Viroqua council approves Market Point pre-development deal for proposed GrandStay hotel, contingent on feasibility study

Market Point Development pitched a GrandStay-brand hotel to the Viroqua City Council on Feb. 24, saying the company sees a market for a medium-scale hotel in the Viroqua business park and is prepared to pursue design, lender and investor conversations if the city moves forward.

Chan Johnson of Market Point described the firm’s approach as collaborative. "Our base philosophy is this is going to be a collaborative team thing," Johnson said during the presentation. He said Market Point works with a development team that includes an FF&E/design partner and GrandStay as the preferred flag for this market.

Johnson identified a front-runner site north of town near the Ford dealership (part of the business park frontage) and said a 2023 feasibility study should be usable with minimal updates; he estimated typical scenarios in the presentation range from about 54 to nearly 68 rooms in similar projects. He cautioned that final size, amenities and the presence of a pool, restaurant or conference spaces depend on updated feasibility, financing and design conversations.

Why it matters: the council has sought a hotel for the business park for several years to support visitor lodging and local economic activity. A local hotel could affect downtown visitation, short-term lodging capacity for regional events and municipal planning around traffic and infrastructure.

Council moved into a closed session to discuss bargaining and returned to open session, where a motion to agree to a pre-development agreement with Market Point — with a contingency that Market Point provide an updated feasibility study before final commitment — was seconded and approved on roll call. The agreement does not obligate the city to finance construction; it sets terms for city-developer collaboration leading up to site selection, feasibility updates, lender outreach and final development agreements.

Johnson described the GrandStay flag as "upper mid-scale" and said GrandStay properties can be tailored to local character; he said Market Point works with local artists and community input during design reviews. On timing, Market Point representatives suggested that, if a shovel-ready site and approvals align, construction could begin in spring and take roughly a year, but Johnson emphasized that permitting, financing and community review would determine the actual schedule.

Next steps: Council’s approval moves the project into the pre-development stage. Market Point will be expected to update the feasibility work, continue site review and return with refined plans, financing terms and design concepts for council and community review.