Cottage Grove, Minnesota
The Goal
Cottage Grove sought to preserve the historic Cedarhurst Mansion while identifying a financially sustainable long-term use for the property. After evaluating multiple redevelopment concepts, the City selected a proposal from Bellagala that maintained the mansion’s historic character and added an event space. However, a $2 million funding gap remained, creating a need for public-private financing solutions to make the project feasible.
The Solution
Ehlers worked closely with the City and the developer to evaluate multiple iterations of the project’s financials and identify strategies to close the funding gap. Drawing on its municipal finance expertise, Ehlers led detailed financial modeling and analysis to assess feasibility and risk, and helped structure financing options aligned with the City’s preservation and redevelopment goals. Through this collaborative process, the team determined that a $2 million City loan to Bellagala was the most effective solution to advance the project.
The Outcome
The City approved a $2 million loan to Bellagala, structured with interest and a partially forgivable component contingent upon the facility’s successful operation for seven years. This approach preserved the historic Cedarhurst Mansion and enabled its transformation into a vibrant event space, ensuring long-term community benefit and sustainable reuse of the property.