MANKATO, Minn. (KEYC) — The Mankato Economic Development Authority reviewed the Cherry Street Ramp hotel proposal and redevelopment of buildings on North Riverfront Drive at a meeting on Monday evening in Mankato.
Requested tax subsidies for the proposed Cherry Street Ramp hotel have jumped since plans were brought before the council in December.
The developer is now seeking a tax abatement that involves the city giving $1.3 million in property taxes to the project over 20 years.
The increase comes as cost estimates for building the hotel rise.
“If you compare that to a typical construction when you build up in cornfield site or a ‘greenfield’ site, that cost is substantially higher by about $900,000,” Mankato City Manager Pat Hentges said.
The council also reviewed a redevelopment proposal for Frost Plaza on North Riverfront Drive and an adjoining building.
The EDA found it would be feasible to knock down the adjoining building to make way for a multiuse building instead of redeveloping the old building.
“So it would be challenging not only from complying with indoor air quality, possibly some structural issues, but also meeting the demands if you will of any future tenant for parking,” explained Paul Vogel, Mankato’s director of community development.
The new proposed building called Studio Five would have housing units and two commercial suites.