New hotel pitched for Hurley

By PAMELA JANSSON

pjansson@yourdailyglobe.com

Hurley — The Hurley City Council may be ushering in a new hotel if steps continue to proceed forward in relation to a Monday evening discussion.

Mark Guttater, a representative of the Cobblestone Inn chain, pitched a plan to establish a hotel within the city, and council members were highly receptive to the idea.

“We like the area,” said Guttater of himself and his colleagues. “We like the potential for what we see here moving forward.”

Guttater said that he was aiming for a four-story structure with about 62 rooms, full breakfast capacity and a pool. He said the speculated $10 million investment would result in a “very attractive” building.

He speculated that the company could be shovel-ready by spring and ready to open within a year.

“I’m here to say I think this would fit terrific in the community,” he said.

Guttater’s main concern was in assuring council support, preferably with the help of tax incremental financing.

According to the Wisconsin Department of Revenue, “TIF is a financing option that allows a municipality (town, village or city) to fund infrastructure and other improvements, through property tax revenue on newly developed property.”

“We couldn’t create a TIF until we had more definite numbers,” said Hurley clerk/treasurer Stacey Wiercinski.

Mayor Joanne Bruneau added that the city could not commit, as needed, to supplying water and sewer to a designated site until it receives “a firm commitment.”

But she added, “We’re willing to work with you guys.”

Guttater said he, his partner and investors are all committed to Hurley as a project site.

In relation to the probable need to establish utilities, Scott Santini, who leads the city’s department of Public Works, said the city would not be inclined to invest large sums on establishing utilities when there could be a chance of Guttater backing out.

Guttater then asked Santini simply to provide information on those costs and said that Cobblestone will factor the expense into its building budget.

Cobblestone already has established inns nearby in Ashland, Rhinelander and Mosinee.

Guttater said he had been trying in recent years to set up a hotel in Ironwood but added that officials there had voiced complications in relation to progressing toward that goal.

“I don’t have a firm commitment from the city of Ironwood at this stage of the game,” said Guttater.

Hence, he said someone advised that he try Hurley instead.

Council members were receptive to Guttater’s pitch. “The city of Hurley desperately needs something,” said Jamey Francis.

The mayor asked Guttater to keep communications open as plans continue.

In other news, council members also:

— Approved a payment of $856,256.85 in relation to the 2nd Avenue utility reconstruction project.

— Approved a conditional use permit for Lori Munn to allow for short-term rentals at 210 Maple St.

— Approved a resolution of understanding on an amendment to the management agreement for the Gogebic-Iron Wastewater Authority and board.

— Tabled action on a fee schedule increase due to Councilman Robert Lanctoe advising that more discussion is needed.

— Approved a proclamation in relation to National Suicide Prevention Week from Sept. 8-14.

— Approved a proclamation in relation to the city’s commitment to fair housing policies.

— Rejected any further assistance in relation to replacing a tree that had to be removed due to the interference of road construction at 405 2nd Ave.

The council entered a closed session in relation to “consider public works applicants.”

The Globe was not able to obtain results before press time.

The council’s next regular meeting will be on Oct. 8 at 5 p.m. in the Hurley City Hall.