Elk Grove Village trustees on Tuesday approved zoning changes that clear the way for construction of two new hotels and a restaurant on the site of the blighted former Elk Grove Hotel.
Under the plan, the 7.43-acre site at 1600 E. Oakton St. -- near the Elmhurst Road I-90 interchange and a half-mile from the $1 billion Elk Grove Technology Park -- will be divided into three parcels for development in separate phases.
The first phase will see construction of a 105-room Country Inn & Suites beginning early next spring. While most of the former three-story Elk Grove Hotel has been demolished, a portion is being used for the new hotel, officials said.
A restaurant or commercial building is planned for phase two of the development, followed by construction of a four-story, 96-room Tru by Hilton hotel in 2021.
The village bought the site last year for $5.6 million, and in August approved a redevelopment agreement with Sunrise Retail Development LLC. The developer expects to invest about $25 million into the site, officials said Wednesday.
"Bringing this development to fruition fulfills our long-term goal to revitalize the site of the obsolete Elk Grove Hotel," Mayor Craig Johnson said in a statement released by the village. "Bringing two brand new hotels and other amenities to Elk Grove Village will give area businesses and our residents additional options for their out-of-town guests.
"Further, the investment will strengthen our tax base and create jobs. And, it is our hope that this $25 million investment will be a catalyst for future private investment in the area," he added.