Plan calls for Marriott hotel in IM downtown
City council gets application for tax reduction on site
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IRON MOUNTAIN -- A four-story Marriott hotel is planned for downtown Iron Mountain at the site of the former Timbers Motor Lodge with construction to begin in late fall or early spring, according to an application for a tax reduction received by the city council.
The council tonight is expected to schedule an Oct. 18 public hearing on IMT Lodging's request for a 10-year Commercial Rehabilitation Exemption Certificate for a project at 200 S. Stephenson Ave.
The application comes from Robert E. Mahaney, CEO of Marquette-based real estate developer Veridea Group. The proposed facility is a 95-room TownPlace Suites by Marriott hotel, described as an extended stay hotel suitable for business and leisure travel. Plans also include a small conference area.
The $16 million project would create about 100 construction jobs and 30 new permanent jobs. The site for the 56,822 square foot building would include 111 parking spaces and associated landscaping.
If the tax break is granted, the new investment would be exempt for 10 years from all property taxes except school operating and state education. City Assessor Patti Roell has estimated a taxable value increase of $3 million for the property once the project is complete, said City Manager Jordan Stanchina.
The tax reduction is made possible by the city's creation in 2017 of a Commercial Rehabilitation District that covers the Downtown Development District. The goal is to spark investment in vacant or underutilized buildings and land.
The former Timbers Motor Lodge, a 53-room hotel, stood empty almost a decade before being demolished and removed in November 2020. The work was done under the direction of Eden Property Collection of Iron Mountain, which purchased the site in December 2019.
Some other projects that have received Commercial Rehabilitation Exemption Certificates include Sandstone Studios on East Ludington Street; Paul J. Fornetti Dentistry at 1001 Cedar Ave.; Erickson Jewelers at 511 S. Stephenson Ave.; and Contrast Coffee at 1201 S. Carpenter Ave.