Plainfield Moves Closer to Downtown Boutique Hotel with MOU

The Plainfield City Council voted unanimously on Tuesday, Oct. 20, to approve a memorandum of understanding with BEA Hospitality Group LLC for a boutique hotel near Park Avenue and Seventh Street on city owned property. Union County Life is summarizing TAPinto Plainfield’s report. The project would include 90 rooms, ground floor retail, a restaurant, and 1,000 square feet of commercial space.

The city would sell the property to the developer for $500,000. That amount would be deposited into escrow when the redevelopment agreement is signed and applied to the purchase price when the sale closes.

Tuesday’s resolution covers only the memorandum of understanding, which is an early step. The project still requires 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, which would require council approval. PILOT agreements forgo traditional property taxes and usually charge a negotiated share of the building’s gross revenue.

A hotel was previously presented as part of a larger concept that 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, apart from the developer that would build the theater and parking deck.

Councilwoman Darcella Sessomes noted that BEA Hospitality LLC is newly incorporated. Councilman Richard Wyatt asked whether a study had been done on whether the city could support a boutique hotel of this size. Fields replied, “We’ve done a market analysis. Our market analysis says that we have the area and the demographics conducive to hold up to a 100 room boutique hotel.”

Find more Plainfield government and local news at unioncountylife.com.

FAQ

Did Plainfield approve the hotel?
The council approved a memorandum of understanding with BEA Hospitality Group LLC on Tuesday, Oct. 20. That is an early step, and the project still needs several more approvals.

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

What approvals are still needed?
A redevelopment agreement, a purchase and sale agreement, a financial agreement, site plan approval, and a PILOT agreement that would require council approval.

Is the hotel the same project as before?
Not necessarily. Economic Development Director Zenobia Fields said a separate investment group is pursuing the hotel, apart from the developer for the theater and parking deck.