Category: Tourism
Tourism
In case you haven’t been paying attention, local businessman Hans Grotelueschen has revealed plans to build a hotel on the former site of the Metropolitan Building in downtown Champaign. (N-G article: http://www.news-gazette.com/news/business/economy/2011-09-02/new-owner-metropolitan-site-wants-hotel-there.html). In order to do so, he requested up to $3 Million in tax rebates from the City of Champaign which the council unanimously approved on February 21st. Mr. Grotelueschen purchased the vacant lots of the Metro site and also owns the adjacent storefront previously occupied by his company (YG Financial). The combined area of the three parcels totals 23,232 square feet (176’ x 132’) at the southwest corner of Church and Neil Streets.
Being that the property is privately owned, Mr. Grotelueschen has the privilege of building whatever he wants on the site as long as the use fits within the local zoning code (Central Business) and abides by local building codes. However, being that the site is at the center of the downtown business district and historic center of the community, one may argue that the developer must respect the input of local citizens. Some comments I have read on message boards go even further to suggest that downtown Champaign is somehow public domain and that the owner of the lot should build whatever is in the public’s best interest. While I object to that assertion, now that the City has agreed to provide tax rebates, perhaps we the people should have more say in the project.
Those supporting the proposed nine-story 145 room hotel say that a hotel in downtown Champaign is needed to attract certain events to the area and will provide an influx of new business for downtown bars/restaurants/retailers. Bruce Knight (Planning Director) points to other successful downtown districts and asserts that employment, entertainment, and residents are all required to create a “24-hour downtown”. A hotel, while not providing permanent residents, provides a constant flow of visitors to the downtown district and is towards the top of the list of priorities for the City.
Opponents of the project question whether it is worth “spending” tax dollars to promote a redevelopment while the city is having trouble balancing their budget. The vote for the tax rebate also comes on the heels of the approval of a 4 cent per gallon fuel tax which many citizens object to. Other opponents feel as if this is another case of “corporate welfare” and wonder when other citizens will get rebates on the real estate taxes they pay for their properties. I have also heard arguments that a hotel at this location will create too much vehicular and pedestrian traffic at this intersection.
So who has it right? In my opinion, both sides make some good points. City planners explain that without the project being built there would be no new food & beverage taxes, hotel-motel taxes, or real estate taxes generated, so therefore they are not “spending” any taxpayer money. I also agree with the other side when they make the point that a development not requiring tax rebates might be a better use of the site. Clearly the city council feels as if the hotel use being proposed now is better than waiting for a future development that does not require the rebates. Had I been sitting in a council seat, I would have posed the question of demand. Is there a study showing that there is demand for additional hotel rooms in the area, and if so, is there specifically demand for a hotel located downtown?
Being that Mr. Grotelueschen is a financial analyst, I would hope that he has studied the market to determine there is indeed demand for his $28 million hotel. If that is the case, then I am in support of the project and of the tax rebates. My reasoning is that if there is demand for more hotel rooms, then someone will build another new hotel somewhere in Champaign-Urbana. And being that it is much cheaper to build a hotel on a greenfield site on the edge of town than redevelop an urban site, there is a high likelihood that a developer without rebates would choose the cheaper site over the urban site. Since I support the further redevelopment of our downtown core, I view the rebates as a redevelopment incentive and nothing more. Recent commercial real estate periodicals I read have frequently been touting the improving hospitality industry, including the upward pressure on average room rates and increasing occupancy rates. Therefore, I believe that the city planners and council made the correct decision.
Matt Wavering is a commercial real estate broker with Coldwell Banker Commercial Devonshire Realty and can be reached at 217-352-7712 or mjw@cbcdr.com
It is time to get back into the routine of the monthly column. There is happening within Champaign County that might interest the residents during these two months before the primary election.
The News-Gazette has published an article by Tom Kacich and today has an editorial concerning the discussion about county elected officials salaries that must be set by May. Actually, I think most board members anticipated comments at the COW meeting on the 17th of January, but this did not occur. The issue has been deferred until the February agenda, thus giving the public another opportunity to share thoughts/ideas/concerns about the salaries. You will find a memo from Deb Busey detailing some facts and figures here
http://www.co.champaign.il.us/countybd/COW_PPA_JSS_F/120117agendaf.pdf beginning on p. 15.
Several board members asked for even more details to be available for the February meeting.
The downtown jail issue will be covered during a study session on 31 January 2012, beginning at 6 P. This issue will consume a lot of time and attention for the next year and there will be a new board in place by then.
The LESA (Land Evaluation and Site Assessment) update committee has been meeting since last June. This is a very important factor enveloped into county land use. Only two constituents have regularly been attending. Just to encourage others to do so, the next meeting is next Wednesday, 26 January in the Dimit Room at Brookens. If you want to delve through the many layers of materials, you can do so here http://www.ccrpc.org/planning/LESA_Update.php
The last issue I will include in this posting, but certainly not the last issue for the county has to do with establishing a local food policy council on the county level as a means toward economic development. This will be on the COW February policy agenda on 14 Feb., Valentine's Day. If you would like to read the draft version, you can do so here
http://www.co.champaign.il.us/countybd/COW_PPA_JSS_F/120117handouts.pdf beginning p. 39
or on my web site here http://sites.google.com/site/p2district6/news/champaigncountylocalfoodpolicycouncil--draftproposal
As is always the case, I welcome your comments, ideas, and suggestions.
Mayor Don Gerard has had a lot to deal with in his first year as mayor…but not everything has to be quite so controversial. A few discussions have popped up in the recent past regarding Gerard’s idea to bring a minor league ballpark/team to Champaign. There was an article in the News-Gazette this summer: http://www.news-gazette.com/news/parks-and-recreation/2011-06-26/mayor-wants-explore-options-minor-league-baseball-champaign.htm and I believe there was a small discussion on this blog as well (although I couldn’t find it). In general the public seems to be pretty excited about the idea albeit skeptical regarding the use of public funds or even the viability of a minor league park in Champaign.
Gerard later introduced the idea to a group of local developers at the City’s September “Developer’s Luncheon”. He received a lukewarm response as there are still too many questions. Investors and real estate developers generally like the idea of making money, or at a minimum not loosing it all to a failed development. However, I applaud the mayor for posing the question and investigating the viability.
I happen to like the idea very much and have taken some time to examine the possibilities. Please keep in mind that my expertise is real estate and the overriding theme/topic of my articles on this blog are development, redevelopment, and commercial real estate related. Therefore, I will not try to act as if I know enough about the minor league baseball business to decide whether or not it is viable in Champaign. I also do not know if a minor league baseball park would be a good investment of public money nor do I know if a private developer could make money doing it on their own. What I do know is that there are communities smaller than C-U that have successful minor league baseball teams. I also know that a large project like a ballpark can help revitalize an area and bring tourism dollars to the community. That possibility in and of itself is enough for me to take a look at the real estate side of the equation.
After a little bit of research, it appears that a ballpark will require a minimum of a 400’ by 400’ piece of land. I suppose we could cut corners like those Bostonians did with Fenway Park in 1912, but assuming that there will be no “Green Monster” and considering seating, sidewalks, and setbacks, 400 feet seems to be the bare minimum. Pieces of “greenfield” (undeveloped) land of this size are difficult to find except on the fringes of the city. Since city planners have been pushing for redevelopment of “brownfields” rather than fringe development, we can pretty well rule out any fringe sites that would put a strain on infrastructure. I suppose it could happen from a private developer, but it would likely not receive much support from the city.
That turns my focus to the two areas that Gerard suggested in the aforementioned developer’s luncheon: downtown or near Interstate 74. If you read the above referenced News-Gazette article, you will notice that the mayor suggested the southeast quadrant of the Neil Street & I-74 interchange as a potential site. Transportation and ease of access are two major positives for an interstate site such as this. However, upon further review I have noticed that this irregularly shaped parcel would require additional assemblage in order to make the site large enough. That includes the demolition of a few single family homes and encroachment onto the water tower land to the east. And that is just for the ballpark itself; it doesn’t even take into account the need for additional land for parking.
A better site might be the vacant land west of the Za’s restaurant on North Neil across from Marketplace Mall (north of the mall‘s storm water detention pond). That property is owned by mall owners General Growth Properties and is simply excess land from Marketplace. Plans call for the eventual extension of Village Way (the access road) and allows for the future development of a few retail lots. The site is located just off of the interstate, has numerous restaurants and hotels nearby, and is entirely owned by a single party. Plus since it is a greenfield, it will not require any environmental cleanup and can utilize existing infrastructure.
Personally, I like the idea of a downtown or at least centrally located park that would allow for additional private redevelopment in the area. A site that would benefit the continued redevelopment efforts in the downtown area and provide food and entertainment options before and after game time. However, I have been unable to identify a site near downtown that is large enough to accommodate a ballpark. Any such site would require a substantial amount of property assemblage and would likely require the city to vacate at least one city street.
I would like to hear what other residents think of the idea and where they would like to see a minor league ballpark. Do you have a site in mind? If so, tell me about it and I will give you my thoughts.
Matt Wavering is commercial real estate broker with Coldwell Banker Commercial Devonshire Realty. He can be reached at 217-352-7712 or mjw@cbcdr.com