The Town of Normal was informed over the weekend by Uptown Circle, LLC, the ownership group of the Uptown Hyatt Place Hotel, that it has elected to withdraw its request for a partial Hotel/Motel Tax Rebate. Therefore, this item has been removed from the agenda for the July 17 meeting of the Normal Town Council.
As was publicly reported last Friday, Uptown Circle, LLC is refinancing their Hyatt Place in Uptown Normal. As condition of the loan, the prospective lender imposed the requirement of the Town’s financial participation via a hotel/motel tax rebate. In communication over the weekend, Uptown Circle, LLC informed Town staff that the group has opted to withdraw the request in light of its very recent awareness that the Town will lose an estimated $320,000 in revenue annually due to the new State sales tax collection fee that was imposed on all local governments as part of the new State of Illinois budget.
Normal City Manager Mark Peterson said, “The owners repeated their thanks for everything the Town has done since the inception of the Hyatt Place and expressed sincere appreciation for our ongoing supportive relationship. They indicated they did not wish to do anything to add financial stress as the Town addresses the challenges brought about the State’s budget decisions.”
The ownership group also indicated that it will attempt to restructure the proposed refinancing agreement with their lender without any financial participation from the Town of Normal. If that proves to be unsuccessful, the ownership group indicated that it will pursue alternative financing options.
Uptown Circle, LLC reports that the hotel continues to perform successfully according to multiple standards. Among various indicators of quality, the Hyatt Place Hotel in Uptown Normal has been ranked by customers on Trip Advisor.com as the number one hotel in Normal. Also, since the Normal Hyatt Place Hotel opened its doors in 2015, the hotel has consistently been rated in customer satisfaction among the top 20 of all 300 Hyatt Place properties internationally.