QUINCY — Local developers are proposing to invest $10 million into renovating the former Illinois State Bank building on 531 Hampshire with the hope of converting it into a boutique hotel.
Tanninger Companies, co-founded by Ryan Jude Tanner and Jay Krottinger, recently purchased the Elkton Hotel building and re-opened the Patio Restaurant and Lounge. The company is now planning to purchase the seven-story former bank building, but are requesting a $500,000 contribution of tax increment financing funds from the city ahead of the acquisition.
Quincy Planning and Development Director Chuck Bevelheimer said this would be the biggest single private redevelopment investment from either of the city’s TIF accounts.
The city’s investment will go into providing secondary access to the building and installing fire sprinkler systems. Bevelheimer said the deal is structured so that the TIF funds will be paid upon project completion.
“We’re trying to help this development along while also addressing public safety issues for the property,” Bevelheimer said.
Bevelheimer added that the hotel would have between 25 and 30 rooms. There also are plans to develop a restaurant on the first floor, a bar on the rooftop and conference space.
Tanninger Companies also announced on Saturday they are opening a new office in downtown Quincy, serving as the company’s second location to accommodate rapid growth. The new office will be located in the Elkton property.
Tanninger Companies is a multi-sector company with a portfolio spanning health care, entertainment, hospitality, e-commerce, and commercial and residential development. The Quincy office will serve as a second location for the parent company as well as a marketing office for Tanninger Sciences, a subsidiary that specializes in biomedicine and telemedicine. The subsidiary’s flagship product focuses on using robotic technology for hip and knee replacements.
“The decision to expand our presence into Quincy’s downtown was a logical next step in our business growth strategy,” Tanner said. “Considering Quincy’s vision of the Sixth Street corridor, thriving downtown and riverfront projects, we see long term growth potential in our hospitality and commercial development as well as our healthcare interests.”
The new office location in Quincy is projected to create around 50 new jobs, according to Tanner.
A resolution authorizing the expenditure of the TIF funds for the Illinois State Bank building will be up for consideration during Monday’s City Council meeting.
According to the city’s fiscal 2022 budget, the city’s two TIF funds held about $1.8 million at the start of the fiscal year and are estimated to generate about $590,000 in new tax revenue by April 2022.
The City Council meeting will be at 7 p.m. at Quincy City Hall, 730 Maine St.