The East Peoria City Council unanimously approved a deal to give up to $830,000 in property tax rebates to the developer of the Holiday Inn Express. Frontier Property Hospitality Group is building the hotel along the Illinois River on soil that was once an ash pond.
City Commissioner Gary Densberger says the tax rebates aim to offset the costs of foundation supports needed for the comprised soil.
“Our choice is to not share revenue with Frontier and let the property sit vacant and the taxpayers get nothing, or to complete the deal with Frontier,” Densberger said.
The nearly 100-room hotel would be located near Bass Pro Shops and could open as early as next spring.
Densberger says he anticipates the city would regain those funds from hotel tax revenues.
“Hotel-motel taxes are not paid by citizens, they’re paid by visitors," Densberger said. "Anytime you can play with somebody else’s money, that’s a good thing.”
Densberger says the city isn’t losing out on income because the property would otherwise have continued to sit vacant.