A deal is in the works for Lafrance Hospitality of Westport to build a restaurant and hotel at Shearer and Thorndike streets.
PALMER – Five lots on Shearer Street may soon be zoned highway business, which would allow the development of a 100- to 140-room hotel and restaurant on the property, according to a Northeast Resorts Group representative.
The Planning Board recently approved the zone change from suburban residential to highway business for the lots as proposed by the Northeast Group, which has options to buy properties at 315, 357, 401, and 403 Shearer St. A .33-acre property on Shearer Street included in the rezoning is the only one without a structure on it, according to the Planning Board.
The Town Council still has to approve the zone change.
James L. St. Amand, Northeast's community liaison, said the company has a deal in the works with Lafrance Hospitality of Westport to build a restaurant and hotel at Shearer and Thorndike streets, across from the spot where Mohegan Sun wants to construct a resort casino off Thorndike Street (Route 32).
Lafrance operates seven hotels, three in Massachusetts, three in New Hampshire and one in Maine, under the names Hampton Inn, Fairfield Inn and Comfort Inn, along with three restaurants, and a catering company.
"Northeast is looking forward to working with the newly elected Town Council as we strive to economically develop the Palmer turnpike exit," St. Amand said.
Northeast is leasing 152 acres to Mohegan Sun, whose efforts to open a resort casino have been stymied as casino gaming is not legal in Massachusetts.
Gov. Deval L. Patrick, House Speaker Robert A. DeLeo and Senate President Therese Murray are attempting to agree on a new casino bill, after one stalled last summer over disagreements about slots at racetracks.
Timothy D. Burkhardt, vice president of hotels for Lafrance, said they are in the process of working out purchase details with Leon H. Dragone, president of Northeast.
Leon H. DragoneThis would be the company's first foray into Western Massachusetts, and is the only site being considered.
"We've done preliminary studies. We like the site and we like the concept," Burkhardt said. "The location off the MassPike exit is certainly appealing . . . We see the need for economic development and we'd love to be a part of it."
This site, if developed, would likely carry the Hilton or Marriott name. Burkhardt said he is not sure the project would go forward if a casino doesn't happen.
"We are looking to evaluate what the hotel scenario would be without the casino," Burkhardt said.
Building would occur on at least five acres, but that is being researched as well, he said.
Northeast has 16 properties under option around town that total 365 acres. Near the casino site it has options on 21 acres owned by the Berthiaumes in the area of 280 Breckenridge St. and 90 acres owned by Kenneth Sherman to the southeast of the casino property behind homes on Breckenridge, High and Pinney streets.
The parcel being eyed for a hotel and restaurant is part of 20 acres along the Thorndike and Shearer Street corridor, which includes the former icehouse property, that Northeast has under option with various owners.