NORMAL - The fate of the Crowne Plaza in north Normal is in the hands of the developers. The City Council on Monday terminated a redevelopment agreement that could have brought the project $2 million in tax money from a tax increment financing district. | Candidates spar over uptown
Developer Normal Hospitality LLC asked the pact be mutually terminated by both parties after the developer could not produce the necessary documents proving all workers on the project were paid prevailing wage. Normal requires the state-determined wage on any projects receiving public funding.
Fred Rotermund, vice president of Global Hotel Management, the company that would manage the hotel, said Normal Hospitality is "in the final stages of securing private investors."
"I'm confident they are going to be secured," he said. "Investors are very interested in this project and others."
Rotermund said earlier that if all goes as planned, the Crowne Plaza, at the site of the former Staywood Inn and former Holiday Inn at 8 Traders Circle, could open by May.
"I wish the Crowne Plaza developers the best of luck," said Councilman Adam Nielsen. "I hope they are able to pull this off. It's an important property. You can't have a five-story eyesore at your doorstep. It creates a negative perception of the town."
Councilman Jason Chambers asked if there is a benefit to keeping the TIF district in place. The town expanded the TIF district so the Crowne Plaza project could benefit from it.
In a TIF, the tax revenue going to taxing bodies is frozen and any increase in tax revenue goes to a fund to be used by qualifying redevelopment projects within the district.
City Manager Mark Peterson said if Normal Hospitality is unable to complete the project and another developer comes forth, the TIF could be used.
"That's why we are not recommending the TIF be abolished at this time," Peterson said.
Councilman Chuck Scott said he was encouraged by a letter Rotermund wrote to the council saying the redevelopment will try to work more with local trades and labor assembly.
Representatives of the Bloomington & Normal Trades & Labor Assembly AFL-CIO held a news conference last week about the "steady stream" of workers who worked at the Crowne Plaza but say they haven't been paid or are owed money.
None of the workers is a union employee, but Mike Matejka, legislative affairs director for the Great Plains Laborers District Council, said the union is trying to help where it can and hopes to find a pro-bono attorney who would represent the workers.
Posted in News on Tuesday, February 17, 2009 12:00 am Updated: 2:06 pm.
© Copyright 2010, Pantagraph.com, Bloomington, IL | Terms of Service and Privacy Policy