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A development agreement involving the City of Ely marks the latest step in a plan to turn the Ely Community Center building into a 22unit boutique hotel.
Earlier this week, the city council approved the agreement with Pillar Company LLC, the company owned by Dellwood developer Matt Stupnik.
Stupnik is looking for $200,000 in Iron Range Resources and Rehabilitation Board funds, with the city as the conduit, for demolition work at the property.
“Matt is completing his plans, and that application is currently being scored (by the IRRRB),” said city clerk-treasurer Harold Langowski. “What this development agreement means, is for the $200,000 we are hoping to be awarded from the IRRRB, in exchange for that funding he needs to complete his project.”
Work would begin later this year if the IRRRB approves the funding, and Langowski added “he’s got a little bit over a year to get the project to substantial completion.”
“If the project stalls out, this is the method we get the money back to the IRRRB,” said Langowski. “Matt is very aware of that and in his due diligence on the project, he’s doing it gradually and looking at the structural engineering aspect of the plan. He does have a contract he’s working on with a general contractor. He would be working with us to get the demolition project out for bids.”
Approval of the IRRRB funds will trigger aspects of the project that require demolition, pulling apart of the heating and ventilation system in the facility, and removing asbestos and other hazardous materials.
Earlier this year, Stupnik outlined plans for the $3.5 million project. He then said he is providing his own capital and has lined up private financing for part of the project.
Stupnik said he has experience remodeling three other commercial buildings, and that he’s working to assemble a staff for his business.
In a related matter, the city is moving forward with plans to demolish the old Ford Garage, located at the corner of First Avenue East if he had taken any drugs and he responded that he had used methamphetamine, PCP and other substances.
The adult victim had a large laceration on her forehead that was actively bleeding, a large amount of blood coming from her mouth and had difficulty communicating, according to police.
She was later transported to Ely-Bloomenson Community Hospital and treated for multiple injuries including a broken nose.
Police say that the victim reported that she saw Lepisto go outside the house, and that she later heard a gun shot. She told police that Lepisto had used a long gun to shoot a companion animal dog belonging to a second victim.
The first victim said she hid the gun from Lepisto, which caused him to become upset and that he began fighting with her, causing the injuries.
At the residence, officers located a dog on the passenger side of Lepisto’s vehicle. There appeared to be a bullet hole wound in the chest of the dog and it was confirmed that the dog was deceased. A rifle shell casing was located near the passenger side of the vehicle and there was blood on the stairs of the front porch, according to police.
Police indicated that there were several rounds of live ammunition on the porch, as well as a large clump of hair consistent with the hair of the first victim.
Inside the residence, police say they found a coat rack tipped over and rugs bunched up, indicating signs of possible fighting inside the residence.
Officers also found what appeared to be several pieces of drug paraphernalia and a zip up case containing a vial of substance consistent with crystal methamphetamine.
The felony charges all carry maximum prison terms of two-to-five years imprisonment.
According to St. Louis County Jail records, Lepisto remained in custody as of Tuesday, with bail set at $30,000.
