Council OK's Rezoning for Future Hotel

By Christopher Selmek, Urbana Daily Citizen
​The Urbana City Council voted to rezone the southern portion of a parcel located at 1040 S. Main St. from R-3 High Density Residential to B-2 General Business District at the regular meeting on Tuesday. All council members voted to approve the rezoning following its third reading except for council member Eugene Fields, who abstained because, he said, a member of his family had married into the group of investors. Council members Dwight Paul and Doug Hoffman were absent.

Zoning map and code changes become effective 30 days after council passage. This rezoning is intended to allow for the construction of a 54-room hotel with a swimming pool on three acres of an 11-acre plot near the corner of State Route 55 and South US 68 along South High Street.

"I want to thank coucil for passing the rezoning down at the south end," said Mayor Bill Bean. "When I became mayor, both (Champaign Economic Partnership Executive Director) Marcia (Bailey) and I realized that we were losing a lot of revenue and people were going elsewhere. At least 7,500 room nights a year we were losing. By having the hotel there, it's going to really cement people staying here, and that's good for Urbana, it's good for taxes, and it's something that we needed desperately."

According to Community Development Manager Doug Crabill, the next step in the process will be a site plan review process through the city's Technical Review Committee and the Planning Commission.

Hotel Specifics
Investment group chair Mike Major said the group has been working with Cobblestone Hotels and that investors in communities smaller than Urbana have been pleased with the hotels and in some instances were building more.

"The investment group is made up of community members and people who have invested heavily in the community in many different aspects," he said. "We have the field of medicine represented, we have agriculture, downtown business ownership, real estate ownership, people who really care about seeing this community grow and putting some of the pieces of the puzzle together. We feel this is necessary because there is so much slippage of hotel nights going to Springfield, hundreds and hundreds of thousands of dollars not only from hotel fees, but if people stay in town, they're going to be eating in the restaurants, they're going to be shopping. The university doesn't have enough facilities for the sports teams that are coming in. There are so many different layers of businesses and entities who really need hotel space in town."

He added that there will be a partnership between the investors and Urbana University which will create a program training people in the hotel business.

According to Major, research has indicated a need for more than 70 rooms, but investors were being conservative by putting in 54 rooms to make sure the project was a success. The Champaign County Chamber of Commerce website cites a 2013 study by Tourism Economics that shows that total tourism impact in Champaign County resulted in over $47 million in sales and enables the employment of over 350 people in the county.

Major said the developers would keep a curtain of trees behind the hotel so there is a margin between the hotel and the zoned residential property directly behind it. Bailey added that the parking lot would be in front of the building, possibly wrapping around the sides, and that there would be room for future development.

Future Development
Hotels are a principal use of the B-2 zoning code, meaning that only the site plan review and the zoning permit processes are required. Other principal uses of this land may include commercial recreation, retail businesses, personal services, offices, eating and drinking establishments, or automotive filling stations. There is an extensive list of conditionally permitted uses that require the additional step of getting approval from the city's board of zoning appeals.

"I was asked by (Urbana Zoning Officer) Adam (Moore) maybe six to eight months ago if we had enough B-2 area in the city limits to be able to encourage retail growth or business growth. We really don't," Bailey said at a public hearing for the rezoning on Oct. 16. "The land that is vacant for new builds in B-2 is very hard-pressed to find. By allowing this rezoning, not only to have this hotel project and the potential of that but just having some b-2 area for potential businesses, is really important."