NORMAL - Developers of the Crowne Plaza hotel in north Normal are seeking to end an agreement that would have brought the project about $2 million in tax money but also imposed pay standards. | Workers allege they haven't been paid or are owed money

However, developers said they are pursing private financing and hope to finish the $9 million renovation of the former Staywood Inn, which closed in 2006.

"We believe in this project so deeply, we'll find a way to do it," said Fred Rotermund, vice president of Global Hotel Management, the company that would manage the hotel. "I'm confident a private investment group will come through."

He said it still is feasible that the Crowne Plaza could open the first week of May.

The City Council will consider on Monday the request for mutual termination of the redevelopment agreement with the town.

"We did submit the letter asking the town to suspend or agree to terminate the agreement because we are unable to meet the (town's) deadline because of circumstances out of our control," Rotermund said.

Paperwork and wage complaints

The City Council gave Crowne Plaza developers Normal Hospitality LLC until 5 p.m. Wednesday to file paperwork proving all contractors on the project complied with the state's prevailing wage act, which the town requires of private construction projects when public money is involved.

Paperwork and wage complaints

City Manager Mark Peterson said initially the company was not providing required paperwork, then the town heard contractors were not paying wages that were up to the standards set by state law. Peterson recommended at the Jan. 20 council meeting that the council terminate the redevelopment agreement.

Council members gave the company an extension.

Peterson said Normal Hospitality has been filing documents for several weeks. The paperwork verifies some subcontractors paid prevailing wage, but others did not. There was no paperwork for other subcontractors, he said.

Rotermund said he is aware of one contractor who paid some workers in cash and was not paying prevailing wage. He also said Normal Hospitality had its own workers on the job and did not pay them prevailing wage because they were unaware the law applied in that case.

"The town said we had to so we had additional funds sent to them (the workers)," Rotermund said.

Peterson said if the redevelopment agreement is terminated, Normal Hospitality will no longer be required to pay prevailing wage because city money no longer will be involved.

Trying to raise additional funds

Rotermund said developer Devang Patel is out of the country attempting to get private funding for the project to make up for the loss of the tax increment financing district money. The town created a TIF district at the hotel site so the project could benefit from it.

In a TIF district, property tax revenue going to taxing bodies is frozen at a certain level, and any increase in tax revenue beyond that goes into a fund used for qualifying redevelopment within the district.