Claremont, MN Awarded a $500,000 CEDA Authored Business Development Public Infrastructure grant

Article by Tom Monson

Claremont, MN was awarded a $500,000 Business Development Public Infrastructure grant for street improvements to help facilitate a $146 million expansion by Al-Corn Clean Fuel. The improvements to 5th Street – which functions as a frontage access to the ethanol plant – are estimated to be $1.128 million to resurface and add a truck lane to the road. Claremont also approved a Tax Increment Financing District with a projected value of $1.3 million for the project. Additionally, the City is waiting for a decision on final approval on $590,000 of Rural Economic Development Loan money revolved by Steele-Waseca Cooperative Electric. The expansion is expected to create at least 8 full time equivalent jobs and over 300 construction jobs during the two year building phase. The project is estimated to add $7 million in assessed tax base to the City and $14 million to the County.

CEDA team member Tom Monson authored the grant and loan applications and coordinated with Mike Bubany of David Drown Associates to structure the Tax Increment Financing deal..