Ely Businesses Reel from Wildfires and BWCA Closure: A Path to Recovery Emerges

Ely, a small town in northern Minnesota, is facing an unprecedented economic crisis due to the ongoing wildfires and the closure of the Boundary Waters Canoe Area Wilderness (BWCA). The July Lightning Event Boundary Waters closure is only the third time in history that the wilderness has formally closed down, and the earliest such a closure has ever occurred. As a result, local businesses, which heavily rely on tourism, are struggling to stay afloat.

The Ely Chamber of Commerce, in collaboration with State Sen. Grant Hauschild (DFL-Hermantown) and State Rep. Roger Skraba (R-Ely), hosted a roundtable discussion to discuss potential solutions for recovery from the wildfire economic impacts. The meeting brought together community leaders and business owners to share their stories and ideate on ideas for legislation, private fundraising, and other forms of support.

According to Jason Zabokrtsky of Ely Outfitting Company, the timing of the closure is particularly devastating for local businesses. 'Timing-wise, this is our worst-case scenario financially,' he said. The BWCA closure has resulted in a significant loss of revenue for businesses that rely on tourism, and the economic impact is likely to be felt for months to come.

The Minnesota state government has a history of providing support to businesses affected by natural disasters. In recent years, state-designated funds have assisted businesses affected by floods and fires. However, any economic assistance legislation prior to 2027 would need to occur during a special session, as the next Minnesota legislative session won't begin until January 12, 2027.

In the meantime, community leaders are exploring alternative solutions to support local businesses. Rep. Skraba suggested that widespread donations from individuals who love Minnesota's northern region could provide a much-needed boost to the local economy. 'If we got 200,000 people to donate a little bit, that's a lot, and that will help,' he said.

Nicole Lalum of Explore Minnesota said that the agency is focusing on promoting autumn tourism across the region, with plans in the works for winter and spring activity marketing as well. Ginny Nelson of the Ely Area Tourism Bureau and Spirit of the Wilderness Outfitters encouraged individuals to share and like small business social media posts, spread the tagline that Ely is open for business, and book with local resorts and campgrounds.

The United Way of Northeast Minnesota (UWNEMN) has also begun collecting donations for a crisis and disaster recovery fund. The organization will allocate the finances to areas of greatest need, including a specific designation for small businesses in Ely. An application for these businesses will open by July 31. UWNEMN has previously gained experience with disaster recovery following the Brimson wildfires and the Cook flooding event in 2024.

Tanner Spicer, president of the Ely Chamber of Commerce, emphasized the importance of tourism to the local economy. 'The driving force of our economy here is tourism, and pretty much just tourism,' he said. 'Not only is it a unique economy, it's a very fragile economy. As we've seen now, one event can shut down this city.'