11/12/2014 - City Council Finance CommitteeFINANCE COMMITTEE MEETING
WEDNESDAY, NOVEMBER 12, 2014
9:30 A.M.
CONFERENCE ROOMS 2 A &B
AGENDA
I. AGENDA ADOPTION
II. CEDAR GROVE HOTEL PROJECT UPDATE
III. CEDAR GROVE TIF DISTRICT UPDATE
IV. OTHER BUSINESS
V. ADJOURNMENT
Agenda Information Memo
November 12, 2014 Finance Committee Meeting
II. CEDAR GROVE HOTEL PROJECT UPDATE
DIRECTION TO BE CONSIDERED:
To receive an update on the Morrissey Hotel Group request for an extension of the
purchase agreement and provide direction to staff regarding negotiations in that regard.
FACTS:
• On February 18, 2014, the EDA approved the purchase agreement with MHC Cedar Grove
LLC (Morrissey Hospitality) to sell an approximately one acre parcel between Cedar Grove
Parkway and the parking garage to the company for the construction of a Hilton Home2
hotel, with closing anticipated by August 31, 2014.
• In July, the developers indicated that they could not come to terms with an institutional
equity partner and would need to go back to the market for investors. In order to permit
the firm additional time for that purpose, the EDA approved an extension of the time to
close to October 31, 2014.
• In early October, the developer indicated that roughly 50% of the equity had been secured,
but that an additional extension would be necessary to secure the remainder. They are
requesting a new closing date of February 28, 2015, with the intent to commence
construction in the spring.
• Along with the request to extend, the developers have indicated they are dealing with cost
containment issues and they have outlined a series of terms in the purchase agreement and
development approvals that they believe increase the cost of the project. In the interests of
the project, staff has negotiated with them on alternative approaches to certain of the
issues, but we believe we have gone as far as possible without direction from the
Committee.
ATTACHMENTS: None — Information to be provided at meeting.
Agenda Information Memo
November 12, 2014 Finance Committee Meeting
III. CEDAR GROVE TIF DISTRICT UPDATE
DIRECTION TO BE CONSIDERED:
To review the status of the Cedar Grove TIF District extension discussions.
FACTS:
• Mayor Maguire, Councilmember Bakken and staff members have had a number of
conversations with the ISD 191 Board of Education members and staff regarding the Board's
pending action regarding the extension of the Cedar Grove Redevelopment District.
• In addition, Ehlers' staff and City staff have provided responses to a number of questions
raised by Board members relative to the financial status and projections for the District.
• The Board is expected to act on the resolution pertaining to the extension at its meeting of
November 13, 2014. This agenda item is intended to provide time for discussion of any
outstanding items prior to that time.
ATTACHMENTS: None — Additional information can be provided at meeting.