Former Budget Inn torn down, plans scrapped for development

BISMARCK, N.D. (KXNET)- This week, workers tore down a former Bismarck hotel.

The Budget Inn along 2nd street and Thayer Ave was torn down.
The company Lander Group in Minneapolis had originally planned to save portions of the building to use it as part of a new apartment complex .
But in a recent Bismarck renaissance zone authority meeting, the company changed plans and opted to tear the building down and hold off on new construction.
Lander Group CEO Michael Lander said the current economic climate and cost to build are the main reasons they’re waiting.

“But in the end, the rise in construction costs and the rise in interest rates made the project unfeasible at this time,” Lander said. “This is interesting because there is definitely market demand, people want to live downtown, they will pay good rent, but that rent does not cover the cost of production given those two big increases.”

Bismarck city leaders say before any new building can happen on the former Budget Inn site, the company would have to submit design plans.
Lander says the Lander Group recently finished two apartment projects in Bismarck, the Grove Apartments and the Renaissance Lofts , both of which are now leasing.

For the latest news, weather, sports, and streaming video, head to KX NEWS.