Skokie hotel expected to boost downtown area; construction starting – Chicago Tribune

A project six years in the making to build a hotel in downtown Skokie is moving forward, with the site cleared and preparation for construction starting, according to officials.

Chicago-based E&M Strategic Development plans to build the Homewood Suites by Hilton Hotel and Conference Center on the former Sanford Brown College site at 4930 Oakton Street. Mark Meyer, managing partner and founder of E&M, said Thursday the former building has been demolished and cleared, with the majority of building materials destined for recycling or reuse, and excavation of the site is underway.

As part of the hotel project, the village will build a $9.5 million parking garage at 8031 Niles Ave., on Illinois Science + Technology Park land owned by American Landmark Properties.

To that end, the village board on Aug. 15 approved a $10 yearly lease with American Landmark Properties starting Oct.1; a $178,600 architectural design and engineering services contract with Ware Malcomb; and a $450,329 construction contract with Russell Construction.

The first phase of the parking garage will provide 100 public parking spaces and 200 parking spaces for the hotel. Additional floors for tenants of the Illinois Science + Technology Park might be built in future phases. Also, the alley north of the hotel will become a fully improved street named Oakton Terrace. The parking garage which had been part of the Illinois Science +Technology Park master plan from 2005 will be just north of Oakton Terrace.

The hotel will have 143 rooms; 10,000 square feet of meeting/event space indoors and 5,000 square feet outdoors; a rooftop bar on the eighth floor; and 13,000 square feet of retail space on the ground floor.

The project was initially estimated at $55 million, but it will amount to more than $60 million due to inflation and the overall increase in the cost of goods and materials, Meyer said.

The village will contribute up to $13.5 million in tax-increment financing money for eligible project costs, according to the development agreement. TIF funds will be used to build the parking garage, village officials said.

Meyer said it might be difficult to meet the initial goal of opening the downtown hotel in fall or winter 2023.

Normally, its 14 to 18 months of construction time, he said. Weather, supply chain issues, labor issues all those things have an effect. If everything goes smoothly, yes, we can open at that time.

E&M Strategic Development first approached the village about the downtown hotel project in 2016. The process included the creation of a tax-increment financing district to help fund the project. The village board voted to enter into a development agreement with E&M Strategic Development in January 2021.

Meyer said the company focuses on Hilton, Marriott and IHG hotels. The company built a Holiday Inn Express and Suites in Elkhorn, Wisconsin, for example. Its not uncommon for projects to take several years, he said.

You think you have everything figured out, and then youre hit with the unforeseen, like the rise in interest rates and the cost associated with that, he said. And COVID, obviously.

Meyer, whos in business with his daughter, Emily Meyer, said they are big believers in downtown Skokie. He lives in Evanston and has frequented Skokie often, he added.

As theres been urban flight (in the wake of the pandemic), it seems like Skokie has become a desirable place where people relocate to, he said. The village has been great to work with. They value finding a partnership that works, not just to see the development but to see it done right.

For example, Skokie selected an environmentally-friendly contractor for the demolition, which resulted in less than 5% of debris ending up in landfills, Meyer said.

He explained that concrete was crushed to become road mix, and steel and other metals were melted for reuse, among other things.

The new parking garage also will have electric vehicle charging stations, Village Manager John T. Lockerby said. We are working with every project to make it sustainable, he said. The garage, however, will not have solar panels or a green roof, he said in response to a question asked by a resident at the Aug. 15 meeting.

Trustee James Johnson, who abstained from voting on the parking garage contracts, said the project is not aligned with the villages sustainability goals. I would really love to see the remaining green space in the Illinois Science + Technology Park be more protected in the future, he said.

According to estimates, the hotel is expected to attract 47,000 guests who will spend $12.5 million annually, with a benefit to local restaurants of up to $2.1 million annually, village officials said.

The hotel also will create 65 to 80 jobs, with the potential of becoming careers, in the hospitality industry, Meyer said.

We (my daughter and I) are excited to bring a family business to the area, he said. Not only to have an impact today, but to have an impact far into the future.

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Skokie hotel expected to boost downtown area; construction starting - Chicago Tribune