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Item No. 41110 Meeting Date: 2-01-99 Staff Report No. Type of Business:Mai WK Work Session;PH:Public Hearing; CA:Consent Agenda;EDAB:EDA Business Mounds View City Council Work Session Staff Report To: Mounds View City Council From: Kevin Carroll, Economic Development Coordinator Item Title/Subject: Mermaid Hotel/Banquet Center (Development Agreement) Date of Report: January 29, 1999 The latest draft of the Development Agreement regarding the Mermaid project was discussed by the members of the EDC at a meeting that was held on January 28, 1999. The meeting was also attended by EDA liaison Lynne Thomason, city staff members Chuck Whiting,Rick Jopke and Kevin Carroll,Dan Hall [on behalf of the Developer], and Mr. Hall's attorney,Mr. Chris Berndt. At the conclusion of the discussion,the EDC members authorized me to prepare a written summary of • their comments for the benefit of the City Council and/or EDA. My summary has been reviewed and unanimously approved by all of the EDC members. It is followed by copies of the material that was distributed to the EDC members in advance of the 1-28-99 meeting. The EDC comments that appear below are being provided to the City Council/EDA pursuant to Municipal Code Sec. 408.02, which provides (in part)that: The [Economic Development] Commission shall serve as an advisory commission to the Economic Development Authority...on matters relating to fostering a positive economic climate, encouraging economic development and enhancing the tax base of the City. The Commission shall also make recommendations to the Authority regarding retention and expansion of existing businesses...[and] redevelopment...opportunities.... Summary of EDC Comments/Recommendations: 1. The EDC's interest in and support of the proposed redevelopment project has been favorably affected by the information that the Developer recently provided regarding the anticipated ownership/management structure. The original plans seemed to envision multiple"outside" investors, separate ownership of various real estate parcels, and separate management of the hotel, banquet center and restaurant components of the completed project. The current plans seem to unify ownership/management of the affected real estate and the various business operations, which will presumably make it easier to evaluate the overall financial aspects of the proposal and to predict the project's ultimate market value,taxable valuation and property taxes. 2. The EDC has concluded that the proposed Mermaid Hotel/Banquet Center project would provide a variety of benefits to the City of Mounds View including,but not limited to: lodging of a type and on a scale not presently available in Mounds View,banquet facilities that would accommodate