Prussing Hopes Council Gives Preliminary OK To Hotel Plan Revisions

April 09, 2017
 
The now-closed Urbana Landmark Hotel

The Urbana Landmark Hotel, which has been closed since early 2016.

Wikimedia Commons

Urbana Mayor Laurel Prussing hopes the latest changes in a proposed redevelopment contract for a downtown hotel will win over more city council members. Council members are to take a preliminary vote Monday night on whether to continue talks with developer Dionis Rodriguez on renovating and reopening the Urbana Landmark Hotel. Prussing says revisions to the agreement include a reduction in the the amount of required post-construction bonds required to finance a city loan for the project -- reducing it to $7 million, instead of $9.5 million. 

That loan would come due immediately, if the hotel is sold or otherwise transferred to another owner, without the city council’s approval. Prussing says the new plan also requires that the hotel be operated under the Tapestry Collection By Hilton brand, as promised.

“We won’t give the loan until the hotel is actually operating, and generating revenue," he said. "So there’s just a lot of safeguards built in for this city. But we think it’s a really valuable project, and we want to keep working on it. Obviously this is going to go into the next mayor’s term.”

The next mayor is Alderwoman Diane Marlin, who has been skeptical of the proposed deal.

She’ll be among those voicing her opinion of the revised version, when the Urbana City Council meets as a Committee of the Whole, starting at 7 p.m. Monday in the Urbana City Building.

Story source: WILL