If you can move forward as you have planned, this really is going to become another jewel in the crown for Cottage Grove, as it was for many years way back.”

Council member Justin Olsen

More information has emerged on the plans for Cedarhurst Mansion, following the Aug. 20 Cottage Grove City Council meeting. Community Development Development Director Emily Schmitz shared details on plans for the historic mansion at 70th and Keats.
"Good evening," Schmitz said. "Cedarhurst, or Bellagala is the applicant—they have submitted several applications, as I'll go through."
Located on two separate parcels totaling 13 acres, the Cedarhurst Mansion was originally built in the 1860s, serving as the residence of Minnesota attorney Cordenio Severance and his wife Mary. The property went though several owners following Cordenio and Mary Severances’ respective passing before being approved for use as a catering venue in the 1970s, and later for events in the 2000s. The site was most recently purchased in 2021 by a LaCrosse based firm which sought to blend housing and commercial use of the site with the historic mansion as a centerpiece.
"However, that project did fall through, therefore Bellagala is before you this evening looking for an opportunity to operate their wedding venue out of the Mansion," Schmitz said Aug. 20. The plan as currently sketched out includes a year-round wedding and event center at the Mansion, as well as the use of the adjacent Gardener's Cottage for internal purposes including team meetings, planning sessions, and a staff connection space.
Both parcels in the current plan are currently zoned agricultural, with the 2040 Comprehensive Plan guiding the Mansion as Mixed Use and the Gardener's Cottage as R-3 low density.
With the Mansion on the National Register of Historic Place and hopes for the Gardener's Cottage to be listed on the local register, Schmitz said the use of a historic conditional use permit allowed for maintaining the building's historical integrity
"We find that using a historic conditional use permit allows for us to be creative in the use to continue to maintain that historical integrity," Schmitz said of the Mansion and Gardener's Cottage. "The ask tonight is a historic conditional use permit on both parcels."
Still in process, ultimate site plans at Cedarhurst call for an interior and exterior mansion restoration after period of vacancy, as well as a 4,000 square foot, one story addition to be called the Atrium, made with clearly differentiated materials to distinguish it from the historic mansion. New parking areas and removal of decayed farm outbuildings will also be included in the plans for Cedarhurst.
As for the Gardener’s Cottage next door at 9912 70th Street South, a two phase approach is planned. Phase one calls for preserving it in current condition and bringing it into code compliance while Phase Two calls for a structural and aesthetic restoration. The Mansion would also be connected to public septic and water in a transition from its current private system, with the Gardener’s Cottage to follow with public water and septic in time.
"The improvements will be intense, but the applicant is committed to meeting those standards. They are working towards historic tax credits with the State Historic Preservation Office, which requires them to maintain certain standards and maintain that level of integrity," Schmitz said for Cedarhurst. Any changes to the historical portion of the mansion itself will be limited to repair.
Also appearing to speak was J.J. Maleitske for Bellagala. Maleitske shared sketches from the interior planned Atrium addition, including lattice and a 100-year old indoor fountain.
"So again, just trying to lean into the history of the place," he said of plans for restoration. Maleitske said the group was looking for its first event next August, with full council approval sought that night to get things underway.
The proposal from Bellagala for Cedarhurst drew praise from the council, which approved zoning amendments for the property from agricultural to mixed use and R-3 low density residential, as well as a historic conditional use permit, site plan review, and business subsidy agreement for Bellagala.
"If you can move forward as you have planned, this really is going to become another jewel in the crown for Cottage Grove, as it was for many years way back," Council member Justin Olsen said of the project.
Other projects of Bellagala include the Van Dusen Mansion in Minneapolis and Bavaria Downs in Chaska.
Also from Aug. 20, the council held a public hearing for issuance of conduit debt for Real Estate Equities LLC. The issuance of conduit debt would see the city act as a conduit for bond issuance to Real Estate Equities LLC, making possible multifamily housing in the city.
Sharing details on the bond issuance process was Rhonda Scoby of Taft Law Firm.
"Good evening mayor and council. My name is Rhonda Scoby of Taft Law Firm," she said. "We represent the city in this proposed bond financing. The motion before you tonight relates to the proposed bond issuance for a Workforce housing project to be located at the intersection of Hadley Avenue and 100th Street in the city. The project will be known as Hadley Ridge Apartments.
"As this council is aware conduit bonds are authorized by state and federal law and the federal tax code in order to help developers of multifamily housing and certain other projects borrow money at tax exempt rates. If the council approves the bonds, the bonds will be the obligation only of the borrower. The borrower in this case is Cottage Grove AH1 LLLP, which is an affiliate of Real Estate Equities LLC. The city will have no financial obligation for the bonds and all cost of the city will be paid by the borrower. The borrower will also pay an administrative fee to the city for the issuance of the bonds."
Touching on the history of the bond issuance request, Scoby said that past approval had been sought for $30,250,000, the amount sought later raised to a maximum of $50 million.
No one else spoke at the public hearing, with Real Estate Equities LLC responsible for the bond amount. The council adopted Resolution 2025-118 adopting the public housing program, approving a public hearing, authorized the interim loan and the issuance of a taxable interim note for the housing development, and approving an authorized execution of documents.
In other council news the council approved a conditional use permit and site plan review for 61 Marine and Sports for a building expansion at the business. The council approved both requests from 61 Marine and Sports. The action allows 61 Marine and Sport to build a business addition on site for its boat business.
Also Aug. 20, the council also heard from city attorney Kori Land on two tobacco businesses that had requested the ability to sell cannabis paraphernalia. The city currently allows tobacco devices but not drug paraphernalia,”with “cannabis paraphernalia” including equipment “knowing or intentionally used primarily in ingesting, inhaling, or introducing cannabis into the body.”
“Cannabis paraphernalia, unless it is in a cannabis store, can be indistinguishable from drug paraphernalia,” Land said in laying out the city ordinance and its present interpretation. Discussing the issue with the city prosecutor, it had been decided previously not to sell cannabis paraphernalia at tobacco shops.
“So we’ve said, ‘you can’t sell cannabis paraphernalia,” Land said. The two shops in question had requested the city make the definition clear that tobacco shops could sell cannabis paraphernalia, with future direction sought from the council on where it wanted cannabis paraphernalia allowed for sale in case of an ordinance amendment.
Given as options by Land were:
A) Nowhere
B) At cannabis retail stores (adult and low potency) and tobacco stores only; or
C) everywhere
Option A was a vote for the status quo, Option B would exempt cannabis paraphernalia from drug paraphernalia and was what the tobacco stores sought, while Option C would amend the city’s drug paraphernalia ordinance to allow anyone to sell it.
“And by everyone I mean gas stations, grocery stores, it’s a legal product, anyone can sell it,” Land said in seeking council direction on drafting a new ordinance. Multiple cities currently have no ordinance on the matter, with no action taken on amending the Cottage Grove ordinance at the Aug. 20 Council meeting.