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HomeMy WebLinkAbout02/26/2026 P&Z Minutes PZ-22-25 / 200 E Rand Rd / CU: Final PUDMINUTES OF THE REGULAR MEETING OF THE PLANNING & ZONING COMMISSION CASE NO. PZ-22-25 Hearing Date: February 26, 2026 PROPERTY ADDRESS: 200 East Rand Road PETITIONER: REIT 200 LLC 550 E Devon Ave Ste 110 Itasca IL 60143 PUBLICATION DATE: February 11, 2026 REQUEST: Petitioner is seeking a conditional use for a final Planned Unit Development (PUD) and other relief from the Village of Mount Prospect Code of Ordinances as may be required, to re-establish a hotel, restaurant, and banquet facility at the subject property. MEMBERS PRESENT: Joseph Donnelly Wa lte r Szym cza k William Beattie Fay Costa Richard Rogers MEMBERS ABSENT: Donald Olsen Ewa Weir Michael Fricano STAFF MEMBERS PRESENT: Jason Shallcross — Director of Community & Economic Development Antonia Lalagos — Development Planner INTERESTED PARTIES: None Chairman Donnelly called the meeting to order at 7:02 PM. Commissioner Beattie made a motion seconded by Commissioner Szymczak to approve the minutes from the Planning and Zoning Commission meeting on January 8, 2026. The minutes were approved 4-0, with one Commissioner abstaining. After hearing one item of new business, Chairman Donnelly introduced case number PZ-22-25, 200 East Rand Road, a request for a final Planned Unit Development (PUD) to re-establish the hotel, restaurant, and banquet hall uses at the subject property. The Village Board's decision is final for this case. Ms. Lalagos introduced the subject property and its history. The subject property was annexed to the Village in 1961 and in 1966 was developed as a Holiday Inn hotel with a pool, restaurant, and banquet hall / meeting spaces. Ms. Lalagos explained that the hotel complex operated Planning & Zoning Commission Meeting — February 26, 2026 PZ-22-25 continuously from its construction in 1966 until its closure in late 2020 when it had been operating as a Holiday Inn, with major interior remodels in 1977, 1998, and 2009. The property has been vacant since the Holiday Inn's closure and has experienced vandalism and deterioration. Ms. Lalagos reported that the subject property consists of two parcels totaling 2.93 acres, with existing access points on Kensington Road and Rand Road. As a condition of approval, Staff will require the Petitioner to apply for an administrative plat of consolidation to combine the two parcels. Ms. Lalagos explained that the Petitioners are proposing to restripe the parking lot to increase the onsite parking from 137 to 140 stalls and will pave a gravel area along the west property line where it is too narrow for plantings to grow. The Village is requesting that the Petitioner donate a 0.60' strip of land to expand the right-of-way along the north end of the site adjacent to Kensington Road. Ms. Lalagos reviewed the bulk regulations, pointing out that the existing parking lot and building setbacks are nonconforming under current zoning standards and would require relief if constructed today. Approval of the PUD would authorize the continuation of these existing conditions. Ms. Lalagos reported that no modifications are proposed to the current setbacks, building height, or lot coverage, other than where the Village is requesting the Petitioner donate Land to accommodate the intersection and sidewalk improvement efforts at Kensington, Elmhurst, and Rand Roads. Ms. Lalagos described the exterior and amenities of the hotel. The three-story primary structure is approximately 80,000 square feet in size, containing 139 guestrooms, a 5,326 square -foot restaurant, and a 3,376 square -foot meeting space. Hotel guest amenities include a fitness center, indoor pool, meeting space, business center, and guest laundry. Ms. Lalagos stated that the existing building materials will remain, including stone veneer, painted CMUs, and EIFS. The Petitioner proposes to refresh the exterior with new paint, to replace damaged stonework, and to replace damaged doors and windows. Ms. Lalagos provided an overview of the parking at the subject property. The Petitioner proposes to restripe the existing 137-stall parking lot to 140 parking stalls on site, to provide a 24-hour complimentary shuttle service between the hotel and airport, and has executed cross -use parking agreements with the neighboring properties at 201 East Kensington Road and 303 East Kensington Road. Ms. Lalagos stated that the adjacent properties have a surplus of 42 parking stalls according to Village off-street parking requirements. The Petitioner has also agreed to landbank the open space at the north end of the subject property, which could be converted into 10 to 25 additional parking stalls if area parking demand exceeds supply. Ms. Lalagos compared the parking demand as required by the Village Code and projected by the Petitioner's parking study. She noted that the table in the exhibit reflected revised ITE estimates based on an updated parking study submitted by the Petitioner the week of the hearing. Per the code, the subject property is deficient by 127 parking stalls, while the ULI method projects a surplus of 37 stalls, and the ITE method projects a deficiency of 11 stalls. Ms. Lalagos argued that the analysis supports the need for cross -use parking agreements to provide adequate parking supply during peak usage periods. As a condition of approval, Staff is requiring the Petitioner to conduct monthly parking utilization counts according to the schedule in Exhibit B, "Landbank Parking and Monitoring Plan." If parking utilization at the subject property exceeds 85% of available Planning & Zoning Commission Meeting — February 26, 2026 PZ-22-25 spaces or if the Village documents negative impacts to adjacent properties or public rights of way, the Village may require installation of the deferred parking spaces in the land -banked area. Ms. Lalagos shared the landscape plan, pointing out that the existing landscaping is nonconforming due to lack of landscape beds on the perimeter of the property and at the foundation of the building at the time of construction. The Petitioner is proposing new trees, shrubs, and various groundcover to fill the existing parking lot islands. The land banked area will remain open lawn as stipulated by the "Landbank Parking and Monitoring Plan." Ms. Lalagos concluded that staff finds that the proposed conditional use meets the applicable standards contained in the Mount Prospect Zoning Ordinance. She requested that the Planning and Zoning Commission make a motion to adopt staff's findings as the findings of the Planning and Zoning Commission and recommend approval of the following motion: 1. "A conditional use for a final Planned Unit Development (PUD) at 200 East Rand Road, consisting of a 2.93-acre property with a hotel, restaurant, and banquet facility, subject to the following conditions: a. General conformance with the approved development plans as noted in the staff report; b. Strict conformance to the "Landbank Parking and Monitoring Plan" as noted in the staff report: c. An application for a plat of consolidation shall be submitted in conjunction with the building permit application and a final plat of consolidation shall be recorded prior to issuance of the final certificate of occupancy; d. Dumpsters and containers shall be screened on all sides by solid wood fence or equivalent screening material to a height not less than six feet (6'); e. A Photometric Plan that meets the requirements of Section 14.314 of the Village Code (Outdoor Lighting Regulations) shall be provided at building permit submittal; f. If proposed signage does not meet Chapter 7: Sign Regulations requirements, the Petitioner shall apply for an administrative PUD amendment; g. Except for the relief granted by the planned unit development, compliance with all applicable development, fire, building, and other Village Codes and regulations is required; and h. The petition shall not be scheduled for Village Board consideration until a revised parking study, reflecting the restaurant's full square footage and detailing peak demand and shared parking availability for the hotel, has been submitted and approved by the Director of Community Development." The Village Board's decision is final for this case. Commissioner Beattie was concerned about the wide gap between the parking requirements of the Village and those of the parking study, noting that the Village code does not account for overlap of uses. He pointed out that the land bank would only add up to 25 stalls, and asked if Staff was confident that there would not be parking problems. Mr. Shallcross stated that when the hotel was operating there was a lot of crossover parking that took place. He suggested that the cross -use parking agreements makes the most sense for this area, and if not this, then what use would be more appropriate. Planning & Zoning Commission Meeting — February 26, 2026 PZ-22-25 Commissioner Beattie asked if there were parking issues previously when it was fully functional? Mr. Shallcross stated that Staff searched records from approximately 2009 to 2019 and could not Locate any documented parking complaints, though he noted that complaints may have existed just not in written form. He said that the Village Code treats parking as if all of the uses are distinct from one another, whereas in reality there is overlap between uses. Mr. Shallcross suggested that PUDs were made for situations like this with a mix of uses. Commissioner Beattie and Chairman Donnelly noted the shuttle will assist. Mr. Shallcross pointed out that the ITE manual asserts an 11-stall deficit, but the cross -use parking agreement analysis with the Village Code suggests a surplus of 42 parking stalls. He stated that without the agreements, the Village would have more concerns. Commissioner Beattie asked if there is cross -access between the parking lots. Mr. Shallcross said there is no cross -access, but the Village believes all vehicle movements between properties can be done safely. Commissioner Rogers suggested that the parking lot may not have been full in the past because the original hotel was not high quality and therefore never fully occupied. He agreed that he had never seen the parking lot full. Commissioner Costa asked Staff to confirm that if the land banked area is paved, that it will have to meet standard stormwater detention requirements. Mr. Shallcross confirmed that stormwater requirements would not be waived as part of this approval, and it would have to go through the full permit process, including approval by MWRD. Chairman Donnelly suggested that the hotel owners could pursue additional agreements with other parties, such as Heavenly Massage. Chairman Donnelly swore in the petitioner, Chris Patel of REIT 200 LLC, 200 East Rand Road, Mount Prospect; Justin Opitz of Kimley-Horn, 570 Lake Cook Road, Deerfield; and Mark Rogers, Liston & Tsantilis, 200 South Wacker Drive, Chicago. Mr. Patel explained that he is planning to reopen the property as a Holiday Inn with a full cosmetic refresh, bring in a new restaurant concept, renovate the banquet and meeting space, and bring the building back to life. Mr. Opitz remarked that they believe the parking demand will be accommodated and the cross -use agreements will help. Commissioner Beattie asked if the cross -use agreements with Red Barn and 1" Family Dental are already in place. Mr. Patel replied yes, both have been executed. Planning & Zoning Commission Meeting — February 26, 2026 PZ-22-25 Commissioner Beattie asked if the petitioner was confident there are enough parking stalls for all the uses. Mr. Patel replied yes, and added that there is more usage of rideshare and rental car demand has gone down. Chairman Donnelly asked when they intend to open. Mr. Patel said he hopes to open by the end of the year. Commissioner Beattie asked about the interior of the building. Mr. Patel replied that the inside has been vandalized and a lot of work is needed. He asserted they are doing a complete renovation with a great team that has worked on the hotel previously. Commissioner Rogers noted that the building had problems with the fire protection system in the past. Mr. Patel replied that it has been corrected. Chairman Donnelly asked Staff if the fire department had signed off on the application so far. Mr. Shallcross replied yes, and said that any outstanding fire protection issues would be addressed at permit. Hearing no further comments or questions, Chairman Donnelly closed the hearing and asked for a motion to approve the conditions as noted in the staff report. Commissioner Costa made a motion seconded by Commissioner Szymczak. UPON ROLL CALL AYES: Szymczak, Beattie, Rogers, Costa, Donnelly NAYS: None The Planning and Zoning Commission gave a positive recommendation (5-0) to the Village Board for the March 17, 2026 meeting. After hearing two more items of new business, Chairman Donnelly asked if there were any citizens to be heard. Hearing no further discussion, Chairman Donnelly made a motion seconded by Commissioner Beattie and the meeting was adjourned at 8:43 PM. b, adry mow., ^ M Antonia Lalagos, Development Planner Planning & Zoning Commission Meeting — February 26, 2026 PZ-22-25