Vacant land near the Red Baron Arena and Expo is being proposed for development of a Hampton Inn hotel, Marshall EDA Director Lauren Deutz said Tuesday.

MARSHALL — Developers seeking to build a hotel on land next to the Red Baron Arena and Expo are requesting a commercial property tax abatement for the project, Marshall city staff said.

This week, members of the Marshall City Council called for a public hearing on the proposed tax abatement.

A hearing date was set for Dec. 19.

Marshall Economic Development Authority director Lauren Deutz presented the proposed tax abatement to council members on Tuesday.

“Staff received an abatement request from the REVocity development group, who are looking to build a Hampton Inn here in Marshall,” Deutz said.

REVocity is an affiliate of the Northfield-based developer Rebound Partners. The company bought a total of 4.26 acres of land near the Arena and Expo in December 2022, for a potential hotel and restaurant project.

Materials in the agenda packet for Tuesday’s city council meeting said the proposed hotel project would have 84 rooms and an indoor pool area, with a total of 91 parking stalls outside. The proposed hotel would be located at 1610 Commencement Blvd., which is near the corner of Commencement Boulevard and Tiger Drive.

Deutz said the city had been working with advisers from Baker Tilly to analyze the request for a property tax abatement on the project.

“It was determined that financial assistance is warranted on the project, based on total development cost, projected operating revenues and current market conditions,” Deutz said. “The recommended level and amount of tax abatement assistance is anticipated to be between five and eight years, at a descending rate.”

Deutz said city staff were continuing to work with Baker Tilly to determine an appropriate amount of abatement assistance. They were waiting for confirmation from the developers on the funding sources for the project, she said.

“At this time, we’re just looking to call for a public hearing, with that amount to come prior to public notice,” Deutz said.

“And this is standard for the abatements that we’ve done in the past,” said council member Craig Schafer.

“Yes, we have brought this forward to the EDA Board already for recommendation,” Deutz said. “They have approved an amount that we’re comfortable with, but again we’re pending further evaluation by our municipal adviser prior to publication of that.”

Council members voted in favor of calling for a public hearing on Dec. 19. Council member James Lozinski abstained from the vote.

The area near the Red Baron Arena and Expo had been proposed for the site of a hotel and conference center several years ago. However, that earlier proposal, from a Texas-based investment company, never moved forward.