The owners of the Hyatt Hotel in Uptown Normal are withdrawing a request for a tax break from the Town of Normal.
The hotel owners originally requested a hotel/motel tax rebate, which would have included about $88,000 returned in the first year. It was part of a refinancing. The town council was expected to vote on the proposal at Monday’s meeting.
The hotel pulled its request, due to its “very recent awareness” that the Normal is expected to lose about $320,000 in sales tax revenue annually, because of the new collection fee imposed by the recently passed state budget.
Instead, the hotel’s owners have said they will try to restructure the refinancing without town participation. If that doesn’t work, they will look at other options.
A previous report did say that the Hyatt has been facing more competition with the recent openings of hotels in Normal.
Uptown Circle, LLC. reports that the hotel is continuing to perform successfully. It is the number one ranked hotel in Normal, on TripAdvisor.com.
Normal’s mayor Chris Koos says the town is looking closely at its budget to see where the $320,000 will come out of.
“We’re going to have make some decisions on our budget. Obviously, we’re going to have to pull that out of our budget. Hopefully it doesn’t affect personnel,” he explained.
Koos says the Uptown 2.0 plan does not rely on general fund dollars, so that’s unlikely to be affected.
“We knew there was going to be some pain. The state’s got some serious issues to deal with budgetarily. I just wish they didn’t call it a sales tax collection fee. Maybe a ‘We need the money fee,'” he said.