Skokie’s Board of Trustees on April 3 approved giving E&M Strategic Development, spearheaded by Mark Meyer, up to a $4.5 million loan toward the Downtown Skokie Homewood Suites by Hilton
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Hotel and Conference Center.Village officials have said in the past that it’s part of their plan to revitalize downtown Skokie.
“The hotel’s impact is similar to the train station,” Village Manager John Lockerby said. “(It’ll bring) additional patrons to the businesses that already exist.”
The $4.5 million, 10-year loan will yield the village an annual interest rate of 12%, and the developer would make loan payments of $540,000 annually, according to a village memo prepared by Lockerby. Fifty percent of the loan will go toward environmental sustainability initiatives while the remaining 50% will go back into the economic development fund, which is the source of the loan money. The economic development fund is intended to bolster business in Skokie by assisting developers and business owners, according to Lockerby.
The hotel will have 143 rooms, a 10,000-square-foot indoor event space, a 5,000-square-foot patio, a “Sky Pub” looking at the Chicago skyline and ground floor commercial space intended for restaurants and retail use, according to the village’s project overview and synopsis.
Skokie’s Finance Director Julian Prendi said the property would bring in $1.3 million in property tax revenue per year alongside an expected $600,000 in other taxes, such as hotel, sales and food and beverage tax.
Trustee James Johnson was the sole vote opposing the loan, citing it as an inappropriate use of village funds. He raised concerns about it potentially starting a precedent for other businesses coming to Skokie while also asking how the village previously handled similar instances. Prendi told Johnson there is no similar precedent set and this would be the first instance of this kind that he can recall.
“This is not necessary. The project does not depend on the loan and there is no applicable precedent for a situation quite like this,” Johnson said. “This is a significant policy decision that hasn’t been discussed before tonight and if we approve it, it won’t be discussed after tonight. This is a significant policy decision to be made in a single meeting.”
Johnson suggested tabling the item but the remaining board members voted in favor of the proposal.
Residents, such as Skokie School District 73.5 Board Member Louis Mercer, expressed concern about the village using taxpayer dollars to give out the loan.
“It is concerning to me that the developer you are proposing lending the money to is now seeking millions of dollars in budget and labor issues that could have easily been anticipated (when this came before) the village in January 2021 at the height of the pandemic when the world supply chain and labor market was essentially shut down,” Mercer said.
Lockerby said the village’s $4.5 million wouldn’t be released to the developer until the rest of the project’s necessary funding is secured.
Mercer and local activist Kimberly Polka expressed concerns about Meyer donating $500 to the Skokie Caucus Party in November 2020. The Skokie Caucus Party voted in favor of the loan while the only non-Caucus trustee voted against the agenda item.
“I am being honest about the appearance of impropriety when it feels like we are consistently unheard by a block that has the same (Skokie Caucus Party) label,” Polka said. “A lot of people who are not part of the Skokie Caucus Party very often feel unheard.”
Trustee Edie Sue Sutker responded to these concerns saying she’s never heard of the developer before and the donation isn’t playing a role in her vote. She also said she is “tired of the integrity (allegations) and questions being brought up.”