Holiday inn

Cobblestone gets land by Holiday Inn | News

Plans for a second hotel near the Crossroads Pavilion Event Center in Sheldon are in the works.

The project is set to kick off after Sheldon City Council approved the sale of the land behind Holiday Inn Express & Suites for $1 to Cobblestone Inn & Suites at its Wednesday, March 23 meeting.

The minimum 10-year $1.5 million appraisal agreement for the project, agreed in 2020, remains unchanged after the resolution is approved.

In November 2020, Cobblestone, along with a local investment group, announced plans to build a 40-room hotel between Holiday Inn and the Pavilion.

But material costs for many construction projects across the country have risen sharply during the coronavirus pandemic and the Cobblestone Inn & Suites project has also been affected, delaying breakthrough development.

“They want to make sure this is a success, not just for Cobblestone, but also to make sure we don’t cannibalize the large hotels that we already have in this community,” said Curt Struth, director of Sheldon Chamber and Development Corporation. “So being diligent with the project was good.”

Material costs did not stabilize, driving the cost of the project from $1 million to over $4 million.

Despite the substantial increase in construction costs, the Cobblestone project was still put out to tender in February.

Struth said the offer is due soon and if accepted, construction of the hotel could begin in late April or May. Construction on Cobblestone is expected to take about a year.

“What the investor group feels and what the developer thinks is that this is a really good project for Sheldon,” Struth said.

Commitment to the project remained firm by the local investment group, rising from $860,000 to $1.3 million.

“It shows their confidence in this project that they have increased their investment in a very short time,” Struth said. “It says a lot about their vision and dedication to this project and, more importantly, where they think Sheldon is going.”

The next step was to ask the council to reduce the cost of the land from $40,000 to $1.

“Originally, ground costs were included in the project development costs, and they demanded our attention to reduce that cost,” Strouth said. “In good faith, they felt they were putting the cards on the table with the extra investment they were putting into the project.”

Councilman Tom Eggers said Cobblestone is one of many new projects that will have a positive impact on Sheldon.

“Having the interjection and development of private investment is a real game-changer in my book,” Eggers said. “We have to make this project a success for everyone, and I can only think of how it will create opportunities that may have been beyond our reach. I can’t say that I would have any qualms investing a bit more from a city perspective in this project. »

The 40-room hotel is expected to have amenities like an outdoor patio, fitness center, bar, and hot breakfast.

Cobblestone is also expected to create 14 jobs.

“The amount of ancillary economic impact it brings to your community to improve your housing, there’s more return on investment than just property tax,” Struth said.

Other board items approved last Wednesday included:

  • Resolutions approving grant applications and an engineering services agreement for the Sheldon Regional Airport Runway Rehabilitation Project.
  • A request from the Sheldon High School Prom Committee to block portions of East Fourth Street, 19th Avenue, Sixth Street and Country Club Road during the big walk from 6:15 p.m. to 7 p.m. on Saturday, April 23.
  • A request to host the annual Village Northwest Unlimited Run, Walk & Roll for June 4th.
  • A variation order of $7,840.90 for the improvement of sewer collections and a request for payment of $77,666.30 for the same project.
  • A hearing for the April 6 meeting at 4:30 p.m. granting a perpetual easement of underground communications to MidAmerican Energy Co.
  • A training reimbursement agreement with Sheldon Police Department officer Shane Nellis.
  • Cost advance of $91,150 for urban renewal projects at Sheldon Regional Airport.
  • A transport services contract with RIDES for the 2022-23 financial year.
  • Notice of resignation from Sheldon Regional Airport Commissioner Kellie Einck, effective May 10.
  • A recommendation from the Sheldon Regional Airport Commissioner regarding the Fuel System Phase One Subsidy Reimbursement Gap.
  • A transitional merchant agreement with Northwest Iowa Community College for the remainder of the calendar year in 2022.
  • Appointments of Dennis Gorter, Amy Sietstra, Dave Van Den Brink, Kristin Kleinwolterink, Denny De Jong as well as Councilman Ken Snyder to the Reformed Housing Review Commission.
  • Schedule a hearing for April 6 on the closure of Seventh Street from Sixth Avenue to Seventh Avenue during the demolition of Bethel Reformed Church.
  • Schedule a hearing for April 6 to propose the granting of a perpetual easement to Ag Processing Inc.


Source link