The owner of a Rosemont Harley-Davidson dealership and since-closed locations in Palatine and Wrigleyville is consolidating operations and moving to a still-to-be-built dealership just south of the Allstate Arena.
Rosemont trustees Monday paved the way for Windy City Motorcycle Co.’s relocation from the village’s entertainment district, as part of a complex property transaction involving a nearby hotel’s ownership.
The village is buying a shuttered 100-room portion of the former Wyndham O’Hare hotel on Mannheim Road and a 1.8-acre parking lot for $16.8 million, under agreements with U.S. Asia Investment Group, which previously converted 300 other rooms into a Hyatt Place and La Quinta.
The La Quinta is part of the deal, too, but the village will maintain ownership briefly since officials say they already have a buyer lined up.
After demolishing the old hotel Wyndham rooms — once intended for a never-built Best Western Premier and retail/restaurant spaces — the village will install new stormwater detention and a 200-space parking lot in their place, according to Mayor Brad Stephens.
Then the single-story, 28,000-square-foot Harley dealership will be built, Stephens said.
A 1.8-acre property in between the Hyatt Place and La Quinta hotels and the Allstate Arena’s south parking lots is where a new Harley-Davidson dealership will be built.
Christopher Placek/[email protected]
Meanwhile, Windy City Motorcycle Co. proprietor Ozzie Giglio will sell his two-story, 20,000-square-foot Harley dealership in Parkway Bank Park to the village, which will repurpose the space for a yet-to-be-announced use.
The dealership will stay in its current location until ready to move in to the new space in about a year, Stephens said.
The mayor said the local Harley’s downsizing was put into action by the Milwaukee-based motorcycle manufacturer’s corporate offices, while the relocation to the vicinity of the Allstate Arena was out of a desire for a larger showroom floor.
At the same time, Stephens said the demand for additional hotel rooms near O’Hare International Airport isn’t as great as it once was, with additional lodging built across the street in Des Plaines, while the costs to redevelop more rooms “doesn’t pencil out.”
The hotel owner planned to open at least one restaurant in a shuttered 16,000-square-foot section of the old Wyndham — at one point exploring a partnership with Phil Stefani’s restaurant group — but those plans never came to fruition.
Restaurants, retail and refurbished hotel rooms were planned for a section of the former Wyndham near O’Hare International Airport. About three-quarters of the hotel was redeveloped into a Hyatt Place and La Quinta.
Christopher Placek/[email protected]
At one point, the village even promised $10 million in tax increment financing for hotel renovation and commercial space build out costs if certain deadlines were met. That number stands at $8 million today, but will go down to $3 million in a new TIF funding arrangement that will come before the village board next month, Stephens said.
The $5 million difference will cover the village’s costs for demolition, stormwater detention and the new parking lot, he said.
A closing on the property sales is scheduled by July 8.
