BEMIDJI — Bemidji leaders’ long-term goal of developing the city’s rail corridor appears to be that much closer with a major project announced.
An Alexandria-based real estate development firm announced Tuesday, Oct. 28, its intention to build a $22.5 million hotel, event center and restaurant in Bemidji’s presently blighted rail corridor.
The Bemidji City Council unanimously approved a series of motions for the site preparation during its regular meeting on Oct. 21. The work will include demolishing three abandoned structures as well as cleaning up the contaminated soil.
“I think what makes it unique is a hotel in our downtown area,” Mayor Jorge Prince said of the project in a Wednesday, Oct. 29, interview. “I don't think we've had a hotel of this type of scale since the old Markham.”
Hotels had not been part of the downtown Bemidji landscape since the 1980s, until the 4th Street Lofts and Event Center opened with four rooms in 2024.
“Having people staying there and being able to have walkable distance to things like restaurants and shopping and even the community theater,” Prince said of the proposal, “I think it's really going to be a shot in an arm for our downtown businesspeople as well.”
GoodNeighbor Properties is proposing a 98-room Marriott Hotel. The complex would also include an integrated event center and meeting space with an on-site restaurant.
“This project came onto our radar thanks to the proactive outreach and compelling efforts of Greater Bemidji and the development team. Their presentation highlighted the many advantages of the Bemidji community, which we had not fully realized before,” stated Rob Thompson, the founding partner of GoodNeighbor Properties, in a news release.
“We were impressed to learn how much the area has evolved into a vibrant, year-round destination capable of supporting a project of this scale. The exceptional support from Greater Bemidji, the Mayor, council members, and city staff has been instrumental — and is the primary reason we’ve chosen to move forward with this development.”
Greater Bemidji, an economic development nonprofit for the Bemidji region, took the lead on attracting developers to the rail corridor site. Executive Director Dave Hengel stated the two major projects proposed so far represent more than $57 million in new construction.
“We will be taking a blighted, contaminated site and transforming it into a vibrant and complimentary addition to our downtown,” Hengel stated in the release. “By leveraging state grants and a variety of other funding sources, [Bemidji] will be able to do all this without using city property tax dollars — I think that is very important for the community to know and remember.”
Progress on the proposed YMCA wellness center in the corridor continues with fundraising. Sanford Health committed a $10 million initial gift for the $25 million project.
Bemidji’s YMCA will be in a 65,000-square foot facility, with an indoor playground and large aquatic center part of the complex. YMCA of the Northern Sky in Fargo is also considering adding a child care center to the Bemidji facility.
The rail corridor lies near Lakes Irving and Bemidji, and the city has owned the brownfield site since the early 2000s. Soil contamination in the area stems from Bemidji’s rail heyday, with industrial uses taking place in the area over the decades.
Prince said extensive testing of the area eliminated concerns of ancient human remains. In the 1980s, 22 skeletal remains estimated to be 7,000 years old were discovered nearby, during an expansion of the now-defunct discount store Pamida.
“There’s pretty high confidence that isn’t going to be an issue. As we do the work, there’s always the possibility of something happening, but as a city, we’ve done as much due diligence as we can,” Prince said.
Site preparation in the rail corridor is expected to begin as soon as next month, with construction on the YMCA and the hotel expected to begin as soon as next summer.
Editor's Note: A previous edition had an incorrect year for the former Markham Hotel's operation. KAXE regrets the error.
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