Minutes - Council - 01/24/2023 - Laserfiche WebLink

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Economic Development Manager Sullivan explained the difficulties of construction crews to have workers right now. He said that he is leery to remove this section as the developer would need to prove cause that they cannot find workers. Councilmember Woestehoff shared that the broad exceptions make him nervous in a legal document. City Attorney Knaak explained that this is the result of experience in which contracts provided for tight and rigid timelines and due to COVID and the supply issue there was an introduction of these Act of God provisions in contracts. He added that the language of the contract requires proof of these matters. Economic Development Manager Sullivan gave a real life example of this that happened in Ramsey where materials that were supposed to arrive in February did not arrive until October. Councilmember Riley pointed out that this is a local family who is wanting to better Ramsey and increase the family’s investment in the City. He added that this is also a national brand that is willing to invest in Ramsey. He thinks this will be a great addition to Ramsey and shared his support for the purchase agreement. Councilmember Specht agreed with Councilmember Riley and thinks this is great for the future. Councilmember Musgrove agreed with Councilmembers Riley and Specht. She asked why Council did not hear about this prior. Economic Development Director Sullivan explained that the EDA looked at this in December of 2022 and felt comfortable making a recommendation moving forward. He shared that it was mentioned at the EDA meeting that there was a strong likelihood that the site would have to change, so rather than bringing it to Council prior to this change, it would be brought after revisions to the site. Councilmember Musgrove asked if there was any consideration to downsize the units to keep it at the first site. Economic Development Director Sullivan explained that this is due to operating efficiency. Councilmember Musgrove asked for an example of these efficiencies. The applicant, Emily Alegra, 12806 Nokasippi Road, Brainerd, came forward and explained that there are building requirements within extended-stay hotels that would not have allowed for them to apply for a 72 unit building and that Hilton’s typical number of units is 100. She stated that Hilton was willing to work with them to make a smaller number of units work because of Hilton’s interest in Ramsey. She explained how this plays into the efficiency of the hotel as a whole. She added that this comes at a higher risk and cost for her; however, it is a much better opportunity for Ramsey. City Council / January 24, 2023 Page 7 of 11