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A few questions on hotel proposal

This is an e-mail I sent to the Mayor and City Council of Marshall, the Lyon County Commissioners and the EDA Director of Marshall, regarding the building of a Hampton Inn Hotel in the area of the Red Baron Arena:

My wife and I have some serious questions about this “proposition” that has resurfaced. After reading the May 16 article in the Independent we were taken aback reading the requests that Rebound Partners of Northfield are asking of our city and County. Our unabashed opinion and questions for this group: the city Council, EDA Director, Lyon County Commissioners and Rebound Partners of Northfield:

1. Why don’t you, Rebound Partners, petition the parent company, Hilton Hotel Group, a multi-billion dollar corporation, for the funds needed to build a Hampton Inn, for which they would more than likely receive royalties once the hotel is operating? The article states you, Rebound Partners, got a positive response from Hilton and they said , “it would be a good fit”.

2. The article states, “Rebound Partners were also planning on $1 million in subordinated debt.” What is a “subordinated debt”? What are Running’s, Schwan’s, SMSU’s participation?

3. Rebound Partners have “……been talking to the city about a forgivable loan of $500,000…” What does that mean? We, the taxpayers (the city doesn’t have any money) give you half a million dollars and you don’t have to pay it back? Is that a “grant”? Please explain.

4. Rebound Partners state they are “…seeking a 10-year city tax abatement and a 10-year tax abatement from Lyon County.” “It’s going to help bridge the financing gap and ensure project feasibility.” Do you, Rebound Partners, know this city is currently about $100 million in debt?

5. We have no opposition to your company building a hotel in Marshall. But, we are adamantly opposed to financial gifts offered by an unelected official, (EDA Director),and those being applied for by you from our city and county, aka, the taxpayer.

6. A question for Ms. Deutz, EDA Director: You stated in the Independent article that a study updated in 2023, Marshall could support an additional 60 – 70 room hotel. Has there not been a new hotel already built since then? You stated also that the new Hampton Inn Hotel “…..presents a strategic opportunity to meet our growing hospitality needs, and capitalize on the area’s expanding event and tourism sectors.” Please explain to us, the taxpayers, what are the “event and tourism sectors?”

Thank you Mr. Mayor, Marshall City Council, Lyon County Commissioners and EDA Director, Ms. Deutz, for your service to our Community.

— Mary Jo and Lavern Eick are Marshall residents

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