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

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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 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 past 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 Manager Sullivan asked for Ehlers to provide more information on the concept of minimum assessment agreement as part of the project. Ms. Aarsvold stated that within the TIF Agreement they can have another agreement called an Assessment Agreement that sets the minimum baseline value for the duration of the assistance payback. He noted that would ensure they would generate the revenue necessary for the TIF. Member Stewart referenced the extended inspection period and asked for details. Economic Development Manager Sullivan replied that there are 180 days in the standard purchase agreement which allows the applicant to conduct due diligence for the condition of the of the site and to start working through the site plan and platting processes. He stated that because they have moved to a new site, he felt it appropriate to provide additional inspection time. He noted that the applicant does not have to fully utilize that time if it is not needed. Member Howell stated that she is excited about the project but is nervous about the additional assistance needed from the City. She stated that her concern is not that it would unduly enrich the project but that the additional funds that it would require to reach the return on investment, and therefore she will deny the request. Chairperson MacLennan asked for additional details on the cost to the City Member Howell is speaking of. Economic Development Authority/ January 12, 2023 Page 2 of 4