By Howard Packowitz

NORMAL – The owner of Hyatt Place in Uptown Normal is saying thanks, but no thanks to a tax rebate from Normal’s town government, even though the hotel is apparently struggling in a stagnant local hotel market.

The town announced Monday afternoon that Hyatt owner Uptown Circle is withdrawing its request for the town to rebate $88,000 this year, or roughly half of the $176,000 the town has collected in hotel/motel taxes from Hyatt Place this past year.

The rebate was on the agenda for Monday night’s town council meeting, and town staff told council members refinancing of the Hyatt property was contingent on a rebate. Now, the ownership group will try to restructure the refinancing agreement without participation from the town government. If the refinancing agreement falls through, Uptown Circle will pursue alternative financing options.

However, the refund caused an uproar on social media after WJBC reported the proposal Friday night. A news release from the town said Hyatt’s owner became aware the town government will lose an estimated $320,000 in revenue each year due to a new State of Illinois sales tax collection fee imposed on all local governments as part of the state’s new budget.

Uptown Circle, the news release said, does not want to add financial stress to the town.

Howard Packowitz can be reached at [email protected]