ELY – Trailhead development on Ely’s west end, and expansion of a business park on the east side, top the list of economic development efforts for 2016.

Ely’s Economic Development Authority gathered this week to brainstorm on promoting economic development in the city. Council members, who serve on the authority, met with John Fedo, the city’s economic development advisor Tuesday to formulate a priority list for 2016, which mirrors much of the success from last year.

“This is the time of year where we step back and review what we’ve accomplished and look to the new year to build on our success,” Fedo said. “We’re looking to move some of our accomplishments off the list and move some other priorities in.”

The business park expansion on Miner’s Drive, along with the infrastructure work on 17th Avenue, is continuing. “We have a couple of interested parties and one very interested party,” Fedo said, alluding to new businesses or expanding business activity in the new area.

State bonding bill proposals from the city for this year include the continued expansion of the business park.

The recreation trailhead development project at the west entrance to the city faces somewhat of an identity crisis as Fedo and authority members struggle with what to call it as they move the project down the road.

Originally called the Prospectors Loop Trail Development, the project will also involve the Taconite and Mesabi recreation trails all coming into one trailhead area. City leaders hope to use the trailhead as an anchor for commercial development.

The city has partnered with the St. Louis County Rail Authority and trail group leaders to formulate a bonding bill proposal to help fund the project.

“I think we may find here a challenge that will allow us a signature project, something that is much larger than the scope of what we have right now,” Fedo said.

The trail development offers several aspects. “It is a development that will feed a baseline tourism and marketing business for the city of Ely and the surrounding area,” he said.

Developing that trail head location at the city’s west entrance may seem a bit premature because the trails have yet to be expanded this way. “We are ahead of the curve as it comes to timing as these trails are being built, but our timing is absolutely perfect,” Fedo said. “We want to step in right now and make sure that our trail head begins its development and then we need to look at more development; what more it can be and how we can incorporate this into other projects that are permanent improvements and will encourage private investment.”

Fedo admitted that Ely might not be big enough to develop a convention center that everyone thinks of with a project of this scope. ‘However, in the concept of what this offers, it does bring people into the community and we need to think about what we do with them after we get them through our door,” he said.

Mayor Chuck Novak stressed the importance of having an all-encompassing name for the trailhead development as the city moves the project through the State legislature bonding process this spring.

“This is a multi-purpose trail project that culminates and ends in Ely,” Fedo said.

Kara Polyner stressed that referring to the trailhead as being at the end of the road. “This should be the beginning. This is where it begins,” she said.

Fedo concurred. “This is a trail head. This is where the trails begin,” he said.

Clerk-Treasurer Harold Langowski noted that the county Rail Authority is continuing their planning for the recreation trail through Bear Head State Park, Eagles Nest area and continuing up to Highway 88 west of Ely. “It looks like the trail from Highway 88 to Ely is more likely to be on the south side of the road, where they have more right-of-way access and fewer rock cuts,” he said.

“When you look at the trailhead and interconnection to the North American Bear Center, it is a very short ride for those folks, and I think there are some additional opportunities there,” Langowski said.

He also described potential development projects around the trailhead on what is referred to as the former Lucky Boy mine property. “We have the potential for the Pattison Street reroute and improved access to the hospital; we’ll have that corridor to access that area,” he said. “With this infrastructure and construction in the area, it could all come together with additional opportunities for other commercial development. I think this is a home run for a good priority.”

Fedo stressed the year-round tourism aspects of the trailhead development. “Part of what this can do is to take the shoulder seasons that we currently have with the restaurants and downtown activity and literally pick them up,” he said. “There is no down season with the trail activity itself. If it is promoted the right way and constructed the right way and marketed the right way, those things will reinforce a year-round season and lessen those dips and peaks (in tourism activity).”

The Council will continue discussion of naming and moving forward with the trailhead project and bonding request proposal at a study session on Jan 26.

Other priorities

The reuse of the Community Center and the proposed data center project is high on the economic development priority list for 2016. A group of investors, still unnamed, has proposed to renovate the vacant Community Center and utilize the historic space for a hi-tech data center.

“We are seeing that activity continue,” Fedo said, “and there have been some elements of variation added to the project, and it has gone along two separate paths. We’re hoping to get some clarification on both of these pieces in the next 30 days or so, including a business plan, a funding element that could include some additional equity or cash flow to begin construction and renovation.”

Langowski added that he is looking at a timeline, cost estimates, and funding mechanisms to be discussed in a month or so.

“We haven’t lost sight of the underlying task to redevelop the building itself,” Fedo said. “We are keeping our fingers crossed that this all comes together but we are not abandoning our mission to redevelop the Community Center.”

Langowski added, “Preservation is still a big part of the project. They are looking at tax credits to make the project viable.”

Other economic priorities for 2016 include:

• Continued work on acquiring tax forfeit parcels through St. Louis County and the State of Minnesota for possible development projects;

•Multi-community marketing and collaboration with Giants Ridge, Fortune Bay and other operations to bring more tourists to the city;

•Pursuit of new housing initiatives with the Ely Housing Redevelopment Authority;

• Increasing employment at the local Minnesota Department of Revenue facility;

•Continuing to work on extending broadband and fiber connections to the entire city;

•Supporting small business development through various funding and business loan opportunities;

•Continued development of the Ely Airport.