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Memorandum <br /> <br /> <br />Date: April 21, 2023 <br /> <br />To: Honorable Mayor and City Council Members <br /> <br />From: Mark Statz, PE Î City Administrator/Engineer <br /> <br />Subject: Request for Tax Increment Financing or Tax Abatement <br /> Proposed Hotel and Restaurant Site Î Outlot D, Rehbein Commercial <br /> <br />The Apollo Development Group has been exploring the potential to construct a hotel and <br />st <br />restaurant on the vacant commercial lot, north of Norbella Senior Living, on 21 Avenue <br />N. Attached, you will find a concept sketch of the proposed development, showing a 4- <br />story 80-90 unit hotel, with a detached restaurant. Also, included in the packet, is some <br />correspondence with more detailed information on the proposed hotel amenities, style <br />and brand. <br /> <br />The developer (Apollo), has <br />completed a job ÐProformaÑ, <br />detailing the costs of the job <br />and the anticipated profit <br />margins. The total cost of the <br />project has been estimated at <br />around $14 Million. Without <br />some form of public <br />partnership, the developers do <br />not anticipate that the <br />projected margins will attract <br />the investors necessary to <br />complete the project. <br />Therefore, they are proposing <br />a city cost participation in the <br />amount of $1,330,000, in the <br />form of Tax Increment <br />Financing or Tax Abatement. <br />Attached, youÓll find two <br />Proforma scenarios, one with <br />and one without public assistance. <br /> <br /> <br />