Megadevelopment targets Minnesota sports tourism

PROCTOR, Minn.
A group of private developers in Northeast Minnesota is anticipated to break ground next spring on the NXS National Complex project, which is expected to have a regionwide impact on the sports tourism industry.
The Proctor Economic Development Authority, or PEDA, and NGP Development LLC hosted an open house July 14, at the Proctor Area Community Center, where the public could meet the project stakeholders and learn about the 90-acre future development.
The first phase will include a 156,000-square-foot sports dome with two indoor softball fields, free weights, golf, baseball and four converting basketball/volleyball/pickleball courts, in addition to a hotel, apartment building and multi-use center with an outdoor playground and synthetic rink.
PEDA acquired 35 acres of land from the Proctor school district that is home to the Aspirus St.
Lukes Sports and Event Center.
The district continues to operate that facility.
This land, in addition to 40 acres already owned by PEDA, was sold to NGP for $223,000.
In return, the district received a parcel of land formerly owned by PEDA.
Partners Beth Wentzlaff and Shaun Marline of NGP are investing $14 million for the first phase, located in the area of the existing hockey arena built in 2018.
That phase is anticipated to be completed by 2028.
Construction is not expected to disrupt access during peak hockey season.
Plans for the next two phases of the project are fluid as additional entities have expressed interest.
The second phase may overlap with the first.
The final phase is estimated to take up to eight years to complete, PEDA Chair Eric Madson said.
Once complete, the development is expected to add a mix of market-rate apartments, single-family houses and townhomes, totaling 360 units.
It will also include a grocery store, child care center, restaurants, outdoor athletic fields (three turf and one grass), a multi-use trail, space for camping and an orthopedic clinic, all in a park-like setting.
This will eventually have a Munger Trail spur project going between Hermantown, Duluth and Proctor, where Hermantown trails are going to connect up with this, Proctor City Administrator Jess Rich said.
The trail tourism will be phenomenal.
The development agreement states that if the timeline terms are unmet, the land reverts to the city.
Utilities run through the property mains, but the developer will be responsible for bringing them to the project area.
According to Rich, the city will have some expenses with water and sewer upgrades that were already on the docket to be replaced before the development project plans.
However, many residents attending the open house were relieved to know the NXS National Complex is a private endeavor that will have a positive impact on the tax base, according to Rich.
We have support from the other mayors and state administrators, and they see the vision, Rich said.
We live in a tourism region anyways, and so if you're going to take a weekend off for your family to participate in a hockey tournament or a softball tournament, what greater place to come than this region? College-level hockey tournaments attract visitors from Canada, North Dakota, Wisconsin and beyond to local arenas, but there isnt a venue large enough to host hockey, basketball, soccer, volleyball and lacrosse in the off-season.
Instead, games are spread among the college campuses.
Its very disjointed, Madson said.
The new facility will be capable of hosting multiple sporting events simultaneously, and its flexible spaces will accommodate different sports.
We started our EDA study with the question of, What doesn't exist in the region? Madson said.
Sports tourism came out ahead.
The private developer also conducted an independent feasibility study of the site.
Both of the studies came out with almost identical information," Rich said.
"The need is in the community.
It can be financially sustained under the right model.
The amount of tourism and visitors that it could bring to the area, the region, is pretty important.
Building something like this creates jobs.
So both studies pointed in the same direction..
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