City of Claremont Economic Development Authority Meeting - December 28, 2021





6:00 P.M.

A meeting of the Economic Development Authority of the City of Claremont, Minnesota was held on Tuesday, December 28, 2021, at 6:00 p.m. at Claremont City Hall.

Members present: Mayor Tasha Dahl, Council Members Deb Ellis, Jacob Klejeski, and Hunter McGovern. Absent:  Heather Grey.

City staff and others present:  City Clerk/Treasurer Elizabeth Sorg and CEDA Specialist Matt Durand.

There were no changes to the agenda.

Motion by Ellis to approve the minutes of the September 27, 2021, meeting, second by McGovern. Motion carried unanimously.

The EDA savings account/revolving loan fund balance is $64,489.42. The EDA cash balance is

-2,754.28. Motion by Klejeski to approve the financial report, second by Ellis. Motion carried unanimously.

Three business façade grants totaling $10,000 were approved for 2021. The EDA Board stated they will continue the façade grant program for 2022 in the same amount of $10,000.

A company called Sego Services has approached the city about developing a “server farm” on 7.7 acres adjacent to the solar garden near old Highway 14. The company submitted a letter of interest outlining their needs and are asking for assistance in electrical and internet infrastructure as well as $35,000 in a revolving loan. They would also like the city’s assistance in land negotiations with Paukert.

Sego Services is also interested in moving their trucking operation for fueling to Claremont and locate it adjacent to a gas station they would help develop near the new Highway 14.

The EDA Board said they can fill out an application for a revolving loan. Also, while the EDA is in support of these projects, Sego Services can negotiate directly with Paukert on the lease or price per acre. Durand will continue to assist Sego Services.

The city currently has 9 residential single family lots located in a Housing TIF District. The city could collaborate with Three Rivers, Community Action, a SE MN non-profit, to educate and qualify homeowners towards homeownership. Families that meet the income limits of the housing TIF and successfully complete a Home Stretch course will qualify to purchase a home in the development. Arden Homes, LLC of Owatonna is interested in partnering with the city to build 9 “workforce” homes for qualified buyers. Building workforce, income-based housing has not typically been the focus of many builders as it presents challenges that many do not want to navigate. Arden Homes, LLC, owned by Matt Durand, have been involved in workforce housing for years and is focused on providing housing for families who have worked hard towards the goal of homeownership. Arden Homes LLC will coordinate with Three Rivers to facilitate the homeownership qualification program and act as a housing navigator and will coordinate homeowner education, mortgage counseling, and program promotion. Arden Homes, LLC will construct all 9 modular homes and will act as the general contractor and coordinate all pre-construction, construction, and warranty items associated with homes. Arden Homes LLC seeks to negotiate a Developer’s Agreement with the city to build 9 modular homes for qualified buyers. The Agreement would be negotiated by Mike Bubany, the city’s financial advisor, and Mark Rahrick, City Attorney. The city has been sitting with the lots for a long time and are willing to review a Developers Agreement with Arden Homes to build these 9 homes.

The Land Use Plan survey is complete and received 24 responses. Bolton and Menk have updated all the maps. The narrative has been drafted and is 90% complete and will be ready for review withing the next 2 weeks. The Planning and Zoning Committee will have a meeting January 24 at 6:30 p.m. to review the Plan, then the council will review it February 1 at their regular city council meeting.

Motion by Klejeski to adjourn at 7:10 p.m., second by McGovern. Motion carried unanimously.


City Clerk/Treasurer             Mayor