Investors Express Interest in Building Hotel on Heart of the City Property
City officials are in talks with a hotel ownership group that hopes to buy the so-called AAA property, which adjoins the Burnsville Performing Arts Center.
The Heart of the City development could soon be home to a hotel.
A hotel has been a long time coming. Since the Heart of the City redevelopment effort began in the late 1990s and early-2000s, city officials have long sought to bring a hotel into the area. It is hoped that the hotel business would exist in a symbiotic relationship with the Burnsville Performing Arts Center, which some have criticized as a drag on the city's funds.
According to an article in Sun Thisweek, Mayor Elizabeth Kautz said believes the BPAC has played a role in attracting this group of investors, which have not yet been named.
“It all has to do with market conditions,” she said. “People who own these hospitality enterprises always look at what the market’s going to drive. They’re interested now because the Performing Arts Center is doing exactly what it said it would do – drive business to our hotels, our restaurants and our retailers.”
At least three hotel proposals have come and gone since the city bought the AAA site in 2001.
If city officials are able to close the deal, the proposal will come before the Economic Development Commission on Nov. 14. The city council will vote on the matter at its Nov. 20 meeting.
If the project goes through, the new hotel will be a welcome addition to the HOC district, which has seen some turnover in recent months. In August, one of the key buildings, a massive multi-million dollar commercial development, went into foreclosure. On the other hand, this year the area has seen a new CVS go up and a luxury bridal shop has also announced plans to move in.