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AGENDA RECOMMENDATION |
Consent Calendar 5.B.
City Council Regular Meeting
- Meeting Date:
- 07/22/2024
Agenda Item:
Resolution authorizing the City Manager to submit Redevelopment 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 redevelopment grant program. The program offers grants to assist communities with the costs of redeveloping blighted industrial, residential, or commercial sites and putting land back into productive use. Eligible costs include building and site demolition, infrastructure, soil stabilization, pounding, or other environmental infrastructure, asbestos abatement and lead paint mitigation. Grants can assist with up to 50 percent of the costs to redevelop sites and require a 50 percent local match.
The next grant round has applications due August 1, 2024. DEED anticipates awarding at least half of the grant funds to sites located outside the seven-county Twin Cities metropolitan area.
Mankato Hotel, LLC plans to redevelop the property located at 101-121 East Main Street and 118 South 2nd Street. The site was developed by 1884. Historical uses on the site include hotels, dry goods grocery, hardware store, cigar factory, saloon, jewelry store, tailor, billiards, barber, moving pictures, drug store, gun shop, restaurant, furniture store, dwellings, livery, automobile dealership, sheds and other accessory structures. The proposed redevelopment would include demolishing the existing buildings and constructing two hotels with a total of 282 hotel guest rooms, including a 168-stall underground parking garage and 9 surface parking stalls. A four-story, extended stay Element by Westin hotel with 126 all-suite guest rooms is proposed at the intersection of North Riverfront Drive and Main Street, and a 10-story AC by Marriott hotel with 156 hotel guest rooms is proposed at the intersection of Second and Main Streets. The two hotels will be adjoined by a common lobby with 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 future coffee shop is proposed at the main level and a third-party restaurant with rooftop patio space at the 10th floor of the AC hotel would overlook the Minnesota River Valley.
The City of Mankato would be seeking $1,859,385 in redevelopment grant funds to assist with the redevelopment of the property. Eligible costs would be for building demolition, site demolition, geotechnical soil corrections, soil stabilization, and public infrastructure (water, storm, sanitary, lighting, sidewalks). The 50 percent match would be paid by the developer.
The application deadline is August 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 and the City will enter into a subrecipient agreement with the developer. It is anticipated that grant awards will be announced in September or October 2024. Consenting to the submission of the application does not bind the City to approve the final grant agreement. Any other city applications, such as obtaining building permits, are required to be completed prior to redevelopment activity occurring along with obtaining zoning approvals.
The next grant round has applications due August 1, 2024. DEED anticipates awarding at least half of the grant funds to sites located outside the seven-county Twin Cities metropolitan area.
Mankato Hotel, LLC plans to redevelop the property located at 101-121 East Main Street and 118 South 2nd Street. The site was developed by 1884. Historical uses on the site include hotels, dry goods grocery, hardware store, cigar factory, saloon, jewelry store, tailor, billiards, barber, moving pictures, drug store, gun shop, restaurant, furniture store, dwellings, livery, automobile dealership, sheds and other accessory structures. The proposed redevelopment would include demolishing the existing buildings and constructing two hotels with a total of 282 hotel guest rooms, including a 168-stall underground parking garage and 9 surface parking stalls. A four-story, extended stay Element by Westin hotel with 126 all-suite guest rooms is proposed at the intersection of North Riverfront Drive and Main Street, and a 10-story AC by Marriott hotel with 156 hotel guest rooms is proposed at the intersection of Second and Main Streets. The two hotels will be adjoined by a common lobby with 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 future coffee shop is proposed at the main level and a third-party restaurant with rooftop patio space at the 10th floor of the AC hotel would overlook the Minnesota River Valley.
The City of Mankato would be seeking $1,859,385 in redevelopment grant funds to assist with the redevelopment of the property. Eligible costs would be for building demolition, site demolition, geotechnical soil corrections, soil stabilization, and public infrastructure (water, storm, sanitary, lighting, sidewalks). The 50 percent match would be paid by the developer.
The application deadline is August 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 and the City will enter into a subrecipient agreement with the developer. It is anticipated that grant awards will be announced in September or October 2024. Consenting to the submission of the application does not bind the City to approve the final grant agreement. Any other city applications, such as obtaining building permits, are required to be completed prior to redevelopment activity occurring along with obtaining zoning approvals.