No matter the number of rooms available at the Urbana Landmark Hotel, it’s a safe bet Urbana Democratic mayoral candidate Leslie Stratton will not occupy one.  

Stratton held a press conference Wednesday at the Urbana Civic Center to discuss the “failed” renovation plans for the Urbana Landmark Hotel. Stratton brought team member and former Urbana Mayor Tod Satterthwaite. Other Urbana mayoral candidates — incumbent Laurel Prussing and Republican Rex Bradfield — were not present.  

Stratton said the owner of the Urbana Landmark Hotel, Xiao Jin Yuan, is not keeping up his end of the bargain in his agreement with the city. As of the November 2010 agreement, Yuan is borrowing $1.45 million total in city tax increment financing funds until 2015 to renovate the historic hotel.

The TIF funds use expected future taxes to subsidize the redevelopment. The city promises to forgive the loan if the hotel stays open for two years. 

The city initially committed $650,000 to Yuan for the renovations, with an additional $200,000 for the next four years the hotel was open. But the city cited the unexpected scope of the necessary renovations as the reason to give Yuan an additional $400,000 before the hotel’s opening to continue the renovations. The hotel had a soft opening on Dec. 1, with 45 of the hotel’s 128 rooms available for overnight stays.

City council documents cited those issues with the renovations of the 89-year-old hotel as slowing down Yuan’s plans. These include safety hazards like cracked water pipes and gas leaks, which in addition to replacing the roof, repaving the parking lot, and other expenses cost Yuan roughly $1 million, according to a city press release.

Stratton and Satterthwaite said they are confused by Yuan’s development plan because it is what they call a “rambling narrative.” They had several other issues with the Urbana Landmark Hotel project, as well, saying that Yuan has not invested enough of his own resources into the project.

Republican candidate Bradfield said he doesn’t expect the hotel — finished or not — to generate sufficient revenue for the city.

“The original idea of improving that hotel in order to generate business for downtown Urbana is not a sound premise because hotels do not bring business into the area,” Bradfield said. “The only way they bring in business is if there is a conference center. The conference center in the Urbana Landmark Hotel is not significant enough to bring the kind of business we need.”

But Urbana Mayor Laurel Prussing said the Urbana Landmark Hotel is still a worthwhile project.

“Taxpayers aren’t at risk because this is TIF money,” Prussing said.

Janelle can be reached at [email protected].