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The Mounds View Vision A Thriving Desirable Community Item No: 6A Meeting Date: May 13, 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 Proposal for Skyline Motel Introduction: The EDA is purchasing the Skyline Motel site as a redevelopment opportunity. The expected closing date is mid-May, 2019. At the March 11, 2019 EDA meeting, the EDA directed staff to send out request for proposals to hotel developers for the three parcels totaling 2.86 acres that the Skyline Motel current sits. Staff has received a number of inquiries on the property mainly for a hotel use however, only one developer has submitted a formal proposal. Discussion: Staff has received a proposal from Commercial Investors Group who is interested in redeveloping the property for a hotel. Commercial Investors Group initially made a presentation to the EDA March 11, 2019 and will be presenting an updated proposal for not only the Skyline property but also for the Bauer Welding vacant lot. Both the owners of Bauer Welding and Bio Clean have indicated that they are open to a variety of options as long as it makes sense for their operations. It is anticipated that both owners will be present to hear the proposal and answer any questions the EDA may have. There are still some outstanding issues on the site. For example, the EDA still needs to close on the purchase of the property, the chosen developer will need to cooperate with their engineer to conduct a delineation study to determine if the low area to the North of the property can be filled with dirt and developed. There may be an opportunity for the City to fill the low area with unused dirt that the City would otherwise have to pay to get rid of saving money for both the City and the developer. A determination on the size and area of the water retention pond is still needed, Bio Clean will need to decide if they will be putting their building up for sale or continue with their expansion plans. A TIF analysis will also need to be completed as well as direction to staff to continue to cooperate with the developer and City Attorney to agree upon a Purchase and Development Agreement and several other items. Commercial Investors Group has submitted a Letter of Intent outlining three different options and pricing for the EDA to consider. Assuming the EDA chooses to move forward in cooperating with Commercial Investors Group for the hotel development, the EDA will need to consider the LOI. Therefore, immediately following the EDA’s open portion of the meeting, the EDA will enter into an executive session to consider the terms and pricing of the LOI.