ELY – A $1.5 million federal grant has cleared the way for the city of Ely to build a new regional trailhead facility on the city’s west end. The U.S. Commerce Department’s Economic Development Administration (EDA) announced the award on Tuesday, which helps to fill a funding gap that developed as construction costs escalated on the project.
“This is kind of a big deal,” said Ely Mayor Roger Skraba in responding to the announcement.
City officials were hoping to have used state bonding funds last year to complete the project, but construction bids came in way over budget and the project was shelved until more funding became available.
“The last bid we had was not a good bid. It came in really high, so we went after more money,” Skraba said. “Senators Klobuchar and Smith have stepped up and got us the extra money, and that will fill in with our state money.”
The grant will provide for amenities such as restrooms, vending machines, and common areas designed to welcome tourists to the region and its local businesses. The EDA investment, and the $1.5 million in state funds, is expected to create 75 jobs, retain 50 jobs and generate $500,000 in private investment, according to a press release.
“We have to see how it works out but we will probably go for (construction) bids yet this year,” Skraba said.
U.S. Secretary of Commerce Gina M. Raimondo said the funding represents the Biden administration’s intent to help the tourism industry recover from the effects of the coronavirus pandemic. “President Biden recognizes the vital contribution the travel and tourism industry makes to the American economy,” said Raimondo.
Skraba could not promise that construction would start this year.
“We’re going to have to talk to the contractors. If prices come down then we will probably be able to go ahead as soon as possible. But we might not be able to bid until next year. We’ll see. Once we have the money in hand, we’re golden. This is a big project and there will be a lot of moving parts.”
Minnesota’s two senators were also touting the economic news for the Ely area. “Northern Minnesota has incredible natural beauty that attracts people from across the world,” said Senator Amy Klobuchar. “This funding is a true win-win, creating good-paying jobs and helping locals and visitors alike enjoy the outdoor recreation that Ely has to offer.”
Senator Tina Smith added, “Minnesota is blessed with pristine natural landscapes and I’m always thrilled when we’re able to make them more accessible and inviting. This investment, made possible by the American Rescue Plan, will help support over 100 jobs while boosting the tourism industry and local economy in Ely. This facility will also be a great addition to the Mesabi Trail, which showcases the area all the way from Grand Rapids to Ely.”
The Ely Regional Trailhead Facility project is funded under EDA’s $240 million competitive American Rescue Plan Travel, Tourism, and Outdoor Recreation program. EDA awarded $510 million in grants to all 50 states and territories in 2021.
The two programs are designed to accelerate the recovery of communities that rely on the travel, tourism and outdoor recreation sectors. In May, the EDA officially closed all of its American Rescue Plan programs for applications. The $3 billion program funding will be awarded on a rolling basis through the end of September.
Skraba said he, the city council and city staff will discuss the project and the funding windfall at their next meeting on Tuesday, July 19.
“We will have to start over on the bidding process. We have to find out if the previous contractors that bid on the project are still interested. There is a special design for the building. We’re going to try use their expertise on putting this together.”