Cloquet, Minnesota
The Goal
Hotel Solem, a 25,000-square-foot historic building originally constructed to house workers rebuilding Cloquet after the 1918 fire, had fallen into severe disrepair and was condemned in 2022. Its age and structural condition presented significant redevelopment challenges that many groups were unwilling to take on, creating both a risk and an opportunity to preserve a historically significant property.
The Solution
Ehlers worked with the Economic Development Authority to structure a layered redevelopment financing package using available economic development tools. This included conveying the property for $1, waiving permit fees, securing a sewer connection credit, establishing a 26-year TIF Redevelopment District based on detailed pro forma analysis, and supporting a DEED Redevelopment Grant. In addition, Ehlers also assisted with structuring a low-interest EDA loan and funding public parking improvements to support the project.
The Outcome
Once condemned and at risk of loss, the historic Hotel Solem is being preserved and reinvented through a nearly $4 million renovation. The Solem Apartments will provide new downtown housing, modern safety and accessibility improvements, and ensure a building tied to Cloquet’s recovery after the 1918 fire remains part of the community’s future.