HomeMy WebLinkAbout5.b. Hotel Proposal 9 ROSEMOUNT X C TIVE SUMMARY
E E U S
CITY COUNCIL
Port Authority Date: May 15, 2012
AGENDA ITEM: Hotel Proposal AGENDA SECTION:
New Business
PREPARED BY: Kim Lindquist, Deputy Director AGENDA NO. 5.b.
ATTACHMENTS: Site Plan, Preliminary Plat APPROVED BY:
QAJ
RECOMMENDED ACTION: Information Item
ISSUE
Last week staff met with a property owner and builder about the possibility of locating a hotel in the
community. The property being reviewed is on the east side of Hwy 3, north of County Road 42. The
property owner, Warren Israelson, was involved in the single family development further to the north
and maintains ownership of all the vacant land west of Business Parkway. He also owns one lot east of
Business Parkway.
Mr. Israelson followed up with various companies that received the City's hotel demand study
commissioned by the Port Authority and finalized in October 2010. The Carlson Companies
expressed an interest in bringing a hotel to the City. Mr. Israelson is working with Apollo
Development to design, build and own a hotel. Apollo would not be the management company
operating the hotel but indications are they would continue to retain some ownership through an LLC.
Initial discussions indicated that the developer may request financing to assist in construction of the
hotel. If so, additional information and review is needed prior to making any commitments. They have
also requested the Council diverge from the policy of designing and building all infrastructure. At the
work session on May 9 the Council indicated they could support paying for the design of the needed
public road with construction being done by the developers contractor. The City would inspect the
work and require a two -year warranty similar to other public construction projects. Planning approvals
would also be required prior to any activity occurring on the site. The property needs to be platted to
create separate lots and a site plan review would also need to go to the Planning Commission and City
Council. Depending upon the applicants timing, work could start as early as late fall.
RECOMMENDATION
The information provided is for information only. Attraction of a hotel is a goal of the City Council
and Port Authority so it is newsworthy. This discussion also illustrates the direct connection
between the City being proactive and obtaining the market study to entice a hotel to Rosemount. At
times it is difficult to gauge if some of the City's economic development efforts are effective or not.
In this instance they appear to have precipitated the hotel inquiry.
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