Laserfiche WebLink
Observations: <br /> Letter of Intent <br /> Considering that the Developer has shown the ability and financial capacity to build a project from the ground up <br /> (Delta ModTech) and the continued interest in further investment in Ramsey, Staff is asking the EDA to consider <br /> entering into the attached LOL The LOI gives the Developer 90 days to complete the Demand Market Study and to <br /> work on the the specific details of a formal Purchase Agreement. The cost of this LOI is $5,000 which is refundable <br /> if the Developer decides not to move forward with a PA. If the the Developer submits a business subsidy <br /> application and enters into a PA the $5,000 will be retained to cover the costs of TIF Analysis and TIF Agreement. <br /> Staff is asking the EDA to take action in the form of a recommendation on the attached LOL The City Attorney has <br /> reviewed the attached LOI as to form and is comfortable with entering into the agreement. <br /> General Project Description (to be further refined) <br /> . 60 unit, Three Story Hotel with hot breakfast and indoor pool; a Certificate of Occupancy one year after <br /> Closing (could be extended to 16 months based on supply chain issues or force majeure). If this is not done, <br /> the City may exercise the Right of Re-Entry. <br /> .Assessed Value 5-6M <br /> .Estimated Taxes - $155,000 annually <br /> Future Purchase Agreement <br /> The Developer would like to understand the willingness of the EDA to consider the terms similar to the proposed <br /> Cobblestone project that provided an upfront land cost right down in the form of TIF. The preliminary terms of <br /> negotiations of a future PA are listed in the Term sheet of the LOL Staff is looking for direction on this item. The <br /> EDA certainly could go into closed session to discuss negotiation strategies and counteroffers if necessary. <br /> Alternatives: <br /> 1) EDA Recommendation to the City Council to enter into the attached LOI with The Schiebout Family Limited <br /> Partnership, LLLP (as presented) (Staff recommendation). <br /> 2) EDA Recommendation to the City Council to enter into the attached LOI with The Schiebout Family Limited <br /> Partnership, LLLP (with changes). <br /> 3) Do not enter into LOI an continue to work with The Schiebout Family Limited Partnership, LLLP and other <br /> interested parties. <br /> 4) Something else. <br /> Funding Source: <br /> This case is being handled as part of normal Staff duties. If financial assistance is provided, TIF District 14 will be <br /> a funding source. <br /> Recommendation: <br /> Staff recommends an EDA Recommendation to the City Council to enter into the attached LOI with The Schiebout <br /> Family Limited Partnership, LLLP (as presented), subject to City Attorney review. <br /> Action: <br /> Motion to Recommendation to the City Council to enter into the attached LOI with The Schiebout Family Limited <br /> Partnership, LLLP (as presented), subject to City Attorney review. <br /> Attachments <br /> Site Location Map <br /> Schiebout LOI and PA Terms <br /> Form Review <br />