Special session unlikely as pleas for fire relief go on

Small businesses in northeast Minnesota that cater to canoeists and other summer visitors are calling for economic relief after being decimated by wildfire-related losses, even though Gov. Tim Walz indicated Wednesday that a special session to provide aid to businesses affected by the Boundary Waters fires appeared unlikely.

“It is an extremely devastating blow, and I fear for some of the businesses in this town that they may not survive this,” said Tanner Spicer, owner of Voyageur North Outfitters in Ely, who had hoped for a special session.

More than 80 businesses and nonprofits in northeastern Minnesota sent a letter to Walz and state legislators Thursday, calling for a special session for fire relief, or for an economic relief package passed when the legislature reconvenes in January.

The letter asks for grants of up to $150,000 for businesses and groups that lost at least 20 percent of revenue between July and August when compared to last year.

“We can’t and don’t expect a comprehensive solution today,” said Ben Seaton of Hungry Jack Outfitters. “But our officials waiting for the perfect time, the perfect words, or the perfect solution only leaves the rest of us without those very things we need so very badly right now.”

The lightning-caused fires that ignited and spread through the area last month led the Forest Service to close the entire Boundary Waters Canoe Area Wilderness for about two weeks. Resorts and other businesses that were in evacuated areas had to close, and the region was blanketed in unhealthy smoke for a couple days, keeping visitors and the money they usually spend in the area away.

Since then, cooler, wetter weather has helped firefighters gain some containment of the fires. Most evacuation orders have been lifted, and the U.S. Forest Service has reopened much of the wilderness.

But the tourism-focused businesses in Ely and elsewhere around the Boundary Waters earn nearly all their revenue for the year during the busy but short summer months. And many lost nearly all their income in July. Spicer said that’s money that cannot be made up.

“A lot of businesses lost hundreds of thousands of dollars already, and they need some relief,” said Republican State Rep. Roger Skraba, who represents Ely and the surrounding area in the state legislature.

Skraba, along with DFL State Sen. Grant Haushchild, have called for a special session to provide economic aid to businesses impacted by the fires. They also hosted two economic forums – one in Ely, a second along the Gunflint Trail– to hear from businesses impacted by the fires.

At the Grand Marais session, David Seaton, co-owner and operator of Hungry Jack Outfitters told the lawmakers he lost 98 percent of his revenue, calling the month of July, “disastrous.”

“Every one of our cabins [was] canceled. Every one of our outfitting groups could not do their trip,” Seaton said.

Cook County Commissioner Ann Sullivan said small businesses in the area are facing pushback from their insurance companies for claiming damages due to business interruption.

“At a time when cash flow has been turned off, the spigot is turned off, a lot of [small business owners] have large bills looming for canoe fleets, and also for merchandise and mortgages,” Sullivan said at the Aug. 1 discussion. “We heard from almost everyone that business interruption insurance coverage is either not available to them or is being denied. I have not heard one insurance company claim that they are going to support our businesses.”

Hauschild said they’re also targeting other sources of funding to provide businesses with some aid, from nonprofits and state agencies, including Iron Range Resources and Rehabilitation and DEED, the Department of Employment and Economic Development. “We’re just working on a holistic approach to provide relief,” he said.

The United Way of Northeastern Minnesota (UWNEMN) has raised more than $190,000 as of August 6 for individuals and small businesses that lost income as a result of the wildfires.

The agency plans to award grants ranging from $2,500 to $5,000 to help businesses with payroll assistance, rent, mortgage and other expenses. Individuals can apply for funding ranging from $500 to $1,500.

So far the United Way has received more than $300,000 in requests. “After weeks of critical revenue during what should have been these communities’ busiest season, we know recovery won’t happen overnight,” said UWNEMN Executive Director Erin Shay. “For many, the financial impacts will continue long after these fires are out.”

Canoeists and other visitors have begun to return to northeast Minnesota. About two-thirds of the Boundary Waters Canoe Area Wilderness have now been reopened.

But people continue to cancel trips for later in the summer and fall, said Spicer. “I was just on the phone with another customer who canceled their trip for September because they’re afraid of the fires and the smoke, even though we haven’t had smoke since day two of the fires,” he said.

Businesses continue to battle the perception that it’s unsafe or unhealthy to visit, Spicer added. “The news makes it doom and gloom all over the place, and people think we’re burning to the ground, and it’s not that way,” he said. “You wouldn’t even know there’s a fire going on.”

He encourages people to support Ely businesses on-line and by buying gift certificates. He also wants people to call their legislators to ask for economic aid for businesses harmed by the fires.

“The skies are clear. The smoke is gone. Our businesses are open,” said Hauschild. “We want people to plan late summer and early fall trips up to northern Minnesota.”