A developer has received a one-year extension to renovate a shuttered Rosemont hotel and open three restaurants, with the promise of up to $7 million in tax increment financing dollars from the village.
The original redevelopment agreement inked in October 2017 between Glenview-based U.S. Asia Investment Group and the village called for renovations to be done by October 2019.
But the village board agreed Wednesday to extend the deadline to November 2020 and allow the project to be eligible for a special state financing program, as the developer has struggled with funding.
The latest plans revealed Wednesday call for the closed four-story, 200-room hotel on Mannheim Road next to the Allstate Arena to be converted to a Best Western Premier hotel and La Quinta Inns & Suites.
The front portion of the property -- the eight-story, 200-room Hyatt Place Chicago/O'Hare Airport hotel -- opened in 2016. All together, the buildings were the former Wyndham O'Hare hotel, which closed in 2010 in the midst of a struggling hospitality market.
Next to the front hotel on Mannheim, the developer proposes three new restaurants and banquet facilities inside a still-closed one-story building on the hotel campus. The eateries are still being finalized, but Phil Stefani's restaurant group is involved in the conversations, said Mayor Brad Stephens.
The restaurants would aim to attract patrons before and after events at the nearby stadium, Stephens added.
To help fund the renovation work, the developer plans to apply for financing through the Illinois Finance Authority's Property Assessed Clean Energy program, which provides funding to commercial property owners for energy efficiency projects such as HVAC improvements, roof repairs, updating insulation and installing LED lighting. Property owners repay the funds through an assessment on their real estate tax bill.
The hotel owners are still promised up to $7 million in funds from a TIF set up by the village in 2014, in which property taxes paid to local governments were frozen, and taxes collected above a set level began going to a special fund controlled by the village, intended for redevelopment projects.
But they won't get any of that money until the new hotels open, per terms of the agreement.