New Conference Center To Be Built Without Using Property Tax Dollars
The O’Fallon City Council recently approved an outstanding new development that will be built on the northwest quadrant of the I-64 Interchange at Green Mount Road. The new development will be named Regency Conference Center and will be located on Regency Park Drive. It will contain a 32,250 square foot Conference Center and a 128 room Hilton Garden Inn. In addition, a Hampton Inn has been proposed for the site.
The $6 million Conference Center will have a full service banquet kitchen and will be able to accommodate 910 people in the main meeting room. As you can see from the adjacent rendering, landscaping throughout the development will be extensive and will include a lake with fountains, a gazebo and seasonal landscaping that will serve as a superb backdrop for outdoor weddings and photography.
The $9.5 million upscale Hilton Garden Inn will have numerous amenities. A comfortable seating area with a fireplace will be located in the pavilion area, and for those who wish to stay fit, a fitness room, an indoor heated swimming pool and a whirlpool spa will be included. Business travelers will appreciate the 24-hour complimentary business center as well as the complimentary high-speed internet access in all guest rooms. Each guest room will be equipped with a coffee maker, microwave and refrigerator.
City Officials and developers Darrell Shelton and Darwin Miles of D & D Lodging LLC recognized a need in the community and region for corporate, governmental and leisure conference and meeting facilities. This development will not only promote the growth of jobs and corporate office construction in O’Fallon, but will also provide a much-needed first class facility in which to host conferences and meetings.
The City Council has been extremely diligent in reviewing this new development to ensure that when completed, it will be a first-rate facility. It will serve as a gateway to our City, and elected officials want to make certain that it portrays a positive image for O’Fallon.
City Officials formed a partnership with D & D Lodging LLC to make the development become a reality. D & D Lodging LLC will build two hotels and the conference center. Once the conference center is complete, the City will lease it back to D & D Lodging LLC who will hire a professional hospitality management company to operate it. D & D Lodging LLC will also set aside 2.5% of revenue in an auditable account for capital improvements, comply with all state and local laws, regulations and codes, and pay property tax on the hotels and conference center.
The City sold a $6 million bond to finance the conference center, with the 1% food and beverage tax the City Council approved in 2006 being used to make the bond payments. This tax is predominately paid by visitors to our community who stay in our hotels. No property tax dollars will be used to fund the conference center. The development will add $1 million per year in property tax proceeds to the taxing bodies, $400,000 in new food and beverage tax proceeds, and $250,000 in additional Hotel/Motel tax proceeds. As a conservative estimate, the $6 million investment should generate over $30 million in return over the first 20 years of operation.
The ground breaking ceremony for the Hilton Garden Inn was held on June 18th with construction beginning shortly thereafter. It is anticipated that construction on the conference center will begin sometime later this month or in August.
High end casual dining restaurants are also being recruited to become part of the development, offering hotel guests and residents alike several dining options that are within walking distance of the hotels and meeting facilities.
Also included in the development plan for the site is a corporate office building that will be developed in accordance with the hotels and conference center’s quality appearance.
We not only believe that this outstanding development is going to be a great destination for meeting and conference planners, but also a great asset for the Metro East region and something that the residents of O’Fallon can be proud of for generations to come.
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