Park District Exploring Idea for Hotel at Arrowhead

The Wheaton Park District has extended its commitment with a developer to build a hotel at .

The Wheaton Park District Board of Commissioners on Wednesday renewed a letter of commitment with Fairway Suites, a Kansas City-based developer, that was approved July 20. The letter allows Fairway to represent the park district while marketing a 50-year lease on the property to hotel brands including Marriott, Hilton, Hyatt, International Hotels, Choice Hotels and LaQuinta, to open an extended-stay hotel at the Arrowhead Golf Club property on Butterfield Road. 

Brian Burton, Chief Operating Officer of Fairway Suites, LLC, said in October that Fairway had “a couple of franchises” are interested in the site.

Board President Ray Morrill said renewing the letter allows Fairway more time to "work out the logistics" of the project. Mike Benard, Executive Director of the Wheaton Park District said the park district is putting together standards for how the property would be maintained and provisions in case of a default on the project.  

According to the letter of commitment, the Wheaton Park District and Fairway Suites will cooperate to: 

• Identify a site location
• Develop a site plan, including elevations and minimum design standards, and mitigate negative impacts to the golf course that could arise from the hotel
• Identify funding sources and cost allocations for the project 
• Identify required government approvals and verify the available utilities
• Establish a project schedule
• Negotiate a structure for the agreement 
• The hotel developer should obtain a franchise and secure financing 
• Negotiate a hotel and golf course operation/services alliance.

Fairway Suites hotels target the business traveler, and Monday through Thursday short-term commercial travelers for extended stays, according to a Fairway report presented to the board July 20. The suites provide rooms with kitchenettes, internet and complimentary breakfasts.

The hotel would have approximately 120 suites, according to a report Fairway presented to board members July 20. Operating at 70 percent occupancy, the hotel could generate 45,000 guests per year, the report states.

Burton  that the plan for a hotel at Arrowhead is a “simple concept.” He said that Fairway approached the park district about the deal after a hotel franchisor identified Wheaton as a market they'd like to enter.

"We seek out a golf course that has amenities that would be a good match ... Arrowhead definitely has those," he said.

The park district is not obligated to any expenses at this point, according to the letter of commitment.

Commissioner Kim VanderSchaaf, who voted against the letter of commitment in July, said Wednesday the agreement with Fairway is risky for the park district.

"It puts us as risk of losing our facility. We then may have to end up becoming part owners of this hotel. This has not been fully thought out and this does not in fact in any way touch the scope of what the park district is doing," VanderSchaaf said.

Commissioner Phil Luetkehans said the letter does not obligate the park district to do anything, and that he would not support an agreement until the terms of a contract with Fairway protect the park district. 

"If we are not protected I will not vote for it. At this point this is just due diligence," he said.

Commissioner John Kelly said he shared the same concerns as Kim VanderSchaaf. "I will extend the letter just so we can listen (to Fairway), but I'm by no means sold on this project yet," Kelly said. 

The next step will be to establish a letter of understanding, a more formal and specific agreement between the Wheaton Park District and Fairway Suites.