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We estimate the project will generate approximately$129,435 annually(at full build-out) in tax increment within the COR TIF district. Some of that increment can be directed to repay the City's land write-down through an inter-fund loan, and some can be used to repay the PAYGO TIF note.We propose using 40%of the increment generated to repay the City's inter-fund loan with the remaining 60%directed to the PAYGO note payments. Based on this structure,we estimate the PAYGO note could be repaid with 10 years of payments, assuming an interest rate on the note of 5%. This, coupled with the land write-down,would push the project's average cash on cash return to 9.9%by year 11 (at which point the TIF payments would stop). Repayment of the City's land though an interfund loan would take an estimated 12.5 years assuming the City charges the maximum interfund land interest rate of 5%. Staff is looking for EDA to provide a recommendation to the City Council in support of the proposed business assistance amount and structure and the First Amendment to Purchase Agreement. Notification: Notification is not required. Observations/Alternatives: General Project Description .98 unit(up from 82),Four Story Hilton Home 2 Hotel with hot breakfast and indoor pool; a Certificate of Occupancy 16 months after Closing. If this is not done,the City may exercise the Right of Re-Entry. .Tax Assessed Value 7.14M(up from 5.9M) .Estimated Taxes - $218,000 annually(up from $180,000) .22 (up from 21)new jobs to be created paying at least$18.22/hr .Catalyst project(provides more trips to COR and encourages investment in restaurants/retail) General Terms of First Amendment to Purchase Agreement (and Business Assistance Package) .Parcel: Changed to Part of Outlot A, COR TWO (previously Outlot A,Gigi Addition -+/- 1.43 acres) .Purchase Price and Valuation: The purchase price for the Property is $1.00 on+/-2.85 acres (124,146 square feet) as outlined in Exhibit A(the "Purchase Price"). The property valuation is $434,511 (increase of $123,057). ($3.50/SF) .$550,000(increase of$244,000)in Pay-Go TIF Note for Site Development/Improvements (NEW REQUEST) .Inspection Period: Inspection Period ends May 26, 2023 (Extended two months) .Right of Re-Entry Required .Act of God language was added to the CONSTRUCTION DEALINE Section. .Reimbursement of Platting costs up to $3,500 if project proceeds. Business Assistance Application Review Review and analysis of the Business Assistance Package has been completed by City Staff and Ehler's. The project scores a 29.65 which is a moderate to high score for our project rating system. Analysis by Ehlers supports the need for assistance for this project, its supports the TIF "But-For"test and does not unduly enrich the developer. Staff believes that this Hotel project is a potential catalyst to draw in investment from restaurants, It is clear that TIF is needed to bring this project to fruition. The City only has the ability to provide TIF assistance for projects in the COR until November 2023. Next Steps (Future Meetings) In the event that the Developer is comfortable with the assistance package recommended, staff will begin to work with Ehlers and Taft Law to put together a TIF Agreement outlining the terms and conditions of the financial assistance and business subsidy. A public hearing will be held at a later date for the City Council to consider approval of the business subsidy. The Developer will submit a site plan/plat application for review and