Introduction
The Village Board has previously approved the development of a dual-brand Holiday Inn full-service and express hotel complex at 30 and 40 N. Martingale Road. Equityroots Holdings purchased the 5+ acres on December 18, 2015, and was approved by the Village Board on March 28, 2017 to develop a 182-room Holiday Inn and Holiday Inn Express complex.
A Class 7C tax incentive was approved by the Village Board through Resolution 17-109. On August 13, 2019, the Village Board approved an amendment to the conditions of support for the Class 7C application through resolution R-19-049. The amendment allowed for phased development and froze permit fee requirements.
Discussion
The amended and restated conditions of support for the Class 7C includes a condition (#6) requiring construction of each phase of the hotel project to be completed within 20 months after the date on which the village issues a building permit for that phase. The condition allows for the extension of the construction schedule due to adverse weather conditions, material shortages, labor shortages or strikes, unforeseen site conditions and other unanticipated events subject to approval by the Village Board.
The building permit for Holiday Inn Express was issued on April 28, 2021. Per the agreement, construction of the hotel was to be completed on December 28, 2022 (20 months following permit issuance).
The Planning Building and Development Committee considered a request for an extension to the construction schedule at their meeting on January 5, 2023. The requested extension of the construction schedule was due to supply chain disruption and unavailability of items that impacted the ability to install roofing and provide permanent electricity. After discussion, PBD recommended, and the Village Board approved an extension to July 26, 2023. Construction was not completed by July and PBD recommended and the Village Board later approved an extension to December 31, 2023.
The hotel is not yet completed. Most of the remaining work is related to interior finishes (flooring, millwork, final trim, signage). A Building Inspection conducted on January 4, 2024, noted that there were finish materials and guest room furniture stored inside the hotel, but not yet installed or assembled. Carpeting is not yet installed throughout the hotel and signage throughout the hotel has not been installed or ordered. At the time of inspection, only two contractors were working inside the hotel.
The overall exterior of the property is clean and the majority of the site work is complete. The property owner has an agreement with a general contractor for project management and so the project is now in compliance with the terms of the agreement except for the completion date. It should be noted that while the contractor is in communication with the village and has provided progress updates that staff requested an updated schedule the first week of January and that has not yet been provided.