March 04–NORMAL — Work on a $25 million, eight-story Hyatt Place Hotel in uptown Normal is expected to start soon since the City Council approved a revised redevelopment agreement with the developers Monday night.
“The developer is ready to go,” said City Manager Mark Peterson. “He’s ready to move quickly.”
The council also approved a $75,000 grant to RR Donnelley for a pilot high tech project in Bloomington that initially will provide 50 jobs and could be expanded to provide as many as 200.
The revised pact between the town and developers Tartan Realty and Campus Acquisition divides the One Uptown Circle project into two phases: the hotel will be built first on property along Broadway just east of the Marriott Hotel; the second phase — originally a high-end apartment building with first-floor retail — would be constructed after the hotel is completed, in about 12 months.
Peterson said the developers are hoping to bring the cost of the second phase down in the meantime. They also are considering including office space into the mix.
The council approved subdividing the property Monday night. The developers initially only will take ownership of the hotel property. Peterson said the town maintains ownership of the property on the west side of Uptown Circle.
“Nothing pleases this council member more than seeing a power crane in uptown,” said Councilman Chuck Scott.
Peterson noted because the project will be done in two phases, the eastern part of the parcel can be used for construction staging.
Under the pact approved by the council, the developers will contribute $7.1 million in cash equity and the town will provide a $5.1 million grant for the first phase. The town’s share will come from a yet-to-be-issued 25-year general obligation bond that would be paid through revenue generated by the hotel — sales tax, food and beverage taxes, hotel/motel taxes, and tax increment financing money.
Meanwhile, the council approved a budget amendment to provide the $75,000 to Donnelley for start-up costs including rent, refit expenses, signs and broadband network items. Initially Donnelley will rent space from STL Technology Solutions on Towanda Barnes Road, Bloomington.
Councilwoman Sonja Reece said people have questioned whether there will be enough qualified people in the community to fill the jobs or if workers will be lured away from other businesses.
“They’re pretty mobile,” she said. “If a project closes, they’re gone. This is a great opportunity to afford an opportunity for them. It brings people with high skills to this community. If we bring those jobs, other things follow like retail business.”
