The future of a downtown Peoria hotel project appears clouded, with one of the associated properties back on the market.
Keith Weinstein’s Greystone Realty Group has a redevelopment agreement with the City of Peoria for the $57.1 million hotel and apartment complex in the 100 block of SW Adams St.
The plan calls for demolition of two vacant structures: the former Sully’s building and Illinois Central College’s Perley Building.
But ICC put the three-story Perley site back up for sale as of Dec. 4, with an asking price of $1.485 million. A spokesperson for the college said the building was relisted because “the original sale transaction related to that development was never executed on the part of the prospective buyer.”
The spokesperson’s statement said ICC has no involvement and has not been a party to any development agreements or projects related to the Perley property.
Thomas Leiter, a Peoria attorney who represents Weinstein, says there’s been no change in his client’s desire to complete the project.
“Regarding the relisting of the property, I don't really have much information about that, except to say that the project is still being pursued,” said Leiter, suggesting that high interest rates and rising construction costs have slowed investments, generally speaking.
“That has disrupted commercial financing because of the high cost of financing,” said Leiter. “And while I don't have specific knowledge about how that's affected this particular project, I have to say that in a general way that is affecting really all commercial development.”
Peoria’s original agreement with Weinstein’s Fulton Hotel Development, LLC., would reimburse 100% of the development costs through TIF money generated over the life of the current TIF district.
Peoria City Manager Patrick Urich said that agreement requires construction plans to be filed by April 1 and work to start no later than Jan. 1, 2025. Urich added that the developer can request a six-month extension on those deadlines.
“At this point in time, we have not heard from the developer about his plans and (we) are assuming that he's working towards bringing those construction plans to us in April or will come forward with some sort of request to extend the timeframe for an additional six months,” said Urich, adding the city would be able to terminate the agreement if the deadlines are not met.
“The clock is really ticking on the developer to bring us something that that we can move forward with.”
The original plans for the high-rise complex include 140 hotel guest rooms, 50 residential apartments, a swimming pool, meeting rooms, a fitness center and a restaurant and bar. The hotel would operate under the Hilton Garden Inn brand.
