ELY – Economic development won out over possible political conflicts this past week as the Ely Projects Committee and the Ely City Council voted to support a major local business despite the entrepreneur’s pro-environmental stand and support of wilderness tourism over the risk of sulfide mining.
Steve Piragis, owner of Piragis Northwoods Co., recently purchased the former Loony’s Northwoods Emporium property, located across the street from his sprawling Sheridan Street retail and outfitting business, and is seeking Department of Iron Range Resources and Rehabilitation funding to demolish the building and build an 80x40-foot building to house an outlet store.
The new structure, estimated to cost as much as $500,000, will bring numerous construction jobs into the city. The popular outdoor store could add as many as six new employees to a year-round payroll that already approaches 30 people.
Piragis submitted a grant proposal to the Projects Committee on Monday night to cover demolition costs estimated at about $27,000. The city acts as the fiscal agent for IRRR Commercial Redevelopment Program requests. Ely officials routinely seek building demolition funding from the agency.
IRRR collects production fees in lieu of property taxes from the numerous and long-standing taconite mines on the Iron Range and uses the funds to enhance economic development in northeast Minnesota. Piragis is one of many outspoken critics of proposed sulfide mine projects near the Boundary Waters Canoe Area Wilderness, and maintains that the risks to the environment from copper-nickel mining, not taconite mining, is too great to consider.
Projects Committee members voted 6-1 in favor of recommending the project for full city council approval. The lone dissenter, Mike Banovetz, is a strong voice in the community for his support of mining. Prior to the council meeting on Tuesday, Banovetz was heard to say that he voted against the recommendation for Piragis’ project “out of principle.”
Steve Piragis’s daughter and company employee, Elli, appeared before the council Tuesday night to answer questions and support her family’s request.
Council member Paul Kess said he appreciates the investment Piragis is willing to make in the Ely community.
Mayor Chuck Novak agreed.
“A new building rather than an old building and adding more employees from an economic development perspective is good news,” he said. “And we are happy to take all the money you want to give us from the added property taxes.”
Elli Piragis noted that her family’s business currently has 28 year-round employees. As many as six more employees could be added for the new outlet store and the expanded outfitting business.
Council member Al Forsman said, “It is clear that Mr. Piragis and I strongly disagree about how a sustainable economy is developed and maintained in our community, but I also think it is important to recognize the needed separation from the person and the jobs this business brings to the community. I do support the addition of these jobs. Ely has helped other businesses to demo old buildings and make room for development.”
Novak weighed in again.
“My rule number one is to debate the issue and not the person,” he said. “As we do disagree on the mining issue, the issue here is economic development.”
Council member Ryan Callen, who also serves on the Projects Committee and made the motion to support the Piragis project, noted that, if approved, signage will be erected at the building site indicating IRRR funding support.
The council unanimously approved the motion to support the economic development project.
At the end of the meeting, during the open forum portion of the agenda, Banovetz confirmed that he was the Projects Committee dissenter on the issue, but admitted that he supports the project.
“I just have an issue with someone who tries very hard to wreck the future of mining to then go ahead and ask for tax money that was generated by mining. That irks me a lot.”