Hampton Inn in Huntley delayed second time, extending project by four more months

A hotel in Huntley won’t be finished this month as originally planned because of supply chain and labor issues.

Following a vote Thursday by the Huntley Village Board, developers now have four more months to finish the project and still meet the terms of an economic incentive agreement, under which the hotel could receive up to almost $3 million in rebates.

This is the second time the hotel’s developers have asked for extension, but while some reluctance was expressed the first time an extension was approved in November, several board members said Thursday they sympathized with the builder.

“You’ve been an absolutely wonderful partner in your businesses with Huntley,” Trustee Ronda Goldman said. “I feel sorry for you, and I know it’s happening across … the world because of the pandemic.”

The latest extension will give Woodstock Hotel Inc., the developer of a new Hampton Inn, until the end of October to complete the project. Officials with the project Thursday cited issues with supply chains and labor shortages tied to the COVID-19 pandemic.

Those include items like furniture and plumbing fixtures and delays in inspections, Woodstock Hotel Inc. President Henry Patel said at the meeting.

“We continue to manage the project to complete as soon as possible and look forward to opening in 2022,” Patel said in a letter from Patel to the village.

The project was originally scheduled to be finished by the end of 2021, but in November, the developer asked for a six-month extension, giving them until the end of June to complete the hotel. The reasons given for the first extension were also rooted in labor shortages and supply chain issues.

The original six-month extension was given as an option in the original agreement, according to village material.

The project originally was approved in July 2020, but an agreement approved in October 2020 included several rebate incentives.

Under the agreement, the village will rebate its share of hotel accommodations and room taxes and 85% of its portion of the property taxes, which, over the course of 15 years, could result in almost $3 million in total rebated money.

The bulk of the rebate comes from the accommodations tax, which will see 100% of the tax rebated the first five years, and 85% for the last 10 years, which is capped at $2.5 million.

The hotel’s total cost was estimated last summer to be about $11.5 million. The building will include a breakfast area, an indoor pool and a meeting room.

At the time of the first extension, Village President Timothy Hoeft had said he would “not be happy” if a second one was requested, and asked for monthly reports due to the incentives being given to the project, according to minutes from the Nov. 18 meeting.

Despite this, several trustees said Thursday they didn’t blame Patel for the delays.

“To look at you today and see the frustrations you’re going through in trying to get contractors and materials, … to deny you tonight doesn’t sound like a friendly village,” Trustee JR Westberg said.

Trustee Harry Leopold said he was going to ask for a motion to enact penalties on the developers, but after hearing their reasons, opted not to.

“Your sob stories have convinced me to ameliorate my judgement,” he said.

Once completed, the hotel will be the first in Huntley, which has been something many village officials over the past two years have said is needed in the community. It will be located at the former Home Depot site at Huntley Crossings.