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Wednesday, March 6, 2019 01:17 pm

Another downtown hotel?

City pushes $56 million plan

The City of Springfield is promoting a plan to bring a 95-room hotel to Washington Street.

“It is exciting,” said Mayor Jim Langfelder. “They actually had to scale back the project. They wanted to do a bigger one.”

Plans include 95 hotel rooms, an indoor swimming pool, 17 apartments, retail space, a rooftop bar and a bowling alley. “The property will be a landmark project and anchor attraction to a city that hosts business travelers and families year-round,” proponents say in a written summary of the project that’s been given to the city. Hilton and Marriott both have expressed interest, according to the summary, with both companies eying extended-stay quarters for long-term guests. Both the Station House bar and a city-owned parking ramp would be demolished to make room.

The project isn’t a done deal.

Developers are asking for $7.2 million in tax increment financing money, plus the city’s ramp worth $450,000 to create the complex on the 300 block of East Washington Street. The balance of the money would come from private equity investors, city officials say. Officials declined to disclose names, other than two investors live in the Chicago area and another is from Florida.

The developer of record in city records is a limited liability corporation called DK Collection SPI, with headquarters in a house in the Irisdale subdivision east of Interstate 55. Abigail Powell, city TIF coordinator, said the identities of the investors would be disclosed before the city closes any deal.

Langfelder said the proposal at present includes several contingencies, including financing. The city wouldn’t release any property or money until financing is finalized, he said. The city's Economic Development Commission is scheduled to consider the proposal next week.

The only upfront outlay for the city would be the parking ramp, said Val Yazell, city economic development director. The $7.2 million in TIF money would be paid over time as the property increases in value due to development and the city forgoes property taxes, she said.

According to the written summary, the project would create between 400 and 600 construction jobs with between 130 and 150 permanent jobs when the hotel opens. While the city would forego property taxes due to TIF financing, hotel and sales taxes would total nearly $300,000 in 2021 and rise to more than $410,000 in 2025, according to the written summary submitted to the city.

“I definitely think it’s going to happen,” said Ward 5 Ald. Andrew Proctor, whose ward includes the site. “The city has vetted it pretty thoroughly. I think they have all their financing in place.”

Contact Bruce Rushton at brushton@illinoistimes.com.

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