After the demolition of the former Sawmill Inn, plans are underway to build a new 82-room hotel branded as a Best Western Plus.  Rebound is subdividing the 9-acre property into six commercial parcels. The new hotel will be located on one parcel, and the remaining five parcels will be marketed for independent commercial developments. Rebound also purchased an adjacent 15-acre property.

The area surrounding the former Sawmill was last year officially declared a tax increment financing (TIF) district,  public financing method for redevelopment projects.  Through the use of TIF, Grand Rapids will forego future property tax revenue increases within the district for a period of time. This helped close the financing gap for Rebound and met the city’s economic development goals. Grand Rapids also received a commercial redevelopment grant from Iron Range Resources & Rehabilitation to demolish the Sawmill and prepare the site for new construction.

According to Brett Reese, Managing Principal and CEO , Rebound was drawn to Grand Rapids’ vitality and the city and state’s willingness to be active partners in the redevelopment. In addition, Rebound undertook the project because one of its partners is Jennifer Rajala Sawyer, a fourth-generation family member of Itasca County-based Rajala Companies.  For over 100 years the Rajala lumber and logging companies have been dedicated to strengthening communities, creating jobs and enhancing rural economic development.

“Without TIF and the redevelopment grant, we could not have moved the project forward,” said Reese. “Our company is excited to expand into northeastern Minnesota. The project will utilize local banks for financing, employ hundreds of construction workers, create an estimated 19 full time equivalent positions to operate the hotel, and eventually create additional spinoff development such as a restaurant or retailer on the five remaining commercial parcels.”