Owners of Hyatt Place in Uptown Normal pulls out of tax rebate

Owners of Hyatt Place in Uptown Normal pulls out of tax rebate

Posted: Updated:
HYATT1 Caption HYATT1 Caption

Local governments are continuing to struggle even though Illinois has a new budget -- which prompted owner of the Hyatt Place to pull out of its hotel-motel tax rebate.

"Part of the issue with the Hyatt is that it's a very new hotel and is still going through that ramp up period that new hotels, and often new hotels takes three to five years for them to stabilize," said Normal city manager, Mark Peterson. 

Peterson says because of initial slow sales, owners of Hyatt Place were working to refinance the hotel which opened just two years ago. 

As a part of refinancing deal, they were asking the city for a tax break, in the form of a $264,000 hotel rebate. The rebate was going to be discussed at Normal's Town Council meeting Monday night. 

A 2016 article by the Pantagraph states, the town of Normal gave a $5.1 million grant to the developer of Hyatt Place before it opened. That also happened before Illinois failed to pass a a budget. 

Town officials say the hotel's private owners were told Normal would lose about about $320,000 in revenue yearly due to the new state sales tax that came with the new budget. 

"And they indicated that in light of that stress that is causing our community they chose to withdraw the request for a tax rebate their lender made it a condition of their financing agreement," said Peterson. 

In a release sent by Peterson, he references the Hyatt's owners as saying the property is performing well and has earned top marks from customers.

Powered by Frankly