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Developer interested in repurposing former Fergus Falls mental hospital

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A developer is interested in dropping $41 million dollars into a century old architectural landmark in west central Minnesota, to transform it into a multi-use complex featuring a 120-room luxury hotel, 60 apartments, restaurants and a coffee shop.

The former Fergus Falls Regional Treatment Center was closed by the state in 2009, as care for the mentally ill shifted from institutional care. City officials have sought developers to repurpose the former asylum, but with no prospects, the building was in danger of being demolished.

The Star Tribune reports that the Fergus Falls City Council voted last week to enter into a letter of intent with a Georgia-based developer that specializes in renovating historic structures. The developer group will work with city officials on a comprehensive agreement. Renovations could be completed by late 2015.

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