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Ely Drop and Shop secondhand store nears reopening

City council agrees to reinstate business license on a conditional basis

Keith Vandervort
Posted 3/3/21

ELY – Following a nearly one-month closure, the Ely Drop and Shop secondhand retail shop is taking steps to have their business license reinstated and could soon reopen.The downtown business at …

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Ely Drop and Shop secondhand store nears reopening

City council agrees to reinstate business license on a conditional basis

Posted

ELY – Following a nearly one-month closure, the Ely Drop and Shop secondhand retail shop is taking steps to have their business license reinstated and could soon reopen.
The downtown business at 204 E. Sheridan St. was shut down Feb. 11 by the Ely City Council, which pulled the operation’s business license. The closure was triggered by criminal charges against one of the business’s owners for allegedly selling methamphetamines on the premises.
Council members voted 6-0 Tuesday night to conditionally reinstate the business license. One council member was absent from the meeting.
The resolution stipulates that all current owners must sign the license, and they are all subject to an acceptable background check. The current owners of the business are Kristen Krings, Casey Moravitz, Rosario Thole and Tina Foster.
According to Ely City Attorney Kelly Klun, other conditions for the business reinstatement include:
• Specific procedures the business will utilize to ensure no similar events occur.
• Submission of an updated owner and employee list, and licensee shall, within five days of a change of status, notify city officials as to the current employees and owners. No employee or owner shall be of questionable moral character.
• Submittal to ongoing and random administrative inspections.
No similar occurrences of past illegal activities are allowed on the premises.
Klun told council members that her office and Ely Police Department Chief Chad Houde are reviewing the owners’ agreement to the conditions of the business license and said the Drop and Shop “could be open again by the end of this week or very soon.”
Clerk-Treasurer Harold Langowski indicated that an unrelated issue with the building, a frozen and broken water pipe and flooded basement two weeks ago, could delay the building’s health inspection approval and reopening date.
Kristen Krings, president of the Drop and Shop store, addressed the council Tuesday night and assured council members that steps were taken “to rebuild the store’s reputation” and she asked “for a second chance.”
Amanda Stevens was one of several co-owners of the retail thrift store, and felony charges filed against her for the possession and sale of methamphetamines at the business prompted the revocation of its license.
“Stevens has been terminated from the business,” Krings said. “We repurchased her shares (of ownership stock), and at Chief Houde’s request, we also served her a ‘no trespassing’ order and she is no longer allowed on the premises.”
Krings said the door locks on the business have been changed. As part of the business license compliance agreement, Krings indicated that surveillance cameras and a recording system were installed in the store. A board of directors for the businesses has been established. An employee handbook is in development.
“We will be taking moral character into more consideration in the hiring process going forward to prevent an incident like this from happening again,” Krings said.
Mayor Chuck Novak indicated that he and the council were “more than willing” to see the Drop and Shop reopened. He reprimanded the owners of the businesses for waiting until late Tuesday, the day of the council meeting, to submit their agreement and to expect immediate action.
“We need to get this (information) in early, not at the last minute, so we have enough time to study it,” Novak said. “For anything we receive late Tuesday, it is very difficult for us to take a vote on without being able to vet the information. Councils make mistakes when they weigh in on last-minute requests.”
Novak added, “The community wants the Drop and Shop to reopen. I don’t think any of us want to see this happen again, nor do we want to see Drop and Shop permanently closed. It is a benefit to the city to have that business open.”
However, not all community members agree. Novak referred to a voice mail he received and shared with council members.
“This is a concern for some of our folks,” he said.
Chief Houde said he was “comfortable with the agreement” as negotiated with the owners.
Klun said the resolution calls for city staff to work through the agreement and to make sure the conditions are met. She said the council’s adoption of the resolution is their last step to reopen the business.
“The next step is for the Police Chief to sit down with the owners and to finalize a couple of items which should happen quite quickly,” she said.
Utility rate hike
Council members will hold a public hearing at 5 p.m. on Tuesday, March 16 concerning a recommendation from the Ely Utility Commission’s Budget and Rates Committee for a substantial rate hike to city residents.
The recommendation calls for a seven-percent increase in electric rates and to hold steady on water and sewer rates for the coming year.
Langowski said the rate hike for Ely customers mirrors the rate hike for electricity recently initiated by Minnesota Power.
Council member Al Forsman was quick to play politics and attributed the Ely electric rate hike to the new administration of Democratic President Joe Biden. He didn’t go as far as the Governor of Texas in blaming frozen wind generators nor a proposed “Green New Deal,” but the sentiment appeared eerily similar.
“On a personal note, I feel strongly that we are going to see energy rates increase dramatically over the next few years in large part to the focus of our current administration. We can count on seeing this and don’t be surprised if it continues to happen. Your votes count,” Forsman said.
Other business
In other business, the council:
• Listened to a presentation on the Northeast Minnesota Mine Tour Project and considered approving a donation, and writing a letter of support.
• Approved a recommendation from the Heritage Preservation Commission to submit grant applications to the Donald G. Gardner Trust and Arrowhead Arts Council for the Carl Gawboy Mural Recreation Project.
• Accepted a bid by Pathfinder Trail Building for the $352,930 for bike trail construction at Hidden Valley Recreation Area.
• Accepted a recommendation from the Budget Committee to purchase an upgraded remote HVAC control system for the SATO building for $9,703.
• Agreed to spend $2,676 from the drug and alcohol forfeiture fund for an identification badge maker for city employees.
• Approved the revised Cemetery Rules and Regulations as recommended by the Cemetery Committee.
• Accepted department head performance review templates and will agreed to conduct the reviews at the March 30 study session.