A developer previously charged with renovating the existing building on Madison Area Technical College’s Downtown campus is now the likely candidate to take over the entirety of the one-block parcel’s development.

Drury Southwest, a Missouri hotel company, was originally part of a pair to take on redevelopment of the Downtown property. Drury was to renovate the existing building to turn it into a 192-room hotel on a majority of the land, and Hovde Properties of Madison was to construct a multi-story commercial building to fill a smaller section that is currently a parking lot...