Buffalo Grove weighs giving hotel a break

The village of Buffalo Grove will hold a special meeting next week to vote on giving incentives to a hotel project.

White Lodging Services was seeking those economic rebates at the board's regular meeting Monday for a Hyatt Place Suites hotel to be located in the Berenesa Plaza development at Deerfield Parkway and Milwaukee Avenue. That large development also would include restaurant and retail components.

The tax rebate is based on the village's 3 percent hotel/motel tax. The village agreed to increase the tax to 6 percent on Jan. 1, but the agreement would hinge on only half of that money.

If approved, the hotel would receive a rebate for that 3 percent tax for three years. The rebate would be decreased to half that amount for the next 12 years.

Trustee Steve Trilling said his main concern was that if the hotel is sold before 15 years, he'd like to see the agreement end.

Trustee Jeff Berman also said he was wary of giving out incentives for the limited-services hotel.

"It's hard for me to justify applying to public funds," he said, adding that it should also be up to the owner of the property to give out those kind of incentives.

However, Trustee Jeff Braiman said the market creates a need for tax incentives.

"I just don't think we're in the position right now in turning people away," Braiman said.

Scott Travis, vice president of development for White Lodging, said the owners of the hotel are getting concessions from the land owners, but they need some time to establish a customer base.

"A hotel does not open the doors and fill up," Travis said.

Village President Elliott Hartstein said the deal gives the hotel 50 percent of the hotel/motel tax and still gives the village the other half of the money while bringing a strong development into town.

"It's the type of hotel I would be proud to have in our community," Hartstein said.

Since Trustees Bruce Kahn and De Ann Glover were not present Monday, the board agreed to hold a special meeting next Monday to consider the tax incentives.

Travis said he would also bring back answers to some trustee questions at that time.