesota Lakes and Rivers in the later years of his life, his vision that cabin and lake homeowners should come together in a civic organization to protect the heritage we all hold dear remains relevant and vibrant. The organization he founded grows stronger each year, and the work that we do together more important. The organization that he started has outlived its founder, and that is a beautiful and meaningful legacy.

of the boat or equipment in a specified time frame.This was a big step forward.AIS Trailer DecalIn 2012 the Minnesota Legislature passed a law requiring boat owners who trailer watercraft to take an online educational course and test, certifying that they understood current AIS laws and Best Management Practices to prevent the spread. Implementation was scheduled for July 1, 2015.

There was concern as the effective date of the law approached that it would impact tourism in Minnesota.The final compromise requires that boat owners, when registering their watercraft, be provided with the current information on AIS laws and BMPs (Best Management Practices), and sign an “affirmation” that they understand the laws and will abide by them. This affirmation will be a part of their boat registration card.

Dick Wray, Founder of MSRPO, Leaves Lasting Legacy

Dick Wray on Lake Vermilion wearing his CPI/5% cap. This initiative sought to “cap” annual property tax increases to either the consumer price index or 5%, whichever was lower.

Visit our Website... - Tax Tips for Forest Land Owners www.mnlakesandrivers.org/2015/01/13/tax-tips-for-forest-land-owners - AIS Facts and Falacies www.mnlakesandrivers.org/2014/12/09/ais-facts-and-falacies - Watch Cabin Trust Webinar www.mnlakesandrivers.org/2014/12/01/watch-cabin-trust-webinar-here

lakes and rivers are where family happens in minnesota www.MNLakesAndRivers.org • 952-854-1317 5

On July 13, 2015 I was invited to the Pacific Northwest Economic Region (PNWER) Summit in Big Sky, Montana to speak about the new County Aquatic Invasive Species (AIS) Prevention Aid that was put in place in 2014.PNWER is comprised of industries and governmental entities that seek to identify and resolve serious economic issues in the PNWER region, which includes Alaska, Idaho, Montana, Washington, Oregon, Alberta, British Columbia, Northwest Territories, Saskatchewan and the Yukon. They identified aquatic invasive species, specifically zebra and quagga mussels as an area of concern, estimated $5 billion in ongoing annual mitigation and damage costs, and have been taking active steps across jurisdictions to prevent the introduction of these destructive pests into the area.Their 2015 AIS report reads, “According to the World Conservation Union, invasive species are the second biggest threat to biodiversity, after habitat loss. The estimated damage worldwide from invasive species is more than $1.4 trillion. The annual cost in the United States is estimated at $120 billion. A study of the impact on Canada, which examined just 16 species, estimated annual costs at between $13.3 and $34.5 billion.”

- So far they have no zebra mussels or spiny waterflea in the PNWER.

- The working group identified and ranked potential threats of invasion by looking at the origin of the infested watercraft they have intercepted. MN ranked 7th. The number of intercepted boats from MN is increasing each year. Lake Minnetonka is identified as the primary source of AIS infested watercraft of Minnesota boats in the Pacific Northwest.

- Lake access inspector data suggests that Minnetonka, Prior and Mille Lacs are the top origin of intercepted AIS infested watercraft in Minnesota with Minnetonka the clear leader.

- A zebra mussel infested watercraft from Lake Minnetonka was stopped early this summer at the gateway to Glacier National Park.

A Minnesota boat from Lake Minnetonka was very nearly responsible for infesting one of the great national treasures of the United States. Minnesota can do better than that.PNWER’s focus on keeping AIS out of the area is wise and forward thinking. Minnesota has much to learn from our Western neighbors. The collapse of walleye fishing on Mille Lacs, which is infested with zebra mussels, spiny water flea and eurasian milfoil, is a wake up call for Minnesota. One of the solutions put forth to alleviate the financial

impact from the collapse of walleye on Mille Lacs is to promote bass fishing on the lake. The recent discovery of the first lake infested with starry stonewort should raise warning flags. Starry stonewort impacts bass spawning beds. Mille Lacs has proven to be highly susceptible to new infestations in the state and hundreds of boats a year travel from Koronis to Mille Lacs.Minnesota can stop the spread of aquatic invasive species.AIS specialists around the country are stopping the spread of AIS. In 2013 the Minnesota AIS Advisory Committee unanimously affirmed that “MN can stop the spread of AIS in the state.” Yet in Minnesota I still hear public officials that ought to know better talk of “slowing the spread” or learning to live with AIS impacts. The simple fact is that our economy, our recreation, our heritage is incompatible with AIS. Claiming defeat before we have even sought victory is unworthy of us as Minnesotans and unworthy of the remarkable water resources with which we have been blessed and which are our collective responsibility.

Negative Impacts of AIS.All of the impacts seen on Mille Lacs are consistent with the negative impacts on other lakes in other parts of the country and the world following the introduction of multiple AIS. What is happening on Mille Lacs was predicted by fish biologist, professional angler and writer Dick Sternberg back in 2008 at the DNR Round Table. The triple impacts of milfoil, spiny waterflea and zebra mussels are huge.AIS removes many management options, or renders them ineffective. For example, increasing nutrient flow in the system would likely just increase mussel population. Walleye stocking becomes more difficult, expensive and less likely to succeed due to AIS.The interplay between the three AIS in Mille Lacs is complex, and the negative impacts amplified with each species playing off the others. For example, milfoil grows more deeply due to increased sunlight from clearer water providing increased cover for predator fish and decreased habitat for walleye fry.The Mille Lacs County assessor reported at the last Legislative Working Group on Mille Lacs that Mille Lacs County had endured a $31 million loss of property tax base last year largely due to the decline in walleye fishing.

MLR Receives National Attention at the Pacific Northwest Economic Region Summit by Jeff Forester

Zebra Mussel covered propeller from the Red River, recently infested with zebra mussels.

lakes and rivers are where family happens in minnesota6

It is always cheaper to prevent an invasion of AIS than to deal with the invasion after the fact.So, what to do to stop the continued spread? That is a simpler answer than it may seem. We know what to do:

1. Minnesota can take programs that are working in the Pacific Northwest and adapt them to Minnesota by implementing mandatory roadside inspection stations at key areas of the state, particularly in areas where we must contain the outbound boats from known superspreaders like Minnetonka.

2. Quarantine infested watercraft until they can be completely decontaminated and certified safe.

3. Shutdown lakes with new infestations like Lake Koronis until we can put a program in place that will allow us to safely open the boat ramps again.

4. Put a boater operator’s license in place to provide more complete AIS education, and improve boater safety and ethics.

We also have close to the necessary funding. The entire PNWER spends about $13 million a year on its program. Minnesota is investing more than that now. So this is not a

matter of funding.The problem is the HOW. HOW do we generate the political will to take the necessary steps to protect our lakes. In the Pacific Northwest the commitment to AIS is being driven by large ranching organizations, by agriculture and energy giants like Shell Oil and Enbridge. West of the 100th Meridian, water is governed by old Spanish water rights laws which allows users to acquire water rights. In the West water rights are a big business, and these corporations understand the impact AIS will have to their bottom line.East of the 100th Meridian, however, we are governed by English water law - everyone owns the water - no one owns the water. Our agencies are charged with protecting the resource, but are often buffeted by competing special interest user groups.And so it is up to us, the people who live in the lake country, to generate the political need to act decisively on this issue and do what it takes to be successful. That is the role each of us, you and I working with lake associations, watershed districts, local business groups, sportsmen’s groups, religious groups and civic organizations to bring people together and urge our elected officials to act.

Keep the Good Times at the Lake Going for Future Generations

The family cabin or lake home is a revered and often emotionally laden asset. Cabin owners are using trusts and limited liability companies (LLCs) to ensure that the legacy of the family cabin is preserved from one generation to the next. Families want to avoid disputes over a cabin or other recreational property. Family cabin trust planning can make provisions so that the next generations of new owners have a plan for taxes, ongoing insurance, maintenance and the need to buy out beneficiaries who, for whatever reason, will not make use of the property or whose life situation requires that their interest later be purchased from the others.Unfortunately, a common scenario is that children inherit the cabin in equal shares. Their ownership interest is known as “tenants in common” (TIC). Each tenant in common has an equal right to use and each is equally responsible for the taxes and maintenance. A TIC interest can be passed to a spouse, children or other heirs at the children’s deaths. Often there has been no real discussion on how they will each use and each maintain the property. Common pitfalls are as follows: the children decide to share expenses but then one moves away and does not want to pay as they have agreed, one child wants to sell their interest but the others lack funds to purchase its fair value, only one child wants the cabin but they lack the funds to buy out the others’ interests. Without things worked out in advance the multiple owners simply can’t come to an agreement on how much to spend on maintenance and who gets to use the cabin. If one of

the children dies and their interest passes to their spouse who later remarries, they too have an equal right to use the property. Finally tenants in common interests are subject to probate at the children’s death.Ownership in a cabin trust or a cabin LLC can avoid these planning pitfalls while bringing family together for generations to come. A cabin trust committee can create an orderly schedule with rules regarding the use of the property, e.g., guests, decorating, cleaning, storage, landscaping, and damage.The trustee of the trust pays the taxes, insurance, gas, electric, heating and maintenance. The cabin trust can establish expense sharing agreements such as specifying that such expenses are to be allocated to the beneficiaries according to how much time they spend in the cabin. It can plan for cross purchases between siblings and other heirs. Owners as well as other beneficiaries can direct funds to the cabin trust from the main part of their estate or living trust at their death. Similarly, insurance can be used to create a cash endowment for the trust at the owner’s death. A cash endowment can help see that all family members get to enjoy the cabin legacy, even those with less disposable income. The trust is private — no need to file with the secretary of state’s office. It is a common form of ownership which avoids probate on a beneficiary’s death. Proper planning with a trust or LLC can ensure that the family cabin can be enjoyed by future generations.

by David Salter at Salter Law

lakes and rivers are where family happens in minnesota www.MNLakesAndRivers.org • 952-854-1317 7

Protect Minnesota’s Water, Protect Minnesota’s Way of

Life and Economy

MLR 2016 Annual Meetingat the Lake Home and Cabin Show

Special guest speaker TBD - watch for an email announcement.MN Lakes & Rivers Advocates Executive Director and Author, Jeff Forester will present on the Cabin Life Stage during the show: New Local AIS Funding is National Innovation

Mille Lacs - A Postcard from the Future of Minnesota’s Lakes

On Monday August 4 at 10:00 p.m. the MN DNR closed walleye fishing on Lake Mille Lacs in an effort to protect the resource.The impact of the walleye fishery collapse on the resorts and related businesses from restaurants, gas stations, bait shops, and the impact on property values surrounding the lake are devastating. Public discussion has focused on MN DNR management through slot limits, predation of zero to two year old walleye by muskies, northern, bass and cormorants; and tribal harvest (in a surprise move the Mille Lacs Band of Ojibwe will forego the remainder of their harvest this year and next in an effort to protect the resource).What is missing from the discussion is the impact of zebra mussels, introduced into the lake in 2005, and spiny waterflea in 2009. Both species remove different parts of the base of the food chain, food that young walleye need. The current biomass of walleye is estimated at 2 million pounds, the zebra mussel biomass is estimated at 2 BILLION pounds. The zebra mussels are filtering all of the water in Mille Lacs more than once a day.The current Mille Lacs discussion underscores the reality that preventing the spread of aquatic invasive species is far cheaper than coping with the impacts of these invaders after the fact.Spiny waterflea, which arrived in 2009, are predators removing another portion of the

food chain, zooplankton, creating cascading effects in the aquatic food web (i.e., less food for perch, small walleyes, and other species and species life stages). If the population and impacts are great enough, research suggests that young walleyes could grow more slowly, which could result in poorer overwinter survival in the first winter of life, precisely the dynamic we are seeing on Mille Lacs.DNR lake specialist Tom Jones said that he is seeing dramatic declines in zooplankton in Mille Lacs. “It is changing faster than we can detect changes.” There has been a rapid decline in walleye numbers from 2010, following spiny waterflea introduction to Mille Lacs. Said Jones, “It makes sense that zebra mussels and spiny waterflea are having an impact - they dynamically alter the food web.”MN Senator Carrie Rudd, whose district includes the northern end of Mille Lacs, was recently quoted in an August 4th MPR story, “... you have to address the zebra mussels.”Mille Lacs was one of the first inland lakes infested with zebra mussels. It was an early victim of spiny waterflea

in 2009. It is the only inland lake in Minnesota infested with both. While it is difficult to document a direct cause and effect in a dynamic and complex lake system, there is no doubt that the combination of these two aquatic invasive species are having a significant impact on the current collapse, and that these two species will make any recovery more difficult and less robust.

Saturday, February 20, 201610:30 - 11:30 a.m.

Minneapolis Convention Center Room 103-D on 1st Floor near Hall E

*Members must have made a contribution in current year 2015/2016.

All members* who attend the annual meeting will receive free admission to the Minnesota Lake Home

and Cabin Show, a $12 per person value.

by Jeff Forester

lakes and rivers are where family happens in minnesota8

Is Minnesota ready to bail out each lake that collapses due to the combined and interacting pressures, including aquatic invasive species? Are we willing to adjust our expectations and live with the negative impacts of zebra mussels, spiny waterflea and other aquatic invasive species, to switch from walleye fishing to bass fishing, muskie fishing or even cat fishing? Are we willing to watch out of state anglers tow boats (and recreation dollars) through the state, bound for areas that took the threat of AIS more seriously than Minnesota has, areas that chose to protect their resource and are able to enjoy the return on those investments?There are some that say that aquatic invasive species like zebra mussels and spiny waterflea cannot be stopped. That we must learn to live with them. That is false. Many places have effectively stopped the spread of different invasive species. The Statewide AIS Advisory Committee, appointed by DNR Commissioner Tom Landwehr, discussed this issue in 2013 and passed a unanimous resolution that Minnesota can stop the spread of zebra mussels and other AIS. When Dr. Peter Sorensen, founder of the Minnesota Aquatic Invasive Species Research Center at the University of Minnesota, was presented with the idea that we tolerate AIS and learn to live with it, he called that notion “absurd.”“People brought them here and now people spread them, so people can stop them,” Sorensen argued. “However, it is like a fire - your chances are much better if you stop it early. In Minnesota, it is not yet too late for AIS, nor is it too late in most cases to reduce the other related and interconnected abuses we are presently subjecting our valuable and sensitive aquatic ecosystems to. But we must act now.”Steps to stop AIS Spread1. The first step would be to control the outbound

watercraft and water related equipment from the “super spreader” lakes with 100% inspection and decontamination. MN DNR violations data indicates that Minnetonka and Prior Lake, along with Mille Lacs, are significant originators of infested watercraft throughout the state. Data presented at the AIS Working Group at the Pacific Northwest Economic Region Summit in Montana on July 13, 2015 shows that Minnesota is a significant AIS pathway into their region, and that Lake Minnetonka is the most significant lake in Minnesota

in terms of sending outbound infested watercraft. This summer officials at the Blackfoot Indian Reservation stopped a boat from Minnetonka at the East entrance to Glacier National Park that was infested with living zebra mussels. The boaters were planning on launching in the National Park. There’s a dark twist on exporting Minnesota Nice. Does Minnesota really want to be know for fouling one of our country’s premier natural wonders? Do we want to have the reputation for ecological recklessness, particularly when it comes to water?

2. A second step would be to establish strategically placed shielding (inspection and decontamination stations) of critical, high value waters in Minnesota.

3. The third step would be to establish “aquatic reserves” within our watersheds. This concept is being used with great results in our world’s oceans and seas. Carefully selected areas of high productivity or strategic ecological significance are set up as no fishing Marine Reserves. It may seem counter intuitive, but the overall fish harvest increases outside the reserves, more than making up for the off limits area.

Minnesota has designated preservation areas for prairie and for forests, but not for our critical aquatic habitats even though lakes and rivers drive a multi-billion dollar a year recreation industry and generate the majority of the property tax revenues in many rural areas. By removing some areas from fishing pressure, shielding them from aquatic invasive species, and controlling other human impacts like pollution, we will increase the resilience of the watershed as a whole, increase fish populations, and provide a valuable baseline for ongoing research. Healthy,

resilient systems are better at resisting invasive species, and better at mitigating the damage if an invasive species does manage to establish a reproducing population.The other alternative is to keep doing what we are doing and watch more lakes and lake related economies crash.

This is Minnesota. We are better than that.MLR members are working across the State to stop the spread of AIS. We were the lead organization supporting the creation of Minnesota’s local, annual $10 million County AIS Prevention Aid program, and one of the organizers and sponsors of last year’s Aquatic Invaders Summit that brought together over 400 stakeholders from 56 counties to develop a “Local AIS Action Framework.” MLR and partner MN COLA advocated and pushed for the creation of $4.5 million to fund pilot projects for innovation in stopping the introduction and spread of AIS. We will continue to advocate for stronger AIS laws at the State Legislature, and stronger and more urgent action from the MN DNR on the AIS issue.

Zebra Mussel Infestations in Minnesota's Waters

0

20

40

60

80

100

120

140

160

180

200

220

240

1989

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

Year

Cu

mu

lati

ve T

ota

l

DNR

Poly. (DNR)

lakes and rivers are where family happens in minnesota www.MNLakesAndRivers.org • 952-854-1317 9

In 2014, when the Minnesota Legislature created the County Aquatic Invasive Species Prevention Aid program which sends $10 million annually to counties to prevent the spread of AIS, it took a bold and innovative step in resource management.

The program has been a tremendous success. The number of trained AIS inspectors has skyrocketed from 120 statewide to over 600 in just a year, with dozens more decontamination stations spread across the state. Education and outreach efforts have accelerated and violation rates appear to have dropped from 17% in 2014 to 11% in 2015. Many dozens of zebra mussel and other weed infested watercraft have been stopped prior to launch and cleaned, preventing the spread. Many counties, like St. Louis and Cook that had no formal AIS program are forming. And areas like Cass County that had a program, have seen them grow and improve. In 2013 Cass County lake residents raised $23 thousand dollars in donations to start a modest program. This year their budget is almost $500,000, they have 6 decontamination stations and have stopped a number of zebra mussel infested watercraft from launching. No new AIS infestations were reported in Cass County this year.

But perhaps the best news for Minnesota’s lakes is the Civic Governance that has begun to emerge. Broad based groups of citizens are coming together to work for the common good - the protection of lakes. Many counties formed AIS task forces made up of local resource managers, lake association members, marina, resort and other business owners that are coming together in an authentic engagement process.

In many areas the work around AIS is building trusting relationships with a transparent, non-partisan, citizen-centered environment. This approach achieves purposeful outcomes by recognizing the importance of citizen engagement in defining roles and responsibilities. Citizen participation is guided by democratic practices, civic governance principles and civic standards.

In the work at the local level to protect Minnesota’s lakes we are witnessing the rise of a new democratic process that stands in direct contrast to the partisan bickering and gridlock we see at the State and Federal level. The recognition that each person is a citizen and a policy maker, no matter what agency, organization or position they hold, is essential to the success of this process. The AIS task forces across the state are exercising a new civic imagination and cultivating their civic leadership while leveraging existing resources to find productive solutions

to the spread of aquatic invasive species.

The real work of these AIS task forces is happening not only on the public boat landings, but in many places where they have the ability to act be it in their family, congregation, business, organization, non-profit, or school. State Representatives and Senators have been invited to attend many of these local Coalition of Lake Associations (COLA) meetings, and have seen that they include not just lakeshore residents, but local business owners, religious leaders, Boy and Girl Scout troops, local government administrators and workers, local law enforcement and school representatives. They have seen that each of these citizens, operating within their own jurisdiction of school, troop, office, or police force, are working together to achieve a common goal.

Legislators are recognizing that the specific issue of Aquatic Invasive Species, and the broader issue of protecting water quality, have broad support among local citizens. They can see that the issue of water quality is neither Democratic or Republican, that thousands of local citizens are engaged both professionally and through volunteerism in advancing solutions for the common good. This is a model that deserves support from the Legislature, and a dynamic that can be carried through to other issues.

I attended many of these meetings this summer and it gave me a great deal of hope. The relationships, the open and honest discussion without agenda or prejudgment that I witnessed, the transparency and the quality of the decisions made and action taken have given me faith in Democracy. Democracy is alive and well in the lake country. Citizens are not sitting back and expecting government to solve all their problems. They are not relying on a “service delivery” model of governance when it comes to aquatic invasive species. And many of the local AIS workers are recognizing that not only do the citizens have a vital role to play, but that they are as capable and committed as the so-called experts.

This new County Aquatic Invasive Species Prevention Aid is in its infancy. 2015 is just the first full year of funding with the second payment to arrive in December of 2015. As the program moves forward two things will happen; the local AIS programs will continue to develop better on the ground strategies, better communication and collaboration across county boundaries and make strong gains in reducing the risk of AIS spread, and the relationships and civic capacity of Minnesotans who care about lakes will continue to develop and mature, creating a civic energy that will be brought to bear on other lake related issues.

Civic Governance: A New Approach to Lake Protection

lakes and rivers are where family happens in minnesota10

The EDA Center at the University of Minnesota Crookston has recently published a study, Profile of Second Homeowners in Central and West Central Minnesota that highlights the contributions cabin owners make to the civic life and economies in Min-nesota. The report urges Minnesota’s lake communities to be more inclusive of these seasonal lake home and cabin owners in the civic life of the commu-nities where their cabins are located.Cabin owners in Minnesota are:

- Well educated (sixty five percent have a bachelor’s or graduate degree),

- Sixty five percent are in their 50s and 60s,

- Thirty four percent have owned their property for more than twenty years,

- Thirty one percent have owned their property for eleven to twenty years.

- Survey respondents reported using their property an average of ninety three days a year.

- Fifty six percent plan on moving to their second home in the future.

A key finding for local communities is that seasonal properties make up thirty one percent of all housing units in the eight-county study area (Ait-kin, Becker, Cass, Crow Wing, Douglas, Hubbard, Otter Tail and Pope Coun-ties). If trends reported by survey re-spondents hold true it is expected that 46,000 permanent households will move to this area in the next ten years.Cabin owners make a substantial economic contribution beyond paying property taxes. Cabin owners have a, “median annual spending of $3,252 for common categories of household spending, in the county where their second home is located,” according to the report. This does not include the local property taxes or sales taxes these property owners pay to support local services. Including these contributions, annual expenditures rise to an estimated $10,000 annually.The study found that water quality and the natural environment is very, very important to these seasonal residents. Survey respondents reported water quality as a main reason for choosing their property and identified retaining high quality water and a healthy

environment as a prime challenge for the future. They indicated that high property tax increases were one of the primary challenges they faced.The survey found that cabin own-ers were far less active in the civic life where their recreational prop-erty is located than in the communi-ties where they reside. Of all civic engagement, religious organizations and lake associations were by far the most common groups they joined in their second home communities. The report emphasizes the importance of planning and working to include sea-sonal property owners in their com-munity. “Second-home communities could benefit from the talents and leadership skills seasonal residents bring and should undertake strategies to welcome and integrate them, espe-cially in preparation for their perma-nent transition to the community.”With the retirement of the baby boom-er generation, it is likely that the pop-ulations of communities in the central lakes area of Minnesota will continue to grow more quickly than the rest of the state, creating some challenges, but also unprecedented opportunities.

Cabin Owners Make Huge Contributions to Lake Districts By Jeff Forester

MN Lakes and Rivers Membership Form

lakes and rivers are where family happens in minnesota www.MNLakesAndRivers.org • 952-854-1317 11

In Your Corner - a note from Executive Director Jeff Forester

MLR-MN LAKES & RIVERSPO BOX 22262ST PAUL MN 55122

Jeff Forester jeff@mnlakesandrivers.orgExecutive DirectorJudy Corrigan judy@mnlakesandrivers.orgExecutive Administrator

MLR Board of DirectorsSue Henken ThielenPresident Lake Washburn in Cass CountyMary MannsVice President Caribou Lake in St. Louis CountyBarbara Halbakken FischburgSecretary Detroit Lake in Becker CountyTed JohnsonTreasurer Lake Washburn in Cass CountyGeorge Crolick Lake Eshquaguma in St. Louis CountyRon Erhardt Woman Lake in Cass CountyJohn Nowicki Lake Osakis in Douglas CountyJohn James Lake Gervais in Ramsey County

Staff Members

Water is in our collective Minnesota memory. Our collective history in Minnesota is a chronology of water. And it will fall to those who love this heritage to protect it for future generations.In late August, the week before school started up again, I took my two daughters, ages 12 and 15, for a week canoe in the Boundary Waters Wilderness. We heard wolves at night, echoing across the water. We caught fish, including a 40 inch northern that put my older daughter on cloud nine. We paddled, talked and portaged from one waterbody to the next. We sat until midnight on a rock still warm from the day’s sun, and watched the night sky reflected in the dead calm water of the lake.They came back with memories that will last a lifetime I hope, memories of what it is to live in Minnesota, memories built of water.I came back energized and recommitted to do all I can to protect that heritage and to make sure it is available for their children and grandchildren. The simple reality is that if people like you and I do not do this work now, that heritage will not be there for future generations.Protecting Minnesota’s lake and river heritage, a heritage of fishing, waterfowl hunting, and just being on the water is the core of our daily efforts at Minnesota Lakes and Rivers Advocates and it is a mission we share with hundreds of lake association and COLA members, with our resort members, and anglers and marina owners, with cabin owners. In this 2015 MLR Update you will find articles about some of the water-related issues of the day and the role we we all play in preserving our heritage for future generations. I know that water, and the heritage of water we all share in Minnesota is important to you. We hope you all had a wonderful summer and our best wishes as your families gather for Thanksgiving, Christmas, Hannukah and New Years. We are looking forward to great things in 2016 together.

Jeff Forester

PRSRT STDU.S. POSTAGE

PAIDTWIN CITIES MNPERMIT NO. 131

@JeffForester1MN Lakes and Rivers Advocates - MLR

952-854-1317Please visit our website,www.MNLakesAndRivers.org