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<br /> <br />Economic Development Manager Sullivan presented the staff report. <br /> <br />Member Riley asked for more details on the repayment of the note and terms. <br /> <br />Economic Development Manager Sullivan explained that the deal would provide up-front financing for <br />the land cost with pay as you go financing for the site improvements and provided more details on those <br />financing mechanisms. He explained that once the property begins to generate taxes, that revenue is used <br />to pay off the financing. He commented that the City would be providing this financing through the two <br />mechanisms and would actually receive more funds in return because of the five percent interest cost. <br /> <br />Member Howell asked the size of the City owned portion of the Aldi parcel that was used restricted and <br />whether any other incentives were offered to Aldi. <br /> <br />Economic Development Manager Sullivan replied that the remnant parcel for Aldi is about one to 1.25 <br />acres, and no incentives were provided to Aldi. <br /> <br />Member Riley commented that he sees the purpose of a use restriction for a hotel but asked how the six- <br />month term for an apartment would be justified. <br /> <br />Emily Allegra, applicant, commented that there is currently not a time requirement for a hotel. She stated <br />that they will offer longer stays such as those traveling for longer periods for business, or someone <br />displaced during a homeowners insurance claim that could require a six month stay. She stated that most <br />residential apartments will not offer a six month stay unless they are less desirable apartments. She stated <br />that the market study does not show support for two hotels at this time and therefore they would like time <br />to get established before further opening the market. She stated that once they are stable, she would see <br />benefit in having another hotel in Ramsey. <br /> <br />Member MacLennan asked staff to display the requested restriction area. <br /> <br />Economic Development Manager Sullivan displayed the area requested for restriction. He noted that <br />although the site size would be 28 acres, there would only be about 17 acres that would be buildable within <br />that area. <br /> <br />Member MacLennan asked why ten years is requested as that seems like a long time. <br /> <br />Ms. Allegra replied that the proforma looks at a five-year period and they feel that at that time they would <br />be able to make a good determination on whether they would be successful but an additional five years <br />would ensure stability. She stated that after the first five-year period they would make the decision on <br />whether to expand, as specified in the site plan. <br /> <br />Member Stewart asked if there had been previous discussions for townhomes near this area. <br /> <br />Economic Development Manager Sullivan confirmed that is one concept that has been reviewed for the <br />north side, as well as some interest from a large format retailer and high end-market rate apartment <br />building, but no site plan applications have been submitted. <br />Economic Development Authority/ May 11, 2023 <br />Page 2 of 5 <br /> <br />