Plainfield Approves MOU for 90 Room Boutique Hotel Downtown

Plainfield’s City Council voted unanimously on Tuesday evening to approve a memorandum of understanding (MOU) for a boutique hotel downtown. Union County Life has the details of what the MOU covers. The hotel would have 90 rooms and is planned near the corner of Park Avenue and Seventh Street on city-owned property.

The site sits between the Plainfield Performing Arts Center and Seventh Street. The project would include ground floor retail, a restaurant, and 1,000 square feet of commercial space. The city would sell the property to the developer, BEA Hospitality Group LLC, for $500,000. That amount would be deposited into escrow when the redevelopment agreement is signed and applied toward the purchase price when the sale closes.

The vote approved only the MOU, which is an early step. Four more steps are required before the project can move forward: a redevelopment agreement, a purchase and sale agreement, a financial agreement, and site plan approval.

The city and the developer also plan to enter into a payment in lieu of taxes (PILOT) agreement. A PILOT agreement requires city council approval. The source describes PILOT agreements as tax exemptions in which the developer pays a negotiated share of the building’s gross revenue instead of traditional property taxes. The final terms have not been set.

An earlier concept for the site included a boutique hotel as part of a larger project. That concept also included a 10,000 square foot theater and a parking deck. Economic Development Director Zenobia Fields told the council on Monday that a separate investment group is now pursuing the hotel. That group is separate from the developer planning the theater and parking deck.

Councilwoman Darcella Sessomes noted that BEA Hospitality Group LLC is newly incorporated. Fields responded that the partners have industry experience and that at least one applicant is a Plainfield resident. She said the partners have worked with Hilton, Hyatt, and, she believes, Marriott.

Councilman Richard Wyatt asked whether the city had studied whether it could support a boutique hotel of this size. Fields said a market analysis had been completed. She said the analysis found the area and demographics could support a boutique hotel of up to 100 rooms.

Find more Plainfield government news, downtown development, and local updates on Union County Life.

Q: What did the Plainfield City Council approve?
A: The council unanimously approved a memorandum of understanding for a boutique hotel downtown. The MOU is an early step, and four more approvals are needed.

Q: How many rooms would the hotel have?
A: The MOU covers a 90 room boutique hotel. Economic Development Director Zenobia Fields said a market analysis supports up to 100 rooms.

Q: How much will the developer pay for the property?
A: The city would sell the property to BEA Hospitality Group LLC for $500,000. That amount would be deposited into escrow when the redevelopment agreement is signed and applied to the purchase price at closing.

Q: What steps remain before the project can move forward?
A: The project needs a redevelopment agreement, a purchase and sale agreement, a financial agreement, and site plan approval. A PILOT agreement is also planned and would require council approval.