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Ely city officials are on a fast track to advance a proposed workforce housing project in town.
On Tuesday, council members voted 6-0 with mayor Heidi Omerza absent to dedicate city property for the planned 37-unit development, pegged at approximately $8.4 million.
Dedicating the property is a key step as the city proceeds in pursuing outside funding for the project, both from the Minnesota Housing Finance Agency and the Iron Range Resources and Rehabilitation Board.
That funding figures to be critical in the effort to move the project to completion.
Harold Langowski, the city’s clerk/treasurer and operations director, said the city is holding “biweekly progress meetings” with developer D.W. Jones and those who might finance the project.
Current plans call for 37 apartments in a three-story structure on the west side of Ely, adjacent to the Grahek and Sibley apartments near Ely-Bloomenson Community Hospital.
The apartments would be a mix of studio apartments to as large as three bedrooms, at rents yet to be determined.
The project comes amid a shortage of affordable, workforce housing in town, and city officials contend more housing is needed to help businesses attract and retain workers, and to maintain and build the local economy.
Ely’s Housing and Redevelopment Authority would manage the property, and both the city and HRA are key players in the project.
“What we’re working on tonight is dedicating the property for the project and the other part is we are putting together an estimated market value, which we believe is around $70,000,” said Langowski. “That’s part of our contribution and also $2,000 of the (revised) housing study. And the HRA will be voting on levy money that they’ve been building over time to dedicate to the project... The developer is putting together a site plan and updating costs.”
If all goes as planned, the city will have a formal application for funding entities in April.
“We feel confident that by the second (council) meeting in April we should have everything in place for the council to pass a resolution,” said Langowski.
In a related matter, the council approved a $2,000 payment to Maxfield Research, for revisions to the city’s housing study.
The study showed demand for more than 200 market rate housing units in Ely.
“Thirty-seven is a good start but obviously we have continued work to do to meet that demand,” said Langowski.
Should the project come to fruition, groundbreaking could be held in 2025 and the complex open for occupancy the following year.
