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The Mounds View Vision A Thriving Desirable Community Item No: 6A Meeting Date: March 11, 2019 Type of Business: EDA Business Administrator Review: ____ City of Mounds View Staff Report To: EDA President and Commissioners From: Brian Beeman, Assistant City Administrator Item Title/Subject: Commercial Investors Group/Choice Hotels Proposal – Skyline Motel Introduction: The EDA is purchasing the Skyline Motel site as a redevelopment opportunity. The expected closing date is around May 1, 2019. Staff has received a number of inquiries on the property mainly for a hotel use. Discussion: Staff showed the Skyline property to the Commercial Investors Group and Choice Hotels who is interested in redeveloping the property for a combined traditional hotel and extended stay hotel. The developer likes the location because of its proximity to the Rice Creek Commons site, I-35W, County Rd H & Mounds View Boulevard intersection, and access from Old Hwy 8. The site is visible from I-35W which is a selling point. The developer has constructed several sites across the nation on two acres or less and the Skyline site is approximately 2.8 acres making the site feasible based on the standard footprint of Choice Hotels. The developer likes the idea of utilizing the existing City retention pond as part of their project in order to maximize the land area for development. The developer has also stated that even if there is a shared access to the vacant Bauer Welding lot there should still be enough land for the hotel project. The developer is also willing to work with Bio Clean to allow them to take possession of the County easement for their expansion project. The Bauer property would not be needed for the hotel project and instead, could be marketed for an Industrial use. The Bauer property is approximately two acres. Commercial Investors Group and Choice Hotels will be presenting their hotel proposal to the EDA. Strategic Plan Strategy/Goal: Create and maintain a positive business climate where businesses want to locate and remain in Mounds View. Maximize utilization of development space and current redevelopment sites. Fill vacant space and support redevelopment & development. Financial Impact: Redevelopment projects typically take a loss on the front end of the deal. However, revenues are recovered in the long-term through property taxes, community investment, the creation of more jobs, and an improvement to the property. There would potentially be no financial impact to the EDA in a situation where the EDA would be able to recover the money invested into the purchase of the property.