Huntley’s Hampton Inn to request an additional extension to open for business
HUNTLEY — Back on July 23, 2020, the Village Board approved an ordinance that authorized the approval and execution of a Business Development Agreement (BDA) between Huntley and developer Woodstock Hotel, Inc. to assist with the construction of a four-story Hampton Inn that will be located on 3.7 acres of Lot 2 of the Huntley Crossings corporate park (13000 Route 47).
Per the BDA, the original opening date was anticipated to be Dec. 31, 2021, however, on Nov. 18, 2021, Harry Patel, owner of Woodstock Hotel, Inc., asked the board to approve a six-month extension period on the previously agreed upon opening date.
Deputy Village Manager Lisa Armour told trustees at the time, that staff had received a letter from Patel explaining that the extension of time to complete construction of the hotel and open for occupancy was being requested due to “subcontractor and equipment provider supply chain issues.”
The board unanimously voted to approve the six-month extension at the Nov. 18, 2021, Village Board meeting, which meant Huntley’s Hampton Inn would have until June 30 of this year to open for business.
Despite the six-month extension period, the June 9 Village Board meeting agenda packet shows that Patel has once again sent a letter to village staff, this time requesting a four-month extension.
“We continue to make progress towards completion of the Hampton Inn. The project continues to remain within budget and delays are purely related to labor availability with subcontractors and material and equipment delays in delivery,” wrote Patel to Dave Johnson, Huntley’s village manager. “As previously disclosed, many of these companies are hampered by the COVID pandemic and related labor shortages and supply chain issues.”
Patel is hoping that the village board will once again approve an additional extension period that would move the last date of the construction period from June 30 to Oct. 31 of this year.
“We continue to manage the project to complete [it] as soon as possible and look forward to opening in 2022,” stated Patel in his letter to Johnson.
A few of the trustees and Mayor Tim Hoeft had previously shared concerns about the possibility of Patel asking for additional time after the expiration of the six-month extension period.
“I see six months being it and if you got to come back to us after six months, I think then we’ve got to look at the incentive package at that point of what we can or can’t do,” Hoeft told Patel last November, referring to the original July 23, 2020 ordinance that would grant Woodstock Hotel, Inc. various incentives upon opening for operation.
The tax incentives for the Hampton Inn include a rebate of 100% of the village’s share of the hotel accommodations tax (7%) for the first five years, with a rebate of 85% for years six through 15 up to a maximum of $2.5 million.
The village would also rebate the hotel 100% of the hotel room tax ($3 per night flat fee) for the first five years, though village staff are unsure whether this tax incentive will remain in place or be rebated any longer for an amount of $300,000.
Additionally, Hampton Inn would get a rebate of 85% of the village’s portion of the property tax, once fully assessed, up to a maximum of $150,000.
The village entered into a maximum rebate period of 15 years, with the total rebated amount to be a little over $2.9 million, which includes the total of the village’s property tax and its hotels taxes.
At the June 9 Village Board meeting, trustees will be requested to make a motion for an ordinance authorizing the approval and execution of a second amendment to the BDA between the village and Woodstock Hotel, Inc.
