R2015-129 RECEIVING AND FILING PROPOSED REDEVELOPMENT AGREEMENT Pace Hospitality LLC

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Item Coversheet Page 1 of 1 � Development Services DATE: 12/2/2015 MEMO: No. 15-49 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—Holiday Inn SUMMARY RECOMMENDATION: Staff recommends that the attached redevelopment agreement between the City of Decatur and Pace Hospitality LLC to redevelop the now vacant 3.55 acres at 5150 Wingate Drive be received and placed on file.The agreement would be scheduled for final action at the December 21,2015 City Council meeting. BACKGROUND: The proposed project would involve the construction of a four story, 114 room Holiday Inn and Suites with conference space and an associated Burger Theory full-service gourmet burger restaurant on what is currently a 3.55 acre unimproved site within the northem city limits of Decatur.The project would represent an investment of more than$9 million with construction to provide 65 local construction jobs and begin in the first quarter of 2016.The construction period is expected to take 9-15 months and the hotel is expected to support fifty full-time equivalent employees once it opens. The Redevelopment agreement if approved would include sharing 50%of the current Hotel Use Tax received by the City for 5 years.As we have discussed,Staff is being aggressive in our recruitment of retail business to the City of Decatur with this proposal being representative of those efforts.We believe that this project will strengthen Decatur's current share of the hotel cluster north of I72 and attract more restaurants and additional retail to the area. Pace Hospitality is an ann of Sunrise Hospitality Inc.,a 37-year old hotel development company with a portfolio of more than 35 hotels in Illinois,Indiana,Ohio and Michigan.Brands include but are not limited to Hilton,Mariott,Holiday Inn and Holiday Inn Express,Candlewood Suites and Country Inn and Suites.The company's hotel products include full-service,all-suite,extended stay and limited service operations. STAFF REFERENCE: Additional questions can be forwarded to Tim Gleason at 217-424-2801 (tgleason@decaturil.gov),Billy Tyus at 217-424-2727(btyus@decaturil.gov)or Patrick Hoban at 217-424-2778(phoban@decaturil.gov) BUDGET/TIME IMPLICATIONS: All reimbursements will be made based on incremental hotel motel taxes generated to the City of Decatur. ATTACHMENTS: Description Type resolution Cover Memo A¢reement Backup Material REVIEWERS: Department Reviewer Action Date Development Services Bright,Debbie Approved 12/3/2015-9:53 AM https://decatur.novusagenda.com/AgendaWeb/CoverSheet.aspx?ItemID=343 12/7/2015