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City Council Dec 16 2025 lodging tax -Trailhead – commission appointments
This post will spend most of the space addressing current lodging tax issues (the first 2 speakers). Scroll down for the 3rd request to speak (HPC). Then scroll further down to find information about 2025 and 2026 appointments.
Find the 103-page Council Packet at https://www.ely.mn.us/2025councilmeetings . Scroll down to the bottom for the 3-page agenda posted by the City of Ely. Last minute new additions and changes to the agenda might not be posted online prior to the start of the Council meeting at 5:30 pm on Tuesday, December 16, 2025. Check for documents on the table right inside the door to Council Chambers.
There are 3 Requests to Appear at the meeting. Two will address lodging tax dollars. One will address Heritage Preservation Commission (HPC) issues.
Abby Dare from VisitEly will talk about the Ely Area Tourism Bureau 2026 Budget.
Read #2 and #4 recommendations to be presented on Tuesday night. The document in the right column is from page 19 in the Council Packet. The logic stands on its own.
Look at the Stakeholders (last but not least blue box) under Strategic Planning Considerations.
Note: Both local newspapers have printed several articles and letters to the editor about the use of lodging tax dollars and how Paul Kess did not follow Council’s original instructions. For more background info about The Ely Tourism Bureau’s concerns voiced prior to tonight’s Council meeting, read the October 10th issue of The Timberjay, “Ely Tourism Bureau warns city over lodging tax distribution,” https://www.timberjay.com/stories/ely-tourism-bureau-warns-city-over-lodging-tax-distribution,23571.
Paul Kess will be addressing the Council as the Council-appointed member of the Ely Area Lodging Tax Joint Powers Board. No documents were submitted in the Council Packet.
Note: Both local newspapers have printed several articles and letters to the editor about the use of lodging tax dollars and how Paul Kess did not follow Council’s original instructions. For more background info about Council’s discussion at their last December 2nd meeting, read the December 6th issue of The Ely Echo, Kess survives tourism coup,” https://www.elyecho.com/article/3897,kess-survives-tourism-coup
Use of Lodging Tax Dollars – What’s All the Fuss?
Collection and designated/expected use of lodging tax dollars. What businesses are actually paying the lodging taxes, meaning costs added to the customer? Lodging. What were they told on how the lodging taxes would be spent? What is suddenly being funded? Why? When the Trailhead Building was first proposed and then under construction, were owners and managers of lodging businesses told their taxes would be used to fund the Trailhead Building (City utilities and Chamber of Commerce staffing)?
Who decides how those lodging tax dollars are spent? Those who pay it or those who spend it? Have we now entered into a taxation without representation situation? Politicians (Good OId Boys and Allies?) are deciding how they (the politicians and friends) want to spend others’ money without consulting or listening to them.
The only exception was/is newly elected Emily Roose. She had the courage to voice legitimate concerns of underrepresented business and community members. She had the guts and skill to introduce an “unpopular” motion to Council. She had the courage to stick to her truth despite Council’s 6-1 rejection of her motion. She received the most votes from Ely citizens back in November 2024 not just because she was a new fresh idealistic voice but also because she understands businesses, business owners and finances.
Haste makes waste. Council members claimed they didn’t understand what they were voting on when they decided not to drastically cut back funding for the Tourism Bureau. They were “confused.” So what’s new? Really, what’s new? Don’t use that as an excuse. Please. Council pretty much rubber stamps whatever is added to the agenda — especially last minute — without deep questioning or deep discussions. It’s political.
Why do lodging tax dollars have to be used to pay for the utilities at the Trailhead Building, a City-owned building? It’s political. The City, Good Old Boys and Allies, and real estate developers promoted, lobbied for and built an extremely expensive building as if we lived in Jackson Hole, Wyoming. We don’t live in Jackson Hole, WY. Most of us taxpayers and business owners in Ely try to get by. We live and spend moderately. City government should do the same. Wasteful spending followed by higher taxes. Wasteful spending on the Trailhead Building, and lodging taxes are being unfairly redirected to fund the City’s excesses. When the Trailhead was originally proposed and during construction, did the City of Ely and/or Council agree privately or publicly to use lodging tax dollars to pay for the utilities at the Trailhead? It’s political.
Why do lodging tax dollars have to be used to fund staffing of the Chamber of Commerce at the Trailhead Building? They don’t. It’s political. Were lodging tax dollars used to staff the Chamber of Commerce before they moved into the Trailhead Building? Are they getting increased funding? Or was this a trade-off to get the Chamber to move into the Trailhead months after the Trailhead sat vacant? An embarrassment indeed. A luxury building opened and sat totally vacant for months. When the Trailhead was originally proposed and during construction, did the City of Ely and/or Council agree privately or publicly to use lodging tax dollars to pay for staffing of the Chamber of Commerce at the City-owned building? It’s political.
Echo sensationalized & thus exposed the political agenda
The Ely Echo sensationalized and thus indirectly exposed the political behind-the-scenes activities of City Council and City Hall. Count all the subjective words used in the title and article,”Kess survives tourism coup.” The Ely is biased against efforts that don’t support their political goals. In their Ely Echo Editorial: Lodging tax funds must be flexible and accountable, the editor(s) stated, “We’re not sure why the focal point of the debate over lodging tax funds is playing out at city hall, but nonetheless, there needs to be oversight of these tax dollars as well as accountability.”
Ely City Hall is precisely the place where this debate should take place! City Council is supposed to represent Ely residents and businesses. We elected them to represent us. Paul Kess was not elected by the citizens. He was not elected by those who pay lodging taxes. We don’t want backroom decisions nor political deals made. We want open public discussion. Paul Kess admitted he voted differently than instructed by Council after he privately consulted with the mayor and an unnamed Council Member. That’s backroom politics. That’s what the Ely Echo wants, quiet backroom political negotiations?
When the Ely Echo editor’s wrote about oversight and accountability, they focused on collection of lodging taxes – not the issues raised raised by Emily Roose (not following Council’s instructions) nor the issues raised by the Tourism Bureau (funding).
Educate yourself – read – talk to those who pay lodging taxes
(d) Back issues of Ely’s Ely Echo and The Timberjay. If you don’t subscribe, go to your public library.
For more information about lodging taxes in Ely, review Section 6.33 of the Ely City Code at https://www.ely.mn.us/ordinances . The first page of Section 6.33 appears here in the column on the right.
There are some interesting loopholes in the definition of “Lodging.”
Luxury Jackson Hole development in Ely – costly mistakes
AI information from Goggle search using 3 words “Jackson Hole WY”
Is the City Vision to turn our Ely into an upscale playground for the rich?
The City and those who wanted to build and have IRRRB finance “upscale amenities” here in Ely envision turning Ely into a Jackson Hole resort town. Look at the luxury hotel being built in the Old Community Center. The developer didn’t have financing, so the City stepped in with lobbying efforts, etc.
If you haven’t checked out the Trailhead Building, go now. Why couldn’t we have built something similar to simple park buildings?
Putting the Chamber into the Trailhead sends a message that the building isn’t really for us regular residents. The furniture and building layout do not give vibes that this is Ely’s building. It does not look or feel like us. It looks like it belongs in Jackson Hole, Wyoming or a ski resort in the Swiss Alps.
Why and for whom did we build this luxury Trailhead building?
The 2-story (one story with high roof) building and furniture speak of luxury, not regular active or rugged use. It should have a simple comfortable style that matches what we see in our current hotels, motels, family resorts, restaurants, and business. The Trailhead appeals to the wealthy, not regular everyday Ely residents and tourists. First thing most of us do when we walk inside is remark how expensive the heating costs are for the tall one-story building.
If you paid attention to all the commission meetings — How could you? They are not broadcast or streamed free of charge 24/7/365 — you would have learned that no organizations wanted to move into the Trailhead. They were happy where they were located and didn’t want to pay $$$ more to be in the Trailhead Building.
Since there were no commitments to occupy or use the Trailhead, the designers and contractors couldn’t design or build based on user needs.
“Build and they will come,” we are told. And our response is, “We are here. Build for those who currently live here.”
Look at the layout of the Trailhead rooms for organizations (?) and public. Is this the layout that we need? Remodeling costs money.
The City of Ely wastes money, especially but not limited to due diligence.
Citizens for transparency has frequently brought up awarding of contracts via “single source” or no bidding. It’s politics as usual and/or just plain laziness.
The City has its favorite contractors, friends, allies and long-term business relationships. The City just likes to award contracts without bidding. Listen to comments about award of contract for crack sealing of City streets: https://elyminnesota.com/blog/city-council-sep-3-2024-mtg/ Unfortunately, it’s not about saving and spending taxpayer money wisely.
Citizens for Transparency pointed out due diligence wasn’t followed on some services and work on the Trailhead Building. Watch Paul Kess speak out for due diligence: https://elyminnesota.com/blog/city-council-dec-17-2024/
The City of Ely can easily find ways to cut wasteful expenses including but not limited to following due diligence guidelines.
The City should not redirect lodging tax $$ to pay for its City-owned building.
3rd Request to Appear = HPC
The Co-Chairs of the Heritage Preservation Commission (HPC), Margaret Egan and Pam Turnbull, will give an HPC Project Update.
Pages 23-31 in the Council Packet are dedicated to HPC minutes and documents related to their 3 recommendations for Council to vote on. See recommendations in the right-hand column. See photos below of Trailhead Building and the Carl Gawboy mural.
Trailhead Bldg – photo from HPC in Dec 16th Council Packet
Carl Gawpoy mural – image from HPC in Dec 16th Council Packet
Appointments to Open Commission Seats
The ongoing mystery is how Council is going to vote on appointments when more than one person applies. There is no real established procedure. Will they draw names out of a hat? Will they only vote for those they know? Will they find one sentence they really connected with?
There are no interviews. Applications are supposedly the only way to persuade Council. Completed apps are in the Council Packet: https://www.ely.mn.us/2025councilmeetings
There will be additional commission, board or committee seats opening up in 2026. Look for the new application form; don’t just recycle an old one.
Finally, a new Comprehensive Plan Steering Committee is being created. The revised application questions are “interesting.”
Upcoming 2026 Open Commission Seats
Comp Plan Steering Committe – Revised Application Forms
The application forms proposed by have been updated. Compare the new ones (3 pages below from Council Packet) with those from the last December 2nd Council meeting. See previous comments posted Who’s to represent us on the Comp Plan Steering Committee? https://elyminnesota.com/blog/noise-lodging-tax-demographics/ (look for yellow highlights).
Do all applicants have the same concept or definition of “unique perspectives” when they answer “What unique perspectives do you bring to the Committee?” That needs to be clarified, so they all have a fair chance in answering the question. And clarify means you indicate upfront what you (P&Z Admin, P&Z Rep, and Council Rep) are looking for. Among other things, are you really looking for “unique perspectives”? Does “unique perspectives” relate back to the demographic targets?
The rank scoring system is still confusing. If you answered all questions, whether misguided or not, you get 6 points? Aren’t there more than 6 questions? Why is “Understanding of the Comprehensive Plan” weighed so low? Ignorance is bliss? (attributed to Thomas Gray). What do 2 or 4 points actually mean on a range 0-5 or 0-6?
There are some target demographics to fill. If these demographics are targets to fill, then what is the point system or means to objectively fill that target? There’s no clear, logical and transparent explanation as to how how the P&Z Admin, P&Z Rep, and Council Rep will fill these demographics. None of these 3 other seats (P&Z Admin, P&Z Rep, and Council Rep) need to meet or balance the group’s target demographics of low income, age or gender diversity? Are the at large members supposed to just outwardly represent or actually voice the full range of perspectives (issues, values, hopes, dreams, financial situation, etc.) of the demographic targets.
Many application questions and targets bring concerns about awkwardness, appropriateness and legalities: There are people who do not want to publicly identify themselves as low income. Do they lie, tell the truth, come up with their own definition of low income, or just not apply? Should low income really be public knowledge? What do “Diverse age range” and “Diverse gender make up” mean? I don’t see any questions about age or gender on the application form. Or points. Are P&Z Admin, P&Z Rep, and Council Rep supposed to guess (= assume)?
Finally, what does “Ability to resolve conflict” mean? One of the best ways to approach conflict when discussing the Comprehensive Plan is to refer back to the Ely’s City Vision (which unfortunately does not really encompass all of us, seniors being a major example). Another way to approach conflict is for the City and the pre-selected leadership of the Comp Plan Steering Committee make their agenda, philosophy, and development goals very transparent and upfront from the beginning. For example, if the intent is to scrape all the living flesh off of the Comp Plan and only leave the skeleton, say that. If the intent is to add living flesh to the bones, say that. Is the goal to build buildings or to take care of the people living here? Is the goal to encourage sustainability and balance with our environment or exploit everything? (Extreme examples, yes.)
If the intent is to have like-think, compliant, and obsequious members, say that. If City Hall, Council and the leadership of the Comp Plan Steering Committee want members to feel comfortable voicing “unique perspectives,” then THEY are the ones who need to know how to manage conflict of perspectives AND incorporate those “unique perspectives” into the Comp Plan. Leadership should have conflict resolution skills, attend workshops if they don’t, use them, model them, and do not pass all the burden/responsibility on the shoulders of nonleadership. For example, requiring commissioners, appointees, and staff to have conflict resolution skills and training while not requiring the same of leadership (chairs, Mayor, Council, and City Administration). Bullying is still not banned.
City Council Dec 16 2025 lodging tax -Trailhead – commission appointments
This post will spend most of the space addressing current lodging tax issues (the first 2 speakers). Scroll down for the 3rd request to speak (HPC). Then scroll further down to find information about 2025 and 2026 appointments.
Find the 103-page Council Packet at https://www.ely.mn.us/2025councilmeetings . Scroll down to the bottom for the 3-page agenda posted by the City of Ely. Last minute new additions and changes to the agenda might not be posted online prior to the start of the Council meeting at 5:30 pm on Tuesday, December 16, 2025. Check for documents on the table right inside the door to Council Chambers.
There are 3 Requests to Appear at the meeting. Two will address lodging tax dollars. One will address Heritage Preservation Commission (HPC) issues.
Abby Dare from VisitEly will talk about the Ely Area Tourism Bureau 2026 Budget.
Read #2 and #4 recommendations to be presented on Tuesday night. The document in the right column is from page 19 in the Council Packet. The logic stands on its own.
Look at the Stakeholders (last but not least blue box) under Strategic Planning Considerations.
Note: Both local newspapers have printed several articles and letters to the editor about the use of lodging tax dollars and how Paul Kess did not follow Council’s original instructions. For more background info about The Ely Tourism Bureau’s concerns voiced prior to tonight’s Council meeting, read the October 10th issue of The Timberjay, “Ely Tourism Bureau warns city over lodging tax distribution,” https://www.timberjay.com/stories/ely-tourism-bureau-warns-city-over-lodging-tax-distribution,23571.
Paul Kess will be addressing the Council as the Council-appointed member of the Ely Area Lodging Tax Joint Powers Board. No documents were submitted in the Council Packet.
Note: Both local newspapers have printed several articles and letters to the editor about the use of lodging tax dollars and how Paul Kess did not follow Council’s original instructions. For more background info about Council’s discussion at their last December 2nd meeting, read the December 6th issue of The Ely Echo, Kess survives tourism coup,” https://www.elyecho.com/article/3897,kess-survives-tourism-coup
Use of Lodging Tax Dollars – What’s All the Fuss?
Echo sensationalized & thus exposed the political agenda
The Ely Echo sensationalized and thus indirectly exposed the political behind-the-scenes activities of City Council and City Hall. Count all the subjective words used in the title and article,”Kess survives tourism coup.” The Ely is biased against efforts that don’t support their political goals. In their Ely Echo Editorial: Lodging tax funds must be flexible and accountable, the editor(s) stated, “We’re not sure why the focal point of the debate over lodging tax funds is playing out at city hall, but nonetheless, there needs to be oversight of these tax dollars as well as accountability.”
Ely City Hall is precisely the place where this debate should take place! City Council is supposed to represent Ely residents and businesses. We elected them to represent us. Paul Kess was not elected by the citizens. He was not elected by those who pay lodging taxes. We don’t want backroom decisions nor political deals made. We want open public discussion. Paul Kess admitted he voted differently than instructed by Council after he privately consulted with the mayor and an unnamed Council Member. That’s backroom politics. That’s what the Ely Echo wants, quiet backroom political negotiations?
When the Ely Echo editor’s wrote about oversight and accountability, they focused on collection of lodging taxes – not the issues raised raised by Emily Roose (not following Council’s instructions) nor the issues raised by the Tourism Bureau (funding).
Educate yourself – read – talk to those who pay lodging taxes
For more info about Council’s discussions at about lodging taxes, read
(a) The December 2nd draft minutes in tonight’s Council Packet (pages 5-12) https://www.ely.mn.us/2025councilmeetings
(b) The Council Packet of last minute additions and changes to the original December 2nd agenda packet. https://www.ely.mn.us/2025councilmeetings
(c) Our post regarding the Dec 2nd Council meeting: https://elyminnesota.com/blog/noise-lodging-tax-demographics/
(d) Back issues of Ely’s Ely Echo and The Timberjay. If you don’t subscribe, go to your public library.
For more information about lodging taxes in Ely, review Section 6.33 of the Ely City Code at https://www.ely.mn.us/ordinances . The first page of Section 6.33 appears here in the column on the right.
There are some interesting loopholes in the definition of “Lodging.”
For more MN State information on lodging taxes, go to https://www.house.mn.gov/hrd/pubs/lodgetax.pdf for MN House Research, August 2019, “Local Lodging Taxes in MN.”
Luxury Jackson Hole development in Ely – costly mistakes
Is the City Vision to turn our Ely into an upscale playground for the rich?
The City and those who wanted to build and have IRRRB finance “upscale amenities” here in Ely envision turning Ely into a Jackson Hole resort town. Look at the luxury hotel being built in the Old Community Center. The developer didn’t have financing, so the City stepped in with lobbying efforts, etc.
If you haven’t checked out the Trailhead Building, go now. Why couldn’t we have built something similar to simple park buildings?
Putting the Chamber into the Trailhead sends a message that the building isn’t really for us regular residents. The furniture and building layout do not give vibes that this is Ely’s building. It does not look or feel like us. It looks like it belongs in Jackson Hole, Wyoming or a ski resort in the Swiss Alps.
Why and for whom did we build this luxury Trailhead building?
The 2-story (one story with high roof) building and furniture speak of luxury, not regular active or rugged use. It should have a simple comfortable style that matches what we see in our current hotels, motels, family resorts, restaurants, and business. The Trailhead appeals to the wealthy, not regular everyday Ely residents and tourists. First thing most of us do when we walk inside is remark how expensive the heating costs are for the tall one-story building.
If you paid attention to all the commission meetings — How could you? They are not broadcast or streamed free of charge 24/7/365 — you would have learned that no organizations wanted to move into the Trailhead. They were happy where they were located and didn’t want to pay $$$ more to be in the Trailhead Building.
Since there were no commitments to occupy or use the Trailhead, the designers and contractors couldn’t design or build based on user needs.
“Build and they will come,” we are told. And our response is, “We are here. Build for those who currently live here.”
Look at the layout of the Trailhead rooms for organizations (?) and public. Is this the layout that we need? Remodeling costs money.
The City of Ely wastes money, especially but not limited to due diligence.
Citizens for transparency has frequently brought up awarding of contracts via “single source” or no bidding. It’s politics as usual and/or just plain laziness.
The City has its favorite contractors, friends, allies and long-term business relationships. The City just likes to award contracts without bidding. Listen to comments about award of contract for crack sealing of City streets: https://elyminnesota.com/blog/city-council-sep-3-2024-mtg/ Unfortunately, it’s not about saving and spending taxpayer money wisely.
Citizens for Transparency pointed out due diligence wasn’t followed on some services and work on the Trailhead Building. Watch Paul Kess speak out for due diligence: https://elyminnesota.com/blog/city-council-dec-17-2024/
The City of Ely can easily find ways to cut wasteful expenses including but not limited to following due diligence guidelines.
The City should not redirect lodging tax $$ to pay for its City-owned building.
3rd Request to Appear = HPC
The Co-Chairs of the Heritage Preservation Commission (HPC), Margaret Egan and Pam Turnbull, will give an HPC Project Update.
Pages 23-31 in the Council Packet are dedicated to HPC minutes and documents related to their 3 recommendations for Council to vote on. See recommendations in the right-hand column. See photos below of Trailhead Building and the Carl Gawboy mural.
FYI: For additional info about Carl Gawboy: PBS The Slice | The Art of Carl Gawboy (youTube). MN Native News (Native Lights podcast) Gallery 5004
eee
Appointments to Open Commission Seats
The ongoing mystery is how Council is going to vote on appointments when more than one person applies. There is no real established procedure. Will they draw names out of a hat? Will they only vote for those they know? Will they find one sentence they really connected with?
There are no interviews. Applications are supposedly the only way to persuade Council. Completed apps are in the Council Packet: https://www.ely.mn.us/2025councilmeetings
There will be additional commission, board or committee seats opening up in 2026. Look for the new application form; don’t just recycle an old one.
Finally, a new Comprehensive Plan Steering Committee is being created. The revised application questions are “interesting.”
Upcoming 2026 Open Commission Seats
Comp Plan Steering Committe – Revised Application Forms
The application forms proposed by have been updated. Compare the new ones (3 pages below from Council Packet) with those from the last December 2nd Council meeting. See previous comments posted Who’s to represent us on the Comp Plan Steering Committee? https://elyminnesota.com/blog/noise-lodging-tax-demographics/ (look for yellow highlights).
Do all applicants have the same concept or definition of “unique perspectives” when they answer “What unique perspectives do you bring to the Committee?” That needs to be clarified, so they all have a fair chance in answering the question. And clarify means you indicate upfront what you (P&Z Admin, P&Z Rep, and Council Rep) are looking for. Among other things, are you really looking for “unique perspectives”? Does “unique perspectives” relate back to the demographic targets?
The rank scoring system is still confusing. If you answered all questions, whether misguided or not, you get 6 points? Aren’t there more than 6 questions? Why is “Understanding of the Comprehensive Plan” weighed so low? Ignorance is bliss? (attributed to Thomas Gray). What do 2 or 4 points actually mean on a range 0-5 or 0-6?
There are some target demographics to fill. If these demographics are targets to fill, then what is the point system or means to objectively fill that target? There’s no clear, logical and transparent explanation as to how how the P&Z Admin, P&Z Rep, and Council Rep will fill these demographics. None of these 3 other seats (P&Z Admin, P&Z Rep, and Council Rep) need to meet or balance the group’s target demographics of low income, age or gender diversity? Are the at large members supposed to just outwardly represent or actually voice the full range of perspectives (issues, values, hopes, dreams, financial situation, etc.) of the demographic targets.
Many application questions and targets bring concerns about awkwardness, appropriateness and legalities: There are people who do not want to publicly identify themselves as low income. Do they lie, tell the truth, come up with their own definition of low income, or just not apply? Should low income really be public knowledge? What do “Diverse age range” and “Diverse gender make up” mean? I don’t see any questions about age or gender on the application form. Or points. Are P&Z Admin, P&Z Rep, and Council Rep supposed to guess (= assume)?
Finally, what does “Ability to resolve conflict” mean? One of the best ways to approach conflict when discussing the Comprehensive Plan is to refer back to the Ely’s City Vision (which unfortunately does not really encompass all of us, seniors being a major example). Another way to approach conflict is for the City and the pre-selected leadership of the Comp Plan Steering Committee make their agenda, philosophy, and development goals very transparent and upfront from the beginning. For example, if the intent is to scrape all the living flesh off of the Comp Plan and only leave the skeleton, say that. If the intent is to add living flesh to the bones, say that. Is the goal to build buildings or to take care of the people living here? Is the goal to encourage sustainability and balance with our environment or exploit everything? (Extreme examples, yes.)
If the intent is to have like-think, compliant, and obsequious members, say that. If City Hall, Council and the leadership of the Comp Plan Steering Committee want members to feel comfortable voicing “unique perspectives,” then THEY are the ones who need to know how to manage conflict of perspectives AND incorporate those “unique perspectives” into the Comp Plan. Leadership should have conflict resolution skills, attend workshops if they don’t, use them, model them, and do not pass all the burden/responsibility on the shoulders of nonleadership. For example, requiring commissioners, appointees, and staff to have conflict resolution skills and training while not requiring the same of leadership (chairs, Mayor, Council, and City Administration). Bullying is still not banned.