CHAMPAIGN — It’s been a little over a year since the news broke in summer 2023 that Core Spaces had decided to exit the Illinois Terminal expansion project.
However, while Core may not be involved with the development anymore, it turns out there’s still an agreement on the books that needs to be dissolved in order for the MTD to move forward with a different developer.
The Champaign-Urbana Mass Transit District Board will vote on a resolution to terminate its development agreement with Core Champaign Hockey LLC at a 3 p.m. meeting today.
The MTD entered into an agreement with Core in December 2021, MTD Managing Director Karl Gnadt wrote in a memo to the board.
“The (onset) of the pandemic and the ensuing hyper-inflation that followed caused the project to become unattainable for the developers,” he said. “They informed MTD that they were going to step away from the project.”
He added that, since negotiations with a new developer, Royse Witte Downtown LLC, are underway, it is appropriate to “formalize the termination of the previous agreement.”
The project, previously known as “The Yards,” was introduced prior to the pandemic as an 11-acre downtown development that included the terminal expansion, a sports arena, a hotel, apartments, retail space and more.
Core Spaces and Hans Grotelueschen were the original development partners on the project. The city of Champaign was expected to contribute funding, and the current partners have also expressed hope that the city will be involved with the latest version of the project.
The development agreement that was approved in December 2021 included the terminal expansion, privately owned residential and commercial space, and a shared parking facility, Gnadt said at the time.
Elements of the concept’s proposed second phase, including the arena, became more uncertain after the University of Illinois, also a partner on the project at one time, announced in May 2022 that it no longer planned to add a Division I men’s ice hockey program.
Gnadt later said in July 2023 that the MTD had begun negotiations with Royse Witte Downtown LLC due to Core’s withdrawal from the project. Grotelueschen is also no longer involved with the development.
The current project concept includes the terminal expansion and remodeling, a new parking deck over bus platforms, and apartments with first-floor retail space.
The latter is planned for a lot at the corner of Walnut and Logan streets that is owned by Royse Witte Downtown LLC.
The limited liability corporation is a collaboration between Colorado developer Dennis Witte, Royse and Brinkmeyer Apartments CEO Collin Carlier, and Mike Royse, the majority owner of Royse and Brinkmeyer. The trio are also partners on The Inman.
When asked how close the two parties are to getting the new deal settled, Gnadt replied that he could not provide an estimate, as there are a variety of factors involved.
“We are very close to agreeing on all the substantive issues,” he said. “But there are some really tricky things to figure out. They aren’t disagreements, they’re just difficult to structure. We had the same struggles with the development agreement with Core, too. But we’re getting there.”
Gnadt added that once they settle on the terms, their attorneys will need to draft an actual agreement, which will need to be reviewed and approved by the Federal Transit Administration before going to the MTD Board for a vote.