The plans to build a full-service hotel in Burnsville's Heart of the City are moving forward, albeit with a slightly different cast of characters.
The Economic Development Authority on Tuesday approved the sale of the last piece of city-owned land in the redevelopment district to NLD Holdings II LLC, which will develop a six-story hotel on the site. The authority previously had a deal with a different developer, Akota Hospitality LLC, but Akota backed out for reasons not known to the city.
The purchase terms are unchanged. NLD has offered to buy the 1.75-acre site for $503,600.
The site plan submitted to the city shows the hotel as a six-story Hilton Garden Inn. The deal calls for NLD to develop a hotel with 100 rooms, a restaurant, fitness center, indoor pool and conference rooms. Construction would begin by July 31 and be completed by June 30, 2015.
The site is part of a 6.24-acre parcel formerly occupied by AAA and acquired by the city in 2001 as part of the Heart of the City project. The Burnsville Performing Arts Center, the Mediterranean Cruise Café and a parking deck are now on other portions of the site.
The purchase price is more than Dakota County's assessed value of $457,600 but less than the city's appraisal of $865,000.
Despite that disparity, city staffers have recommended the deal, noting that a sale would get the property back on the tax rolls.
City documents also point out that a "for-sale" sign has been on the 1.75 acres for about four years. Most of the inquiries have been are for development that would not be consistent with the Heart of the City zoning standards.
