Resolution Approving an MOU with EmberGrove Hospitality

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Recorded in the minutes as: “1. Resolution Approving an MOU with EmberGrove Hospitality. Motion: Moved by Olejniczak, seconded by Shelly approving an MOU with EmberGrove Hospitality. The City of Perry and EmberGrove Hospitality have been in discussions regarding a potential lease for the operation, maintenance, and hospitality management of the Hotel Pattee and La Poste properties. A Memorandum of Understanding (MOU) was prepared outlining proposed principal terms, brand protection, and transition, and included conditions to a final lease, all being non-binding expressions of present intent. Proposed financial terms included an initial monthly base rent of $1,500 paid monthly, with annual variable rent structured at 10% for Net Income from Operations between $0 and $75,000 and 15% for income exceeding $75,000. The precise calculation, allowable expenses, later-year base rent, and any FF&E fee or replacement reserve remained subject to further discussion and agreement. This resolution authorizes the Mayor to sign the MOU between the City of Perry and EmberGrove Hospitality, acknowledging the preliminary proposed terms, while confirming that execution of the MOU does not constitute approval or execution of a final lease, nor does it bind the City to enter into a final agreement without subsequent formal Council action and approval”.

Motion as recorded: “Moved by Olejniczak, seconded by Shelly approving an MOU with EmberGrove Hospitality. The City of Perry and EmberGrove Hospitality have been in discussions regarding a potential lease for the operation, maintenance, and hospitality management of the Hotel Pattee and La Poste properties. A Memorandum of Understanding (MOU) was prepared outlining proposed principal terms, brand protection, and transition, and included conditions to a final lease, all being non-binding expressions of present intent. Proposed financial terms included an initial monthly base rent of $1,500 paid monthly, with annual variable rent structured at 10% for Net Income from Operations between $0 and $75,000 and 15% for income exceeding $75,000. The precise calculation, allowable expenses, later-year base rent, and any FF&E fee or replacement reserve remained subject to further discussion and agreement. This resolution authorizes the Mayor to sign the MOU between the City of Perry and EmberGrove Hospitality, acknowledging the preliminary proposed terms, while confirming that execution of the MOU does not constitute approval or execution of a final lease, nor does it bind the City to enter into a final agreement without subsequent formal Council action and approval”.

The minutes give only the count (unanimously), so individual votes are Not in the record. Vote line as printed: “Motion carried unanimously.”.