Plans are underway to build a 51-room hotel with a pool behind the McDonald’s restaurant at 1450 8th Street NW in Pine City.
The proposed three-story hotel would be part of the Grandstay Hotels chain, and has received site plan approval by the Pine City Council.
There are currently 18 Grandstay hotels across Minnesota, with the nearest branch in Cambridge.
Jerry Buseman of Pine City Hotel Investors, LLC/Turner Properties, LLC said that the developers hope to start construction in 2018.
Pine City Mayor Carl Pederson said that the city is in regular touch with the project developers, and said they are moving along in their process, and are now working to get financing for hotel construction.
Pederson said that once the developers can show they have established their own private financing for the project and submit their application to the city, they will be approaching the Pine City Economic Development Authority about taking out a revolving loan, and will ask the city council for tax increment financing for the site.
“We cannot act on that until we get ... the official application, Pederson said. “We’re waiting on that information to get to us.”
Pine City Community Development Director Lezlie Sauter said that Don Julio Mexican Restaurant has signed a lease agreement with the owner of the former Pump & Munch gas station/convenience store at 1120 Hillside Ave SW in Pine City, and plan to turn the building into their newest restaurant.
Don Julio has branches in North Branch, Chisago City and Forest Lake.
Sauter also said the restaurant has applied for a liquor license from the city, and though the city council will make the final decision, she has heard no objections to letting the new restaurant receive that liquor license.
“We have plenty of liquor licenses to give out,” Sauter said. “But once you serve food you don’t count toward our limit.”
She said the owners have not yet set a date for opening, but she hopes that it’s soon.
“We’re happy they’re coming to town,” Sauter said. “It’ll spruce up that area, make it more vibrant, bring in more jobs. It’ll be good.”