Plans for a long-desired hotel in Jordan face an uncertain future after developers signaled to city staff late last month that they’re not ready to commit to investing in engineering and design work.

It’s a familiar story for Jordan city leaders, who have been courting hotel development deals for some time, with little luck.

This latest venture began in March, when the Jordan City Council signed a memorandum of understanding with Allied Development Resources to explore the possibility of building a hotel on two city-owned lots in the Whispering Meadows development.

Under the agreement, the city agreed to suspend marketing the property until September, as long as Allied continued to meet development benchmarks. The council rescinded that agreement Monday night after the developers indicated they were not prepared to meet those deadlines.

The developers missed their first deadline in June, when they were supposed to submit a land use application for a site plan. City Administrator Tom Nikunen said the developers indicated they are still interested in exploring the hotel development, but did not offer a specific time frame for that process.

“They would still like to pursue the project on their own... they’re fine with the city working to market the property to other developments through,” Nikunen said.

Nikunen suggested the city continue to market the development for a hotel, particularly since the city now has an updated market study from the developer that can be used to better market the property and determine what the community can support.

The property consists of two lots on the corner of El Dorado Drive across from The Station Bar & Grill, which were purchased by the city from New Market State Bank last August for $300,000.

Allied’s initial concept was a four-story, 81-room GrandStay hotel that included a brew pub, swimming pool, outdoor patio and business incubator space.

A local hotel has long been sought to improve the city’s hospitality industry. The only lodging option now is the Nicolin Mansion Bed & Breakfast, while the nearest hotel is in Shakopee — eight miles away. Beyond that, visitors must travel to Belle Plaine or Prior Lake for lodging.

The city is now free to market the property to prospective developers again after rescinding the memorandum of understanding with Allied Development Resources.

Regarding future ventures, Councilman Jeff Will said there is room to improve the city’s standing when initially negotiating with a prospective developer — an opinion he also voiced back in March.

“It seems like we kind of laid out all of our cards, what we were willing to give, before the developer even asked,” Will said Monday night. “I’d like to see that changed to see what they need first and then see if we’re able to supply it.”

The last serious hotel offer from a developer was in 2015, when Terry Eid of Terrance Eid Construction proposed a hotel be built next to Clancy’s on Triangle Lane. Eid was later charged in 2016 with nine counts of theft for an apartment project in Hibbing, which halted the hotel project. He was found innocent of all charges last year.


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