2023-05-10 CC Packet - Laserfiche WebLink

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ANOKA COUNTY • Regional Economic Developmentl City of Centerville Pre -development Application Hotel Market Study Project Description The Apollo Development Group has been exploring opportunities to construct a hotel and restaurant on the vacant commercial lot, north of NorBella Senior Living, on 21s' Avenue N. The proposed project would consist of a 4 story, 80-90-unit hotel with a detached restaurant. Site The proposed 5.30-acre site is north of NorBella on 21"Avenue and has a Parcel Identification Number (PID) of 24-31-22-22-0223. This shovel -ready site is zoned commercial and complies with both our Zoning Ordinance and Comprehensive Land Use Plan. Development potential & Importance to the Community The development of this 14-Million-dollar hotel is significant, because it has the potential to attract regional and out-of-state guests, spurring tourism in Centerville and Anoka County. This hotel could draw users from across the country or from development activities across the highway, such as the Xcel Energy Training Center Expansion in Hugo. Area residents may also be interested in frequenting the hotel for amenities, such as a hotel bar, breakfast lounge, large lobby, pool fitness room, a variety of room types, and a meeting room. The stand-alone restaurant would be a tremendous asset for the community as well. Currently, there are limited options for sit-down restaurants in Centerville, and this is something that residents have desired for quite some time. The city is working with LOCi on a downtown redevelopment market study and when surveyed, residents overwhelmingly requested more restaurant options. The purpose of this application is to conduct a hotel feasibility study to determine if there is sufficient demand for a hotel in Centerville and at this location. Timing of Development Infrastructure is readily available on this site, and it meets our building standards. The developer is in the process of re -working his plans to reflect less government assistance. Once the hotel feasibility study is completed, the city will continue discussing investment options before the plans go through our formal review process with our Planning and Zoning Commission. Financial Contribution The developer requested a tax abatement from the city, and while the city has not committed any funds, at this time, there is interest in offering some level of assistance. A hotel feasibility study would go a long way in helping the city determine the level of investment that they are willing to provide. At a council work session last week, the council advised the developer that they could potentially provide between $200,000 - $600,000 of assistance, given the right circumstances. The City's contribution would be comprised of a combination of tax abatement and the use of other economic development tools (e.g. waiver of utility fees, etc.).