Efforts to bolster Downtown Skokie hit a delay last week when the village announced that E&M Strategic Development, spearheaded by Mark Meyer, has paused construction on the the Homewood Suites by Hilton Hotel and Conference Center, according to a village statement.
“Soaring interest rates and one of the most difficult capital lending environments in decades have prevented the project’s investor group from securing the additional funding needed to resume work at this time,” the statement reads.
Skokie trustees approved a $4.5 million, 10-year loan to the developer at their April 3 meeting. The village has not released the funds to Meyer, nor will funds be released until the project obtains appropriate funding, the village statement reads. Meyer told Pioneer Press in a phone call that he is looking for additional investors but declined to disclose prospective and current investors.
Meyer added he could not provide an updated construction timeline, saying it is to be determined. The village released a similar sentiment in its statement.
Signage was removed from the construction site because E&M is reconsidering the project’s partners, Meyer said.
Skokie Communications and Community Engagement Director Patrick Deignan told Pioneer Press the village cannot put a timeline restriction on the hotel project. The pause is not inflicting any costs on the village, he said.
“As a public partner in this private development project, the village cannot impose or provide a timeline for resuming construction,” Deignan said. “Hotel development projects across the country are facing historic, industrywide challenges.”
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Resident Rachel VanHoose said her mother-in-law owns a condo across the street from the hotel site and is bothered by bright LED lights that go on every night. Meyer said the lights are necessary for safety and security purposes. The village statement says the developer has a security contractor to “ensure safety, security and 24/7 monitoring of the site” and advised residents with construction site security concerns to call the village’s building department at 847-933-8223.
During the April 3 village board meeting, trustees approved the village’s loan to the project by 5-1, with independent Trustee James Johnson opposing.
Plans call for the hotel to 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.
