Big Des Plaines hotel, restaurant, gas station project delayed
The long-awaited redevelopment of city of Des Plaines-owned property at the northeast corner of Mannheim and Higgins roads will take a little longer, with the project now not likely to break ground until the winter, city officials said.
The developer of The Orchards at O'Hare - which includes a proposed five-story, 130-room Holiday Inn Express & Suites hotel, free-standing restaurant, gas station, car wash and convenience store - sought to start construction by mid-August.
But assembling various parcels of property controlled by different entities into one big development, while trying to obtain the necessary project approvals from the Illinois Department of Transportation and Metropolitan Water Reclamation District, has taken longer than expected, City Manager Mike Bartholomew said.
"We're getting closer every day, but we're also getting closer to winter construction, which is something we didn't want to do," Bartholomew said.
Now the adjusted timetable calls for shovels to be in the ground as early as November, with the development completed a year later.
As a result of the anticipated winter construction, the project is expected to cost more than the previously estimated $28 million.
An amended redevelopment agreement to be considered by the city council Tuesday calls for the sale price for the nine acres of city land to drop to $1.2 million from $1.8 million.
In exchange, developer Pearlshire/Bask Development Group will get a smaller economic incentive. It will be eligible to receive up to $1.4 million worth of tax increment financing dollars over 20 years, instead of the previously proposed $2 million.
TIF dollars come when, as redevelopment boosts property values, the extra tax revenue that otherwise would go to schools and others taxing bodies goes into a special fund that can be used to pay for improvements to the area.
All other parts of the agreement, including $5.5 million in rebates for sales and hotel tax revenues, remain the same.
Also Tuesday, the council is expected to consider contracts for reconstruction of Orchard Place, the street that will lead to the development from Higgins. The $1.5 million project includes new pavement, curbs, gutters, sidewalks, water main and replacement of the bridge that goes over Willow-Higgins Creek.
That work is expected to be complete by the end of the year.