City holds key to joint garage project

Plans for a joint public works garage outside of Ely have reached a pivotal stage.St. Louis County has committed to the $7 million project and is waiting for Ely to do the same.City officials heard another sales pitch from county commissioner Mike Forsman last week, agreed to discuss the project in detail at an Aug. 31 study session and moved toward a Sept. 7, in-or-out vote.Ely would have nearly 30,000 square feet of space in the 69,000 square foot facility and be on the hook for over $2.8 million in costs, and city participation is all-but-essential if the project is to go forward, Forsman told council members Tuesday.“It is extremely important and possibly a deal breaker,” said Forsman. “It would be a real concern if the city pulls out of this project.”The city’s projects committee endorsed the initiative two weeks ago, but council members have had little debate on the issue.Mayor Frank Salerno cut short a presentation by Forsman, county public works director Dave Skelton and architects last week and moved the issue to the study session.Council member Dan Przybylski, meanwhile, said he was concerned about the costs that would be borne by the city if it signs on in support.“It’s not going to be an easy decision,” said Przybylski.At issue is a project that supporters say will result in cost-savings to the participating entities and a better-looking entrance to Ely.Representatives of several government bodies have met for months, and Forsman has touted similar efforts in Hibbing and Pike Lake, where the county has partnered with both the Minnesota Department of Transportation and local governments.But the state is not involved in the project at the current time, opting to remain at their garage on Ely’s east end for the time being.The proposed new garage has room for expansion, however, and the state could later join St. Louis County, Ely and two other possible participants - Morse Township and Lake County - at a garage that would be at the old city gravel pit, near the cemetery.The project has also been promoted as having economic development potential, since the county would abandon its current Sheridan Street facility on the west end of town and free up commercial property. The city would have at its disposal the land where the current city garage is located, off of Central Avenue.“The city would end up with 15 acres (at the west entrance) under its control, and it would be prime property for any sort of development,” said Forsman. “And you have the land where the garage is located. It could be residential. It could be developed, any sort of thing, it’s great land.”If the city were to move forward, it’s anticipated that it would borrow for its share and repay the loan over 15 years, with annual payments of $268,000.According to Forsman, the timing is right to proceed since the city will eventually have to renovate its garage or build a new one, and that partnering with the county and other government entities provides “more bang for the buck.”“This window of opportunity is only open for a short time,” said Forsman. “While interest rates are low and while the county board is behind the project.”Forsman said that if the city doesn’t proceed, that the west end of Ely will continue to look the way it is since the county will remain at its current site.According to Forsman, he lobbied successfully to keep county engineering jobs here when plans called for the operation to move to Virginia several years ago.He said a new facility will strengthen the county’s ties to Ely.“Remember where those DNR jobs used to be on the way to Winton?” asked Forsman. “They’re in Tower now, in a beautiful facility.”If the council backs the project at their Sept. 7 meeting, the city would be responsible for its share of the design costs, tabbed at $112,000. The city could pull out before construction, but it would lose the $112,000.City employee Louis Kotzian attended Tuesday’s meeting and urged the council to consider the financial ramifications.“The number one question is can we really afford this?” said Kotzian, who also questioned whether the city needed the new facility.