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HomeMy WebLinkAboutPLAN COMMISSION - 03/21/1984 - SIXPENCE INNS OF AMERICA SPECIAL USE PERMIT Minutes ELK GROVE VILLAGE PLAN COMMISSION Date: Wednesday, March 21, 1984 Location: Multi-Purpose Room Municipal Building 901 Wellington Avenue The meeting was called to order by Chairman Glass at 8:08 p.m. Members Present: Member Absent: John Glass, Chairman None Leah Cummins, Secretary Orrin Stangeland Clark Fulton Frederick Geinosky David Paliganoff George Mullen Others Present: Dan Coit, The Daily Herald Newspaper Staff Present: Thomas Rettenbacher, Building Commissioner Robert Menas, Captain, Fire Prevention Bureau Robin Cleaver, Administrative Assistant Chairman Glass directed staff to notify Gary Buszkowski of the Elk Grove Park District when the Plan Commission will discuss Section 26 again so that Mr. Buszkowski can be present during landscape plan discussions. An earlier time of 7:30 p.m. was established for the Plan Commission to meet on Wednesday, April 4, 1984 in order to discuss the landscape/ screening plan which Burger King will submit. The joint meeting with the Judiciary, Planning and Zoning Committee remains scheduled for 8:00 p.m. that same evening. Staff was directed to notify the JPZ Committee members of the 7:30 p.m. meeting, its topic, and the fact that JPZ members are welcome to attend. Public Hearing - Docket 84-1: Petition of Sixpence Inns of America, Inc. for a Special Use Permit j The Public Hearing was called to order by Chairman Glass at 8:20 p.m. Lawrence Freedman, attorney for Sixpence Inns, presented witnesses to testify on behalf of Sixpence Inns: j Mr. Donald Sudaro, President, Sixpence Inns Mr: Peter Trapolino, Vice-President, Sixpence Inns i i i • • Plan Commission Minutes - 2 - March 21, 1984 Public Hearing - Docket 84-1: Sixpence Inns of America, Inc. (continued) The following exhibits were entered into the record: (1) Commitment for Title Insurance; (2) Real Estate Sale Contract (with price information deleted) ; (3) Survey; and (4) Survey. Sixpence Inn representatives said they were in full agreement with all staff comments incorporated in the March 20, 1984 memorandum to Gary Parrin from Robin Weaver. All those comments will be in the revised documents. Mr. Sudaro explained that he and his wife started the Sixpence Inns company sixteen years ago and opened their first motel in 1970. He stated that the motels provide a clean room at reasonable rates (approximately $20 per night) and that the occupancy rate for all his motels for the previous month was 93%. Most of the motels are in California, one is in Schiller Park, Illinois. The motel proposed for Elk Grove Village will have 126 rooms; it will have access off Oakton and off Busse Roads; it will not have banquet or meeting rooms, and it will be operated by a husband and wife management team. Dave Paliganoff inquired as to the expected Elk Grove occupancy rate, marketing studies, location and clientele. Mr. Sudaro responded that marketing surveys had been done; that there were no budget motels in close proximity; that the anticipated occupancy rate is 85 - 95%; and that Elk Grove Village is a good location due to proximity to O'Hare Airport, proximity to major thoroughfares, a sound Village government and a large industrial base for a supply of business. Mr. Sudaro stressed that his business does not want any undesirables for clients as that would dissuade other clients. His clientele is made up of small business people, in-law or visiting family and persons driving through the area on their way to another destination. Not many children are expected as the motel is not located in a tourist area nor will it provide family attractions (no swimming pool is planned) . As parking is insufficient and Sixpence Inn does not wish to have truckers as clients, the motel will not be attractive to truckers. Mr. Sudaro asserted that Sixpence Inn managers can dis- courage undesirable clients by aggressively observing the operation, by questioning unusual behavior and by threatening to contact the police. In response to George Mullen's questions regarding the occupancy rates of other hotel/motel chains, Mr. Sudaro stated that to the best of his knowledge, Holiday Inn industry-wide had a 60% occupancy rate but that the Elk Grove Holiday Inn apparently surpassed that rate and that the Midway had a rate of 50 - 60%. Mr. Sudaro explained that approximately 85% of his business is repeat business. Some business, government and church groups use Sixpence Inns for housing of seminar participants on a regular basis. The rooms are 12' x 18' and provide a queen-size bed, a color television, individual heating/air conditioning I Plan Commission Minutes - 3 - March 21, 1984 Public Hearing - Docket 84-1: Sixpence Inns of America, Inc. (continued) controls, an easy chair, a dresser/desk combination and two lamps. Questions regarding transportation of patrons to and from the airport were raised by Clark Fulton and Leah Cummins. Mrs. Cummins specifically mentioned a similar service. Mr. Sudaro responded that at this time no plans to provide transportation were being made but that if that amenity was necessary for good business, it could certainly be added. Various Plan Commission members and staff inquired about possible easement agreements with the owner of adjacent land in order to provide sufficient parking for trucks. Sixpence Inn representatives stated that no such agreements exist and that no such agreement would be sought. The only agreement with McGraw-Edison is for ingress and egress. Mr. Sudaro indicated that restaurant plans were not yet finalized. Sixpence intends to retain ownership of the property. Fred Geinosky observed that some budget motels have extremely poor construction and inquired how Sixpence Inn would be able to offer low rates. The response from Mr. Sudaro was that a Sixpence Inn doesn't have lavish lobbys or extra amenities and that the operation is more energy and maintenance efficient due to the use of exterior corridors and small room windows. Mr. Geinosky informed the Sixpence Inn representatives that a La Quinta Motor Inn was petitioning to build on the northeast corner of Oakton and Busse Roads and inquired if that concentration would adversely affect their business. Mr. Sudaro pointed out that La Quinta is more of a moderate priced motel and that all the motels involved have different wares. An example was made of the Red Roof Inn in a neighboring community maintaining an 80 - 90% occupancy rate and has not cut into the business of other pre-existing hotels/motels. .Number of parking spaces and the issue of ingress/egress was discussed. Concerns centered on speed of vehicles when entering the parking lot; whether or not vehicles could legally change up to three lanes to enter the parking lot, and inconvenience due to unmountable medians. Sixpence Inn was directed to contact I.D.O.T. (Illinois Department of Transportation) to request access further from the intersection. Chairman Glass informed those present for the record that his firm does business with McGraw-Edison (the company which owns land adjacent to the proposed Sixpence Inn) , but that those business dealings are not significant to the net worth of the company he works for or to his personal net worth. In response to questions: no Sixpence Inn has ever failed; typical restaurant size is 4,200' - 4,500' , and 4,500' is shown on the current site plan; the restaurant need not be open 24 hours as Sixpence is mostly concerned about breakfast and dinner meals; and the breakeven point financially is an occupancy rate of 65%. Thomas Rettenbacher stressed that all changes and agreements should be noted on the plats so that it is all properly recorded Plan Commission Minutes - 4 - March 21, 1984 Public Hearing - Docket 84-1: Sixpence Inns of America, Inc. (continued) should the parcel ever be sold. Commission members and representatives of Sixpence Inns agreed. It was determined that Sixpence Inns would probably request a variation to the loading spaces required as the motel would have only three truck deliveries per month. By Code, two loading spaces are required. Mr. Freedman stated that Sixpence Inns cannot begin to market the restaurant property until after the motel is fully operational, but that Sixpence Inns is willing to agree to landscape the property for aesthetics within one year - as an ugly site would not be advantageous to either Elk Grove Village or the motel . Questions from Plan Commission members, Leah Cummins and Orrin Stangeland, ensued regarding the time period spent already and time necessary in the future to complete the project. According to Mr. Sudaro and Mr. Freedman, Sixpence Inns began property sales discussion with McGraw-Edison in March, 1983 and signed the document in October, 1983. A review of the file by Chairman Glass revealed that the application date was October 21, 1983. A file check further revealed that all required plats in sufficient quantity were submitted on February 7, 1984 and that revised plats were submitted on March 8, 1984. Also, the public hearing must be planned almost a month in advance. A recess was called at 10:26 p.m. Leah Cummins and Clark Fulton left the meeting at that time. The public hearing began again at approximately 10:35 p.m. Mr. Paliganoff asked if any financial impact to Elk Grove Village studies had been prepared. Sixpence Inn representatives stated that it is expected that the motel will gross about $900,000 per year. The occupancy tax would be approximately $40,000 per year. Property taxes on the motel and restaurant have not been determined. Staff has since determined that based on 126 rooms at an occupancy rate of 93% and a $20/night/room charge, that the occupancy tax revenue for the Village would be estimated at $41,915.29 per year. Chairman Glass announced that the Plan Commission does not normally take action on the same night as a Public Hearing is held, especially as additional information has been requested of the petitioner. The following items have been left open: (1) Request of I.D.O.T. regarding additional access; (2) Ingress/egress off Busse Road in terms of parking lot configuration; (3) Easements must be added to plats; (4) Special use time limit; (5) Variation on parking spaces; (6) variation on loading spaces; (7) Variation for sign; (8) Landscape plans, including landscaping of the restaurant property for vehicle protection and temporary decoration; and (9) Items listed on staff memorandum of March 20, 1984. I Plan Commission Minutes - 5 - March 21, 1984 Public Hearing - Docket 84-1: Sixpence Inns of America, Inc. (continued) A special meeting to discuss these topics was called for Wednesday, April 11, 1984 at 8:00 p.m. in the Multi-Purpose Room of the Municipal Building. The public hearing adjourned at 11:07 p.m. Centex Plat of Resubdivision Section 23B (R-3 Special Use District) 110 Lots Joseph Luciani, Vice-President of Centex Homes Midwest, Inc. , requested approval of his 110 lot subdivision plat. He addressed all staff comments listed on the March 20 memorandum by Robin Weaver to Gary Parrin. Mr. Luciani showed the Commission members where all staff recommended changes had been made on the site plan and plat of resub- division. Engineering comment, item #3, regarding easements has been adjusted but the sheet is out for signatures. Chairman Glass advised Mr. Luciani to leave the new plans with staff for their review and that the Plan Commission would consider Mr. Luciani's request for approval at the regular April 4, 1984 meeting. Krutedaws Subdivision Remaining members of the Plan Commission approved the Krutedaws Subdivision (1331 Brummel Avenue, one lot into two lots just under 15,000 square feet each) by a 5-0 vote. The Plan Commission meeting was adjourned at 11:58 p.m. Respectfully submitted, Robin A. Weaver Administrative Assistant ms Attachments: 3/20/84 staff report on Sixpence Inns. 3/20/84 staff report on Section 23B. Sixpence Inn occupancy tax projections - preliminary. I c: Chairman & members of Plan Commission, Village President, Board of Trustees, Village Clerk, Village Manager, Assistant Village Manager, Administrative Assistant, Building Commissioner, Village Engineer, Director of Public Works, Fire Chief, Park District, S.D. 54, NWMC, Centex, Village Attorney.