Gurnee board approves rezoning and PUD to convert former Holiday Inn at 6161 Grand Avenue

The Gurnee Village Board on Monday approved a zoning map amendment and a planned unit development agreement that will allow the Kai family to convert the south wing of the former Holiday Inn at 6161 Grand Avenue into 80 multifamily residential units and renovate the remaining hotel and restaurant space.

Community Development Director Dave Ziegler summarized the project and the requests before the board, saying the applicant proposes converting 113 hotel rooms in the south wing into 48 studio units and 32 one-bedroom units and remodeling about 105 hotel rooms on the west wing while upgrading the on-site restaurant and public spaces. "They're looking at converting 113 hotel rooms in the Southern wing to 80 multifamily residential units," Ziegler said during his presentation.

The conversion requires three approvals: (1) a zoning map amendment to rezone 0.09 acres from R-1 single-family to C-2 community commercial (a staff-initiated rezoning for a parcel the village recently annexed), (2) a special-use permit for a preliminary PUD with specified departures from the zoning code, and (3) approval of the preliminary and final PUD plans and the PUD agreement. The Planning & Zoning Board reviewed and unanimously recommended approval with conditions tied to parking agreements, signage controls and other standard PZB conditions.

Project representatives said the residential component is aimed at adults aged 21 and older, limiting studio units to one occupant and one-bedroom units to up to two occupants. Attorney and project consultant Glenn Christiansen described the work as interior conversion with limited exterior cosmetic updates and secured resident access: "All this project entails is, within the existing buildings that are on-site, which will be, changed over that south wing... There will not be any mix between the hotel and ... the restaurant. So they'll have guaranteed parking area as well as guaranteed secure access to the building there," Christiansen said.

Applicant representatives described amenities and operations they plan to add, including a full-service restaurant called Maple, a lounge (to be named "Twila's"), a market area with local vendors, a yoga/flex studio and a larger gym, two golf simulators in the lounge, and banquet and shuttle services targeting group business such as cheer, dance and military travel. Designer Nikki (last name not provided) said: "We want this to be the crown jewel of Gurnee. We think it's such a unique and fresh concept. We love Gurnee." The applicant team also said they plan to contract valet parking and off-site parking agreements with Gurnee Mills and a nearby car dealership to address a stated on-site shortfall of 34 parking spaces.

The PUD requests several departures from the village zoning ordinance. Ziegler listed the principal exceptions: allowing multifamily residential uses within the C-2 district for this site only; permitting up to 34 parking stalls to be located off-site and serviced by valet agreements; permitting a ground sign 13 feet, 7.5 inches in height where 12 feet is allowed; allowing the existing sign base to remain at about 8.5 feet from a driveway where the current code requires a 10-foot setback; and allowing a changeable electronic message sign subject to the village's electronic sign standards (dark between midnight and 6 a.m., no flashing or motion, static images of at least 30 seconds, and single-message images).

Trustees asked about operations and access. Trustee O'Brien asked whether the electronic message board would be dark overnight; staff confirmed the changeable portion would be dark between midnight and 6 a.m. Trustees also asked how residential and hotel circulation would be separated; the applicant explained key-card access and separate elevator banks for residents and hotel guests and said residents would have a private gate and gated parking entered from Tri-State Parkway.

The board voted on two related ordinances. Ordinance 2025-15, the zoning map amendment, was moved by Trustee Balmus and seconded by Trustee Ross and carried on a 6-0 roll call. Ordinance 2025-16, approving the special-use permit and PUD (preliminary and final) and the PUD agreement, was moved by Trustee Thorson and seconded by Trustee O'Brien and also passed 6-0.

During the presentation the applicant suggested an aggressive construction and occupancy timeline: one presenter said they hoped to begin immediate work and "start occupying the residences within 3 months," and estimated overall completion in about 8 to 12 months, subject to final permits and construction scheduling. The PZB conditions require written and signed off-site parking agreements to be submitted before a residential certificate of occupancy and continuous proof of parking if agreements change.

Board approval now allows the developer to finalize the PUD agreement, impact-fee arrangements with taxing districts and execute the parking and valet agreements required by the conditions. The PUD includes sign controls, parking and lighting standards, electronic sign timing limits and other operational standards the board attached as conditions.

The project team said no new building footprint will be added; all work will be interior remodels and exterior cosmetic upgrades. Security and camera systems have been contracted to McCarthy & Burns, which will implement camera, license-plate and access-control systems and training for staff to provide usable evidence for law enforcement if needed.

The board welcomed the investment. After the passage of the PUD ordinance Mayor Thomas Hood said the applicants were already present in Gurnee and voiced appreciation for the investment in the community.

Next steps for the applicant are execution of development agreements and parking contracts, final permitting, and submittal of the PZB-required signed parking agreements to the village prior to residential occupancy.