Plans for a new hotel in Eagan — the first in the city since 2002 — appear to be moving forward in the Cedar Grove redevelopment area.

The Economic Development Authority last week approved a plan for a 123-room limited service hotel to be developed by St. Paul-based Morrissey Hospitality Companies. The company manages several hotels, including the St. Paul Hotel and Hotel Minneapolis.

The EDA also directed city staff members to prepare an agreement to sell Morrissey a nearly one-acre site for about $491,000 and pay an additional $489,000 for the use of 129 stalls in an adjacent parking garage.

The hotel site is next to the Paragon Outlet Mall, now under construction by Baltimore-based Paragon Outlet Partners. The parcel makes up about half of a 1.8-acre site. The city would keep the other half for future development, possibly a second hotel.

In documents filed with the city, Morrissey said its new hotel would be an extended-stay establishment, possibly operated under the Hilton Home 2 banner. The all-suite hotel would have an indoor pool and about 3,000 square feet of meeting and event space.

Morrissey said it would like to begin work on the hotel in the spring of 2014 and open it in the spring of 2015.

A hotel has been a high priority in Cedar Grove. The city is expecting an increase in out-of-town visitors when the upscale outlet mall opens next year.

Lakeville homebuilding

Lakeville is heading into the final month of 2013 as the metro area's leading homebuilding market, according the latest Keystone Report for the Builders Association of the Twin Cities.

The report said the city had 314 homebuilding permits through the end of November, up from 224 for the same period in 2012.

Lakeville's full-year permit total last year was 261, putting it third year behind Blaine and Woodbury.

Four other Dakota County communities included in the report also had increases for the 11-month period.

Apple Valley had 44 permits, up from 40 in 2012; Eagan had 94, a gain from 71; Farmington had 112, up from 69, and Rosemount had 103, up from 71.

Declines were reported by Burnsville, which had four vs. 10 a year ago; Hastings, 24 vs. 35; Inver Grove Heights, 45 vs. 79, and Mendota Heights, three vs. five.

The Twin Cities area is on pace to record its fifth consecutive year of increased homebuilding activity. The report said 4,941 permits valued at about $1.8 billion have been issued in the metro area through the end of November, up from 3,939 permits valued at about $1.5 billion for the same period last year.

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