Council hears support for hotel project

by Marianne Gasaway

The Clear Lake City Council approved a resolution Monday night setting the stage for a development agreement for a $16 million hotel, restaurant and conference center to be located in its Courtway Park Subdivision just east of Interstate 35.

The Council first heard encouragement for the project from a number off North Iowa economic leaders in a public hearing.  The hearing is a pre-requisite to entering into a General Obligation backed economic development forgivable loan agreement for the proposed project.  The City intends to offer a $4 million  urban renewal economic development loan in support of the project.

“It is a bold move on the part of this Council to spur this development,” Bob Klocke, a member of the North Iowa Corridor Economic Development Corporation, told Council members.  “We believe it fits in the vision we have for North Iowa.  Klocke noted that the group is also excited about Mason City’s Renaissance project, which includes a hotel, and said he feels “rising tides lift all boats.”

Tim Esbeck, community president for MBT Bank in Clear Lake, said he is excited and impressed with the developer, but noted he has empathy for existing hotel-motel owners.

“I am not concerned this will steal visitors away from them.  I believe it will draw more people to Clear Lake and will spur additional development.  I am very much in favor and hope you are too,” Esbeck told the Council.

“I agree it will spur more develop

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ment.  I think we are entering an exciting time,” said Councilman Jim Boehnke, who shared memories of visiting the former Andrews Pre-stressed Concrete site with his grandfather.  “That building was always present during my lifetime.  I can’t wait to see the potential and possibilities that corner may develop.”

Councilman and local history buff Mike Callanan also recalls the days Interstate 35 and the Fieldstone development did not exist.

“Throughout my lifetime I’ve watched the two cities growing together— mostly Mason City growing toward Clear Lake.  It’s kind of fun to see Clear Lake growing.”

Callanan pointed to the Council’s actions which brought Kwik Star to land east of the interstate and the construction of a key intersection and stop light at the site as being key to the Courtway Park development.

“This will be a transformative project— the anchor for an amazing development,” added Councilman Bennett Smith.  “We really need new hotels and the conference center and restaurant will be an amazing development.”

City Administrator Scott Flory reviewed a draft development agreement between the city and WillowStream LLC for a proposed $16 million hotel and conference center development on a 5.8 acre piece of land on the far southwestern part of the subdivision.  Flory said groundbreaking for the project is anticipated for next month.

The agreement calls for a 75 room, mid to upper-mid scale hotel, a 5,000 square foot restaurant, and approximately 8,500 square foot conference and event center capable of accommodating between 450 to 900 people.  The city must be assured of not  less than $4.5 million in taxable valuation during years one through four that the $4 million loan agreement would be forgivable. During years five through eight, it would be not less than $5 million taxable. In years eight through 12, it would be not less than $5.5 million taxable. Not less than 25 full-time equivalent jobs must be produced.

“Essentially, the project pretty well stands on its own,” said Flory.

The City Council is expected to consider approving the development agreement at its next meeting on Oct. 21, or at a special meeting before that.

The name of the proposed hotel and restaurant has not been revealed.   That information is expected in the final development agreement.

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