Albert Lea Mayor Vern Rasmussen and Albert Lea Economic Development Agency officials announced Tuesday they have signed a purchase agreement to sell the first lot in the Interstate 35/Interstate 90 Business Park for the development of a new hotel.

The purchase agreement, with developer Myron Kaeding of Devil’s Lake, N.D., includes the sale of a 2.1 acre portion of the newly developed business park, east of Love’s Truck Stop. The lot will be developed into a Holiday Inn Express.

According to a news release, the hotel will be three-stories tall and will have 66 rooms. It will also have a pool, spa, fitness center and larger-than-average conference room with a screen and Smart Board.

Construction is slated to begin on the hotel in May.

Kaeding is also the chief partner of Northwood Hotel Ventures LLC, which recently opened a Holiday Inn Express near Diamond Jo Casino in Northwood, Iowa.

Albert Lea Economic Development Agency Executive Director Dan Dorman said the developers contacted ALEDA last fall seeking information on sites for a hotel east of I-35.

Dorman said he provided the developers information on several sites in Albert Lea, including sites east and west of I-35, the Blazing Star Landing and the North Broadway Avenue parking lot area downtown.

“The visibility from the interstate was a desired attraction to this company in choosing this location, and ALEDA believes this will stimulate additional growth in our community,” added Rasmussen, who serves as the ALEDA board president.

He said he is excited to have the first business locate in the new business park.

Dorman said the purchase agreement called for the developers to pay $100,000 an acre, plus the developer’s portion of the access road, which will have to be installed.

He said the sale will improve the visibility of the business park and will help the agency be more competitive when competing for manufacturing or industrial businesses further back on the property.

The plans for the park include other retail development in the southernmost part of the property.