New housing, hotel and brewery all attract city council’s attention
Economic developer John Fedo touted a flurry of activity Tuesday night, highlighting progress on numerous fronts in Ely.
“There are a number of new projects and an extension of existing projects,” Fedo told council members at city hall, during the monthly meeting of the city’s economic development authority.
Most notable was last week’s groundbreaking for a new apartment complex in Ely.
Years in the making, the workforce housing project, located adjacent to Ely-Bloomenson Community Hospital and near the existing Sibley and Grahek apartments, is aimed at easing a housing crunch that has hindered some businesses and organizations that have sought to hire or retain employees.
Dubbed “Wilderness Escape,” a planned 37-unit, three-story, $9.6 million complex is being built by a private developer, and the complex will be operated by the Ely Housing and Redevelopment Authority.
Numerous dignitaries turned out for the June 25 groundbreaking.
“The project itself is even more importantly sound and looking forward to physical improvements and ultimately a ribbon-cutting,” said Fedo.
Also on a fast track for completion is the Hotel Elysium, the 22-room boutique hotel that is planned for the former Ely Community Center building on First Avenue East.
Fedo, Iron Range Resources and Rehabilitation Board Commissioner Ida Rukavina and IRRRB staff were among those to tour the building last week and see the progress.
“We were fortunate enough to have the commissioner and three of her staff people go through the new hotel with us,” said Fedo. “It was a first chance to see the activity that has been going on there, and it’s extremely impressive.”
Vacant for more than a decade, the local landmark is set to reopen later this year.
In addition to the hotel, the top-floor and fabled Community Center auditorium has been rebranded as the Zenith Ballroom and is set to be a home for concerts, wedding receptions and other events.
Developer Matt Stupnik, who hails from the Twin Cities suburbs but has Ely family ties, has been working on the project since buying the building in 2022.
Some IRRRB funds have aided in the better than $3.5 million development and Fedo indicated other funding may be sought and would “be an opportunity to help finish that project the way the developer wants it to be done.”
In conjunction with the hotel project, Fedo highlighted the efforts to repurpose the old Ford Garage, a block south of the hotel site, for off-site, hotel parking.
“There are some issues we’re addressing in terms of clearing that property and making it available and utilizing it the way it needs to be,” said Fedo.
Meanwhile, progress is also advancing on plans to redevelop the old “Depot” property, which is on track to become a brewery and events center.
Fedo said the project encountered a potential hiccup with worries that $300,000 in Minnesota Department of Employment and Economic Development funding would be surrendered, but efforts on several fronts helped secure an extension through the end of the year.
“What happened was DEED indicated the grant was expiring at the end of the fiscal year, and we were able finally to get DEED to reconsider an extension,” said Fedo. “There has been activity in terms of new construction and we felt confident that if they were granted an extension that we’d be able to finish the project the way it was intended.”
Last month, the IRRRB supported both a $300,000 downtown redevelopment grant and a $259,826 loan for Border Lakes Brewing, which is planning a better than $2 million development of the historic train depot located at the corner of Camp Street and Central Avenue.
Vacant for years and deteriorated to blight conditions, the property is one of many in Ely that has been purchased by the Ott family and eyed for major redevelopment.
Initial work to stabilize the main structure has been completed and renovations are underway to turn the facility into a “community-focused brewery and tap room” with an outdoor event center envisioned for the back of the property.
The project is expected to result in 18 jobs, including six full-time.
