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Developer proposes second Promenade building and conversion of My Place hotel to independent senior living in North Aurora
Summary
Developer Kevin Dermody presented a concept to build a second Randall/Bridal Crossing Promenade building with ~30–34 apartments and about 2,000 sq ft of retail, and to convert the underperforming My Place hotel into a 56–60-room independent senior-living facility; the board signaled preliminary support and staff said the project would proceed through the PUD process if formally submitted.
Kevin Dermody, who identified himself as the original developer of Bridal Crossing, told the Committee the two-part concept would expand what has worked at Randall Promenade and try to salvage an underperforming hotel by converting it to senior housing.
Dermody said the Promenade 2 building would “mirror the existing mixed use building” with roughly 30–34 residential units above about 2,000 square feet of nonresidential flex space on the first floor, and that the developer hopes to attract a light-restaurant or sandwich-shop tenant for the patio and commercial space. “We have nothing lined up at this point,” he said, noting the apartment layouts would be similar to the current Randall Promenade product.
The developer laid out the economics behind the proposed hotel conversion. He cited a prior HVS Hospitality feasibility report that projected a 70% annual occupancy and a $108 average daily rate, which would have generated about $1,940,000 in annual top-line revenue. By contrast, Dermody said the hotel “this year, we are averaging 48% occupancy with an ADR of 103,” and that the property has run operating losses that required “over half a million dollars in capital contributions.” He told the board the conversion option would create a boutique independent-living center with about 56–60 rooms and pricing that could start near $2,000 per month, which he said would be lower than typical assisted-living entry costs.
Board members and the presenter discussed market demand. Dermody said local realtors who work for the project researched independent-living products and that third-party reports show there may be “demand for 200 to 300 independent-living units just in this pocket in North Aurora area.” Trustees who spoke expressed general support: one said independent living appears to fill an unmet need and another described the plan for a matching design as appropriate for the neighborhood.
Staff noted the concept plan is not a formal submittal. Promenade 2 would require a Planned Unit Development (PUD) process, including reopening and amending the PUD and a public hearing, before the village could approve any change. Dermody said the developer would work with staff on a formal submittal if the board wants to move forward.
The board expressed preliminary support and staff indicated next steps: the developer and staff will refine the submittal materials and, if pursued, will begin the PUD process with public hearings and required approvals.
