ELY- At its July 2 meeting, the Ely City Council once again dug into the weeds of Minnesota’s evolving rules on legal cannabinoid products, passing a moratorium on any new “adult-use cannabis business.” The moratorium specifically mentions not just sales, but also the testing, manufacturing, cultivation, and distribution of THC products.
The moratorium has been in the pipeline since the June 18 council meeting. That’s when the planning and zoning commission recommended the city restrict cannabis cultivation to industrial (M) and commercial (C) zoning districts, a recommendation that caught the city council by surprise. The council tabled the suggestion and asked the city attorney to draw up a draft moratorium for later consideration.
The ban on new cannabis businesses will remain in effect until Jan. 1, 2025, or until the effective date of a new city ordinance products containing “cannabis containing THC.”
“This moratorium does not restrict the current sales that are occurring within the community under the licenses provided,” explained city attorney Kelly Klun. “It does restrict new sales and in particular it does restrict the cultivation, manufacturing or distribution of any THC products until the council can further study this and we get direction from the Minnesota Office of Cannabis Management.”
Trail grants
In other business, clerk-treasurer Harold Langowski reported that Ely area groups received three grants for local trail development and maintenance. The funds are from the Federal Highway Administration and their award is managed through the Minnesota Department of Natural Resources. The city of Ely will be the fiscal agent for the grants. The Ely Nordic Bike and Ski Club is receiving the largest of the grants, a total of $200,000 for the development of more mountain biking trails in the community.
The Ely Igloo Snowmobile Club received $75,000 to purchase new trail grooming equipment, while the Prospector Loop ATV Club will receive $75,000 as well for trail maintenance equipment.
In other action, the council
• Voted to discontinue its cable TV service provided by Midco, which currently serves the city garage and city hall. “We used to get our cable at no charge,” Langowski told the council. “Now there’s a new Federal Communications Commission rule that we either have to pay or have the service deducted from our franchise payment.” The city receives a franchise payment from Midco which is funded through a fee included in consumer TV bills. The fee supports the city’s broadcasts of government meetings and other telecommunication needs.
Midco had previously provided service to the city garage and city hall at no charge, but that would have increased to $165/month at each location due to the change.
“It was an expense that we hadn’t budgeted,” Langowski added. “We asked Midco if they would come down on that price and they were unwilling to do so.”
• Heard an update from Langowski on the Ely trailhead facility on the west edge of town, where construction started during the last week of June. “They will be pouring footings tomorrow,” he commented. “We will be scheduling groundbreaking on that facility at some point, with a date yet to be determined.”
When completed, the facility will be a 3,400 square-foot, four season building with cultural heritage displays, regional business and tourism attraction information, ADA restrooms, interpretive kiosks, vending machines, trail maps, and changing areas. It will connect the 145-mile Mesabi Trail, the 165-mile Taconite Trail, and the 130-mile Prospectors Loop.
• Approved the purchase of ten dark sky-compliant decorative light fixtures for Sheridan Street from WESCO for $8,490. This purchase is part of Ely’s ongoing rolling upgrades of the city’s lighting to support the federal dark sky designation for the Boundary Waters Canoe Area Wilderness and local tourism dark sky initiatives.
• Approved the hiring of Ryan Puzel, A. J. Walker, Mike Muhvich, and Kenzie Peterson as probationary firefighters, pending pre-employment physicals, drug tests, and background checks. “With the approval to hire these four,” said Fire Chief David Marshall, “the fire department will have a full roster of 35 for the first time in I don’t know how many years.”
• Approved a recommendation from the budget committee to purchase propane from Ferrellgas for $1.399/gallon.
• Approved the purchase of gasoline and diesel provided by St. Louis County at the joint city/county public works garage.
• Approved contracting with Custom Theatres of Ely to replace the city hall door lock system for the quoted price of $27,485.
• Approved the payment of the $16,200 invoice from H&S Electric for work at the Ely Arts and Heritage Foundation for $8,100. The invoice was for electric work at the Miners Dry Building in preparation for the activities of the Ely All Class Reunion last week.
• Approved the payment of the following: $464,955 for the Ely Utilities Commission May bills; $500 to Mick Shusta for “A Operator” services; and $1,979 payment to Frontier Energy for residential rebates.
• Approved a payment of $6,697 to Dave Berg Consulting for an electrical rate study. The council also approved a recommendation from the Ely Utilities Commission for the rates subcommittee to use the new study to create an updated rates policy.
• Approved the following claims for payment: $410,670 from the city and the Ely Utilities Commission through July 2; $4,182 from SEH for work on the Prospector ATV trails; and $11,341 from AE2S, for three invoices for general consulting services and work on the wastewater treatment improvements project,
• Appointed Hudson Kingston to the library board.
• Approved Resolution 2024-025 appointing election judges for the 2024 primary elections.
• Approved the hire of Andy Luthens for the city’s open building engineer position.
• Approved Resolutions 2024-026, -027, and -028, authorizing the city to apply and accept funds from the Minnesota Commercial Redevelopment grant program, and the Iron Range Resources and Rehabilitation Board’s regional trails and public works grant programs for fiscal year 2025.
• Approved the request from the Dutchman Tree Service to hold a climbing event at Whiteside Park in cooperation with Young Life for the Fourth of July afternoon events for youth.