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AGENDA RECOMMENDATION |
Consent Calendar 5.D.
City Council Regular Meeting
- Meeting Date:
- 10/28/2024
Agenda Item:
Resolution authorizing the City Manager to submit Contamination Cleanup Grant application to the Minnesota Department of Employment and Economic Development for 101-121 East Main Street, 118 South 2nd Street (Hotel Mankato LLC).
Recommendation/Action(s):
Adoption of the attached resolution.
Summary:
The Minnesota Department of Employment and Economic Development (DEED) is accepting applications for the contamination cleanup grant program. The program offers grants to assist communities with cleaning up contaminated sites for private or public redevelopment to convert contaminated properties into a more productive use. Eligible costs include remediating contamination. Grants can assist with up to 75 percent of the costs to clean up polluted sites and require a 25 percent local match.
The next grant round has applications due November 1, 2024. DEED anticipates awarding 35 percent of the available funding to projects outside the seven county metropolitan area and 65 percent of the funding to projects within the seven county metropolitan area.
Hotel Mankato, LLC proposes redeveloping the property at 101 East Main Street, 121 East Main Street, and 118 South 2nd Street by 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, 168-stall underground parking garage and nine surface parking stalls. At the intersection of Riverfront Drive and Main Street, a four-story extended stay Element by Westin is proposed which will include 126 all-suite guest rooms. At the intersection of Second and Main Street, a 10-story AC by Marriott is proposed with 156 hotel guest rooms. The two hotels would be adjoined by a common lobby with a direct connection to the existing City skywalk, providing hotel guests with direct access to the Civic Center.
The hotels will share common guest amenities, including a pool, fitness center, guest laundry, lounge spaces, business pods, and a conference room. A courtyard area will be provided between the Element and common lobby with grilling stations, fire pits, and an outdoor social lounge area.
The City of Mankato would be seeking $323,887.50 in contamination cleanup grant funds to assist with the cleanup necessary for the redevelopment of the property. Eligible costs would be for excavation, transportation and disposal of contaminated soil and environmental oversight. The redevelopment is planned to begin in late 2024 or early 2025. The 25 percent match would be paid by the developer.
At the October 15, 2024, City Council meeting, resolutions were passed approving the use of Tax Increment Financing (TIF) for the redevelopment. Additionally, DEED awarded a redevelopment grant for the project in October 2024 in the amount of $1,114,071. The identified TIF-eligible costs and grant eligible costs exceed the amount of available increment. If a cleanup grant were to be awarded, there would still be TIF eligible costs in excess of the amount of increment that would be available to the Developer.
The application deadline is November 1, 2024. To be eligible, the City Council must approve a resolution authorizing submission of the grant application.
If a grant is awarded, the final grant agreement will be submitted to the City Council for approval prior to execution. It is anticipated grant awards will be made in December 2024 or January 2025.
The next grant round has applications due November 1, 2024. DEED anticipates awarding 35 percent of the available funding to projects outside the seven county metropolitan area and 65 percent of the funding to projects within the seven county metropolitan area.
Hotel Mankato, LLC proposes redeveloping the property at 101 East Main Street, 121 East Main Street, and 118 South 2nd Street by 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, 168-stall underground parking garage and nine surface parking stalls. At the intersection of Riverfront Drive and Main Street, a four-story extended stay Element by Westin is proposed which will include 126 all-suite guest rooms. At the intersection of Second and Main Street, a 10-story AC by Marriott is proposed with 156 hotel guest rooms. The two hotels would be adjoined by a common lobby with a direct connection to the existing City skywalk, providing hotel guests with direct access to the Civic Center.
The hotels will share common guest amenities, including a pool, fitness center, guest laundry, lounge spaces, business pods, and a conference room. A courtyard area will be provided between the Element and common lobby with grilling stations, fire pits, and an outdoor social lounge area.
The City of Mankato would be seeking $323,887.50 in contamination cleanup grant funds to assist with the cleanup necessary for the redevelopment of the property. Eligible costs would be for excavation, transportation and disposal of contaminated soil and environmental oversight. The redevelopment is planned to begin in late 2024 or early 2025. The 25 percent match would be paid by the developer.
At the October 15, 2024, City Council meeting, resolutions were passed approving the use of Tax Increment Financing (TIF) for the redevelopment. Additionally, DEED awarded a redevelopment grant for the project in October 2024 in the amount of $1,114,071. The identified TIF-eligible costs and grant eligible costs exceed the amount of available increment. If a cleanup grant were to be awarded, there would still be TIF eligible costs in excess of the amount of increment that would be available to the Developer.
The application deadline is November 1, 2024. To be eligible, the City Council must approve a resolution authorizing submission of the grant application.
If a grant is awarded, the final grant agreement will be submitted to the City Council for approval prior to execution. It is anticipated grant awards will be made in December 2024 or January 2025.