Marion eyes $20 million downtown investment

MARION - Marion's quest to revitalize its central corridor is poised to take a $20 million step forward.

In the next few years, visitors may be able to check into a new business-class hotel and residents could check out new restaurants and retail spaces downtown.

Cedar Rapids developer Gibbs Lamb Drown Commercial Real Estate Advisors is looking to develop a four-building complex on the site of the former Prince Agri Products plant, which was in the 2800 block of Seventh Avenue, across from Papa John's Pizza.

The plan would include a hotel and three commercial buildings on 4 1/2 acres. A proposal for the hotel alone previously was made in 2015.

A preliminary layout for the entire project was approved Tuesday by the city's Planning and Zoning Commission.

Last December, the City Council voted to work with the developer on the possibility of tax increment financing.

The property is on the eastern end of a Central Corridor Reinvestment District that envisioned nearly $119 million in public and private investment toward revitalization. The city sought more than $24 million from the Iowa Economic Development Authority to jump start the process, but was turned down.

The city said at the time it still would pursue individual projects.

David Drown, president of GLD Commercial, said that when the company purchased the land four years ago, executives asked Marion city leaders what they thought the best use of the space would be.

'We've been in discussions and planning sessions with the city for the last two and a half years or three years,” Drown said. 'We asked the city specifically ... what type of use or services they would like to see. They said a nice business-class hotel. The city just wanted a nicer, newer hotel.”

In October 2015, GLD Commercial received $1 million in tax credits from the IEDA for a proposed $6.6 million hotel on the Prince Agri site. The credit was to encourage development on land that presents environmental or industrial construction challenges.

Drown said receiving credits to develop on the former plant site was integral in moving ahead.

After the city finished a study in 2015 to determine the size of structure necessary to fit the needs of a downtown hotel, GLD partnered with Marion's Kinseth Hospitality to further develop plans for the hotel.

Now, site work is underway to construct the 82-room, 50,000-square-foot Marriott hotel.

In addition to the initial hotel plans, GLD Commercial added three 17,000- to 20,000-square-foot commercial buildings to the proposal.

Drown it is too early in the process to identify potential businesses for those spaces, but he said they could be ideal restaurant and retail spaces.

Drown said both city officials and residents have made it clear they support a downtown hotel and additional commercial buildings.

'We've had tremendous enthusiasm from both the public and City Council for the project,” Drown said. 'There's a shortage in Marion ... of restaurant and food services. This will not only serve the greater Marion area well, but it will support service for the hotel.”

GLD hopes to complete construction of the hotel by summer 2018, but Drown said no timeline exists yet for construction on the three commercial buildings.

Tom Treharne, planning and development director for the city, said the planning and development department is working with the company to determine possible tax incentives.

'We're enthused about trying to in-line with community goals and objectives,” Drown said.

l Comments: (319) 368-8516; makayla.tendall@thegazette.com