My take.
Seelie used to be a mining town, one day there was a terrible disaster, lots of miners were trapped, in fact - all of them. a wizard was passing by, and happened to be evil, but not EVIL, he was a necromancer.
People of the village see he is a wizard, ask him to help, he is afraid of being outed as a necromancer, so he animates crustaceans, the villagers think he's merely controlling the creatures instead of animating undead lobsters and crabs.
He gets the tunnel clear and saves the villagers, one of the men who was down in the tunnel was a priest, who had been trying to stoneshape the men out, but hadn't been powerful enough. he thinks his god has forsaken him, but he can tell something isn't square about this wizard, he senses evil. but at the same time, this wizard delivered him, and his god forsook him.
He asks the wizard what's up, he lays his cards on the table "look man, I know you're evil, and I know those things are some kind of abomination, if I try to turn undead what's going to happen"
Wizard comes clean, priest is shocked, but the wizard just doesn't want to adventure anymore, his group of adventurers died, he couldn't save him, they were his family. He just wants to fit in somewhere. He accepts that the priest is going to let the people know he's a necromancer, and he prepares to open his veins.
The priest stops him.
The priest doesn't want anymore of the villages sons to die in the tunnels, he doesn't want to call out to a god who abandons him as soon as he asks for anything more than a light heal or some conjured water.
He offers the necromancer a deal.
They are both well regarded in the community, and start slowly introducing powerful magical golems to the city (Animated skeletons in thin metal suits made by the blacksmith hiding their real nature) they do the mining, and protect the villagers.