Two developers have shown interest in bringing a new hotel to Oconto Falls, and a groundbreaking could be held as early as this spring.
An Oconto County market study completed in 2013 by Hospitality Marketers International Inc. determined the county could economically support a centrally located, limited-service, midpriced hotel.
According to Paul Ehrfurth, executive director of Oconto County Economic Development Corporation, after the study was completed, one developer expressed interest. Six months ago, another developer stepped forward.
Oconto Falls City Administrator Vicki Roberts said an announcement regarding hotel development could be made in about 30 days. A potential developer is preparing some final details, she said.
The projects on the table consist of two options. One model is a building with 31 rooms and no pool. The second option is a building with 50 rooms and an indoor pool.
“Each franchise has different models to look at,” Ehrfurth said.
Ehrfurth said choosing a developer is partly based on how the new business will impact the community. The size of the facility, amenities provided in the facility, such as a swimming pool or weight room, and equity requirements will affect the final decision.
Funding for the project is also a factor since a developer will not fully fund a project, Ehrfurth said. These projects require an amount of equity from local investors or investors solicited by the developer.
The city is ready to provide revolving loan funds to get the project started, Roberts said.
OCEDC is poised to offer a revolving loan using federal funds.
“Our loans are based on job creation,” Ehrfurth explained. “Looking at that, we can lend an amount of money which would have a lower interest rate than other financial institutions.”
He said the organization looks at the number of jobs that will be created in the community to determine lending amounts. Another criteria for the loan is that the jobs must be made available to low- and moderate-income citizens.
Ehrfurth estimated the finished project will encompass about 2.6 acres.
Building is expected to begin this spring, Ehrfurth said.
“We should know more within the next month or so,” he added.
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