If all goes according to plan, over the next two years a barren, city-owned lot in the Heart of City will be transformed into a luxury hotel, much to the delight of the Burnsville city council.
"I'm thrilled," said Council Member Dan Kealey. "This all something we've been hoping for for a long time. I think it will be a very strong economic stimulus for the (Heart of the City)."
A hotel has long been considered the centerpiece of the Heart of the City, Burnsville's ambitious effort to redevelop what was once a blighted area into a central business district. Until this year, however, a feasible hospitality project has eluded the city. During a special meeting of the Economic Development Commission, council members expressed hope that the new hotel proposal would revive development in the area.
"I have seen how the development down there has gotten stalled," said Council Member Mary Sherry. "Personally, I think this will put the paddles on the chest of the Heart of the City and get it beating again."
The council—acting as the EDC—unanimously approved a $503,600 purchase agreement with Akota Hospitality, LLC , a developer based in Dickinson, ND. Akota will officially close on the land in October. Preliminary plans call for a 90-room hotel, likely a Hilton Garden Inn, with a restaurant.
The 1.75 acre lot at 7 Travelers Trail West was originally part of a $1.8 million land purchase by the city in 2001, which included parcels now occupied by the Burnsville Performing Arts Center, Mediterranean Cruise Café, and a multi-level parking lot. In the intervening years, Heart of the City has seen ups and downs. The district has recently attracted some high profile businesses, including a couture bridal shop and a new CVS, but some of the buildings in the area have struggled to retain tenants. One of the largest commercial buildings in the HOC went into foreclosure in 2012.
Once complete, the new hotel will be valued at about $3.5 million, said Economic Development Coordinator Skip Nienhaus. The hotel will contribute about $125,000 a year in property taxes, he added.
If the deal falls through, the city has the option of retaking ownership of the property.
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