Minutes - Economic Development Authority - 01/12/2023

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4. EDA BUSINESS 4.01: Consider Business Assistance Application and First Amendment to Purchase Agreement for Ramsey Properties, LLC (A portion of this meeting may be closed to the public) Economic Development Manager Sullivan presented the staff report. Member Wiyninger asked if the City would be responsible for any site improvements. Economic Development Manager Sullivan replied that the site improvements and related costs would be the responsibility of the developer. He provided additional details on the pay-go TIF format for the reimbursement of site improvement and development costs to the developer. Chairperson MacLennan invited the applicant to address the EDA. Emily Allegra, applicant, commented that she believes that the change of site to the larger lot would be wise and would provide the opportunity to operate the hotel in a more efficient manner as recommended by Hilton. She stated that if the City is willing to partner with them and work through this, they are willing to take the risk. Member Wiyninger asked for details on the expansion component. Ms. Allegra replied that is typically a 30-to-40-unit increase. She stated that it would be a similar mix of rooms and they could potentially add a meeting room or other space as well. Chairperson MacLennan asked if the hotel would have a pool. Ms. Allegra replied that the hotel would have a pool, fitness center, onsite laundry and would serve hot breakfast. She stated that they would also have outdoor patio seating with fire pits. Member Riley recognized that this change is driven by the hotel chain to make it more profitable and provide a better product to Ramsey. Economic Development Manager Sullivan commented that the financial analysis completed for the new 98-unit project had similar results to the previous 82-unit project on the site across the street, confirming the need for the level of assistance, satisfying the "but-for test" and not unduly enriching he developer. Jason Aarsvold, Ehlers, provided details on the analysis that was done to ensure the recommended assistance would not go above what is needed to get the project done. He commented that they found that the assistance is necessary and would not unduly enrich the project. He recognized that the numbers requested are bigger, as is the building, which provides the same projected return on investment. Economic Development Authority/January 12, 2023 Page 2 of 7