While the Iron Range’s legislators brought home funding for several area projects, including help for the Ely Area Ambulance Service and a baseball field make-over for ISD 696, the Legislature did not pass the bill which would have given Ely’s prospective workforce housing project an estimated $240,000 sales tax exemption, and that was a key point of discussion at Tuesday’s meeting of the Ely Economic Development Authority.
Ely Clerk-Treasurer Harold Langowski remarked that the sales tax exemption for local government housing projects could get support next year, but if Ely’s housing grant comes through in August as expected, “it might be too late by then.” Without the sales tax exemption for construction materials, Ely will need to finance that amount.
Segueing off Langowski’s remarks, consultant John Fedo reported that the Northland Foundation “is looking at continuing at some level of participation on housing,” and that the EEDA has spoken with that organization about Ely’s housing needs. He pointed out that Northland had $1 million left over from last year’s legislative session which was not yet allocated, and that organization had become “an advocate for our efforts.” As an example of Northland’s support for Ely housing, Fedo added that Northland CEO Tony Sertich provided a strong letter of recommendation for Ely’s workforce housing grant application to the Minnesota Housing and Finance Agency. He cautioned that Northland had not yet decided how it would allocate its $1 million for housing or what Ely’s chances would be to see any of that money.
EEDA President Paul Kess noted the changeover of the staff running Ely’s Housing and Redevelopment Authority at the beginning of May, with both a new executive director and accounts manager. He suggested that given all the recent activity for the HRA, the EEDA could profit from a presentation by the new executive director “to give us an overview on the housing stock here in Ely, the projects they are involved in, and all things that they manage.”
The EEDA was in favor of Kess’ suggestion; however, Langowski pointed out that such a presentation would be better in a few months, once the new staff had “a chance to get their feet under them.”
Ely’s HRA owns and manages four subsidized apartment complexes and the market rate Northwoods Townhomes for seniors. The HRA’s Pioneer Apartments are currently getting all new windows. The HRA is also waiting for a grant decision on building new apartments on the site of the old city garage next to Ely Carefree Living and HRA’s Sibley Apartments.