News Update: Bank forecloses on Motel 6, property for sale
A once-popular Owatonna hotel fell into foreclosure last week and now sits empty, waiting for a new owner.
Minnwest Bank took ownership Tuesday of Motel 6, formerly Holiday Inn and Suites, located west of I-35 and north of Degner Regional Airport. A bank representative did not respond to a request for more information.
City of Owatonna Economic Development Director Troy Klecker said the city does not like to see a property sit empty, with hotel rooms not available. He said the bank is looking to sell.
“The property was underutilized with the conference space, waterpark and restaurant all sitting empty before this closing,” he said. “A change in ownership will allow the whole property to be more fully utilized.”
The city will collect the motel’s share of property taxes, which Klecker said would be paid when the property is sold. In the meantime, the bank has assigned someone “to watch over and maintain the property.”