Schaumburg committee recommends phasing in stalled Holiday Inn project
A Schaumburg committee has recommended granting a developer's request to phase in its stalled Holiday Inn project on Martingale Road to allow a Holiday Inn Express to open first on the site and raise money for the construction of a full-service hotel next door.
The village's planning, building and development committee also recommended freezing the project's permit fees at their original 2017 levels and making its Cook County property tax incentive dependent on the opening of both hotels.
"We're really hoping he gets these built," committee Chairman Jack Sullivan said of developer, EquityRoots Holdings LLC. "His situation is complicated and has been since the beginning. I don't think the village has done anything that would hold him up."
The construction process as described should keep guests at the first hotel from being adversely affected during the building of the second, Sullivan added.
The full village board will consider final approval of the revised building schedule at its meeting at 7 p.m. Tuesday, Aug. 13.
Trustees had approved the 95-room Holiday Inn and 87-room Holiday Inn Express as a unified project at 30 and 40 N. Martingale Road in March 2017. But no construction has begun due to EquityRoots Holdings' difficulties in raising the estimated $25 million needed to build both.
With the $10 million the partnership has raised, its representatives now want to build the Holiday Inn Express first and use its business to generate revenue to build the second hotel.
Cook County officials last year approved a Class 7C tax incentive for the project that would take effect once both hotels open.
The five-year tax break allows for a reduced assessment to keep approved commercial enterprises competitive in Cook County.
While such properties usually are assessed at 25 percent of market value, the 7C incentive would reduce the assessment to 10 percent for the first three years, 15 percent in the fourth year and 20 percent in the fifth before returning to normal.
Even with the two-year delay the project has faced, it is still on track to provide the 31st and 32nd hotels in Schaumburg.
Representatives of EquityRoots Holdings could not be reached for comment Friday.