Tuesday, December 20, 2011

Chester Gives New Motel OK For TIF

The proposed Microtel motel project in Chester will move forward with the city's help following a 5-4 vote last night by the city council.

The Southern Illinoisan has the story.

Mayor Joe Eggemeyer cast the deciding vote after the council split 4-4. The vote was just to start negotiations with the developers over the use of TIF funds. If an agreement is reached the council will hold another vote.
Project partners James Best of Chester, John Bergfeld of Sparta and John Pawloski of Godfrey are proposing to build a $6.5 million, 60- to 85-room hotel development at the site of the old Hi-3 motel, which has been closed for about 20 years.

Chester currently has one hotel, Reid's Best Western Inn, owned by Brad Reid, also the owner of Reid's Harvest House.

If an agreement is reached, the paper noted that the developers are eligible to be reimbursed for up to 75 percent of the new property taxes generated from their improvements.

Illinois law doesn't allow TIF funds to be used for new construction, but costs associated with the property acquisition, demolition of the old motel, site preparations and dirt work would be eligible expenses.

1 comment:

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