Madison Hospitality Group is considering building a hotel on a city-owned property next to Stillwater Motors.
The property is located on Memorial Avenue North, just south of Highway 36, between Stillwater Motors and Century Power Equipment and Sports.
Madison Hospitality — which has hotels in Alexandria, Bloomington, Ely and Ottertail — sent the city a letter of intent proposing an $875,000 purchase price for the property, according to City Administrator Eric Johnson.
In exchange for a $1,000 payment from Madison Hospitality Group the city agreed not to market or sell the property for 60 days, Johnson said. The period is intended to give Madison Hospitality time to perform due-diligence. The 60-day period ends in mid-May.
Neither the group’s letter of intent, nor the city’s response is binding. If the developer wishes to move forward, a purchase agreement and developers agreement would need to be negotiated, Johnson said.