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Council to solicit updated hotel market study and entertains developer interest in townhomes; county valuation cited
Summary
Staff will solicit quotes to update a hotel market study (previously about $8,000) after interest from GrandStay/MarketPoint. Council also discussed Jake Properties' interest in townhome development on city parcels, soil-correction costs, and using the county's $142,100 valuation as a starting point for negotiations.
Staff reported outreach earlier this year to GrandStay Hospitality and its affiliated developer MarketPoint; because the earlier 2019 study assumed a medical college that never materialized, MarketPoint asked for an updated hotel market study. Staff said the cost would be borne by the city and that similar updates previously cost about $8,000. Council members raised concerns that developers might reasonably be expected to share study costs, but agreed to solicit quotes and return with cost estimates in May.
On housing development, staff said a developer, Jake Properties (contact: Kelly Mahone), expressed interest in single-story patio townhomes; staff shared information on city-owned parcels and the developer visited existing units. Council discussed zoning constraints for an 8th Street parcel, possible placement on the 3rd Street two-and-a-half acre parcel north of Ryerson’s, soil-correction needs (test digs from 2020 showed 9–11 feet to good soil), and financial structuring such as use of TIF or other assistance. Staff noted the county has the 3rd Street parcel valued at $142,100 and recommended using that as a negotiation starting point or obtaining a commercial appraisal if the council wanted an independent valuation. Council reached consensus to solicit offers and allow interested developers to perform test digs, and to return with a proposed asking price or negotiation parameters.
Staff also reported that the city had previously waived past-due utility charges for the Old Elementary School for six months; the owner remains in the process of securing insurance and the council consented to reinstate base utility fees (not user rates) now that prior balances were waived.
Next steps: staff to solicit quotes for an updated hotel market study, return with price bids in May, and accept developer interest for test digs and offers on city parcels using the county valuation as a starting negotiation figure.
