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Thursday, September 19, 2024 at 8:34 PM

IRRRB funds housing project

Ely Igloo Club member Bill Hane was recognized by the U.S. Forest Service Wednesday for his service to the sport. Carl Skustad of the Kawishiwi District presented a Certification of Appreciation to Hane: “There aren’t too many snowmobile trail groomer operators in their 80s. Bill Hane of the Ely Igloo Snowmobile Club is one of them. Bill has volunteered and worked for the club for over 25 years. He’s been the main person to make sure the lake portages are open on the Grassy Loop as well as the Hidden Bay Trail off of Birch Lake. Bill has also assisted with trail clearing activities and has been known to cook up a great trailside lunch for club members out clearing downed trees and brush or doing bridge repairs. Bill spent years as a cook for Amtrak and his prowess in the kitchen is well known. But when it comes to hopping on a snowmobile and pulling a heavy drag across slushy lakes and rocky trails, Bill Hane has been the guy to get the job done for a quarter of a century.”

$850,000 grant key piece in push for 37-unit complex

Plans for a 37-unit housing complex in Ely took a major step forward this week.

Tuesday, the Iron Range Resources and Rehabilitation Board awarded the city $850,000 to support infrastructure and construction related to a new three-story, market rate workforce apartment building.

“Today’s IRRRB meeting highlighted a number of exciting opportunities for investment and economic growth throughout Northeastern Minnesota that will now receive the capital they need to succeed,” said Senator Grant Hauschild (DFL-Hermantown). “The wide range of projects that are receiving funding will create jobs, build affordable housing, expand economic development, and ensure that our communities can thrive.”

The $8.4 million project still hinges on other funding initiatives, but the IRRRB grant served as another key milestone for an effort that seems to be gaining traction.

“Right now it’s looking pretty good,” said Harold Langowski, the city’s clerk-treasurer and operations director.

But Langowski also cautioned that the project still hinges on other funding pieces coming together.

“If we don’t get $4 million in required grant funds and $3.5 million in loan funds we can’t make the project economical,” he said.

The city’s housing and redevelopment authority is working with project developer D.W. Jones, and the next step is pursuit of workforce housing funds from the Minnesota Housing Finance Agency.

“It sounds like the numbers are favorable to Ely’s position,” said Langowski.

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 as city officials contend more housing is needed to help businesses attract and retain workers, and to maintain and build the local economy.

A housing study commissioned by the city also showed significant demand for workforce housing.

Langowski said other pieces of the funding puzzle, including qualification for Minnesota Housing Finance Agency money, should come together this summer.

Infrastructure work near the property could begin yet this fall and may coincide with other city projects, but construction isn’t likely to begin until 2025 with occupancy not until the following year.

“This is a project that will take two-and-a-half years to develop but we’ve been working on it for many years.”

John Fedo, the city’s economic developer said Ely has one of three regional projects in the work for state funding, joining developments planned at Grand Rapids and Two Harbors.

The city may also enlist the aid of St. Louis County, tapping into the county’s bonding authority to advance the project.

“If we end up with a 37unit project like we think we will, it will be a result of a lot of concerted efforts by a lot of people,” said Fedo.


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