Minutes - Council - 08/23/2022 - Laserfiche WebLink

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agreements. Being that there is no cost for the land to the developer, the developer will pay $1 for the transaction because it needs to have consideration; however, there is no need for additional earnest money. If additional funds are needed to help with costs associated with the analysis, the group will put in more money to replenish the escrow. He answered that the amounts of the earnest money varies and are negotiated. He added that typically it is at least $10,000; however, it has been as high as $20,000 on others. Councilmember Musgrove asked about the length of time there needs to be action on this or if this starts a new time clock. Economic Development Manager Sullivan stated that this starts a new timeline. He explained once the Council decides to move forward with the purchase agreement that will set the 180 day window in play, which is the typical period for due diligence to get through the site plan process and the business subsidy application, then a notice to process, then 30 days to close. He added there is the ability to buy more time in the event that the site plan has not been gone through and that is outlined in the purchase agreement. Councilmember Musgrove added that she is excited about this. Emily Alegra, 12806 Nokasippi River Road, Brainerd, came forward and discussed her excitement for this project and presenting it to Council. She stated that this has been a process of going through some due diligence and the demand study has just been finished and will be passing along a copy to the City. She stated that her team is still working through the feasibility of the overall cost of the project, which is where they are currently with the timing. She opened up for questions from the Council. Acting Mayor Riley asked Mrs. Alegra to explain why she was interested in looking at a hotel in Ramsey. Mrs. Alegra explained that she is a part of the Schiebout family and they are the owners of Delta ModTech in Ramsey, which was developed just a few years ago. She stated that her family really sees the benefit of having a hotel as being members of the community. She added that she also sees it as a way to give back to Ramsey as well as building the community for employees and families coming into Ramsey. She stated that for her family it was an opportunity to expand and diversify into a different arena. She added that it is just her immediate family and they are not seeking outside investors and they really want to take this on as a family owned operation. Acting Mayor Riley thanked Mrs. Alegra for coming forward. Motion by Councilmember Specht, seconded by Councilmember Musgrove, to Adopt Resolution #22-185 approving purchase agreement and sale of outlot A, Gigi addition subject to City Attorney review. A roll call vote was performed: Councilmember Musgrove aye City Council / August 23, 2022 Page 10 of 16