MARSHALL — Developers looking to build a hotel near the Red Baron Arena and Expo have already gotten approval for a 10-year tax abatement from the city of Marshall. On Tuesday, they brought a similar request to the Lyon County Commissioners.

“There’s no doubt that it would be a good thing for Marshall,” Commissioner Todd Draper said of the hotel project. But commissioners said they also had reservations about the request. The county only has a four-year tax abatement program that other businesses are currently part of, Draper said.

“I think if we can give the abatement based on our policy, I’m all right with that,” said Commissioner Rick Anderson.

Commissioners called for a public hearing on the abatement request in July.

Northfield-based development firm Rebound Partners is proposing to build an 84-room Hampton Inn on land near the Red Baron Arena and Expo. The development cost of the project was about $16 million, said Scott Koester of Rebound Partners. Koester said Rebound would be raising private equity for the project, in addition to financing sources like bank debt, a tax rebate and a forgivable loan from the city of Marshall.

In May, the Marshall City Council had voted to approve a request for a maximum $480,000 tax abatement over 10 years.

“We’re asking the county to consider a potential 10-year abatement, which we know is a variance from the standard,” Koester said. “The reason for the request is to help bridge the financing gap and ensure project feasibility, to support construction of a high-quality lodging facility.”

Koester said the total abatement being requested would be about $260,000. Development of the hotel would also increase county property tax on the land.

“We feel that, versus a vacant lot, this will be a benefit for both the city and the county,” he said.

“There is a need for another motel in Marshall,” Draper said. “Marshall has different gains in this project than Lyon County does. We don’t get sales tax, we don’t get lodging tax. But we do want things to progress.”

At the same time, Draper said there were other businesses in Lyon County that were part of a four-year tax abatement program.

Commissioner Rick Anderson said he agreed with Draper that Lyon County had “set a precedent” for a four-year tax abatement.

“And to say that if we don’t give the 10-year, that this is a dead project? That really causes me concern,” he said.

Lyon County Administrator Loren Stomberg said the county typically brings all its tax abatement applications together for a public hearing in the fall. Koester said waiting that long could cause Rebound scheduling issues for financing and construction.

“We want to be under construction in the fall,” he said.

Commissioners voted to hold a public hearing on the hotel abatement request on July 15.