Orland Park OKs incentives for Hampton Inn
$3.7M approved for project stalled by COVID-19 pandemic
The Orland Park Village Board voted Monday to give incentives worth $3.75 million for a hotel project that had been delayed due to the COVID-19 pandemic.
Wrigley Hospitality plans to spend $15 million building a five story, 158-room Hampton Inn by Hilton at 161st Street and LaGrange Road, behind Rock Bottom Restaurant & Brewery.
The incentives include a 50-50 split of sales tax revenue generated by the hotel for up to 10 years, and the developer would also receive 40% of revenue generated by Orland Park’s 5% tax on hotel stays. That sharing would also be in place for up to 10 years.
The 10-year period could expire sooner if the $3.75 million amount is reached earlier.
The Hampton would be adjacent to a Homewood Suites, also a Hilton brand and on the west side of LaGrange Road. Wrigley bought the property for the Hampton development, just under 4 acres, in 2015 and plans for the project were approved last year.
Last July, the Village Board voted to support a Cook County tax incentive resolution that will also benefit the developer.
Under the incentive, the assessment on the fair market value of the property would be reduced from 25%, which is the assessment level for commercial properties, to 10%, or the rate for homeowners.
That would be in place for three years, with the assessment level increasing to 15% of market value in the fourth year, 20% in the fifth year then to 25% after that.
The incentive kicks in once the development is completed.
With the incentive in place, the hotel would still generate about $219,000 a year in property taxes, rising to $547,000 a year once the incentive expires, according to the developer.
The hotel tax revenue sharing incentive was one of a number of tools approved last summer by the Village Board to help businesses impacted by the pandemic. A board committee Monday recommended additional pandemic incentives, including waiving permit fees for restaurants that established outdoor dining areas in response.
Another incentive intends to spur commercial office development, with the village looking to reduce property taxes for developments worth at least $2 million.