Adopt Resolution #23-158 Approving Use Restriction Agreement on Part of Outlot A, Ramsey Properties Addition

The purpose of this case is to consider putting development restrictions in place on a portion of Outlot A, COR TWO which will eventually be platted into Outlot A, Ramsey Properties Addition as part of the hotel project. The EDA met on May 11, 2023 to review a proposal by Ramsey Properties LLC (Hilton Home2 Developer) to restrict another hotel and short term rentals on multifamily projects on approximately 20+ acres of Parcel 46 for a period of 10 years.  The EDA was not supportive of this request and asked the developer to consider a shorter term and a smaller area.   The Developer has reached out to a potential apartment developer (Norhart) just north of the Hotel site and they have come to an agreement on a use restriction agreement that limits short-term rentals for a period of 5 years. The size of the restricted area has been reduced from over 20 acres to approximately 9.25 acres.  City Staff has been working with Ramsey Properties LLC and the City Attorney on a draft Use Restriction Agreement that is attached for City Council consideration.  The implementation of a use restriction agreement is being requested by the developer to give the hotel time to get up and running, and to stabilize.  the Agreement presented represents a compromise from the original request by the developer and it meets the spirit of the EDA recommendation provided on May 11, 2023.  Staff is asking the City Council to consider approval of the attached Use Restriction Agreement.

No public notice is required

The proposed Use Restriction Agreement would run for 5 years after the opening of the hotel which is anticipated to be on or before November of 2024.  Staff is supportive of the shorter term and smaller area of the proposed agreement.  A formal legal description of the restricted area (Part of Outlot A, Ramsey Properties Addition - approximately 9.25 acres) will be drafted and inserted into the Use restriction document if the city Council is supportive of the use restriction concept. The area impacted by the Use Restriction Agreement generally covers the area for a proposed 200 unit apartment project by Norhart, a portion of the future commercial area at the northeast corner of Sunwood and Armstrong Blvd, and the land north along the future west Ramsey extension to roundabout (Potential single family housing project area).  It should be noted that the Hotel Developer and Norhart have reviewed the proposed Use Restriction Agreement and are comfortable with the proposed language. Essentially, the only area that likely will be impacted by the agreement is the proposed Northart apartment site just north of the hotel.  Staff is asking the City Council to consider the following alternatives.

Alternatives:
1) Adopt Resolution #23-158 Approving Use Restriction Agreement on Part of Outlot A, Ramsey Properties Addition (as presented); subject to City Attorney review
2) Adopt Resolution #23-158 Approving Use Restriction Agreement on Part of Outlot A, Ramsey Properties Addition (with changes); subject to City Attorney review
3) Something else

N/A

The EDA met on May 11, 2023 and passed a motion asking for a reduced 5 year term on the use restrictions and to reduce restricted area.  A copy of the May 11, 2023 EDA minutes is attached.  The attached Use Restriction Agreement meets the spirit of the EDA recommendation.