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Glenwood Residents Hear More About Hotel Project Being Developed In City
Pope County Tribune - Starbuck Times
Written by Tim Douglass - Pope County Tribune Publisher   
Wednesday, 19 August 2009 06:43


"So we thought it would be a good thing for people to learn exactly what is being talked about," Stone explained.

Developers Jason Novak and Lance Bailey then opened the meeting to explain the proposed project concept. "First I'd like to thank you all for attending," said Novak, saying he appreciated those who came to learn more about the proposed project.

He said that his company had hired a consultant who confirmed their belief that "there is a need for quality lodging" in Glenwood. "Our goal is to keep people here longer, enjoy the community, and spend money at our businesses," he said.

The developers worked with Stephanie Howe, an architect who designed Glacial Ridge Health System's new facility and has worked with Glenwood & Beyond on the lake walk and park nodes.

There are a few conditions that will need to be accomplished to see the project through, Novak explained.

"One is that we can't and won't build a multi-million dollar facility without the closure of the road (about a block of Lakeshore Drive between Minnesota Avenue and First Ave. SE). Novak explained that through dialog with city staff and commissioners it was decided that if Lakeshore Drive were to be vacated, a new through city street would be needed. The new street is 66-feet wide and will accommodate 39 parking spaces on the road and will have a sidewalk on the west side of the street. Currently, the portion of Lakeside Drive that is proposed to be vacated, can accommodate 29 spaces for on-street parking.

"Secondly," Novak said, "we will be working to put together a redevelopment Tax Increment Finance (TIF) District for the project." The purpose of the TIF district is to pay for a new 12-inch water main for the hotel and the downtown area at an estimated cost of about $1 million.

"The new water main," he said, "will be paid for up front by the developers, but will benefit the entire city." Currently, he explained, there is a 4-inch water main that serves the entire downtown area and that "is just not adequate" for the hotel's needs. The new water main would be a 12-inch main and "would benefit the entire area of the city," he said.

Richard Gandrud, who attended the meeting, asked Novak and Bailey exactly how the new water main would be paid for.

"We're working with Dave (Iverson) and it would be a pay as you go TIF to keep the city as secure as possible."

Gandrud again asked, "But who is going to pay for the water main improvement?

"The developers will pay all the costs up front," Novak said. "We then will recover those costs on TIF-eligible improvements from the city over the 25-year life of the TIF district."



"That's what I wanted to hear," said Gandrud.

City Administrator Dave Iverson added that the city has been working on improving the "backbone" water main that follows Minnesota Avenue from a 4-inch line to a 12-inch line for nearly 10 years. "With no development like this, it will be 20 years before the city could finish it," Iverson said.

Stone added that the city is working on bringing a 12-inch water line from the new water tower to 5th Street NE. In the long-term it would run to First Street SW around Tom's Food Pride "so that we would have a loop around the business district," Stone explained. From there the city would improve the line to Glacial Ridge Health System. "It would improve the water service for the city and provide better fire protection," he added.

"This would be a major backbone improvement that would also allow some projects or improvements that would be 10 to 12 years out rather than 20 to 30 years out," said Stone.

Glenwood resident Dareld Hirschey told the developers that he estimated about 800 to 1,000 feet of lakeshore would be utilized by the new hotel project and said, "To me, that has a value to the community. The improved water main is a factor, but another factor is that lake frontage. Where is the reimbursement for that and to what extent?" he asked.

"That's a good question," Novak responded. "Yes, we are proposing to vacate that portion of Lakeshore Drive and replace it with the new through street and we are closing it off for traffic, but we will be opening up that portion of the lakeshore to the public with a lake walk that will be paid for by the developers."

"We are hoping that the community will see the benefits," Bailey responded. "We are losing some tar, but hope to make up with smiles," he said. "The reimbursement will be more people coming into town to support businesses and to use the lake frontage more."

"I'm not opposing the project," Hirschey said. "I'm just saying that it has value to the community and that needs to be addressed."

Lee Paulsen, another Glenwood resident, asked if that tract of land had "more value to the community than this whole project?" He added that he didn't believe that that small tract of land should kill the collective benefits of the proposed hotel project.

Jim Chan asked if the public would have access to the lakeshore once the project is completed.

Novak and Bailey said that the lake walk on the lake side of the facility would be a public lake walk designed for public use.

"With that in mind," Chan said, "right now the lakeshore there has no value to me because I go by there a lot and I don't feel like I can use it (the lakeshore).

"The value to the community in my mind, isn't there. This project would enhance that value."

"If this goes the way we plan, that whole area will have more use by the public than it does now," Bailey said. He compared the project to Canal Park in Duluth. Since the lake walk was developed there the public use has increased. "That's what we're looking for, more public use," he said. "That will add to the value of the hotel."

Roger Hermanson, who lives on the north side of Minnesota Avenue West brought up some traffic congestion concerns about the new street and how it would be accessed from the intersection of Minnesota Avenue and Highway 28 coming into Glenwood. That will be a concern that will be addressed as the project progresses, according to Iverson. Hermanson also asked if they had a building concept completed. "What will this look like?" he asked.

While no concept drawings have yet been completed, Novak said it will "definitely complement the area and fit together with Lakeside."

"We want this to be an example of what could happen in Pope County," Bailey added. "It will be attractive it won't be a standard brick building like a typical Super 8 (Motel), Novak said. "It will be a heck of a lot better looking than the flats," joked Bailey.

The developers were also asked how many jobs the new project would provide, but were told that remains unknown at this time. "It definitely will create new jobs in the city, but we couldn't say if it's six or 16," Bailey said.

Mayor Stone closed the meeting once all the questions ceased and told those attending that there will be many more meetings on this issue, adding, "If you have questions, get them to us and we will try to get answers for you."

Project background

The Glenwood City Commission took its first formal look at the proposed hotel project at a July 22 work session meeting at City Hall. Developers would like to start the project in the spring of 2010 with the grand opening in the spring or early summer of 2011. A hospitality consultant was hired to do a market feasibility study of the hotel concept and it was determined that there was a demand for top-quality lodging in Glenwood. It was revealed at that meeting that developers Novak and Bailey had worked with city staff, engineers and commissioners over the past few months and that the plan incorporated many of the suggestions and comments they heard in that time.

The project also proposes a public dock to accommodate boaters who want to dock and spend 30 or 40 minutes shopping in the downtown area. There would also be some retail space available in the proposed project, Novak explained.

The project at a glance

The Proposed Glenwood Condo/Hotel plan features a three-level facility with 33 "Cotel" or condo-hotel units that can be rented as part of the hotel when available; and 39 standard hotel units •Main level: three cotel units, five standard hotel units. •Second level: 14 cotel units and 17 hotel units. •Third level: 16 cotel units and 17 standard hotel units •Hotel parking: Includes 44 surface spaces and 25 enclosed spaces for a total of 69 spaces •Relocated street: includes another 29 parking spaces •Existing city gravel lot includes 14 parking spaces