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HomeMy WebLinkAboutResolutions - No. 2007-146RESOLUTION NO. 2007-146 A RESOLUTION OF THE LODI CITY COUNCIL AUTHORIZING THE CITY MANAGER TO EXECUTE A DOWNTOWN HOTEL EXCLUSIVE EXPLORATION PERIOD AGREEMENT WITH RUSS MUNSON WHEREAS, in 1998, Gruen & Gruen Associates prepared a report on strategies for enhancing Downtown and recommended three Downtown anchors: 1) "state-of-the-art multiplex with stadium seats"; 2) wine -related outlets and restaurants; and 3) a Downtown hotel; and WHEREAS, in November 2005, the City engaged the services of PKF to evaluate the demand for a Downtown hotel. It studied the possibility of developing a hotel upon the former Public Safety building site and concluded a Downtown hotel with some subsidy was feasible.. The Council was interested in the concept of a Downtown hotel, but not at the old Public Safety building site, and requested that interest from the development community be solicited for a hotel on other City -owned Downtown property; and WHEREAS, Russ Munson of Wine and Roses has expressed a desire to enter Into an exclusive exploration period to test the feasibility of the development of a Downtown hotel and is requesting time to develop a business plan and seek interest from investors; and WHEREAS, the City agrees that it will not sell or lease any of its property in Downtown Lodi for nine months, The Developer will deposit $5,000 with the City and enter into a feasibility study period to see if a Downtown hotel is viable. At the end of nine months, the Developer can request the City enter into good faith negotiations to secure the sale or lease of a possible site for an additional three months; however, the City is not obligated to enter into an agreement to sell or lease. If the Developer wishes to enter into negotiations, an additional $3,000 deposit is required. NOW, THEREFORE, BE IT RESOLVED that authorize the City Manager to execute a Downtown agreement wiffii-RU9 Anson; as e e Dated: July 18, 2007 the Lodi City Council does hereby Hotel Exclusive Exploration Period hereby certify that Resolution No. 2007-146 was passed and adopted by the Lodi City Council in a regular meeting held July 18, 2007, by the following vote: AYES: COUNCIL MEMBERS — Hansen, Katzakian, Mounce, and Mayor Johnson NOES: COUNCIL MEMBERS — None ABSENT: COUNCIL MEMBERS — Hitchcock ABSTAIN: COUNCIL MEMBERS — No q� JOHL City Clerk 2007-146