Agenda - Council - 02/14/2023 - Laserfiche WebLink

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Economic Development Manager Sullivan presented the staff report. Chairperson Olson asked why the name was changed. Emily Allegra, applicant, stated that from a legal standpoint they wanted to separate some of their entities and the name is much more simple. Member Stewart commented that she does not understand all the details and asked if this project would be changing and moving to another location. Economic Development Manager Sullivan explained that as of Tuesday everything was as presented, but they then received some information which may change the project. He noted that that a potential change would be to move the project to a larger City lot, add additional rooms but the economics and proposed deal structure would remain the same. He noted that if the project does change, it would come back to the EDA for consideration. Ms. Allegra commented that it would be the same product and amenities, they would simply add more rooms. She stated that the concern was related to the tight space, and they will work through that in the next couple weeks. Member Johnson asked if there is another site that might be more suited for this project. Economic Development Manager Sullivan confirmed that there are other sites nearby in the COR that would work. He stated that the Hilton representative looked at the community and wanted the site to be located in The COR, noting that if a different location is needed it would likely be in the area across the street from this site. He noted that the project could also remain on the current site. He stated that at this time the EDA is considering the land cost write down and site improvements on Outlot A Gigi Addition, noting that without that assistance the project would not move forward. Member Stewart asked for details on the pay -go note. Jason Aarsvold, Ehlers, provided details on the process that Ehlers completes to determine the amount of assistance that could be appropriate. He noted that without any assistance, the returns on investments would be below the thresholds for a developer to move forward with this type of project and therefore the proposed assistance would be warranted and necessary for the project to move forward and be built. He explained how the pay -go note is reimbursed. Member Stewart asked if there would still be funds available of this nature for a future project as well. Economic Development Manager Sullivan provided details on how TIF is generated, can be used, and how it is paid back and acknowledged that there would be more TIF generated on this site than obligations incurred by the project assistance request. Member Riley explained that Mr. Aarsvold works for Ehlers and the City contracts with Ehlers to complete these types of analysis for the City. He noted that it is also common for a developer to Economic Development Authority/ December 8, 2022 Page 2 of 5