City Council Approves Incentive Package for Proposed Luxury Hotel in Naperville

Strategic Insights -

A proposed 144-room luxury hotel in Naperville's northwest side has received a boost in the form of an incentive package from the city council. The package includes a rebate of the first $7.5 million in sales tax revenue generated by the hotel, which is part of the larger CityGate development project. The development, led by Calamos Real Estate, will also feature office space, restaurants, retail shops, and a performing arts center. The incentive package is expected to cover 20 percent of the hotel's cost, which is 100 percent higher than building a limited service hotel.

Key Takeaways:

  • The city council voted 7-2 to offer an incentive package to developers of the hotel, which will cover 20 percent of its cost and include a rebate of the first $7.5 million in sales tax revenue.
  • The CityGate development, led by Calamos Real Estate, will create thousands of square feet of office space, restaurants, retail shops, a performing arts center, and the proposed 144-room luxury hotel with spa.
  • Calamos is investing about $300 million to create CityGate, with company officials expecting the development to contribute $3.3 million annually in tax revenue.
  • The rebate is only good for 20 years, unless the hotel generates the $7.5 million sooner, with city staff estimating it would take 13 years for the hotel to achieve this milestone.
  • The incentive package includes a full rebate of the hotel/motel tax and half of the city's share of the sales tax.
  • Councilman Darlene Senger supported the incentive package, saying "We've done this before and we always come out ahead," while Councilman Richard Furstenau expressed concerns about setting a poor precedent for future developers.

Statistics:

  • $300 million: The investment made by Calamos Real Estate to create the CityGate development.
  • $7.5 million: The rebate offered to the developers of the hotel, to be taken from the first sales tax revenue generated by the hotel.
  • 20%: The percentage of the hotel's cost that the incentive package will cover.
  • $3.3 million: The annual tax revenue expected to be generated by the CityGate development.
  • 13 years: The estimated time it will take for the hotel to generate the $7.5 million in sales tax revenue.
  • 144 rooms: The planned number of rooms in the luxury hotel with spa.

Sources:

  • "City council approves incentive package for proposed luxury hotel in Naperville." - No date specified ( Original text mention)