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AGENDA RECOMMENDATION |
Consent Calendar 5.C.
City Council Regular Meeting
- Meeting Date:
- 10/28/2024
Agenda Item:
Resolution accepting and authorizing the City Manager to execute Redevelopment Grant Agreement for 101 East Main Street, 121 East Main Street and 118 South 2nd Street (Hotel Mankato).
Recommendation/Action(s):
Adoption of the attached resolution.
Summary:
On July 22, 2024, the City Council approved the submission of a redevelopment application to the Minnesota Department of Employment and Economic Development (DEED) for the Hotel Mankato project. In October 2024, DEED awarded a grant for the project.
The Hotel Mankato project was awarded a $1,114,071 redevelopment grant. Hotel Mankato, LLC, will redevelop the property located at 101 East Main Street, 121 East Main Street and 118 South 2nd Street. The redevelopment includes demolishing two vacant buildings and constructing two adjoining hotels totaling approximately 250,000 square feet with a total of 282 hotel guest rooms, a rooftop restaurant including an outdoor patio, and a 168-stall underground parking garage.
The eligible redevelopment costs include building and site demolition, public site improvements (sidewalks, site lighting, curb cuts) and public utilities (water, sanitary, storm connections). It is anticipated redevelopment will begin in late 2024 or early 2025. The matching funds of $1,114,072 have been committed and will be paid by the developer, Hotel Mankato, LLC. A portion of the match for the grant will be reimbursed to the developer with an increment that is generated from the redevelopment.
The grant agreement is attached. If acceptance of the grant is approved by the City Council, the City Manager will execute the grant agreement with DEED. A subrecipient agreement would be entered between the City and Hotel Mankato, LLC. A draft subrecipient agreement is attached.
The Hotel Mankato project was awarded a $1,114,071 redevelopment grant. Hotel Mankato, LLC, will redevelop the property located at 101 East Main Street, 121 East Main Street and 118 South 2nd Street. The redevelopment includes demolishing two vacant buildings and constructing two adjoining hotels totaling approximately 250,000 square feet with a total of 282 hotel guest rooms, a rooftop restaurant including an outdoor patio, and a 168-stall underground parking garage.
The eligible redevelopment costs include building and site demolition, public site improvements (sidewalks, site lighting, curb cuts) and public utilities (water, sanitary, storm connections). It is anticipated redevelopment will begin in late 2024 or early 2025. The matching funds of $1,114,072 have been committed and will be paid by the developer, Hotel Mankato, LLC. A portion of the match for the grant will be reimbursed to the developer with an increment that is generated from the redevelopment.
The grant agreement is attached. If acceptance of the grant is approved by the City Council, the City Manager will execute the grant agreement with DEED. A subrecipient agreement would be entered between the City and Hotel Mankato, LLC. A draft subrecipient agreement is attached.