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IIIUpyA� <br /> III@�l <br /> �ll�@II@IIII r <br /> H L E R S <br /> Memo <br /> To: Sean Sullivan, Economic Development Manager <br /> From: Jason Aarsvold, Ehlers <br /> Date: 11-30-2022 <br /> Subject: Home2 Suites—Request for Assistance <br /> The City of Ramsey received a request for assistance to construct an 82 room Home2 Suites <br /> within the COR area on City-owned land. The developer is requesting the City write-down the <br /> cost of the land to $1 and provide a pay-as-you-go (PAYGO) TIF note in the amount of <br /> $306,000 to make the project financially feasible. <br /> You requested that Ehlers review the developer's proposal to determine whether the request is <br /> reasonable and within industry standards. Ehlers conducted a thorough review of the <br /> developer's budget and operating pro forma to ensure all development costs, anticipated <br /> revenues, and expenditures were represented appropriately. The table below depicts the <br /> sources and uses of funds for the project as proposed by the developer. <br /> SOURCES <br /> - .. <br /> First Mortgage 9,910,943 64.3% 120,865 <br /> TIF PAYGO Note 306,000 2.0% 3,732 <br /> Developer Equity 5,189,978 33.7% 63,292 <br /> TOTAL SOURCES 15,406,921 100% 187,889 <br /> USES <br /> Acquisition Costs 1 0.0% 0 <br /> Construction Costs 11,806,644 76.6% 143,983 <br /> Permits/Fees 73,800 0.5% 900 <br /> Furniture, Fixtures,&Equipment 1,830,240 11.9% 22,320 <br /> Professional Services 437,495 2.8% 5,335 <br /> Financing Costs 451,078 2.9% 5,501 <br /> Developer Fee 353,663 2.3% 4,313 <br /> Cash Accounts/Escrows 454,000 2.9% 5,537 <br /> TOTAL USES 15,406,921 100% 187,889 <br /> Analysis <br /> Generally, this project meets the expectations of a limited service, or upper midscale, hotel <br /> project as it relates to the financing structure, projected revenues, developer fee, and on-going <br /> operational costs. Following are our findings from the analysis completed for the project: <br /> BUILDING COMMUNITIES. ITS W+lHIAT WE D(I `'f info)a .hler -inc,com '1(800) 552'.-'11II1 ��,� www.ehlers-inc,com <br />