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North Aurora, hotel developer at odds over impact fees

Proposed hotel owner wants impact fee lowered

Published: Monday, June 16, 2014 10:07 p.m. CDT

NORTH AURORA – Village trustees Monday voiced their opposition to reducing traffic impact fees for the developer of a proposed hotel any more than village staff already has proposed.

The property owner, MHG Hotels LLC, is seeking to file an amendment to the Orchard Gateway Development annexation agreement to provide a reduction in impact fees to assist with the development of a four-story, 92-room Fairfield Marriott Inn and Suites hotel on Orchard Road in North Aurora, across the street from the North Aurora Auto Mall. The developer also owns Holiday Inn off of Orchard Road in Aurora.

MHG Hotels is requesting a total fee reduction of about $100,000. Staff has proposed a fee reduction of $78,555, based on traffic impact analysis and sewer usage fees, North Aurora Economic and Community Development Director Mike Toth told village trustees.

Toth told trustees the original calculation for the traffic impact fee was based on a retail business and that a hotel would generate less traffic than a retail business.

Village Trustee Mark Guethle said he agreed with staff's offer to the developer.

"There has to be some sort of recapture," Guethle said during Monday's Committee of the Whole meeting.

Other trustees also weighed in.

"Let's do a cost-benefit analysis," Village Trustee Laura Curtis said. "In a way, I don't want to give away the farm, but I don't want to stop the process."

Attorney John Philipchuck, who is representing MHG Hotels LLC, said the hotel would bring additional revenues to the village and spawn new businesses.

"We think it is a statement for the area and a catalyst to improve that area," Philipchuck said.

The North Aurora Plan Commission on July 1 will hold a public hearing on a height variance that would allow for the hotel to be built.

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