“Developers Pursue Approvals for Two New Hotels in Downtown Mankato | Finance & Commerce”

A development group based in Mankato is moving forward with plans to introduce two new hotels to downtown Mankato. The project is expected to add over 280 new rooms to the city’s accommodation capacity, making the area more appealing for events and conventions.

The developer, operating under the name Hotel Mankato LLC, is set to seek City Council approvals in August for a four-story, 126-room Element by Westin at the intersection of North Riverfront Drive and Main Street. Additionally, a 10-story, 156-room AC by Marriott is planned at Second and Main Streets, according to city documents.

The development site includes the Landmark Center property at 121 E. Main St. and the old City Center Hotel at 101 E. Main St. A skywalk connects the hotel to the Mankato Civic Center. Initially, there were plans to convert the City Center, built in 1978, into a Holiday Inn.

Mankato design firm ISG stated in a June 2024 project narrative that the Landmark and City Center properties were initially purchased by local developer Landmark Real Estate for independent development projects. However, as plans progressed, it became clear that the best use was to address the city’s hospitality demand linked to the Mayo Clinic Civic and Event Center.

Molly Westman, a Mankato planning assistant, informed the city’s Planning Commission that the current plan involves demolishing the Landmark and City Center buildings and combining the properties for the new hotels. These hotels will share amenities such as a pool, fitness center, and lounge spaces.

On Wednesday, the Mankato Planning Commission recommended approval of a preliminary plat and conditional use permit for the 250,000-square-foot development. This would include construction of a 168-stall underground parking garage.

A developer involved in the project said they unsuccessfully attempted to get historic tax credits from the state to repurpose the century-old Landmark Building, which had a portion of its roof collapse in 2023. Bryan Sowers, a member of the development team, said it would be economically challenging to repurpose the structure.

Tony Frentz, another member of the development team and president at Neubau Holdings LLC, said the hotels will be a great new addition to the city. He expressed excitement about the connection to the existing city skyway and believes this will attract larger conventions.

Last July, Finance & Commerce reported that Hotel Mankato LLC paid $5.4 million for the City Center Hotel. The initial plan was to combine the City Center with the adjacent Landmark Center to create a total of 173 hotel rooms.

Source: finance-commerce.com

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