EDA designates Majestic Ballroom structurally substandard, clearing path for demolition

The Cottage Grove Economic Development Authority voted to approve Resolution 2026-004, declaring the Majestic Ballroom a structurally substandard building to enable demolition and future redevelopment planning. Economic development staff presented inspection photos and a report that documented extensive deterioration and hazardous conditions, and the motion passed by roll call with all members voting in the affirmative.

Economic Development Manager Nate Carlson, who presented the item, said the building "has been vacant for over 20 years" and that an inspection showed the property was "unsafe and beyond repair," citing mold, asbestos, standing water and wildlife after the rooftop HVAC was removed and the structure was exposed. Carlson told the board the third-party inspector was LHB and referenced the ordinance language included in the packet (reported in the record as state statute section 4 69.174 subdivision 10). He emphasized that adopting the finding of substandard condition is a statutory step to allow demolition and does not itself guarantee future tax-increment financing assistance.

Board members asked about timing and financing. A staff member explained that the city, through the EDA fund, would front demolition costs and would seek reimbursement under a deferred assessment waiver recorded against the property when it sells. On the schedule, staff said they expect a preconstruction meeting this week and for the contractor to mobilize to the site within about two weeks. The EDA president and all voting members recorded an affirmative roll call to adopt the resolution; the meeting then moved on to adjournment.