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<br />Councilmember Woestehoff noted that in the agreement under 2.2 it discusses Airbnb restrictions. <br />He suggested changing this to short term rentals so that it would also include other brands of short <br />term rental companies. <br /> <br />Councilmember Musgrove asked about the upfront financing for the land. She asked Economic <br />Development Manager Sullivan to explain these benefits to the developer. <br /> <br />Economic Development Manager Sullivan explained that the Council had previously reviewed the <br />business subsidy agreement and the Council then approved it. He stated that this granted the <br />developer funds for the land and site improvements and in return the City will receive 40% of tax <br />increment to pay itself back for the $434,000 for the land. He stated that for the $550,000 for the <br />site improvements they will be paid back as part of a pay-go financing agreement. He noted that <br />there will also be 5% interest on this. <br /> <br />Councilmember Musgrove asked if there is other land in the COR where high density buildings <br />could go in as far as development. <br /> <br />Economic Development Manager Sullivan explained that there are other areas in the COR that <br />could have high density development. <br /> <br />Councilmember Musgrove asked if these will be restricted. <br /> <br />Economic Development Manager Sullivan said no and highlighted the area that will be restricted. <br /> <br />Councilmember Musgrove asked if there could be a short term rental a short distance away that <br />would not be restricted. <br /> <br />Economic Development Manager Sullivan said yes and explained that anything outside of the area <br />of restriction could have a short term rental. <br /> <br />Councilmember Musgrove shared her appreciation for the applicant meeting with Norhart and <br />other potential developers in the area. She shared that she does not believe in the City having the <br />right to restrict the land for developers. She stated that she will not be supporting this. <br /> <br />Economic Development Manager Sullivan added that this restriction only affects rentals that are <br />three months or less. <br /> <br />Councilmember Howell shared her appreciation for the shortened acreage and shortened term. She <br />noted that the developer is receiving quite a bit of help from the City, including taxpayer owned <br />land and will be partially funded by taxpayer dollars. She stated that adding the use restriction only <br />benefits the developers bottom line and she does not see the benefit as a whole to the taxpayers. <br />She added that she will not be supporting this tonight. <br /> <br />Ms. Alerga acknowledged what Councilmember Howell shared and noted that having a hotel in <br />this area is something that the City desired. She acknowledged that the City is helping them but <br />they are willing to take significant risks to put this hotel here. She explained that they took the <br />City Council / July 11, 2023 <br />Page 15 of 19 <br /> <br /> <br />