URBANA, Ill. (WCIA) — The city of Urbana is reallocating millions of dollars to fund two organizations. This financial strategy has been in the works for several years, but the City Council has only now finalized the method to implement it.
The funds are allocated for the Hotel Royer located in downtown Urbana. As part of a city agreement, the recently launched hotel will receive a $5.2 million reimbursement for redevelopment following its opening.
It was originally supposed to be $300,000 more, but the total was reduced when the hotel missed its opening deadline.
Since the Royer began operations in April, the agreement has now been activated. On Monday, the city council made the decision to transfer funds from the general operating budget to the central TIF fund.
That will be in the form of a loan from the funds, which will be repaid by bonds issued early next year.
“The property tax cases have been disputed for many years and have cost the city, a considerable amount in attorney’s fees, and staff time,” Mayor DeShawn Williams said. “Having these cases resolved will allow the city to utilize investment income from the funds that have been set aside, pending resolution of the case.”
The money has to be paid to the hotel 70 days after opening, which would be in the middle of July. City officials estimated the general fund will still have around $1 million even after the loan.
