Mounds View motel may become Holiday Inn Express

The City of Mounds View purchased the Skyline Motel, located just off Interstate 35W, and aims to have it redeveloped into another place of lodging.

A developer’s current proposal for the site includes a hotel along Old Highway 8, an industrial or medical building to the north and the possibility of Bio Clean expanding its current building at the south end of the site. (courtesy AMI Consulting Engineers)

City buys land, looks to move on hotel proposal


Mounds View’s Economic Development Authority purchased the Skyline Motel property on May 30 for $1.3 million, aiming to sell the land to a developer and get a new hotel built on the site. 

After putting out a request for proposals earlier this spring, city staffers met with some 30 developers, but received only one formal proposal by their deadline, from Commercial Investors Group. 

CIG has shown consistent interest in developing the land, having presented ideas to the EDA in March and again on May 13.

Located in the 4800 block of Old Highway 8 just off Interstate 35W, the property offers visibility and accessibility from the interstate, as well as proximity to Medtronic, Land O’ Lakes, Deluxe Corporation and the planned Rice Creek Commons development in Arden Hills. 

CIG’s current proposal is to use the eastern portion of the site, fronting Old Highway 8, for a four-story, 90-room Holiday Inn Express, part of the InterContinental Hotels Group brand. 

At its March 11 meeting, the EDA, which consists of the Mounds View City Council and mayor, was in unanimous support of getting a new hotel built on the site. While no formal agreement has been signed, the authority is hoping to move forward with CIG, according to Assistant City Administrator Brian Beeman. 

“Preliminary discussions all indicate that they would be willing to work with this developer for this particular project,” said Beeman, adding that the city’s financial consultant is currently going through a financial analysis process with CIG. “It’s just a matter of vetting the developer.”

CIG is also working with Bauer Welding to potentially purchase two additional acres at the north end of the property, where it hopes to build a medical office or industrial building.

The city has also authorized a study of the site to see if it meets blight and substandard definitions that would qualify it for tax increment financing, which could be used to reimburse the city for the purchase of the land, the relocation of motel tenants and other ancillary costs.


At its May 28 meeting, the EDA authorized a $2.5 million inter-fund loan, which could be used toward the project, if necessary. If it does qualify for tax increment financing, the EDA could then use TIF dollars to repay any money it borrows from the city’s general fund. 

TIF would direct any increase in property tax dollars generated by the site over a set period of time to directly reimburse the city for its up-front costs. The study to see if the site qualifies is estimated to be complete in 30 days.   

Public hearings will be held on both the possible approval of a TIF district and the sale of the site before either plan can go through. 

Hearings will likely take place later this summer; in the meantime, residents are invited to attend any public EDA meetings to share their thoughts.


–Bridget Kranz can be reached at or 651-748-7825.

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