Elk Grove Village buys La Quinta, three other properties for $12.3 million
Acting as a kind of master developer, Elk Grove Village Mayor Craig Johnson and village trustees Tuesday night purchased four properties along Higgins Road for $12.3 million that they later plan to sell back to developers.
The properties include a La Quinta Inn, one of the last available parcels of land at the Elk Grove Technology Park, and two office buildings.
"We're the catalyst to spur redevelopment in these parcels," Johnson said. "Higgins Road has become the hot corridor."
Here's a brief look at each purchase and sale agreement inked by the village board:
• The village is paying Sabeen Hospitality, managed by Vipul Patel, $10 million for the 2.12-acre La Quinta property at 1900 Oakton St. It's right next to the vacant 0.9-acre White Castle restaurant and drive-through the village agreed to purchase for $900,000 two weeks ago.
Plans are to demolish the buildings and combine the two sites for one larger development on what is a prime entryway corner to town. For that site, and the others being purchased along Higgins, Johnson would only say he will announce what projects are being lined up "in the near future."
He said village officials don't have a desire to acquire the other business on that corner, the Hibachi Grill Asian Buffet.
The motel is expected to close by April 24, and must be cleared out of all contents by May 31. The closing on the sale is scheduled for April 28.
• The village is paying Brennan Investment Group $800,000 for a 1.44-acre vacant piece of land at 800 Innovative Drive, which is at the northern Higgins Road entrance to the 85-acre tech park. Originally intended for a retail or restaurant use, the land is across the street from a long-stalled hotel project that never secured financing or got a shovel in the ground. The closing is set for April 28.
• About a block away, the village is paying The Aftica Group, managed by Thomas Wagner, $850,000 for the two-story office building at 570 E. Higgins Road. A closing is scheduled for Nov. 3.
• That 1.15-acre property will be combined with the neighboring 1-acre parcel at 500 E. Higgins Road for one larger development. The village is paying Iyer Properties, managed by Krishna Iyer, $680,000 for the two-story office building. A closing is set for July 7.
All purchases are being funded with tax increment financing district funds, in which property taxes above a certain level are diverted from schools and other taxing bodies into development projects.