A group of Peoria hotel owners is asking the City Council to create a Tourism Improvement District that would charge a 1.5% assessment on short-term hotel stays. Supporters say the plan could raise about $700,000 in its first year to promote Peoria, attract overnight visitors and strengthen local tourism revenue.
Key takeaways
- Twelve hotel owners petitioned the city to establish the district.
- The proposed assessment would apply to short-term sleeping-room rentals.
- Discover Peoria estimates first-year proceeds of approximately $700,000.
- The council is expected to vote on the proposal Sept. 23.
- The council also approved additional housing funds and several police grants.
Hotel owners make the case for investment
JD Dalfonso, president of Discover Peoria, told council members that tourism investment has not kept pace with inflation or competition from other destinations. He said the district would give the city’s convention and visitors bureau a dedicated tool to market Peoria and generate more hotel business.
Dalfonso emphasized that the proposal would not require city funding. Instead, the assessment would be collected from participating hotel stays and used for tourism-related initiatives. Supporters argue that more overnight visitors would also produce additional hotel-tax revenue for the city.
The proposed district would initially operate for five years, with the possibility of renewal for as long as 10 additional years.
Supporters point to public-private model
Civitas Advisors, a consulting firm that has helped establish more than 200 tourism improvement districts nationwide, assisted with the proposal. Tiffany Gallagher, a company executive, described the model as a private-public partnership in which an assessment is dedicated to benefits for hotels and the city.
The 12 hotel owners who petitioned Peoria met the statutory requirement for moving the proposal forward, which calls for support from at least half of the entities subject to the assessment. An Illinois hotel industry representative said hotel participation and oversight are central to the district’s structure.
Rick Gaa, representing Petersen Hotels and the Louisville Slugger Sports Complex, said the sports facility has drawn roughly 3 million visitors over the past decade and generated an estimated $100 million in economic impact. He said increased tourism marketing would help Peoria compete as similar facilities expand elsewhere.
Some support comes with conditions
Travelodge owner Matthew Dees said he supports the proposal but urged city leaders to measure its performance. He said the assessment should be discontinued if it fails to bring more business to Peoria.
The City Council is scheduled to consider formal action at its Sept. 23 meeting.
Council approves housing and police funding
Separately, council members voted 9-1 to increase HOME-ARP funding for Phoenix Manor, a permanent supportive housing project planned for Krause Avenue. The $330,000 increase will help cover construction costs, including additional brickwork on the building’s exterior. Council member Denise Jackson, whose district includes the project, cast the only opposing vote.
The council also unanimously accepted several grants for the Peoria Police Department. The largest was a $2.5 million award from the Illinois Criminal Justice Information Authority to continue a co-responder pilot program supporting victims of violent crime and providing mental-health, relocation and vehicle assistance.
Other grants will support the Greater Peoria Auto Crimes Task Force, the purchase of 35 police helmets and an organized retail-crime initiative.
Nuisance-property proposal delayed
The council deferred a proposed update to the city code targeting chronic nuisance properties for 30 days. The delay will give staff more time to revise the measure.
Leslie Rothan of the Peoria Area Association of Realtors opposed the changes during public comment, warning that enforcement could raise rents and reduce the number of available housing units because of potential fair-housing concerns.
