Northernaire Houseboats has evolved for half a century with three sets of owners saying they successfully adapted to new challenges on Rainy Lake.
“Northernaire was a pioneer in the houseboat business and brought early recognition to Rainy Lake,” said Pete Schultz, area Convention Visitors Bureau. “All of the owners have run great operations offering guests up-to-date accommodations and top service.”
Dick and Robin Garbe, current owners, are putting the boats away to close the 2008 season, and brought together the two previous owners to share a golden anniversary celebration.
All three owners said that promotion is essential, but that Rainy Lake is what brings guests back each year. They want to experience the serenity of more than 70 miles of waterway on a floating cabin. They said there is not a better way to see the glacial terrain, scenic beaches and wildlife of Voyageurs National Park.
“Houseboating is unique compared to cabins and resorts, especially on Rainy Lake,” said Dick Garbe. “It’s a big step up from camping,”
The impact of the national park was not clear right away, he said. There were hard feelings and the locals felt affected by early restrictions, he added. In the end, he added, the park was a blessing for its preservation.
“There are less cabins now than in 1975,” he said. “If it wasn’t for the park it would have been another Minnetonka with cabins all the way down the peninsula.”
The idea for Northernaire was the result of an improvised vacation in the 1950s.
Lee and Phyllis Kuluvar were at Namakan Lake with friends James and Julie Klapmeier. The Mora natives attached a small camper on some pontoons from a family business and enjoyed a week on the lake.
“The idea for the business came from us having such good time, exploring and traveling the lake,” said Phyllis.
Klapmeier designed a marine camper and special ordered six of them from area builders to set on his pontoons. Kuluvar scouted northern Minnesota lakes and liked Rainy Lake for its size, remoteness and the nearby Falls International Airport. They toiled with clay, cattails and uneven ground on the Jackfish Bay property.
They got dock permits and brought in the houseboats for the spring 1958 season. They had to find experienced crew, carpenters, plumbers and electricians.
“We bought this property site unseen and it amazes me to this day,” said Phyllis.
Lee was an educator and entrepreneur and Phyllis credits his marketing and advertising skills to their early success. They traveled to sport shows and advertised in major markets. He invited CEOs as guests and they later bought houseboat vacations as rewards or incentives for employees.
Raising three children in sparse quarters was difficult after 10 years. They built an office and a small restaurant. They used their largest boat to make weekly grocery and supply runs with guides and a cook, Bessie Davis, who made lunches on the lake.
After 15 years, Phyllis said they decided to sell in 1973. They were unsure how the creation of Voyageurs National Park would impact business.
Lee would go on to earn a doctorate and teach business in Grand Rapids where he passed away in 1986. Phyllis now lives on Crystal Bay in the Falls.
The business was sold to Bud and Jane Levene of Pocahontas, Iowa.
Jane recalled that they bought the resort site unseen. She recalled the 1958 Life Magazine cover story about Northernaire.
“I had never seen a houseboat before,” said Jane. “I saw that article and never dreamed that we would own it someday.”
The new owners learned through trial and error and stuck with the business for more than 25 years, she said. They would replace the fleet and transition to a family vacation business. Their seven sons became the backbone of the resort.
“They knew more about it in the end than we did,” she said.
With the kids grown and Bud well past retirement, Jane said they decided to sell in 1998. Bud died later.
Dick and Robin Garbe were raised on the St. Croix River and after 20 years in sales began looking at resorts around the country and Canada. The asking price and cash flow of Northernaire brought them to the Falls.
“We had never been on Rainy Lake before we bought the place,” said Dick. “You never get tired of the scenery out here. It is incredible.”
Dick said that the established notoriety of the resort in combination with the Internet has expanded the business so much that he no longer attends sports shows or needs to advertise as much in other markets.
The Web site, www.northernairehouseboats.com, comes up easily in a houseboat search, he said, and that customers already have their preferences for boats and amenities before they ever contact the office.
“People call and say things like ‘this is the boat I want and the timeframe I need it’,” he added. “It sells itself.”
Even in this down economy he reports an 85 percent occupancy for the summer with guests from all over the country and the world.
“We get close to 75 percent of our business from the Internet and most of the rest are repeat costumer and word of mouth,” he added.
Training people that never set foot on a boat to navigate a large vessel through miles of unfamiliar lake and islands is as much a challenge today as it was a half century ago. They provide a walk-through class, easy to read maps and a marine radio.
“We try to put the fear of God into them,” said Dick. “We tell then it’s a turtle race out there.”
The owners said the houseboats are popular as a way to move the vacation site daily. There are no additional costs to the vacation once on the lake. The peace and motion of the boat helps people sleep better. The remoteness gets people together and talking.
“People come and say that they talked with their kids for the first time,” said Robin.
