Lake in the Hills officials to review hotel plan

An earlier version of this story should have noted there is a Holiday Inn Express & Suites in Algonquin.

Lake in the Hills is poised for a new hotel along Randall Road, is studying the demand for an auto dealership in town, while seeking someone to oversee these and other projects.

The village's planning and zoning commission recently reviewed a conceptual plan for an 80- to 85-room, four-story hotel proposed for five acres north of the former Dominick's site at the northeast corner of Randall and Algonquin roads. The plan also calls for a 10,000-square-foot building next to the hotel, which could be developed into a banquet facility.

Commissioners were pleased with the hotel concept, though it would require a conditional use permit and height variance. The village board's committee of the whole will review the proposal May 12.

"We did a hospitality study last fall so that work led to interest by several hotel groups in the village," Community Development Director Dan Olson said. "We're excited to make that happen. It will definitely be a bonus for that Randall Road corridor there, and other businesses too."

Of three potential sites for a hotel identified in the study, officials focused on the Randall Road property, which they have been trying to promote for years. It is surrounded by numerous fast food eateries and sit-down restaurants, and a movie theater.

A portion of the site is being developed as three 5,000-square-foot medical office buildings with a commercial component by Restart Investments, the developer now proposing the hotel.

Hilton-owned Hampton Inn and La Quinta have expressed interest in the project.

There are no hotels in town or in nearby Huntley, which also is courting hotel developers. The closest hotels are Holiday Inn Express & Suites in Algonquin, Hampton Inn in McHenry, Quality Inn in Woodstock, and Holiday Inn in Crystal Lake. There are no extended-stay hotels in the region, either.

Lake in the Hills' hospitality study determined the market could support a 60- to 80-room hotel with midlevel pricing, such as a Hilton Garden Inn, at an estimated cost of $5.67 million.

Meanwhile, officials are evaluating the economic development coordinator position after part-time coordinator Gino DeVivo's departure earlier this month.

DeVivo was hired in May 2012 as the village's first economic development coordinator. He was responsible for business recruitment and retention, and filling larger vacancies, such as the closed Dominick's site off Randall Road, said Jennifer Clough, assistant village administrator.

He resigned April 16 to pursue "outside professional interests," she added.

Officials say they plan to fill the vacancy, though they have not set a timeline for when. The part-time position comes with an hourly salary range between $26 and $32.

DeVivo also was heading up a market study looking at the demand and potential sites for auto dealers or retail along Route 31 and Rakow Road. That study is under way and should be completed by mid-June, Olson said.

Efforts to recruit retailers for or redevelop the vacant Dominick's site so far have been unsuccessful. The property is privately owned.

"We're still pursuing that with the owner and the owner's representative, contacting other retailers, developers," Olson said.

Officials also have been working on attracting developers for targeted areas, such as Rakow, Lakewood and Algonquin roads, and routes 31 and 47.

"Economic development is very important to the village now," Olson said.