ELY – This city’s Economic Development Authority wrapped up its activities for 2021 on Tuesday night with a summary and discussion of accomplishments for the year and a look forward into what they face next year.
City council members, acting as the city’s economic development authority, and Ely Economic Developer John Fedo, prioritized four main areas of activity for the last year including development of the Trailhead and the city’s West End redevelopment district/workforce housing, expanding broadband access, supporting business creation and expansion, and supporting recreation opportunities.
Fedo said the city ended the year on a positive note for funding of the stalled Trailhead parking area and welcome center at the city’s west entrance with progress on a $1.5 million award through the federal Travel, Tourism and Outdoor Recreation program recently put in place by the Biden administration.
“There was a concerted effort by the whole team, including our engineering firm and the Department of Iron Range Resources and Rehabilitation, and we have letters of support from outside the city government,” he said. “The project is fully funded and will be part of a larger package of funded projects coming out of the regional Chicago Economic Development Authority,” he said.
He noted that it is a competitively judged grant application.
“Our indication is that we have a very competitive grant submission and we are keeping our fingers crossed. Our Trailhead is obviously a very integral part of tourism activity here, and this particular program was geared toward communities like Ely that rely on tourism and specifically speaks to how we are improving,” he said.
Fedo said he anticipates a response to the application early next year.
Ely Clerk-Treasurer Harold Langowski said the state legislative bonding bill request for the Trailhead development project is moving forward.
The $4 million bonding request was spilt into two parts, he said, including $1.5 million specifically for the Trailhead welcome center and parking lot development, and the remainder to be used for the remaining aspects of the West End development project, including workforce housing, ambulance service infrastructure, and the hospital expansion area.
“That’s looking good,” Langowski said. “Obviously, somebody within the bonding committee requested we split that so that means we are getting some support. It would be nice if we gain a parallel (funding) path and have to decide which one we take.”
The downtown broadband fiber loop continues to gain new customers, according to Langowski. He pointed to recent excavation permits applied for by several major local businesses for hookup to the loop, including the Veterans Administration Health Clinic, Zup’s Market, the state Department of Revenue, the North American Bear Center, and Grand Ely Lodge.
“That is a real positive move for our broadband project,” he said.
“Development efforts for the former Zup’s grocery store building continue to move swiftly,” Langowski said. J&L Hardware is planning to move and expand their business into the building.
Some areas of support and improvement for economic growth in the city continue to elude the local EDA.
“Our dentist shortage is an issue of concern that was brought to my attention again last month,” he said. “I wish I had some solutions and answers. I know Dr. Anderson worked very hard to find another dentist. That is something we need to keep on our (priority) list as we move forward.”
A housing shortage continues to plague the Ely area.
“We continue to work with the Housing Redevelopment Authority on that,” Langowski said. “It is interesting to see how other communities are solving that issue. It is not just with a bunch of free money being handed out. It is pulling up the boot straps and figuring out a project and how to make it work, because this isn’t a quick enough return on investment for private development. We’ll keep our eyes on that.”
Ely EDA President Heidi Omerza related that at a recent Coalition of Greater Minnesota Cities conference, state legislators indicated their distaste for developing apartment buildings as part of the housing shortage solution.
“They are against that, even though that is the greatest return on investment. So, what are we supposed to do?” she asked. “I left the conference a little conflicted.”
Langowski added, “Workforce housing is kind of the key phrase that is tied to our bonding request. And the state’s Department of IRRR favors infrastructure support for housing projects, such as extending utilities. They look at the whole picture, such as what partners we bring to the table.”
A group of lots in the Spaulding area on the north end of town contains as many as 11 lots ready for development.
“We need about $300,000 for infrastructure,” he said. When we sell those lots, that will be more than enough to cover that infrastructure investment. It is tough to do. We have a real hot real estate market right now. With two houses in Ely sold in the last week, one was listed for four hours with four offers, and the other one was listed for less than a day. That is still our market here.”
The Ely EDA will reconvene on Tuesday, Jan. 25, 2022.