The city of Springfield has placarded the Wyndham City Centre, saying the downtown hotel does not meet life safety code standards due to nonworking elevators and out of service fire alarms and fire sprinkler systems. The Springfield Police Department is investigating the damage to the hotel as intentional vandalism, according to a statement issued by a city spokesperson.
“For the safety of overnight hotel occupants, Springfield Fire Department uses placards to indicate that the building does not meet the standard for safe occupancy,” said SFD Chief Ed Canny. “We are in contact, along with other city agencies, with the Wyndham staff to see they understand the issues and we will do what we can to assist in seeing they take the steps needed to return the hotel for safe condition for overnight occupancy.”
The SFD responded to a fire alarm call at 700 E. Monroe St. on Thursday, March 27. No fire was discovered, but the SFD noted flooding and elevator damage, leading to green occupancy prohibited stickers being placed on the entry doors.
Gosia Wray, general manager for the Wyndham, issued a statement March 28 apologizing for the inconvenience.
"The situation is currently under investigation, and we are fully cooperating with local law enforcement to determine the details of what occurred," Wray said.
The Springfield Convention & Visitors Bureau is working with the Springfield Hotel & Lodging Association and tourism partners to develop a contingency plan for conventions, meetings and events that could be impacted if convention space isn’t available for any large duration, according to a city spokesperson.
“Springfield remains open and ready to welcome visitors with our world-class historic sites, Route 66 attractions and over 40 hotels continue to provide outstanding experiences for travelers,” said Scott Dahl, SCVB director. “We are prepared to help make new arrangements for any groups needing overnight accommodations until hotel repairs are complete and the Wyndham is fully returned to service.”
Tower Capital Group, owned by Al Rajabi of San Antonio, Texas, bought the 369-room hotel from the previous owners for $7.4 million in 2019 as part of a bankruptcy proceeding. Rajabi previously said a reduction in hotel business associated with the COVID-19 pandemic in 2020 and 2021 prevented him from finding a lender willing to finance his original plan – renovating the hotel into a Delta by Marriott hotel.
Rajabi then tried to work with GoodHomes, a development company based in New York City, to renovate the hotel into a market-rate apartment complex with as many as 320 apartments and some hotel rooms. But current zoning limits dwelling units to 200, so that plan required a zoning variance, and it failed to win council support in 2022.
The latest proposal came from Tower Capital in spring 2023, shortly before then-mayor Jim Langfelder was defeated in his bid for a third consecutive term. Without GoodHomes' involvement, Tower hoped to develop a Marriott Delta hotel and invest $58 million in a renovation involving up to 200 apartments, hotel rooms and convention space in the Wyndham building.
But based on discussions with Langfelder, Tower said it hoped to take advantage of about $18.75 million in tax-related incentives from the city. When Mayor Misty Buscher took office, she said the assistance package of property, hotel-motel and sales taxes potentially available to Tower would add up to $9 million or $10 million at most.
"The incentives that were offered before just simply are not there financially," Buscher told Illinois Times after a City Council meeting in June 2023.
Rajabi hasn't responded to the city's 2023 offer of potential financial incentives to renovate the aging, 30-story downtown structure and has "disconnected" from talks with the city after his third zoning proposal failed to receive majority City Council support in fall 2022, Dahl told Illinois Times in January.
Rajabi put the Wyndham up for auction in an online event that concluded in April 2024. The auction was structured so he could turn down the highest bidder if the "reserve price," known only to Rajabi and his associates, was not reached. The auction failed to result in a sale.
