Monday, June 12, 2006

Motel 6 asks for more money from City

Monday, June 12, 2006 - Posted 8:57:24 AM
The Minonk City Council received a request for financial help from Thakore Patel, the owner of the Motel 6 at the I-39 interchange. Patel asked the city for $10,000 to help the financial status of the motel. He cited the following statistics in his presentation to the council.

• 2005 was much better than 2004 and 2003
• Rooms sold were up 20%
• Room rates were up 22%
• Occupancy was up 25%
• Daily average rate was up 3%
• 2005 property taxes paid were $27,000
• 2005 motel taxes were $12,736
• Outstanding loans of $1.37 million
• 2005 tax return showed a loss of $70,000

Patel said that he was hoping that by having the proposed racetrack developed this year his revenues would have increased a lot better for 2005. He thanked the Council for the $30,000 they gave him last year and indicated that if the racetrack becomes a reality that he probably will not need any financial assistance saying that  "We have tried everything that we could to increase business."

Kris Egli, Motel 6 manager, told the Council that the motel has just hired a firm that is developing a new internet advertising format which will be seen at over 2000 sites. In addition, another billboard is being created and a few specials will be offered this year. Egil said that "with the gas crunch people want to go from point A to point B instead of stopping for the night and paying $30 to $50 for a room when it is going to have to go into their gas tank." She added "this is the reason the motel is not able to rely on the weary traveler. We get a lot of business from the town of Minonk, and we thank you, for class reunions, family reunions, and things like that. I am getting a lot of guests that came in last year and are asking where the racetrack is and what has happened."

In closing, Patel asked the City if they could spruce up the pond on the north end next to the motel with landscaping such as a fountain, picnic tables, or a gazebo.

Mayor Koos said that the city's budget is passed and recommended that if the Council wishes to take any action on this, to refer it to the Finance Committee and let the committee sort through the details and bring back a recommendation to the City Council.

Council approves Referendum TIF Pass Through

The Council approved the Referendum TIF Pass Through which would allow the portion of the levy generated on the incremental EVA within the three Minonk TIF districts to be passed through directly to the Fieldcrest School District if the proposed referendum of levy $0.65 per $100 assessed valuation by Fieldcrest School District Unit 6 Education Fund is approved by the voters of the district in November.

Traffic controls on Third Street extension approved

The Council approved Ordinance 2006-04 that defines traffic control for the new extension to Third Street between Chestnut and Oak Streets. The ammendments are:

• Third Street would STOP for North Chestnut Street. Now Third Street will STOP both ways for Chestnut Street.
• On the Oak Street end of this new Third Street edition, the East Third Street will YIELD for Oak Street from both directions thus making Oak Street a through street.

Mayor's comments

Mayor Koos announced the Com Ed municipal street lighting changes for 2007. These changes will be turned over to the Finance Committee for review.

Koos said that he was referring to the Finance Committee a bill that the City received from Tomlinson Disposal for spring clean-up. Koos said that the City paid $5,500 to Tomlinson Disposal for clean-up days but there is still a balance of $1,239.34 that was not budgeted for the clean-up days. He said he is referring this and the letter that was received from Tomlinson Disposal breaking down the cost of this service to the Finance Committee for a recommendation to the Council.

Other business

The City Council approved the MFT bid for spray patch from Midwest Asphalt Repair, Inc. of Eureka, Illinois for $8,238.

John Oncken of 727 West Second Street reported that at the Chestnut and First Street corner when you turn right and go west there is a large pothole in the right lane. He asked if this could possibly be addressed with chipping.  City Administrator Trent Smith said that he would check into the pothole and see that it was fixed.