An Elk Grove tech park’s hopes for a hotel struck out for the second time in four years.
Rivermont Hospitality’s proposed 79-room Hilton Hotel Home2 won’t move forward because the developer can’t get financing, the Daily Herald reported, citing the firm’s Hiten Patel. The Chattanooga company bought the 1.7-acre site in 2021 after a previous venture between Shapra Group II and equity partner EquityRoots, scrapped its plans as cash dried up during the pandemic.
Elk Grove, a suburb northwest of Chicago, has been trying to attract a hotel to the site,on Higgins Road at the entrance to the 85-acre tech park, since Brennan Investment broke ground in 2018. The hotel would mostly serve travelers coming to the park for business.
The second failure has local officials scratching their heads. “We’re not sure what makes sense there, because hotels are not doing so well today,” said Mayor Craig Johnson.
The city had pitched incentives including refunding part of local hotel taxes back to the developer and more than $1 million in tax increment financing.
The hotel would have also received a property tax abatement from Cook County, meaning the developer would have paid only a portion of the property taxes for more than 12 years.
To get those breaks, the developer would have to spend at least $8 million of its own money on construction. The initial development between the city and Rivermont called for construction to start last month.
[Daily Herald] — Miranda Davis
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