A South Dakota hotel management and development company plans to build a Holiday Inn Express in a commercial area of north Davenport that appears to be coming out of its doldrums.
Lamont Companies, based in Aberdeen, S.D., has plans for a 90-room hotel near the intersection of Brady and 65th streets, said Matt Flynn, the city’s senior planning manager. The four-story building will sit on the east side of the vacant lot that once housed a Ramada hotel.
The company, founded in 1998, has developed dozens of franchised hotels, convention centers, restaurants, strip malls, apartment buildings and casinos, according to its website.
Lamont Companies did not return calls to the Quad-City Times.
The project, which is the city’s review stage, is the latest development slated for the North Brady corridor. The adjacent area, which was the site of the former Showcase Cinemas, has seen the development of Tri-City Electric’s new headquarters and other projects as well as a nearby expansion of operations by Von Maur, the Davenport-based department chain.
“The area has suffered from the perception that it is deteriorating with the long-standing vacant properties,” Flynn added. “But with the new Menards and the continued expansion of Von Maur, I think if people haven’t noticed — they will — that the area is coming back to life.”
Construction is expected to begin this spring on the new Menards home improvement store, he said. The store also will be located near the northwest corner of 65th and Brady streets. A store official said in January that Menards plans a 2014 opening.
According to Susanne Knutsen, Davenport’s lead economic development coordinator, the Lamont Companies’ hotel project likely will qualify for the city’s Urban Revitalization Tax Exemption program.
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Through the program, a new commercial project — located in one of the city’s three designated urban revitalization areas — can receive a 100 percent tax exemption for three years on the increase in property taxes that result from the improvements. Or a project can receive a gradual property tax exemption over 10 years on the increase.
The program also is available for residential and industrial projects.
Knutsen said the program was created to assist development in blighted areas. Davenport offers it in three main areas including the north corridor, which includes the area where the Holiday Inn Express will be built. It also is available in central Davenport and in the Interstate 74/53rd Street area. “The last one was set up when the big boxes were vacating their stores,” she said referring to some tenants on south end of Elmore Avenue.
The tax exemptions in that corridor, she added, are available only for development of an existing building.