North Cook News

A new agreement between the Skokie Village Board and the developers of a proposed hotel in the downtown area has been approved. 

At its April 3 meeting, the board discussed a request for a private partnership helping to fund and support the new Skokie Homewood Suites by Hilton Hotel and Conference Center. 

Board members reviewed the request for financial aid from the hotel developers and have approved a promissory note from the village's economic development fund for $4.5 million. This would yield a guaranteed return of 12% each year, or $540,000 until repayment. 50% of these funds will be used for environmental sustainability projects or similar avenues, while the rest goes back to the village’s economic development fund.

The hotel is proposed for the downtown area, and Lockerby said it would be a huge boon for businesses in the area, possibly bringing 100,000 patrons to the area. 

Some residents attended the meeting to share their concerns over this idea, nervous that the village was loaning such a large amount of money to a private company. The development had its origins in 2021, at the height of the labor shortage and supply chain issues. Residents also brought up the $13.5 million in TIF funds that the village already gave to this development. They were also upset that the E&M and their CEO are donors to the Skokie caucuses, and they felt this was the latest in a series of decisions and events that they feel represent unethical and corrupt actions from the village board.

Board members responded to some of the comments, saying that the hotel industry has experienced a lot of challenges during and since the pandemic, and that this was a broader financial partnership offered to the village among other partners, and the village felt it would be smart to join. 

"The current challenging market factors, such as significant cost escalations for construction materials, labor shortages, and changing capital markets, including fluctuating interest rates, have impacted the project’s finances," village manager John Lockerby said, explaining the reasons behind the investment.

Lockerby explained the financial difficulties came from escalation fees from hotel contracts currently underway, significantly increasing some of their costs in the already-begun project. The developers are looking at all possible financing partners, including grants and private firms, but speed of securing financing will aid their development and final cost amounts.