$18M Marriott Hotel Gets Unanimous City Council Vote

JOLIET, IL — It's been more than 25 years since Harrah's Casino and Hotel opened in downtown Joliet. On Tuesday night, the Joliet City Council voted unanimously in favor of approving a large package of tax incentives for a Marriott Springhill Suites hotel at the vacant Barrett's Hardware store building, 65 N. Ottawa St.

City economic specialist Derek Conley told Joliet Patch on Friday that Marriott's would be the biggest private development in downtown Joliet since Harrah's was built on North Joliet Street.

The project's estimated cost is more than $18.6 million, city documents state. About $17.5 million is considered Tax Increment Finance eligible.

"The developer plans to use approximately 85.3 percent prevailing wage for all labor used for the project," the City Hall memo informs the council.

According to city officials, 75 percent of the labor building the Marriott hotel must be paid out at prevailing wages. "If the developer does not achieve the 75-percent prevailing wage requirement, the developer will not be eligible for any incentives for the project," city documents show.

Conley told Patch the Marriott project is expected to be completed in March 2021. The City Hall memo makes it clear that tax incentives are needed for Patel to redevelop the city's empty Barrett's Hardware store.

"This is a building that is over 100 years old and it's been vacant over 20 years," Conley told Joliet Patch.

Last year, Conley said, the city of Joliet only collected about $870 in property taxes off the empty Barrett's Hardware store property.

"We're not generating anything from that today," he said. "It's going to be a suite-style extended stay."

Conley said the new Marriott's Springhill Suites would stand gain from the $45 billion capital bill Gov. J.B. Pritzker signed into new law last summer called "Rebuild Illinois." The reconstruction of the Interstate 80 corridor and bridge around Joliet will bring an influx of out of town construction workers from cities like Chicago and Peoria to work in these projects during the next five years, Conley said.

Additionally, there is the anticipated construction of the new Houbolt Road Bridge plus the new interchange exit for Seil Road to make way for Cullinan's much-publicized Rock Run Crossings mega development overlooking Interstate 55 in Joliet.

People coming to Joliet for weddings at the Rialto, Harrah's Casino and the Jacob Henry Mansion would also stay there, Conley said. "I think it's going to end up bringing a lot more traffic to the downtown," Conley said Friday.

At last week's economic development committee meeting, all three council members voted in favor of the proposed tax incentives: Larry Hug, Don "Duck" Dickinson and Terry Morris.

Patel plans to add two additional floors to the building to make it a six-story hotel.

There would be:

• 82 hotel suites
• valet parking
• fitness center
• outdoor patio
• 1,500-square-foot conference room meeting space
• Starbucks Coffee kiosk
• guest laundry
• A first-floor dining outlet in honor of the Barrett's Hardware Store

Incentives outlined:

• $250,000 grant to be paid out of the TIF district once the project is completed
• TIF Rebate: Every year the agreement remains in effect, the developer will be rebated a percentage of the property taxes paid into the TIF district. The rebate starts at 100 percent and decreases to 50 percent on year 16. The maximum TIF rebate is $3.1 million. The agreement would last 21 years.
• Hotel/motel tax rebate: A five-year hotel/motel tax rebate with a 100 percent rebate. The hotel/motel tax rebate is nearly $1.3 million.
• Building permit fee waiver: The estimated building permit fees of $173,210 would be waived.
• The City Center Partnership has also approved $200,000 in grant funds. A $100,000 grant would be awarded upon the completion and the other $100,000 after a year of operation.