Date: June 29, 2017
To: Members of the Economic Development Authority
From: Nate Carlson, Economic Development Coordinator
Chris Heineman, Community Planning & Development Director
Title
Northfield Hotel Properties, LLC. Revolving Loan Application
Body
Summary and Action Requested:
Review the Citywide Revolving Loan Application, the Loan Sub-Committee recommendation, and consider the Resolution for a revolving loan in the amount $250,000 to Northfield Hotel Properties, LLC for new construction of a hotel at the Crossings site.
Background:
The formal application for a $250,000 EDA Revolving Loan for the Fairfield Inn & Suites Hotel Project was received in early June. A revolving loan for $250,000 was outlined in the Development Agreement with Rebound Hospitality for the Crossing Project and was approved in May of 2016. The EDA Loan Sub-Committee convened on June 14 to review the application and discuss the project in detail. The Sub-Committee minutes are attached for your review.
Northfield Hotel Properties, LLC is requesting a $250,000 Loan from the EDA Revolving Loan Program. A copy of the application is attached for your review. This revolving loan application is part of a larger project that has been approved for funding and incentives by the City of Northfield. The redevelopment of the Crossing site has been an ongoing project for the EDA over the past twenty years, starting with site assembly, removal of blight and contamination, and collaborating with a developer for redevelopment.
The current project was leveraged by utilizing Tax Increment Finance (TIF) incentives, City assistance for improvements, and the sale of City-owned land at a reduced price. The Development Agreement between the City of Northfield and the Developer dated May 17, 2016 as Council Resolution No. 2016-053 approved all these incentives.
In addition to the City incentives, an EDA loan was offered as part of the incentive package for this project and the loan was in...
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