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TO: Mayor Thomas J. Weisner
FROM: Bill Wiet, Chief Development Services Officer
DATE: November 18, 2014
SUBJECT:
To request authorization to execute a Hotel Occupancy Tax Rebate Agreement with Midwest Management II, Inc., owner of the current Comfort Suites Hotel at 111 North Broadway, to provide for improvements to the property for the purpose of rebranding the hotel to a Holiday Inn Express and Suites affiliate.
PURPOSE:
The City of Aurora will be providing economic assistance to Midwest Management II, Inc., through the Hotel Occupancy Tax (also known as hotel/motel tax) that will be generated solely by the above mentioned tax from this hotel. The amount of the assistance is $500,000 paid over 10 years, plus Midwest's actual documented interest expenses at an annual rate not to exceed 4.75%, in regard to any loan obtained by Midwest relative to constructing the project. Also, the City agrees to cooperate with Midwest in complying with the requirements of the Small Business Administration (SBA) in securing the remaining balance of a loan guarantee the City currently has on the Hampton Inn and Suites located on Bushwood Drive (off of Orchard) and under same ownership group. This cooperation does not include the city guaranteeing and portion of the new SBA loan on this property, except for this portion the City previously agreed to guarantee.
BACKGROUND:
The Comfort Suites was an anchor to the redevelopment of the historic Roundhouse block in 1994, which began with the relocation of the Aurora Transportation Center and commuter parking lot. To date this cooperative project has increased the vitality of downtown Aurora, and continues to this day with the completion of RiverEdge Park on the west side of the block. Given the fact that this development has approached 20 years in age, and in order to further the economic development goals in this area, it is in the best interests of the City to assist in the improvements to the Comfort Suites i...
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