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Left out in the cold in 2024, Ely city officials are hoping the temperature warms this year in St. Paul - at least as it relates to their bid to advance a major housing project.
A committee hearing in the Minnesota House of Representatives is aimed at pumping more state funds into a rural housing finance initiative, and Ely’s unsuccessful bid last year was part of the discussion.
“Ely has been highlighted as a potential project that was left at the station (last year), for lack of a better description,” said John Fedo, the city’s economic developer.
Fedo’s comments came Tuesday, when council members met at the city’s economic development authority.
Hopes for a 37-unit, $9.2 million apartment complex were crushed last fall when the Minnesota Housing Finance Authority doled out over $39 million for projects across the state, but Ely’s application for $4.5 million was not included.
But Ely is back at it again this year with a renewed push, backed by both State Sen. Grant Hauschild (D-Hermantown) and State Rep. Roger Skraba (R-Ely).
Another Range lawmaker, State Rep. Spencer Igo (R-Grand Rapids) heads the committee that heard testimony.
“Our developer testified and talked specifically about the Ely project and the need for workforce housing,” said Fedo.
Dubbed “Wilderness Escape,” the Ely project calls for a 37-unit, three-story, market- rate workforce housing project near Ely-Bloomenson Community Hospital.
The project is aimed at meeting housing needs in the region, and officials have both a housing study that backs their claims that housing is needed to attract and retain jobs.
State funding is needed to bridge a giant-sized gap in the project budget, and a year ago state lawmakers pumped an additional $39 million to the Minnesota Housing Finance Authority.
Those funds were earmarked to spur rural housing projects, but according to Ely leaders, most of the funds went to projects within a 60-mile radius of the Twin Cities.
Fedo is hopeful the lawmakers will provide more funding, although it may not be to the extent it was a year ago.
“It’s yet to be determined if there will be an appropriation, but there’s going to be an effort on both committees,” said Fedo. “It won’t approach $39 million, but we have a fairly decent chance of some type of appropriation.” The city, through its housing and redevelopment authority, is working with private development company D.W. Jones, Inc., which has completed numerous housing projects across the state.
Once the project is completed, the apartment building will be owned by the Ely HRA.
Plans call for a mix of studio, one bedroom, two bedroom and three bedroom units, ranging from as little as 447 square feet of living space to better than 1,200 square feet.
The city got $850,000 in Iron Range Resources and Rehabilitation Board funds for the project, while St. Louis County is expected to bond for over $2 million, with the city providing the land and the HRA contributing $350,000.
The MHFA money was identified as a key and final piece of the puzzle and city leaders are giving it another shot.
• Also Tuesday, EDA members elected Jerome Debeltz president and newly- elected council member Emily Roose was selected as vice-president.
The rest of the EDA officer slate remained intact, with Casey Velcheff selected secretary, Harold Langowski treasurer and Dan Smith assistant treasurer.
