Monroe Hotel Conversion Loan

At a glance

What: Substitute ordinance SO2026-0027146 authorizes a redevelopment agreement with 111 W. Monroe Hotel Landlord LLC for a repayable TIF term loan of up to $50,000,000 to convert part of the office building at 111 West Monroe Street (34th Ward, Conway's ward) into a hotel, in the LaSalle Central redevelopment area.
Vote: Passed 50 to 0 on September 23, 2026 after a voice-vote recommendation with no dissent from the Finance Committee on September 22.

Project: a luxury boutique hotel of about 307 oversized rooms and suites, about 20,000 square feet of ballroom and meeting space, two restaurants and a bar, a spa and fitness center, a reopened Monroe Club on the penthouse floor and about 21,000 square feet of rooftop pool deck.
Budget: $166,515,200 total, from $48,115,200 equity, $50,000,000 commercial property assessed clean energy (C-PACE) financing, the $50,000,000 City TIF loan and $18,400,000 historic tax credit equity.
Loan terms: fixed rate equal to the 10-year Treasury yield or SOFR plus 30 basis points, capped at 5 percent; no interest or payments until the completion certificate; five years of interest-only payments, then principal and interest over a 15-year amortization; prepayable without penalty. On a sale, transfer or refinance the City is repaid first.
Community Development Commission Resolution 26-CDC-11 (May 12, 2026) recommended the developer.

Passed 50 to 0 on Dowell's motion.