HomeMy WebLinkAbout2014-02-22 PACKET 0915Cottage
J Grove
� Pride and PrOSPerity Meet
To:
From:
Date:
Subject:
City Council and Economic Development Authority
Ryan R. Schroeder, City Administrator
February 10, 2014
Lodging Study
In October, 2002 the City Council created development property on the east side of Hardwood
Avenue by approval of the Gateway North First Addition. This action was taken as part of the
Kohl's redevelopment and Hardwood Avenue construction project.
A portion of this property (2.21 acres) was sold to a Ruby Tuesday restaurant franchisee for a
project completed in 2004. Severance of this parcel from the larger Lot 2 Block 3 of the
Gateway North First Addition left approximately 72,708 square feet (1.67 acres) to be
marketed.
Initially, the City perceived this second lot as one available for small retail buildings as is
shown in the Oakwood Park Master Plan from September 2005 (attached). However, on
December 5, 2007 the City Council authorized a Letter of Intent (LOI) for a proposed 83 room
Holiday Inn Express on the site with 71 parking spaces. Of note is that between Ruby
Tuesday and the Hotel site there was proposed a total of 203 spaces (code required 197).
There is a joint parking, access and egress agreement between the parcels.
It should also be noted that there is a storm drainage agreement in place that allows this site to
connect to the Ruby Tuesday system without the need for additional on-site ponding. The
building was proposed at 52 feet above grade with a flat roof. This compares to the Country
Inn at 47.5 feet and Norris Square at 56.5 feet (plus the cupola). Access was proposed from
Hardwood Court through the Ruby Tuesday parcel and off Harkness Avenue via the Oakwood
Park entry drive (the proposed site plan is enclosed for your review).
Ultimately, the recession took a toll on this project which did not move forward to a
development agreement. The site has been available for sale since that time.
Each year during the ICSC event we have been meeting with lodging establishments in an
effort to re-kindle interest in a lodging product (on this site or others within the community). In
September 2013 we re-connected with the Inter Continental Hotel Group (IHG) and were able
to provide a site tour to their representative on September 24, 2013. While IHG represented
some interest in this market (and the Oakwood development site in particular) it was
recommended that we conduct at least a cursory study to gauge market demand.
On October 13, 2013 we informed the EDA that we had contracted with Hospitality Marketers,
Inc., (HMI) to conduct the market study. The cost for the two phase study is $4300 for analysis
and site review (which occurred on December 10, 2013) and $2900 to complete the study.
The second phase would only be completed should the market demand warrant it. We are
currently within the second phase of this study. The draft report is due to be received prior to
the February 22, 2014 meeting.
As noted, we anticipate having the study in hand to facilitate discussion regarding lodging
opportunities. At this point we can pass along that HMI does believe there is market demand
sufficient to pursue developer opportunities.
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