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4.01: Consider Recommendation for Approval of TIF Agreement and Use Restriction with <br />Ramsey Properties, LLC (A portion of this meeting may be closed to the public) <br />Economic Development Manager Sullivan presented the staff report. <br />Member Riley asked for more details on the repayment of the note and terms. <br />Economic Development Manager Sullivan explained that the deal would provide up -front <br />financing for the land cost with pay as you go financing for the site improvements and provided <br />more details on those financing mechanisms. He explained that once the property begins to <br />generate taxes, that revenue is used to pay off the financing. He commented that the City would <br />be providing this financing through the two mechanisms nd ould actually receive more funds <br />in return because of the five percent interest cost. <br />Member Howell asked the size of the City owned . n of the Aldi el that was used restricted <br />and whether any other incentives were offere <br />Economic Development Manager Sullivan repliet the re <br />1.25 acres, and no incentives were prided to Aldi. <br />nt parcel di is about one to <br />Member Riley commented that he sees the purpose of a use restriction for a hotel but asked how <br />the six-month term for an apartment would be justified. <br />Emily Allegra, applicant, commented that ere is currently not a the requirement for a hotel. <br />She stated that they will offer longer stays st th as those travelit for longer periods for business, <br />or someone displaced during a homeowners insurance claim -ME could require a six month stay. <br />She stated that most residential apartments win not offer a six month stay unless they are less <br />desirable apartments. She stated that the market study does not show support for two hotels at this <br />time and therefore they would like time to getablished before further opening the market. She <br />stated that once they are stable, she would see benefit in having another hotel in Ramsey. <br />Member Mac =-nnan asked staff to display the requested restriction area. <br />Economic Deve * Rment Manage ullivan displayed the area requested for restriction. He noted <br />that although the s size woul e 28 acres, there would only be about 17 acres that would be <br />buildable within thata. <br />Member MacLennan asked why ten years is requested as that seems like a long time. <br />Ms. Allegra replied that the proforma looks at a five-year period and they feel that at that time they <br />would be able to make a good determination on whether they would be successful but an additional <br />five years would ensure stability. She stated that after the first five-year period they would make <br />the decision on whether to expand, as specified in the site plan. <br />Member Stewart asked if there had been previous discussions for townhomes near this area. <br />Economic Development Authority/ May 11, 2023 <br />Page 2 of 5 <br />