Orland Park Village Board OKs Hotel Incentive Agreement For Hampton Inn

Orland Park IL

23 June, 2021

3:23 PM

Description

By Jon DePaolis, Richard Free Press: ORLAND PARK, Ill. — The Village of Orland Park Board of Trustees has approved an incentive agreement with a developer planning on bringing a Hampton Inn hotel to town. The agreement was approved by a 7-0 vote Monday, June 21, during the Village Board meeting. The item was initially discussed during the Committee of the Whole (COTW) meeting earlier in the evening. At that meeting, Orland Park Economic Development Coordinator Alex Scharf said the developer is planning to build a five-story, 150-room, 85,000-square-foot hotel on the 3.8 acres located at 16160 to 16168 LaGrange Road. The site is behind the Rock Bottom Restaurant and Brewery. "They have requested to utilize the hotel incentive program … and has also requested a sales tax sharing incentive," Scharf said. He also said the estimated project cost is $15 million. The proposed terms for the incentive program would include: a 40% sharing of the Village's transient occupancy tax; a 50% sharing of the Village's sales tax; a term of 10 years; and a 25% reduction on permit and water tap fees. "Included in the agreement is a max return to the developer [of] a maximum of 25% of certified project costs … or a maximum of $3.75 million," Scharf said. "Whichever comes first." He also said the "clock" on the 10-year tax sharing agreement will start no later than March 1, 2023. "So, that is the incentive within the incentive for the project to be open by then so they can capture the full 10-year period," Scharf noted. He also said the project is anticipated to bring 25 to 30 full-time jobs to Orland Park. Mayor Keith Pekau said the project had been going on since before he took office. "It's good to see the project is still ongoing, [and] I think it's needed," he said. "Obviously, it's downsized from what it originally was. But this particular project has been approved already. We're approving the incentive agreement [tonight], and I think it's also important to have a clock starting on this, because this … has been going on for five years. We want to make sure the project gets going." Pekau said it was his understanding that the project would start this year. "We're looking forward to you building the hotel," Pekau said after the agreement passed during the regular meeting of the Village Board later on. "Hopefully, the sooner the better." Richard Free Press is a one-stop destination for the news that most affects you, the southwest suburban resident. Be an informed citizen of the town you live in and love.