Minnesota developer produces bank document for motel financing

6/28/2011

A developer's plan to open a motel and community center in Rushford, Minnesota, is making progress, according to those with knowledge of the project.

Earlier this month, developer Tom Serie presented the Rushford City Council with a formal letter from his local bank, which showed its commitment for a $1.35 million loan to assist with motel financing, the Winona Daily News reports.

The project had been initially considered in 2007, however floods in the area delayed plans until 2009 when Serie was awarded contracts for both the motel and community center.

In 2009, the project was approved without an official bank loan, and was scheduled to be completed by 2010. However, he has yet to break ground on the motel.

"At least we're taking a step forward," said council member Mark Honsey, following the lengthy delay to secure financing, the news source reports. "That's a good thing."

The news source reports that the motel project is estimated at $1.4 million, and the city has already approved a $160,000 loan, as well as $150,000 in tax abatements for the property.