Cottage Grove EDA approves $100,000 forgivable loan to restore Cedarhurst as wedding venue

The Cottage Grove Economic Development Authority on Aug. 12 approved a $100,000 forgivable loan to Bellagala to help restore the Cedarhurst mansion and convert it into a year‑round wedding and events venue.

The EDA approved the business subsidy agreement by motion of EDA member Kambata, seconded by EDA member John Baptiste; the motion carried on a voice vote with all members present saying “aye.”

The loan is structured as a forgivable loan with a five‑year forgiveness period. ‘‘The subsidy would be a forgivable loan, which would be for 5 years after they complete the project just to ensure that the ownership maintains the same and the building is still operational,’’ Administrator Leavitt told the authority. Leavitt said the $100,000 would be disbursed after project completion once the city verifies that contractors have been paid and that no liens exist on the property.

Bellagala representatives, including Ben Wikstrom (owner’s representative), outlined plans to rehabilitate the 1860s mansion, restore the on‑site rose garden and add a glass atrium and expanded kitchen to support indoor and outdoor events. The applicant described using a geogrid grass system for overflow parking to reduce impervious surface and said the project will connect the site to city sanitary sewer and water, retiring the existing well and septic systems.

Bellagala plans to begin site work soon after the City Council consideration of its planning approvals August 20 and aims to complete heavy outdoor work this year, do interior remodel through the winter and begin booking events for next August. The applicant said it expects a grand opening a few weeks after the first paid events.

EDA staff said the proposal meets the authority’s subsidy criteria, citing historic preservation, job creation, improved site conditions (removal of blight and outbuildings), and increased economic activity from events and related spending. Leavitt noted the project includes work that other historic venues in town did not require, such as utility connections, which increases project costs and motivates the requested assistance.

During the discussion, applicants and staff addressed neighbor concerns and operational questions: traffic and guest arrival will be managed with controlled entry, parking attendants and, for large events, valet or shuttle arrangements with local hotels; sound will be monitored with decibel meters during early events; and lighting will be limited to downlighting and lighted walkways. Planning staff and the applicant said the project received planning commission approval (HCUP) and that a neighborhood meeting drew generally positive feedback from nearby residents.

Supporters on the EDA noted the site’s local and national history and the community interest in preserving the mansion rather than redeveloping the parcel for denser housing or retail. The applicant said the venue operator group has multiple established venues in the Twin Cities and plans to market Cedarhurst as a full‑service wedding and events operation.

The EDA’s approval authorizes staff to execute the business subsidy agreement with Bellagala as presented. The loan will be issued after the city verifies completion and lien release; staff will report back on final closing and any required follow‑up items.

Details not specified at the meeting included the exact disbursement schedule beyond the post‑completion condition and the final engineering plans for the alternate (secondary) access point the applicant said could be added later if needed.

Votes at a glance

- Business subsidy agreement with Bellagala (Cedarhurst mansion): Motion to approve a $100,000 forgivable loan. Mover: EDA member Kambata. Second: EDA member John Baptiste. Outcome: approved (unanimous voice vote of members present).