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How money is spent – Council mtg April 7 2026

Tuesday, 5:30 pm — Public Hearing about Miner’s Drive starts at 5:15 pm

There are so many interesting action items in the 4-page Council agenda AND in the minutes from City government groups that met recently. We’re highlighting only a few items from the Comprehensive Plan Steering Committee, Budget meeting, Ely Economic Development Authority (EEDA), Airport Commission, and New Business. You’ll find more tidbits when you read the full (draft) minutes. There’s way too much to write about for just these three groups, so you’re on your own to discover surprises in the reports, plans and proposed expenditures from the Police Chief, Joint Powers Lodging Tax Board, and Comprehensive Plan Steering Committee. See Council packet for New Business items on the agenda as well as (draft) minutes of the last Council meeting on March 17th (3 weeks ago). Note: Not all those providing reports to Council share a written report in the packet.

Posted here below is the current 4-page agenda that was posted on the City website. You probably don’t have time to read the entire 76-page Ely Council packet for Tuesday’s meeting. The packet is posted online at https://www.ely.mn.us/council-meetings. Check again online just before the meeting for any additions or changes. Additions and changes are not always posted online before the meetings, so check for the Council binder or papers on the table right inside the Chamber doors.

https://www.ely.mn.us/council-meeting
https://www.ely.mn.us/council-meeting
https://www.ely.mn.us/council-meeting

Educate yourselves – read the documents and not just the agenda

Especially for this Council meeting, glance at the (draft) minutes and attachments submitted in time to be included in the Council packet. As pointed out previously, when documents, minutes and action items presented shortly before Council meetings, they are sometimes intentionally submitted last minute so they are NOT to be scrutinized carefully. Many wonder if the Mayor and Council actually study the Council packet before the Council meetings start, especially since they rarely comment or question anything other than an action item they have to vote on. Those few viewers watching from home or in the Council Chambers don’t always see or hear tidbits about expenditures such as

From March 31st Budget meeting (draft) minutes

If EEDA is paying for propane and utilities for the old Chamber building, then why not also for the new Chamber location in the Trailhead Building? Why are lodging tax dollars being diverted to pay for the Chamber’s utilities (and ??) in the Trailhead Building?

Public Hearing on Ordinances at 5:15 pm before Council meeting

Prior to the Council meeting, there is a Public Hearing scheduled for 3 Ordinance changes. The Public Hearing starts at 5:15 pm. Council is apparently expecting nobody to show up, because the hearing is scheduled for a total of 15 minutes. Please refer to our separate post about these Ordinances. They mainly pertain to development along Miners Drive. If you have any comments or concerns, you have to go to the Public Hearing or submit comments prior to that hearing. At the Council meeting, the City Attorney will present the 2nd Reading of these Ordinances. There is no opportunity for the public to present comments at the Council meeting before Council votes. Did you read details above and beyond the public notice in The Ely Echo? Why wasn’t there extensive news reporting about these Ordinances and planned development?

Comprehensive Plan Steering Committee – more info needed

The Council packet only has the (draft) minutes from the Steering Committee’s March 9th meetings. There are no minutes or notes from their subsequent meetings with vendors. Shouldn’t Council and the public have a chance to review those minutes or notes before voting. It is possible minutes and notes for these additional meetings will be posted/available just before Council meets on Tuesday.

Has a Request for Proposals (RFP) already been designed for Council to comment on? Or the public?

Will the Steering Committee let Council and the public know what their Steering Committee vision is for Ely? Is that vision reflective of the whole community? A balanced, healthy community?

Their vision seemed to be all about development (industry). Nature was missing. “Services” was vague. Infrastructure is not the same as mental, health and spiritual needs.

Find budget minutes in Ely Council packet for April 7, 2026 at https://www.ely.mn.us/council-meetings

Last item: Babbitt Police Department Contract. Will Council ask for more details, so the public can hear details? Does “part time” mean Ely PD officers are working additional hours beyond their full-time positions in Ely PD? Will they be required to wear Babbitt PD uniforms when working for Babbitt?

The proposed hourly rate for maintenance increase is from $16 to $32. See first item under New Business – Airport Contract. Explanation for increase was attached. Should the wage be $32/hour for mowing grass? Should equipment maintenance only be $32/hour? What is “equipment maintenance”? Some equipment maintenance done by licensed professionals should probably be higher than $32/hour. Will Council question the doubling of hourly rate? Has Council publicly questioned salaries and hourly rates, other then going after the Tourist Bureau?

Are City staff/employees under or overpaid? What are comparable and equitable wages? Are office or white collar jobs (especially those held primarily by women) as “valuable” as blue collar or outdoor maintenance jobs (especially those held primarily by men)? Everyone deserves decent wages and benefits.

We all appreciate our Ely Library staff. They are skilled in customer service. They prepare for and provide additional educational programs for the community, more so than library staff in metropolitan areas. Their required knowledge and skills cannot be easily learned or replaced. Does the City fully reimburse them for trainings? Do they earn the equivalent OR MORE than $32/hour after all their years of service?

EEDA – Development for our booming economy

The Ely Economic Development Authority (EEDA) is supporting more development along Miners Drive (“Commercial Corridor”), including but not limited to the Old Train Depot. These plans are no doubt connected to the Ordinances that City Hall, Mayor and Council are expected to approve on Tuesday.

There are those who believe Ely should build: Build and they will come. They believe Ely – indeed our whole economy – is booming and will continue to boom, so they plan and spend $$ accordingly. Well, if Ely’s economy is booming, why are there so many vacant and neglected commercial properties on Chapman and Sheridan?? For years.

Notice THEY (meaning EEDA = City Hall + Mayor + Council) do NOT say, “Let’s first invest in Chapman Street.” Chapman Street is not even a second thought. Rather than promoting and investing in Chapman by repurposing or replacing current underused buildings on Chapman, THEY want to destroy the quiet, natural areas of Miners Drive. While discussing the Land Use and Comprehensive Plan last year, one active community member said the City of Ely has enough natural spaces. We have the Boundary Waters, Whiteside Park and Lake Shagawa. We don’t have room to create, preserve or expand open natural environmental areas.

It’s like kicking the can down the road: the City eventually needs to do something with Chapman Street. So why not now, first? Spending time, energy, lobbying efforts, and funding on Miners Drive (“Commercial Corridor”) most likely means afterwards there will be very limited lobbying efforts and funding for Chapman Street. Are THEY going to ask Chapman Street businesses to relocate? Figure out first what to do to revitalize historic Chapman Street. Support and fund Chapman projects first.

Isn’t it strange that the usually vocal environmentalists are not trying to preserve what’s left of the natural quality of Miners Drive? Somewhere there has to be a reason for their silence. While discussing the Land Use and Comprehensive Plan last year, one active community member said the City of Ely has enough natural spaces: We have the Boundary Waters, Whiteside Park and Lake Shagawa. We don’t have room to create, preserve or expand open or natural environmental areas. Who disagrees?

There’s a new LLC in town: Bearhead Development

Bearhead Development, LLC is mentioned throughout the EEDA minutes. According to MN Secretary of State website, it has been in business for less than a year. LLC status gives protection to its owners. Very loosely put, owners’ names are not publicly known and their personal assets are shielded. The City of Ely, Mayor and Council seem eager to give everything to Bearhead Development: Ordinance changes, lobbying support, development freedom, and even the kitchen sink without knowing who the owners are. Read the minutes. Notice the votes.

By the way, why haven’t our local newspapers covered Bearhead Development, LLC discussions with City Hall, Council and commissions? Our Google searches yielded no articles. Development this big and this expensive suddenly appears within the last month per minutes?? Is this the first time Bearhead Development is being introduced to Council and they are to approve recommendations to them? Remember, the public cannot publicly comment or ask questions during Request to Appear time before Council votes. Too late. Some of us first saw Bearhead Development mentioned in the April 7th Council packet.

Notice the last point. Is Bearhead Development owned by the Otts? Will Council ask for public clarity?

Developers and real estate investors make LOTS of profit with limited investment on their part. Trump isn’t the only one who knows the profit game and how to manipulate government and agencies to his advantage. Everything’s connected. Follow the money.

Remember the luxury hotel being built in the old Library and Community Center? The original investor/contractor/owner, Matt Stupek, didn’t have funding or investors to complete the luxury hotel. Who were the original investors? How much of his own money did he invest? Construction stopped. There were other problems not dealt with. Suddenly, on October 1, 2024, an hour or so before the Council met, a contract with a new LLC was presented to Council. No questions asked; Council approved. Pillar Company LLC was not listed on the Secretary of State’s website as of October 1st. The address for the company was the same as for Matthew Stupek. See our post with YouTube recording of that Council meeting https://elyminnesota.com/blog/city-council-oct-1-2024/

Here are EEDA minutes included in the April 7th Council packet.

ii

Under Communications, it appears John Fedo & Associates is a business handling the bidding for the workforce housing Wilderness Escape. The minutes are awkwardly written. It is not clear if the subsequent use of “We” refers to John Fedo & Associates or the City of Ely or ??

Under 2026 EEDA Priorities, “Sato space” is mentioned. According to Google AI, this is what was meant

Google search April 5, 2026

New Business items – pages 58-76 Council Packet

Gawboy Mural Trailhead Project: Council has been spending lots of time discussing what should be displayed or used at the Trailhead Building. Why weren’t these discussions held before the Trailhead opened? Who proposed these resolutions? Why weren’t these resolutions submitted via Park & Recreation Board? Who is Ely Area Senior Citizens, Inc.?

Ely Dog Park – Rummage Sale, May 16th. It is sad that The Ely Dog Park volunteers are forced to do so much fundraising instead of the City running the park.

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