A second hotel proposal at the Elk Grove Technology Park fell through after its developer, like the last, was unable to secure funding, village officials said.
Hiten Patel, of Rivermont Hospitality, based in Chattanooga, Tennessee, informed the village that a 79-room Hilton Home2 project would not go ahead on his property at the entrance to the 85-acre technology park. on Higgins Road.
Patel bought the 1.7-acre site in 2021, after a separate hotel project led by Chicago-based hotel developer Shapra Group II and Schaumburg-based partner EquityRoots collapsed amid funding issues and the pandemic.
The two development groups signed agreements with the village, which offered to reimburse some of the local hotel taxes – and, for Patel, a pledge of more than $1 million in tax-raised funding funds – but those deals were canceled because neither of the developers was able to put a shovel in the ground, officials said.
The same goes for a Cook County Class 7B land tax incentive application, which would have allowed the land to be assessed at lower levels over a dozen years. The village council this week officially rescinded its approval of the tax relief.
The deal with Rivermont called for the developer to spend at least $8 million in private funds and begin construction last month.
The village and Rosemont-based Brennan Investment Group, developer of the sprawling technology park, have envisioned a hotel to serve business travelers since the site opened in 2018.
Mayor Craig Johnson said he still thinks there is a need for accommodations in the area, but is also open to suggestions for something else.
“We don’t know what makes sense there because hotels aren’t doing so well today,” he said.
A nearby site – intended for a restaurant – is still being offered for sale by Brennan, the mayor added.
Despite slow ancillary development at the park’s entrance, officials announced in March that all park-specific storage space was fully leased. Meanwhile, work continues on the first of three planned Microsoft data center buildings on the east side of the property — a construction site that was visited last fall by President Joe Biden.