Grant will allow for demolition of former junior high in Clara City, Minnesota, clearing way for housing

Oct. 2—CLARA CITY

— A $250,000 economic development grant will allow for the demolition of the former Clara City Junior High School facility.

Clearing the blighted property bolsters the prospect that a private, 38-unit housing development will occur on the site.

Clara City Administrator Steve Jones said the city and Chippewa County were recently awarded the funding by the Minnesota Department of Employment and Economic Development. The city and county are working together for the demolition of the tax-forfeited property.

The city would like to see the building razed by March 2023 to allow for construction of the proposed residential property.

Jones said there is a preliminary agreement with a private developer for the site. The site's future use is dependent on the building being removed and the site cleared for development, according to the city administrator.

The development would include tucked-in garage spaces on the site, which is on a hillside.

The city has a need for housing, and the site's location makes it especially desirable. It is located within a short walking distance of the downtown, city parks, churches and the MACCRAY Schools campus.

The county is responsible for the forfeited property and will oversee the awarding of bids for the demolition. An engineering study completed previously indicated that it will cost roughly $500,000 to demolish the facility.

The county and city have an agreement to split the demolition costs. The city has also placed the site in a tax increment district. If the residential project takes place, the district would eventually repay the county and city for their share of the demolition costs, according to Jones.

The city and county have been working to have the former school building removed ever since a 2019 study identified widespread issues with it. Vacant for years, it is mold-infested and has experienced extensive water damage and vandalism throughout its interior.

The school gymnasium and boiler room date to 1938. Additions were built on the north and south sides of the school building in 1954.

After being closed by the school district, the building was owned by two different developers and a portion of the building was converted into apartments. The 2019 report found that the property was poorly managed, and that residents moved out and the building fell into disrepair.