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City council gets look at possible hotel project

Submitted image This overhead view was one of several conceptual renderings of a proposed hotel and conference center near the Red Baron Arena and Expo in Marshall

MARSHALL — Members of the Marshall City Council got a chance to see what a proposed hotel and conference center near the Red Baron Arena and Expo might look like. Conceptual renderings of the proposed buildings were the focus of a presentation during a council work session Tuesday night.

The purpose of the presentation was “to keep you apprised of the progress being made” in the planning process, Marshall EDA Director Cal Brink told council members. Brink and David-Elias Rachie, of Gatehouse Capital, said the next step will be for the city to receive some more detailed financial information about the proposal. The information should be ready for the council later in April or May, said Marshall City Administrator Nicholas Johnson.

Gatehouse Capital is proposing to build a 16,000 square foot conference center and a 100-room Mariott hotel next to the Red Baron Arena. If the council approves the project, it would be funded with the help of city bonding.

The last time Rachie met with the city council, in late February, he received feedback on whether plans for the hotel and conference center should stick to city-owned land or possibly include buying private land near the arena and expo. Council member comments leaned more toward buying the additional land, and Rachie said developers had taken that into account during site planning.

On Tuesday, Rachie showed council members some conceptual renderings and possible floor plans of the hotel and conference center. Both buildings would connect to the Red Baron Arena, and they would be arranged so that signage for the Red Baron Arena would still be visible from Minnesota Highway 23, and the intersection of Highway 23 and Minnesota Highway 19, Rachie said.

The concept art showed wood accents on the outside of the new buildings. Rachie said the look would be something similar to the woodwork on the Tall Grass Liquor store building.

“Originally, we had the same brickwork as the Red Baron Arena all the way across,” Rachie said, but the visual effect was a little harsh.

The Mariott hotel would include a pool, and two small conference rooms, Rachie said. He said the design plan for hotel rooms included king suites with pull-out couches, which would increase flexibility for guests attending events.

“It’s great for conferences,” Rachie said.

The conference center could seat 600 or more people around tables, Rachie said.

“There’s a lot of flexibility with this design,” he said, and the large ballroom or meeting room could be divided into smaller areas with folding walls.

Rachie said the conference center would also feature a full commercial kitchen and a loading dock.

The conceptual renderings also included a possible restaurant space separate from the hotel and conference center.

“It’s really up to the council what they want to do with that,” Rachie said. The space could become additional parking for the hotel, conference center and Red Baron Arena instead.

The project could have a big economic impact on Marshall, Rachie said. He said an economic impact study conducted by Stone Hospitality and Real Estate estimated the project could bring an impact of $54 million, and 22 permanent jobs, to Marshall.

The next step in the planning process, presenters said Tuesday, will be for Marshall’s financial advisers, Springsted, to go over a possible budget for the project.

“The conceptual budget has been done and will be sent over to Springsted tomorrow,” Rachie said.

Johnson said the more detailed budget information would come back before the city council later in April or May.

The hotel and conference center project is being proposed with a mix of public and private funding, Johnson said. The hotel would be privately owned, but it would be paid for with 70 percent private financing and 30 percent city bonding. Gatehouse Capital would pay the principal and interest on that bond, Johnson said. Meanwhile, the conference center would be city owned, and would be paid for through city bonding. Gatehouse would pay the principal of the bond, and the city would pay the interest, he said.

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