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EDC approves property-exchange agreement to clear way for Home2 Suites project
Summary
Rio Grande City EDC approved a conditional real estate exchange with Sandu PA Investments B LLC to allow development of a Home2 Suites hotel behind the public safety building, subject to legal revisions and final city commission approval.
Rio Grande City Economic Development Corporation directors voted to approve a conditional real estate exchange agreement with Sandu PA Investments B LLC that would allow a Home2 Suites hotel to build behind the city's public safety building.
EDC staff presented the agreement, saying the exchange would transfer 1.7 acres at the end of Ratner Drive to the city in return for Lot 2 in the public safety subdivision. "Before you in your packet is an agreement for a real estate exchange with Sandu PA Investments B. I know this is a project that we have discussed. This would be for the Home 2 Suites, which is looking to build behind our public safety building in that subdivision on Lot 2," a staff member said during the meeting.
The board approved the motion with a condition that a legal revision be added to clarify what proof of financing must be provided by the developer. Staff told directors that the developer will provide a bank letter to secure funding and that the EDC's 380 agreement must be updated to reflect the correct site address and to include an $89,000 amount.
Staff also said the exchange agreement will proceed to the Rio Grande City Commission for final approval. Directors were told the developer has received franchise approval for the site and that a groundbreaking is planned for December (description: "Christmas themed").
The vote was announced as "ayes have it; motion carries." The board did not record an individual roll-call tally in the transcript. The action was described as an exchange of property; staff and legal will finalize contract language before the city commission considers the deed exchange.
Directors and staff described follow-up steps that include updating the 380 agreement to the correct address and amount after deeds are exchanged and confirming the bank-supplied financing letter.
The approval authorizes staff to move forward with the exchange per the revised legal language and to present the deed exchange to the city commission for final ratification.
