The vacant Palace Arms Hotel, formerly the Holiday Inn, near Memorial Bridge was bought Wednesday by a new partnership. Bridgeport Development, made up of three corporate entities, is considering a variety of projects for the 7.2-acre site.

Everything from a medical facility to a high-rise condo complex, restaurants, retails, recreational uses, offices and maybe even a private school are being considered, said Chad Wachter, president of Microvest Inc., one of the partners.

"(We) have a few clients that are private schools looking for property," Wachter said. "We want to develop the property in ways that are going to benefit the community and enhance the whole area"

He said he and the other two partners - one a local corporation, the other out of Minneapolis - were interested in this property and location because of the new bridge planned to replace Memorial Bridge and because it's a great location and because "everybody in our group is up for a challenge like this."

The partnership bought the property about two weeks after the Bismarck Park Board decided not to.

The Park Board voted May 13 not to exercise its option to buy the property, which was being looked at for a proposed arts, science and recreation center. In January, the Park Board paid $10,000 in earnest money for the $750,000 property and had until April 15 to exercise its option.

The Palace Arms' owner, Wachovia Bank in Florida, gave the park board a one-month extension on that. But at the May 13 meeting the Park Board voted down the purchase after a committee of supporters was unable to raise enough money for the project to go forward.

Wachter said the partnership didn't pay less for the property than the Park Board's offer, but he wasn't authorized by the partnership to disclose the price.

He said the partners have talked about trying to save the concrete tower and use it for condos, and tearing down the rest of the building and doing something else with that land.

"The tower for the most part is in pretty good condition. The rest has got to go," he said about the hotel, which has been vacant since December 2001.

He said if they decide on residential development, "We'd go with condos." If the emphasis turns out to be commercial, he said he thinks there will be some type of medical facility there. "It's so convenient for people in Mandan … to get to it."

Wachter said he couldn't speculate on when development would start.

He indicated a development plan would be adopted soon.