ELY— The city council here gave the green light to the acquisition of the state Department of Revenue building on Miner’s Drive, marking a major step forward toward a new childcare center and fitness and wellness facility.
City Attorney Kelly Klun presented the purchase agreement, totaling $1,035,000, and noted that the city was only facilitating the transfer of the property from the state of Minnesota to the Ely Area Community Foundation, which plans to renovate the 16,000 square-foot building to make way for the new childcare center as well as the fitness and wellness facilities.
Klun said a second purchase agreement, which would transfer the property from the city to the foundation would “piggyback” the purchase agreement with the state and be executed on the same day. Klun said she hoped to have that agreement ready for approval at the council’s next meeting. She said a donation to the EACF would actually finance the city’s purchase of the building, so city funds would not be needed. Under the agreement approved by the council this week, closing is set for Dec. 8.
City Clerk-Treasurer Harold Langowski said the city will likely be making some limited and temporary financial commitments toward the project. “It’s not open-ended,” said Langowski. “We’re going to keep the heat on and provide access to the building appropriate for fire protection.”
While the plans for the revenue building have been in the works for months, it first came to the council’s attention last month and Klun said she was looking for a sign that the council was on board with the plan to help with the acquisition. Council members made it clear that they were, quickly approving the arrangement.
In other business, the council:
• Approved a note and mortgage for a $7,000 residential rehab loan to Doug Scheibe to pay for the installation of a subfloor drainage and discharge system.
• Approved a residential rehab loan for $10,000 for Sandra Thom and Jay Pohlman for a furnace changeout and other energy-related improvements to their property.
• Approved a residential rehab loan totaling $6,745.74 to Mary Lou Korpela for the demolition of a trailer at 1815 E Chapman St. pending completion of needed paperwork and the payment of fees.
• Set its Truth in Taxation hearing for 6 p.m. on Dec. 6 in the council chambers.
• Set a special meeting for 5:15 p.m. on Nov. 15 to canvass the result of the Nov. 8 general election.