Schaumburg hotel developer seeking extensions on building permit, tax break
Construction of a Holiday Inn Express in Schaumburg is nearing completion, with the business expected to open this spring as the 31st hotel in the village.
But like many other projects, the 87-room hotel at 40 N. Martingale Road, just south of the Chicago Marriott Schaumburg, has run into supply-chain delays that has its developers seeking extensions of its Schaumburg building permit and a Cook County property tax incentive.
The village board tonight will consider extending the building permit through June 30. Construction initially was planned to end by Dec. 28, 2022, 20 months after the building permit was issued.
The project's Cook County Class 7C tax incentive also is in need of a refresh for related reasons. The tax break will not take effect until after a 95-room, full-service Holiday Inn also is built and opens next door.
The five-year tax incentive allows for a reduced assessment to keep approved commercial enterprises competitive in Cook County. While such properties are normally assessed at 25% of market value, the 7C incentive reduces the assessment to 10% for the first three years, 15% in the fourth year and 20% in the fifth year, before then returning to 25%.
EquityRoots Holdings LLC bought the 5.3-acre site in 2015 and won approval of the two-phase development plan in 2019. At the time, the total development cost was estimated at $25 million.
Schaumburg trustees approved the proposal after a consultant's study concluded the local market could sustain a 31st and 32nd hotel.
The developer initially wanted to open both hotels simultaneously but later adjusted that plan to allow one hotel to be built first and help generate revenue for the other.
Some tweaks to the original design of the Holiday Inn Express were approved in January 2021. The most significant included replacing an indoor pool with an outdoor pool and patio and constructing conference rooms where the indoor pool was planned.
Other changes involved modifications to some windows as well as the elevator tower on the roof.
The building permit was issued on April 28, 2021.