Despite the City of Marshall approving a 10-year tax abatement for Rebound Real Estate for a planned Hampton Inn by Hilton development in Marshall, the Lyon County Board of Commissioners were more reluctant to make a commitment to a tax abatement for that many years.
“There is a need for another motel in Marshall,” Commissioner Todd Draper said. “There is a challenge to finding places. There is no doubt it would be a good thing for Marshall. Marshall has different gains in this project than Lyon County does. We do want things to progress and on record we have a four-year abatement program.”
Commissioner Rick Anderson agreed with the need for the hotel, however, had some reservations with the idea of a 10-year tax abatement for a project in Marshall and the thoughts that it was needed to proceed.
“We’ve set the precedent with a four-year abatement,” Anderson said. “I think if you had this project done right before the hockey season started, your return will be much quicker than three years. I know how busy that hockey arena is during the winter. You’ll fill that place up no problem.
“And to say that if we don’t give the 10-year, this is a dead project, that really causes me concern,” Anderson continued. “I think if we can give the abatement based on our policy, I’m alright with that because as Commissioner Draper said, it doesn’t help my part of the county. It helps the City of Marshall, which is a good thing and I appreciate that, but I tend to lean towards staying with our policy once the completion is done.”
“I’ll go on record for 30 years saying we need another hotel in Marshall,” Commissioner Tom Andries said. “I don’t want any abatement, but the County’s a precedence here and that’s the best I’d be considering.”
The Hampton Inn by Hilton would be located near the Red Baron Arena & Expo. The 84-room hotel would include an indoor pool, modern lobby and lounge area with an estimated project cost of $16,150,000. The project has a targeted construction start date of fall 2025 with an estimated opening in late 2026.
While the board as a precedent of a four-year abatement, no abatement can be granted without a public hearing. Usually, all abatements are done in the fall. However, Scott Koester with Rebound Real Estate voiced concern over waiting until fall for a decision on abatement.
“Waiting until fall causes scheduling problems for us if we want to stay on track,” Koester said. The board set a public hearing for July 15 concerning the tax abatement for Rebound Real Estate.
In other board news:
• The board approved the environmental department to request quotes for Legacy Grant engineering. The grant includes construction of four camper cabins and reshaping the existing primitive camp area with a new road, picnic shelter and bathroom. Engineering and design work is desired to be completed this fall so that construction bids can be requested this winter for a 2026 construction schedule. The grant allows for up to 90% of the engineering costs.
• The board approved adding fees for Project Lifesaver participation to the county fee schedule. The Project Lifesaver offers Lyon County residents the ability to utilize locating technology to assist in the location of a missing “at risk” individual.
• The board heard from A.C.E. representatives, the many programs they have implemented in the last year and the uncertainty of budgeting for the upcoming year.
• The board approved a proposal from Landfill Drilling and Piping to install eight gas wells in the amount of $78,114.
• Discussion on approving an agreement with ENCON to rent a leachate evaporator was tabled until the next meeting. The rental agreement was for $69,950 with a $22,500 security deposit and is part of a leachate treatment pilot program. However, the program is being paid for with a grant of $214,155 the county received from MPCA. The county hasn’t received the specific language of the grant and therefore hasn’t formally accepted the grant, so the rental agreement was tabled. The county has through 2026 to use the grant funds.
• The county set a public hearing for July 15 for a petition for partial abandonment of a Lyon County Ditch 15.
