MARSHALL — Right now, the block of downtown Marshall between East College Drive and North First Street is mostly empty gravel lots. The city of Marshall is still looking for a developer for that property, and on Tuesday members of the Marshall City Council voted to partner with a new potential builder.

Council members approved a preliminary agreement with Block 11 Marshall, LLC, of Mankato. Marshall City Administrator Sharon Hanson said the company was proposing to build both residential and commercial property on the block, although at this stage there’s a lot that still needs to be worked out.

Marshall Mayor Bob Byrnes said it was “encouraging” to see there was continued interest in developing the downtown property.

The city had already made one pre-development agreement with a different company, APX Construction Group of Mankato, in 2019. APX’s plan for the property was to build a mixed-use development with commercial space and about 56 apartment units. However, that agreement expired without any development moving forward.

Hanson said Tuesday that Marshall is still getting interest from developers about “block 11,” the same block that the Varsity Pub and Extra Innings is located on. The city owns several vacant lots on the block, and has been looking for potential developers for the past few years.

“We had a new interest from a different developer, also out of Mankato,” Hanson said Tuesday. The company’s initial proposal was a three-phase project, starting with an apartment building with about 36 units. The second and third phases would have a mix of commercial and residential space.

The agreement the council approved lays out timelines for the developer to give the city more formal proposal details, and demonstrate that the project is feasible. Within 60 days of the start of the agreement, the developer would have to submit a site plan for the proposed project, as well as a letter stating a preliminary commitment to provide financing. If the city decides the proposal is feasible, they can go on to negotiate a purchase agreement for the property.

Hanson said the developer might possibly be seeking financial assistance from the city.

“We need to get some more detail financially,” she said, but they had talked about the possibility of Tax Increment Financing or a tax abatement.

The pre-development agreement between the city and Block 11 Marshall, LLC is set to end on Dec. 31.