The Springfield Planning and Zoning Commission will reconvene on Sept. 21 to discuss the fate of the Wyndham Springfield City Centre. It is the only skyscraper in the city, and the push from its current and prospective owners has faced scrutiny.
GoodHomes Principal David Mitchell has promised $25 million to purchase and renovate the 31-story Wyndham. Mitchell’s plans would turn the building into an apartment/hotel complex. According to Mayor Jim Langfelder, “the original offer presented to the Regional Planning Commission was strictly 400 apartments, however, they were not comfortable with the loss of hotel space.”
The Springfield Convention and Visitors Bureau has expressed concern over the lack of hotel space for incoming tourists and convention-goers. Scott Dahl, the bureau’s director, said at the City Council’s Aug. 3 meeting, that the reduction in hotel space would inhibit 26 existing convention obligations through 2025. Dahl believes that 200 hotel rooms would be a reasonable compromise, which Mayor Langfelder additionally supported. The city of Springfield is not the only party that could be hurt due to the loss of hotel space.
As an employee at the Wyndham who requested to remain anonymous said:
“The exact number of sleeping rooms, which is still under negotiation, has a large part to play in our ability to continue to hold events for our contracted clients. Some of our larger groups have over 200 rooms contracted for their events, which obviously is a conflict considering that our sleeping room situation will change.”
This source went on to say that the Wyndham has contracts with countless groups through 2029. However, they do not believe the hotel will close during renovations.
Due to the motion being struck down by the Zoning Commission, the Wyndham’s city ordinance issue went to the Springfield City Council. Here, prospective owners offered a bargaining chip of 80 hotel rooms and 320 apartment spaces. This meeting took a turn when current owner Al Rajabi threatened to turn the building into a 200-room affordable housing project if he and Mitchell were unable to facilitate a deal.
The Wyndham issue returned to the council’s agenda on Aug. 3. This time, Mitchell presented new plans that modified his previous proposal to 100 hotel rooms. This contradicted what Mitchell had stated previously: that with any fewer than 320 apartments, the renovations would not be worthwhile. Because the zoning commission had struck down the first deal in a vote of 4-3 (five being needed), the City Council needed a supermajority vote to overrule their decision. The measure, again, had a favorable vote, yet failed to reach the minimum seven votes needed to pass.
Mayor Langfelder clarified the situation: “the current owner wants to create 200 (low-income) apartments in which we will lose all of the hotel space.” He went on to say, “I have spoken with some businesses recently, and we need residents downtown. With UIS moving students downtown in the future, they are going to be looking for housing, and this is one way we can make that happen.”
Alderman Roy Williams voted yes to expanding the zoning ordinance and concurred with Langfelder. “ I think it will be an opportunity for those who want it. Upgrades are needed, and we have a new owner who is willing to do it.”
A key issue holding back the City Council is the $1.12 million in unpaid electric bills by Rajabi to City Water, Light, and Power. This debt would have to be paid by Rajabi unless Mitchell agreed to absorb it in the sale. Langfelder stated that any potential buyer would pay the lien.
Can the Wyndham attract enough renters for the deal to be both beneficial to the city and the potential buyers? Alderwoman Kristin DiCenso has been criticized for a quote published in the Illinois Times when she belittled Mitchell’s plans by saying Springfield is a “corn dog and doughnut type of town.” DiCenso believes that the proposition for 320 apartments would overshoot the demand for residency downtown. To add insult to injury, Mitchell, in the Aug. 3 City Council meeting, was asked to compare the Wyndham project to another that his company had already established. Mitchell then likened the Wyndham plans to one that GoodHomes had constructed in Las Vegas.
A quote from Alderman Joe McMenamin shows more confidence in the Wyndham’s ability to attract renters:
“An upgraded Wyndham building will feature a pool, fitness center, tenant lounge, storage, inside garage, 30th floor observation deck, food hall, laundry machines on each floor, and much more. The new housing units will have easy access to shopping, employment, entertainment, educational internships, transportation, and much more.”
McMenamin went on to say that even if the space does not prove to be attractive to renters, it will likely turn back into a hotel and those renovations will have been final.
Alderman McMenamin and Mayor Langfelder feel confident that the Zoning Commission will pass through the newest offer by David Mitchell in which he again increased the number of hotel rooms on the Wyndham project to 125. If this matter is passed through the commission, the City Council will again take a vote, likely in October. If passed, the measure will only need a simple majority by the council to be approved. The next steps would include coming to an agreement on the extent of a tax incentive financing (TIF) deal with the Wyndham. TIF agreements can help offset the property tax burden and assist in funding the hotel’s renovations.
Langfelder said in the event that the Zoning Commission is unable to pass the GoodHomes plan, David Mitchell will likely be ruled out as a potential buyer for the property. Current owner Al Rajabi will retain control of the Wyndham and additional deliberation will take place over the hotel’s future.
The Wyndham remains a prominent landmark for business operations in downtown Springfield. In the words of an anonymous source: “I have seen the hotel thrive once, it is my hope to see it thrive again.”
