By Joe Ragusa
BLOOMINGTON – A developer from East Peoria says he’s willing to build a $51 million hotel and conference center in downtown Bloomington.
Jeff Giebelhausen said the city is expected to contribute $13 million for the project but that won’t come from existing revenue.
He said the hotel and conference center will bring in between $1.1 million and $1.8 million annually, compared to the $30,000 the properties currently at the corner of Front and Madison Streets bring in. That projection is based off an anticipated hotel occupancy rate of at least 60 percent, which Giebelhausen said should be within reach.
“I think we have a lot of things to offer. I think the downtown market is a very strong opportunity to be quite successful,” Giebelhausen said. “We wouldn’t be considering the project if we weren’t quite confident that we would be in that 65-70 percent occupancy rate (range).”
Giebelhausen said the proposal will help nearby attractions like the U.S. Cellular Coliseum.
“Right now, the Coliseum is an island,” Giebelhausen said. “When somebody looks to go to an event at the Coliseum, maybe they drove from 60, 70, 80 miles away, they have to go in their car and find a place to say.”
Giebelhausen adds that once people have to travel for lodging away from downtown Bloomington, it becomes easier for those people to drive to other towns to find accommodations, to eat and or to spend their money.
Giebelhausen said the proposal hinges on the council providing some financing options through either a TIF district or a business district, which would funnel taxes generated in the district back into those businesses.
It calls for a 129-room hotel, a 12,000 square foot conference center, 10,000 square feet for restaurants and a 250-spot parking garage. The properties will be connected by a pedestrian sky bridge over Madison Street.
The Bloomington City Council will discuss the proposal Tuesday at 5:30 p.m. at its regular Committee of the Whole meeting.
Joe Ragusa can be reached at joe.ragusa@cumulus.com.
