Agenda - Economic Development Authority - 04/14/2022

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Economic Development Authority (EDA) 4. 3. Meeting Date: 04/14/2022 Submitted For: Sean Sullivan, Community Development By: Sean Sullivan, Community Development Title: Consider Letter of Intent for Outlot A, Gigi Addition; Case of The Schiebout Family Limited Partnership, LLLP (Portions may be closed to the public) Purpose/Background: The EDA may choose to go into closed session pursuant to Minnesota Statutes section 13D.05, subdivision 3(c)(3) to consider offers or counteroffers for the purchase or sale of real or personal property. If the EDA chooses to enter into to closed session the statute and reason above needs to be referenced along with legal description (Outlot A, Gigi Addition) and the Anoka County Tax ID number 28-32-25-23-0020. The purpose of this case is to consider a binding Letter of Intent(LOI) and general terms of a purchase agreement to sell Outlot A, Gigi Addition. Staff has been working with The Schiebout Family Limited Partnership, LLLP (the "Developer") over the winter. This ownership group has the same members of the Delta Mod Tech project and they want to do more to help build their business and this community. This group has shown that they have the capacity to build a project from the ground up and be successful. The Developer been in discussions with major hotel flags (Hilton,Marriot) and others like Cobblestone. The developer is new to the hotel business and is relying on other experts in the industry and at the City to help guide them through the development process. The group is aware of the the Cobblestone project and the financial TIF assistance the City committed to, and would like to do of something similar size (around 60 units)but not including a steak house. The group has reviewed pre-Covid Market Demand Study information that supports investment in Ramsey but will need to conduct a more current demand analysis to re-evaluate the Ramsey market. This analysis will cost money and take some time and the developer would like to control the site before making these expenditures. If the City enters into a LOI with the Developer they will share the Market Demand study with the city at no cost. With the impacts of Covid-19 lessening and the hotel market slowly recovering,there is a preliminary ask for assistance for the project in the form of a land cost write down in the LOI submitted by the Developer. Like the proposed Cobblestone project,a third party analysis will need to be done by Ehler's to see if assistance is truly warranted at a later date. In the event that the EDA and City Council are comfortable entering into a purchase agreement with TIF contingencies, Staff would ask the developer to submit a business assistance application to be acted on in a separate action by the EDA and City Council at a later date. The attached LOI simply gives the Developer 90 days to control the site and to complete the Market Demand Study and to further define their project. Staff is looking for EDA to provide a recommendation on the concept of entering into a LOI and acceptance of general terms of the proposed purchase agreement, including a land cost write down in order to keep this project moving forward. Staff has received interest from other developers, including another LOI without project specifications, on this site but the Developer is the first to provide a LOI with a specific project to consider. Based on the history in working with the Developer Staff is asking EDA to consider entering into a LOI with The Schiebout Family Limited Partnership, LLLP Notification: Notification is not required. Observations/Alternatives: