ELY- The Ely City Council stuffed three hearings around its regular meeting on Tuesday, one on the new cannabis ordinances, one on a change in the zoning code concerning slope stability along Miners Lake, and one for the yearly truth-in-taxation presentation for the city’s budget.

Cannabis
The hearing on the cannabis ordinaces was brief and business-like. Ely resident Richard Stuart spoke first, applauding the city’s thoroughness and care in putting the two ordinances together. As was covered in the Nov. 1 edition of the Timberjay, ordinance 381 dealt with the licensing regulations for both low-potency edibles and cannabis businesses and 383 dealt with zoning for those businesses.
“The one thing that I did notice,” Stuart remarked, “was regarding registration for businesses. There’s a lot of languages here that seems to put a burden on the city to do additional work that the state and the Office of Cannabis Management is doing already.” He recommended that the city should prune the ordinance to remove those redundancies.
He also argued that the number of retail cannabis licenses should be limited to three instead of five, citing Ely’s low population and the limited areas where cannabis businesses can operate.
City council member Al Forsman read a letter to the council from business owner Dafne Caruso into the record. Caruso argued for tighter restrictions on the sale of cannabis, stating that since Stinky Pete’s opened across the street from her business, she has encountered the smell of marijuana. She expressed concern over public use and exposure to second-hand marijuana smoke, especially since her grandchildren are frequently at her business on Sheridan St.
Todd Crego responded after Forsman finished Caruso’s letter, noting that Stinky Pete’s does not sell cannabis, only low-potency edibles.
Carol Stahl and Margie Nesteroff both argued against the sale of cannabis in the city, citing the devastation that cannabis can do as an entry drug for youth, leading some to substance abuse disorder. Stahl’s testimony was poignant as she described the wreckage that substance abuse has done to her family.
Residents Abby Dare, Lacey Squier, and Ozzie Reif each made a case for personal choice in recreation use while supporting measures to restrict public use and protect minors from obtaining cannabis products.
After the conclusion of the hearing, the city council acted on the two recommendations presented by Stuart. The council approved a motion by Paul Kess to limit the number of cannabis retail licenses to three with a 5 to 1 vote. City council member Angela Campbell was the dissenting vote.
The council also approved a motion to reduce the redundancies with state and county cannabis laws in ordinance 381 as Stuart suggested. The council directed the city’s attorney, Kelly Klun, to prune the ordinance language before the council gives its second reading of the ordinance at its Dec. 17 meeting.
The council also approved the cannabis zoning plan in ordinance 383. Ely Clerk-Treasurer Harold Langowski prepared a map of the proposed zoning for cannabis businesses which showed the exclusion zones for cannabis sales around schools, treatments centers, and day care facilities. The map showed that cannabis businesses would be restricted to manufacturing zones and the west and central portions of the commercial districts along Sheridan and Chapman streets. The map is available on the city’s website at ely.mn.us.

Land stability
Two city residents testified during the hearing for ordinance 378, which removes the requirement for landowners on the shoreline of Miners Lake to obtain certification of land stability beyond in the 75-foot setback for structures along the shoreline. Instead, the change puts the onus for determining slope stability on landowners, essentially setting up a “buyers beware” condition for ascertaining if their property is stable.
“Never once has it been required for geotechnical work to be done for ground stability,” Langowski explained. “We’ve never had anyone do this.”
Frederica Musgrave testified that the city had not provided enough information before the hearing. “We’re having a public hearing where we’re not informed. This bothers me,” she commented. She bolstered her argument by pointing out that the planning and zoning commission wasn’t provided with enough information when they discussed the ordinance change.
“They didn’t have info, so they sent it to the city attorney and council to get more info. What happened is the city attorney presented an ordinance with nothing else — just the ordinance with no explanation, no map, no details, no explanation of the intentions … Council asked for a map at your meeting. I believe that was on Oct. 1. Where’s the map?”
Musgrave was followed by Carol Orban, who expressed concern that the ordinance was a backdoor change to benefit the proposed RV park in the Spaulding neighborhood. Mayor Heidi Omerza shut Orban down, saying that the RV park issue was not the subject of the hearing.
“I would just like to say that if and when the campground idea comes forward, that the city citizens (should) have full disclosure of what it’s going to look like,” Orban remarked.
“We’re not talking about that right now,” Omerza said. “The only thing we’re allowed to talk about right now is this ordinance.”
The council approved the first reading of the ordinance on Oct. 1. At that meeting, the council heard a public comment regarding the role the Minnesota Department of Natural Resources plays in approving shoreline ordinances. As a result, the council directed the city attorney to consult with DNR to be sure that the change was not contrary to state law.
At its Nov. 12 meeting, the council acted on the recommendation by the planning and zoning commission to change the language after the city had consulted with the DNR, and scheduled the Dec. 3 public hearing.
After Tuesday’s hearing, the council approved the second reading of the ordinance.

Truth-in-Taxation
Langowski presented the city budget during the truth-in-taxation hearing. The city’s 2025 taxes increased by $154,600, or 7.16 percent from 2024. The complete presentation of the budget figures is available on the city’s website.
In other business, the city council:
• Approved the end of police officer Courtney Olson’s one-year probation. Police chief Chad Houde praised her performance, “She’s been a great employee and has really excelled in every aspect.”
• Approved a memorandum of understanding with AFSCME Local Union No. 1490 regarding a grievance which was aired during a closed city council meeting on Nov. 17. The memorandum states that: “The city denies the grievance and/or wrongdoing that it did not follow the collecting bargaining agreement with the union related to the posting and recent hiring of Troy Oelke as a public works foreman. The city agrees to a one-time payment of $4,500 to Ed Marsolek, paid to deferred compensation. In acknowledgement of the payment, Ed Marsolek shall not be entitled, based on the collective bargaining seniority language Article VIII Section 8, to the position of public works foreman. This agreement shall be non-precedent setting and shall be considered a full settlement of the grievance.”