ELY – The redevelopment of the historic Community Center building here is moving forward as city council members approved paying the $5,500 hazardous material assessment bill this week while the potential buyer and city officials review the purchase.
Clerk-Treasurer Harold Langowski updated council members Tuesday night on the hazardous materials abatement required for the purchase and redevelopment of the landmark to move forward.
The potential buyer of the property, Matt Stupnik, is looking at developing some sort of lodging facility, according to Langowski. Minutes from the Feb. 14 meeting of the city projects committee indicate that Stupnik “would like to purchase the building from the city for one dollar with the understanding that the city will work with him to get assistance on the demolition work needed, parking and other licensing he will need.”
Council member Paul Kess asked about the potential owner’s concept for the building.
“He is getting very close,” Langowski said, “We have a conference call scheduled prior to the next council meeting.”
The city clerk, mayor and city attorney will be participating, and Langowski asked if any other council members would like to join the meeting.
“I had a discussion with him on Monday. He has potential plans drawn up and is working through some details and issues,” he said. “One issue that came up was parking and how he is going to resolve that.”
Kess also asked if the buyer had financing in place.
“He does have a plan,” Langowski said. “He is looking at going after tax credits, both federal and state, and is working with the state’s historic preservation office. There are some deadlines with that this summer that need to be met, so he is on a fast track, in a way, to meet those deadlines.”
Mayor Roger Skraba pushed for more information on the project.
“We need to go a little deeper here,” he said.
Langowski assured the council that the buyer “has put the effort in so far and hired the right people to do the right tasks.”
“From what I’ve seen, he understands the process,” Skraba said. ”I think we are being responsible by asking these questions. That’s important.”
“As soon as he had the hazardous materials assessment information, he had contractors looking at it and was putting quotes together,” Langowski said. “We talked about what kind of programs are out there regarding demolition (to remove hazardous materials).”
According to the projects committee, two contractors provided quotes, $124,900, and $84,000, for abatement of hazardous materials in the building.
“The building is zoned R/T (residential/transition) right now and it will be a lodging-type project,” Langowski said. “The Department of Iron Range Resources and Rehabilitation will be able to help with certain aspects of the redevelopment of this commercial property.”
The city’s Community Center was built in the 1930s and closed several years ago when the new library was built. A plan to reuse the landmark as a Korean cultural center fell through at the beginning of the coronavirus pandemic. Upwards of $1 million is estimated to be needed to rehabilitate the building with a new heating plant, electrical and plumbing upgrades, along with installing an elevator.
Other business
In other business, the council:
• Approved council and staff to attend the League of Minnesota Cities 2022 Safety and Loss Control workshops.
• Approved a Memorandum of Understanding with AFSCME Local #1490 regarding the equipment operator trainee position’s starting wage at $23.89 per hour.
• Approved a recommendation from the Projects Committee to apply to the Donald G. Gardner Humanities Trust for funding assistance for the foundations needed in Whiteside Park for two bronze canoe sculptures.
• Approved the low bid of $158,400 from Kovall Construction for the demolition work needed for the rehabilitation of the former Zup’s store by Eagle Wolf Development. The work will be paid through a grant from IRRR.
• Received the Ely Police Department 2021 incidence statistics that showed 2,392 response calls last year, compared to 2,347 in 2020.
• Approved a maple syrup tapping permit for Cody Perkins for the spring for nine maple trees on Conan Street and 2nd Ave. East.
• Approved a raffle permit for the Rotary Club for July 31 in Whiteside Park.