Elk Grove Village buys motel at entryway being primed for redevelopment
Two weeks after authorizing the possible condemnation of a motel, Elk Grove Village trustees have inked a formal $5.3 million purchase of the site, located in an area they're priming for redevelopment.
The village's purchase of the 140,000-square-foot Motel 6 at 1601 W. Oakton St., near the corner with Busse Road, follows its $5.6 million deal for the shuttered Elk Grove Hotel across the street in August 2018.
Village officials are still eyeing the neighboring building on the northwest corner of Oakton and Busse that contains All Auto Clinic, Oakton Oil Change and EJ Pierogi. The condemnation resolution approved May 14 targeted that building -- in addition to the Motel 6 -- but Mayor Craig Johnson said he's hopeful for a similar real estate contract as negotiations continue with the property owner.
The village wants to acquire all three properties as part of a plan to sell them to private entities who would redevelop the area with higher-end hotels, restaurants and public areas. The land is a half-mile from the massive $1 billion Elk Grove Technology Park now under development.
"Our vision is to give the village the ability to make the best possible development at one of the new entryways to the community," Johnson said. "Getting the last parcel makes so much sense."
Elk Grove's contract for the Motel 6 is with SKN Hotels of Cary, North Carolina. A closing is scheduled for July 31.
That firm is buying the motel from G6 Hospitality Property, for which a closing is pending, officials said.
The village's purchase agreement states it still has the right to pursue acquisition through eminent domain should the contemplated transaction fall through.