Ely council prioritizes 7th Street CDBG project, flags $603,750 wastewater match confusion

The Ely City Council on Nov. 14 prioritized the 7th Street Drainage Improvement Project as its top Community Development Block Grant application for the 2025–2026 cycle, and named the Wastewater Treatment Plant Upgrade as its second priority in order to preserve a federal earmark match opportunity.

City Clerk Jennifer Lee told the council 7th Street is currently low- to moderate-income eligible based on a city income survey approved earlier in 2024, and therefore ready for a CDBG application. She said the North Street/Fay Avenue drainage and the wastewater upgrade are not eligible under current U.S. Census data without a city-wide income survey, which cannot be completed before the February application deadline.

At the public hearing, resident George Chachas pressed the council to favor 7th Street and North/Fay because of ongoing erosion and property damage; he also pointed out an apparent discrepancy in the backup materials for the wastewater project, asking whether the $603,750 figure listed on the agenda represented the city’s required match or the total engineer estimate. “It says $603,750.00, but on the Engineer's estimate it is over $6 million. Which one is it?” Chachas asked.

City Clerk Lee and City Engineer B.J. Almberg explained the $603,750 cited in the agenda packet is the additional local match needed to complete a $1.2 million cost share the city already committed toward a larger, federally earmarked wastewater project; Almberg said the larger engineer estimate covers the entire upgrade scope and that the city is seeking to use CDBG funds where compatible and to rely on the federal match where possible. Lee noted the city has already allocated $600,000 in Community Service Funds toward the match and said the city has an active request for engineering design qualifications that will take six to nine months.

Councilwoman Jerri Lynn Williams-Harper moved to prioritize 7th Street as the top project and the Wastewater Treatment Plant Upgrade as second priority; the motion passed with three ayes and one nay from Councilwoman Melody Van Camp.

Why it matters: The council’s prioritization preserves the city’s ability to meet a federal earmark match while keeping a shovel-ready, CDBG-eligible drainage project on the near-term list. Residents and council members sought clarity on what the $603,750 figure represents relative to the full engineer estimate and how the city’s match obligations will be met.

What’s next: City staff will proceed with the CDBG application for 7th Street in February and continue engineering work and coordination on the wastewater match that the city expects to fund in part through existing allocations; staff said a city-wide income survey may be completed later to expand eligibility for other projects.