Springfield Economic Development Commission endorses the latest Wyndham deal
An advisory group to the City of Springfield Tuesday approved $18.75 million in incentives as part of a $58 million redevelopment of the downtown Wyndham City Centre.
The Community Economic Development Commission endorsement goes to the city council committee of the whole Tuesday. The resolution could be put on the debate or consent agenda with a possible vote by the full council on March 21.
The proposal is for the Tower Capital Group out of San Antonio, Texas, to keep 250 hotel rooms and construct 200 market-rate apartments. The hotel would operate under the Delta by Marriott flag.
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The city council rejected earlier overtures for a variance from a perspective buyer that would have dramatically reduced the number of hotel rooms. There are currently 378 hotel rooms in the Wyndham, the city's tallest structure.
The hotel's mechanicals, HVAC, elevators, windows and public areas would be upgraded. The top floor would feature a sky deck as a tourist attraction.
Ryan McCrady, president and chief executive of the Springfield Sangamon Growth Alliance, said it would be "difficult or impossible" for Tower Capital Group to finance the 450-room hotel project, but "by allowing the developer to blend in multiple sources of revenue by having the apartment revenue plus the hotel revenue, it helps them achieve (that financing)."
The $18.75 million in incentives would come from a targeted, sole project tax-increment financing district, or TIF, McCrady said.
The property is in the city's downtown TIF, but because of its decreased assessed evaluation, it isn't contributing any increment into that TIF, McCrady said. The hotel is valued at $2.75 million, McCrady said.
Scott Larsen of Capital Tower Group said the apartments would be mostly studio apartments and marketed to medical personnel, renting for $800 to $850.
Scott Dahl of the Springfield Convention and Visitors Bureau said he was satisfied with the number of hotel rooms to help meet the obligation of some larger-scale conventions coming to the city.
The Marriott name could more readily help attract future shows, Dahl added.
"This seems to be a proposal a little more palatable for the group," said EDC member Joe Aiello. "It looks like it's going to be a nice package for the downtown, to allow downtown to continue to have the hotel rooms it needs for conventions. That's a big part of it."
Al Rajabi, the chief executive officer of the Sky Capital Group, the parent company of Tower Capital Group, had wanted to sell the hotel to New York developer David Mitchell, but the city council turned down three votes on a variance that would have increased the number of apartments.
Tower Capital Group bought the Wyndham in a foreclosure sale in 2019 and planned on converting the hotel into a Marriott before the COVID-19 pandemic struck.
Asked about the timing of the project, three weeks before the election, Mayor Jim Langfelder contended the timing was driving by the development group.
"They didn't want to wait," Langfelder said after the meeting. "They wanted to get an answer from the city council. We hoped having this presentation will hopefully convince the aldermen. The timing's not great, but, again, I wish we had a couple of months to think about this."
Langfelder is running for a third term against City Treasurer Misty Buscher. Buscher attended the EDC meeting.
Contact Steven Spearie: 217-622-1788, [email protected], twitter.com/@StevenSpearie.
This article originally appeared on State Journal-Register: Springfield committee of the whole expected to debate Wyndham deal
