R2015-114 RECEIVING AND FILING PROPOSED REDEVELOPMENT AGREEMENT Evergreen Hospitality

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ECONOMIC AND URBAN DEVELOPMENT MEMORANDUM Memo No. 15-39 October 5, 2015 TO: Honorable Mayor Julie Moore Wolfe and City Council FROM: Tim Gleason, City Manager Billy Tyus, Assistant City Manager Patrick Hoban, Economic Development Officer SUBJECT: Receive and File Redevelopment Agreement—Hampton Inn Hotel SUMMARY RECOMMENDATION: Staff recommends that the attached redevelopment agreement between the City of Decatur and Evergreen Hospitality to redevelop the now vacant � 2.61 acres at 4855 E. Evergreen Ct be received and placed on file. The agreement is scheduled for final action at the October 19th, 2015 City Council meeting. BACKGROUND: Developer will construct at its expense a new 4 story Hampton Hotel. The existing B-3 Planned Shopping Center was ammened in July 2015 to allow for retail development. The subject property, SEC 29-16-3E GRAND OAKS ESTATES ADD LT 1, is 2.61 acres and is currently unimproved. The proposed project will involve the construction of a four story, 80-room Hampton Inn representing an investment of more than $7 million. It is expected that the construction of this facility will begin in the fall of 2015 and will provide local construction jobs for approximately 110 trades people over the life of the project. The construction period is expected to take 6-9 months and the hotel is expected to support thirty full-time equivalent employees once it opens. We believe that an additional hotel in this location will create a "hotel cluster" which will attract additional visitors to the area providing benefits to retailers and restaurants in the area. Horve Hospitality Management, Inc. was established in 2005 by Steve R. Horve. The company commenced operations with the development, construction, and management of the Hilton Garden Inn and Homewood Suites in Champaign, IL. Soon after, the Decatur Conference Center and Hotel in Decatur, IL was acquired, and the Homewood Suites in Forsyth, IL was constructed. In 2010, the President Abraham Lincoln Hotel and Conference Center in Springfield, IL was purchased. Horve Hospitality Management, Inc. navigated and supervised the complete remodel and conversion of the hotel to its current DoubleTree by Hilton franchise. Mr. Horve has built more than 60 hotels during his career which began in 1989 with the construction of a Hampton Inn in Dearborn, Michigan. Brands currently or previously owned by Mr. Horve include: Hilton Garden Inn, Homewood Suites, Doubletree by Hilton, Hampton Inn, Country Inn & Suites, Springhill Suites, Hawthorn Suites, Holiday Inn Express, Ramada Inn and an independent hotel.