Steven Spearie
The State Journal-Register
The third time was not a charm for New York City developer David Mitchell. The Springfield City Council denied a “variance for density” for the 30-story Wyndham City Centre in downtown Springfield in a 6-4 vote, capping a debate that lasted a little more than three hours.
Ward 1 Ald. Chuck Redpath, Ward 5 Ald. Lakeisha Purchase, Ward 6 Ald. Kristin DiCenso, Ward 8 Ald. Erin Conley, Ward 9 Ald. Jim Donelan and Ward 10 Ralph Hanauer voted to deny the variance.
Ward 2 Ald. Shawn Gregory, Ward 3 Ald. Roy Williams, Ward 4 Ald. John Fulgenzi and Ward 7 Ald. Joe McMenamin. voted for the variance.
Both Purchase and Fulgenzi flipped their votes from Aug. 3, with Purchase becoming a “no,” and Fulgenzi becoming a “yes.”
The variance was needed to aid any sale to Mitchell’s company, GoodHomes Communities, LLC, because the building is only zoned for 200 apartments. Mitchell wanted to refurbish 275 rooms as apartments while keeping 125 hotel rooms under a flagship name.
The variance had gone down to defeat before the city council twice needing a supermajority of votes or seven “yes” votes. This time, it only needed a majority of votes.
The owner, Al Rajabi of TowerCapital Group in San Antonio, Texas, said his options were “limited” financially and that he planned to eliminate the hotel’s rooms and develop 200 apartments for government-assisted housing.
Rajabi wasn’t at Tuesday’s meeting. He was represented by former Ward 5 Ald. Andrew Proctor.
Proctor, during a presentation, said that Rajabi paid off a $1.5 million utility bill due to City Water, Light and Power on Tuesday.
A spokeswoman for the city confirmed Wednesday morning that the city’s treasurer’s office had received payment from Rajabi. The bill covers electric, water, city sewer and sanitary district.
Rajabi had said in the past that he had funds to stave off creditors and that he would not let the hotel go into receivership.
Mitchell has had a history of taking distressed hotels and converting them into urban “workforce housing,” appealing to younger professionals. He claimed this is the first time one of his projects has been rejected.
Mitchell said under his model, he would have created $5.6 million more in economic impact for Springfield. That came from an economic study by Apprise by Walker & Dunlop, a Chicago group.
Rajabi had championed the sale of the hotel to Mitchell. Mitchell wanted to install a 30th floor observation deck and a food court as part of a $40 million redo.
Joe Petty of JH Petty & Associates, who worked with Mitchell on the project, admitted in a presentation that the hotel wasn’t in very good condition.
During the run-up to the vote, Fulgenzi asked if the city council boosted the number of hotel rooms to 150, “would that be acceptable?”
Afterward, Mitchell said he would have to talk to Petty about the viability of that change but noted that his financial people were watching the meeting.
Langfelder said the vote was “frustrating” and he planned to reach out to Mitchell and Rajabi Wednesday.
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Scott Dahl, director of the Springfield Convention and Visitors Bureau, said his group spent years prospecting 26 conventions that were booked with at least 300 peak room nights (56,000 room nights altogether) using both the Wyndham and the President Abraham Lincoln Springfield DoubleTree Hotel between 2023 and 2025.
In a presentation before the vote, Dahl told council members that if hotel rooms went away, his services department and sales team would reach out to any conventions or shows that might be impacted.
Dahl reiterated Tuesday that “the location of hotel rooms” in Springfield was key, especially shows and conventions that want to be in the downtown area and use the Bank of Springfield Center.
Joe McMenamin for Ward 7 