Champaign considering tax rebate for downtown hotel
CHAMPAIGN — The Champaign City Council will consider providing up to $3 million in tax reimbursements to help jump-start development of a hotel in downtown Champaign.
Hans Grotelueschen of YG Financial Group has proposed developing a nine-story 150-room hotel at the southwest corner of Church and Neil streets — the site of the Metropolitan Building that was destroyed by fire in 2008.
Grotelueschen plans to tear down the YG Financial Group building to the west of that site, in order to make way for the hotel.
If project financing is successful, Grotelueschen "anticipates beginning construction in June of 2012 and completing the structure in July of 2013," a staff memo to the council says.
"The developer is still discussing the brand name for the hotel and details about design and construction," the memo states.
Council members are scheduled to discuss the project at a study session following the regular council meeting at 7 p.m. Tuesday at the City Building, 102 N. Neil St., C.
Specifically, Grotelueschen and his investors are asking the city to rebate seven years of taxes generated by the hotel project. City staff has recommended the tax reimbursement be capped at $3 million.
Grotelueschen, who has already moved some of YG Financial Group's offices to the recently renovated Blue Line Station building on North Neil Street, plans to relocate the rest of the business there eventually, according to the memo.