HomeMy WebLinkAbout[06c] Hotel Feasibility Study Administrator Date: March 12, 2014
Judy Weyrens Memo To: Members of the EDA
Mayor City Administrator Weyrens
Rick Schultz Memo From: Cynthia Smith-Strack-MDG, Inc.
Councilors RE: Hotel Feasibility Study
Steve Frank
Bob Loso
Renee Symanietz Background:
Dale Wick Hotel investor Ross Detert is requesting the addition of a second study area to the scope of the
pending Hotel Feasibility Study. This is due to the lack of forward progress in improvements to I-
EDA 94/CSAH 2. Detert would like to add the area adjacent to CSAH 75 and Northland Drive(4th
Doug Danielson Avenue)to the study.
Steve Frank
Larry Hosch LHR had indicated the scope can easily be expanded to include the second area at a cost of
Gary Osberg $1,000. In the event the scope is modified the potential cost to the EDA would be$500.The
Dale Wick deliverables would still be in hand within ninety days(expected well before that).
We have a balance of approximately$18,000 in our business development project line item.
The$500 would be from this line item.
As you know we have all been very involved with the effort to extend infrastructure to 1-94.An
unfortunate consequence to advocating for utility extension is artificially inflating the perceived
demand for property and/or pricing.The availability of a second viable alternative to any
particular site serves as a moderating force for pricing and competition naturally produces more
favorable position for end-users.
To those ends I recommend expansion of the study's scope to include property adjacent to
CSAH 75.
On a related note, please know that we have sub-agreement in place with Mr. Detert that
requires both the EDA and he approve of any scope change.
Action:
Consideration of approval to expand hotel feasibility scope to include property adjacent to
CSAH 75.
ay
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