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Mounds View EDA May 13, 2019 Regular Meeting Page 2 Group, which would be providing the EDA with an updated presentation on this project. 1 2 Mike Sowers, Commercial Investors Group, introduced himself to the EDA. 3 4 James Smith, Commercial Investors Group, thanked the EDA for their time. He introduced his 5 development company and commented on the Station 4 Project CIG was completing in 6 Lowertown, St. Paul. He reviewed the needs and wants for this project. 7 8 Mr. Sowers reported CIG had done their due diligence and had met with representatives from 9 Choice Hotels. He discussed the updated proposal for the Skyline Motel site noting the market 10 study shows a need for transient guests versus extended stay guests. He explained the highest 11 and best use for this site would be to construct a 90-room hotel with limited food service and a 12 pool. He reviewed five comps noting there was a strong need for an additional hotel in this 13 market. He stated he was proposing a four-story building to assist with buffering freeway noise, 14 while also creating greater visibility. 15 16 Mr. Sowers explained he would consider pre-signing a medical office on the adjacent lot but 17 noted a spec industrial product could also be considered for this space. He commented on the 18 discussions he has held with Bio Clean and Bauer Welding regarding their business expansions. 19 He indicated he was approaching this project as an overall benefit to the entire community and 20 not just a hotel. 21 22 Mr. Sowers discussed the architecture and design of the proposed Holiday Inn Express Hotel by 23 IHG Hotels. He indicated the loyalty program within IHG was very strong. He noted the 24 amenities that would be provided within the hotel would make this site an upper-mid scale hotel. 25 He reviewed the number of suites and other guestrooms noting the building would be 54,000 26 square feet in size. He projected the value of the medical/office building to be $3-5 million and 27 noted the hotel would be valued in the $12-14 million range. 28 29 Mr. Sowers commented on the benefits of the project to the City of Mounds View. He estimated 30 the hotel and medical/office building would generate an additional $575,000 in taxes per year. 31 He noted he had to work through watershed and environmental issues, along with a feasibility 32 study. He reported he had to complete a franchise agreement, in addition to selecting a 33 contractor and management company. He reported this project would take 12 to 16 months to 34 complete. He stated he was hoping to break ground on this project yet this fall. 35 36 Community Development Director Sevald addressed the EDA and discussed how this project 37 could move forward as a PUD considering the site was now larger than five acres. He reported 38 the PUD process would allow the developer additional flexibility with the project. 39 40 President Mueller opened the floor to the EDA for questions or comments. There were no 41 questions or comments from the EDA. 42