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Ely council approves $95,000 loan to downtown garage after debate over conflicts and rules
Summary
After weeks of questions about eligibility and perceived conflicts, Ely City Council approved a $95,000 loan from its Revolving Loan Fund to Ojii-san Garage LLC, set a seven-year term at 3% interest and directed staff to draft clearer future loan rules.
The Ely City Council voted to approve a business loan from the city's Revolving Loan Fund to Ojii-san Garage LLC on Aug. 28, 2025, after extended debate about conflicts of interest and public notice.
The loan motion, moved by Councilman Terrill Trask, authorized up to $95,000 with a seven-year term and a 3% interest rate; the measure passed 3–1 with Councilman Dennis Perea voting no and Councilwoman Jerri Lynn Williams-Harper abstaining. The applicant’s paperwork had requested $100,000 at 1%, and the council adjusted terms during discussion.
Council discussion centered on whether city officials or their family members should be eligible for revolving-fund loans and how terms and collateral should be set. City Attorney Chris Arabia said he found no clear legal prohibition in the current rules but warned of a possible perception problem if municipal employees or their relatives receive preferential treatment. Applicant Jessica Hendrickson identified herself as the member-manager of Ojii-san and disclosed she is married to a city employee.
Councilman Perea sought to table the matter and create a non-quorum review group to recommend policy language; other council members said they wanted to avoid discouraging local business formation in a small town. City Treasurer Janette Trask recommended prudence on maximum disbursements; she later advised a $95,000 cap for this vote.
Council members also discussed procedural steps to reduce perceived favoritism, including advertising loan programs more broadly and pegging loan terms to objective benchmarks such as Small Business Administration benchmarks or comparable market rates.
The council separately directed Treasurer Trask to compile recommendations and suggestions from council members for formal Revolving Loan Fund rules to return as a proposed plan at a future meeting.
The action resolves the applicant’s immediate request but leaves unresolved policy questions about eligibility, advertising and objective term-setting that the council instructed staff to address.
