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Two years after local opposition and lawsuits helped scuttle plans for a redeveloped lakeshore resort outside Ely on the doorstep of the Boundary Waters, developers are back with a new, slightly scaled down approach to reviving the Silver Rapids Lodge. 

And while there is plenty of support for updating and reviving the iconic resort built over a century ago along the rocky narrows between White Iron Lake and Farm Lake six miles east of Ely, there is once again pushback from surrounding cabin and vacation home owners who say the proposal 

does not mesh with the area’s quiet, wilderness-oriented vibe

Developers envision a revitalized property with a new lodge, bar and restaurant, a pool and spa, along with a remodeled motel and seven cabins. 

In addition, the redevelopment includes 44 new “fractional share” cabins on the 60 acre property. Each cabin would have four owners, who would each get 13 weeks to stay at the cabin, or they could rent it out when they’re not there. 

The proposal also calls for 33 boat “moorings” – essentially parking spaces for boats– on an  unspecified number of docks. That’s down significantly from the roughly 90 boat moorings proposed in the first redevelopment plan. 

It’s also a reduction from the 52 moorings on 26 docks that the developers initially pitched in this reimagined project. 

Sandy Hoff, President of F.I. Salter Real Estate in Duluth and one of the development partners on the project, said they further reduced that number to 33 after the Minnesota DNR said that the plan for 52 didn’t comply with state and county lakeshore requirements. 

“We've listened,” said Hoff. “The number of units has been reduced. The scope of the overall development has been modified, and we are trying to accommodate the feedback that we have heard, so that we truly can try to get the support of those who are most concerned.”

Hoff said he and his development partner Jamie Tatge of Leisure Hotels and Resorts, based in Baxter, Minn., have been getting more support for the estimated $40 million project this time around from area residents. “They understand the need to redevelop this property because it is run down. It's an eyesore,” he said. 

But despite the modifications, many in the area remain adamantly opposed to the proposal, which they argue would increase noise, traffic and congestion, and fundamentally alter the character of the area. 

“It will transform a peaceful place of natural solitude and beauty into something else entirely– a busy hub with multiple groups of people focused on dining, drinking and partying,” said Mary Zimmerman, who lives about half of the year in a home on White Iron Lake, just a couple hundred feet from the resort property. 

Two years ago, hundreds of area residents signed a petition opposing the development and asking for a more rigorous environmental review of the project. Some said it would create a 

 at the site, which is just a three mile boat ride from the edge of the Boundary Waters wilderness area. 

After Lake County officials approved permits for the resort redevelopment, a local group of citizens and 

 to try to block it, arguing the project’s approval violated county and state shoreland development rules. The developers later voluntarily 

“It’s just not the right plan for this zip code,” said Mary Garbutt, a third-generation White Iron Lake cabin owner who was involved in the effort opposing the resort two years ago. 

She would prefer to see the project scaled down even further to better fit with the serene North Woods environment that residents treasure. 

“I think we're all realistic that we'd love to see Silver Rapids have the restaurant, have the bar,” Garbutt said. But she calls the density of the current proposal “crazy.” 

But others miss the bustling nature of the historic resort from decades past, when it was a destination that added to the Ely area’s character. 

“I remember a vibrant, busy place that was an important part of the lake community,” said Jack Tome, who grew up on Farm Lake, about a mile by boat from Silver Rapids. He and his brothers now share the lake home among their families. 

Tome says the current resort is a shadow of its past, with limited hours, a smaller menu, and dilapidated docks in serious need of repair. Tome said he was excited when he learned about the proposal to reinvest in the property – and disheartened by the opposition from what he believes is a small but vocal group. 

“I want to see Silver Rapids become a vibrant part of the community again,” Tome said. “Someone is willing to make a significant investment in a property that has been an important part of this area for generations. That means jobs, visitors and people spending money in Ely.”

Tome and others say the developers’ investment could be a big boost for the economy in a region in which businesses have been decimated by this summer’s wildfires, which have scorched tens of thousands of acres in and around the Boundary Waters Canoe Area Wilderness. 

Hoff said he and his fellow developers’ plan is to create a resort that blends in with the surrounding area. He said the lodge and cabins won’t be “Wayzata type structures,” referring to the city on the shore of Lake Minnetonka. “They're going to be designed to fit into the environment up there.”

The developers also say they plan to remove several lakeshore RV sites and campsites and address legacy environmental issues, including leaking underground fuel tanks. 

The developers prepared an environmental assessment worksheet, or EAW, to analyze the potential impacts of the project. The Lake County Planning Commission is scheduled to hold a hearing on the adequacy of the document on Aug. 17. 

Hudson Kingston, who is with the environmental group CURE and is also a Fall Lake Township supervisor who lives near the resort, said it’s a positive step that an EAW was conducted. But he said the document is incomplete and inconsistent and needs to be revised to more specifically address how it would mediate the oil leak and other issues. 

“The EAW is a good development,” Kinston said. “It allows the county to take a breath and think about this before they go through a permitting phase. I'm hopeful that everyone will learn something from this process and we can get a better project out of it that benefits the community and the developers.”

If the county approves the EAW the project would then move to the permitting process. 

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Dan Kraker

Author

The $40 million proposal to update and refurbish the Silver Rapids Lodge outside Ely promises to inject new life into the resort. But some neighbors believe it would transform the quiet character of the area. 

A scaled-down plan to revive a historic lodge near the Boundary Waters faces renewed opposition

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