The path toward economic recovery for Ely’s local businesses is in the works via various agencies and administrators, but still unresolved.
Ely area businesses have been hit hard this July, missing out on peak tourist season dollars due to the ongoing wildfires and related closures.
The July Lightning Event Boundary Waters closure is only the third time in history the wilderness has formally closed down, and the earliest such a closure has ever occurred.
“Timing-wise, this is our worst-case scenario financially,” said Jason Zabokrtsky of Ely Outfitting Company.
The Ely Chamber of Commerce co-hosted a round table discussion on Friday with State Sen. Grant Hauschild (DFL-Hermantown) and State Rep. Roger Skraba (R-Ely) to hear stories from local businesses, bring together community leaders and ideate on solutions for recovery from wildfire economic impacts.
“These folks are not here to have an answer. They’re not here with a blank check to solve these issues,” Hauschild said.
“The goal really is for these folks to hear from you all, alongside Representative Skraba and I, so we can help work on ideas for legislation, for private fundraising, whatever it might be,” Hauschild said.
Hauschild said he and Skraba plan to promote the area’s needs at the Capitol, as they previously did during the Covid Canadian border closure and the 2024 Cook flooding.
“We have done this work. It is possible, but it’s not easy. We have to just keep putting our heads down and doing the work to advocate for the things we need,” Hauschild said.
The next Minnesota legislative session won’t begin until January 12, 2027, so any economic assistance legislation prior to 2027 would need to occur during a special session.
Skraba said previous state-designated funds had assisted businesses affected by floods and fires in recent years.
For now, Skraba said the best way to gather financing for the area may be to ask widely for donations among people who love Minnesota’s northern region.
“If we got 200,000 people to donate a little bit, that’s a lot, and that will help,” Skraba said.
Nicole Lalum of Explore Minnesota said the agency is narrowing in on promoting autumn tourism across the region, with plans in the works for winter and spring activity marketing as well.
Ginny Nelson of the Ely Area Tourism Bureau and Spirit of the Wilderness Outfitters encouraged individuals to share and like small business social media posts, spread the tagline that Ely is open for business, book with local resorts and campgrounds, and search for opportunities for outdoor recreation outside the Boundary Waters — for example, a guided fishing trip on a local lake.
United Way of Northeast Minnesota (UWNEMN) representative Katy Lofquist said UWNEMN began collecting donations a week ago for a crisis and disaster recovery fund.
The organization will allocate the finances to areas of greatest need, including a specific designation for small businesses in Ely. An application for these businesses will open by July 31.
The organization has previously gained experience with disaster recovery following the Brimson wildfires and the Cook flooding event in 2024.
“The driving force of our economy here is tourism, and pretty much just tourism,” said Chamber of Commerce president Tanner Spicer. “Not only is it a unique economy, it’s a very fragile economy. As we’ve seen now, one event can shut down this city.”
