2023-04-26 CC Minutes - Approved

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City of Centerville City Council Meeting Minutes April 26, 2023 2. Request for Tax Abatement – Proposed Hotel/Restaurant Administrator Statz stated that there has been a request for tax abatement/Tax Increment Financing for a proposed hotel/restaurant. He stated that Mr. Chris Harchanko, President, Apollo Development, LLC, requested three different scenarios for the Council to consider regarding abatement associated with the construction of a 80-90 room hotel with a stand-alone restaurant. Mr. Harchanko stated that two of the scenarios show $14.1 million without assistance from the City and the bottom line would 8.3% profit leaving the project undesirable for investors over a ten-year period. He stated that they are asking assistance from the City in the amount of $1.3 million over the ten years. Administrator Statz reviewed a memo that was contained in Council’s packet regarding the different scenarios. He stated that assistance was probably not viable. Ms. Tammy Omdal, Northland Securities provided information that was contained in the packet and it was reviewed by City Administrator Statz. Discussion ensued regarding the possibility of making adjustments with certain fees (park dedication, water and stormwater access charges), an additional scenario which staff was not recommending, the availability of assistance at a level of $400,000-$600,000, and Ms. Omdal stated that she felt that the request from Mr. Harchanko was a rather large request. Mayor Love thanked Mr. Harchanko for his attendance, request and stated that Staff would continue to work with Apollo Development regarding their proposal and options. 3. 1737 Main Street – Power Line Relocation Assistant City Administrator Lewis reviewed the information that was contained in the packet regarding the item, reviewed the two (2) viable options from the developers, stated that Option A was more affordable for the developer but did not fit with the Master Plan requirements regarding building placement at the build-to line (right-of-way) and parking in the rear. She stated that Option B met the Master Plan requirements but should the property to the northeast become available, future expansion would be limited to the construction of a second, stand-alone building, which may reduce efficiencies in site design, etc. She also stated that is raises safety concerns, with customers needing to park in the rear and walk around the building to the front door. She reported that this could be viewed as an inconvenience to customers, especially those with disabilities. She also reported that it would not allow for drive-thru geometry and require the removal of powerlines. It was reported that if would cost $25,000 to relocate the powerlines and $60,000 to bury them. It was also stated that due to timing, the item had not been reviewed by the Planning & Zoning Commission. Consensus of Council was to add the item to Council’s agenda this evening under New Business, Item #3. Discussion also included that the city was willing to be a partner and explore options for removal of the powerlines as a public expense. III. ADJOURNMENT Mayor Love closed the Work Session at 6:24 p.m. COUNCIL MEETING Page 2 of 8