Peoria officials are advancing a proposal designed to increase tourism and hotel occupancy through a new tourism improvement district. The City Council approved a resolution of intent this week, beginning the formal process for a district funded by a 1.5% assessment on short-term hotel room rentals. A public hearing is scheduled for Sept. 8.
Key takeaways
The proposal has received support from a majority of participating hotel owners, but some council members remain concerned about adding another tax or assessment.
- The proposed Peoria Tourism Improvement District would apply a 1.5% assessment to short-term hotel stays.
- Revenue would support tourism marketing and programs intended to attract overnight visitors.
- Twelve hotels submitted petitions of support by the end of June, meeting the required threshold.
- The City Council set a public hearing for Sept. 8.
Council advances district proposal
The council’s action does not formally establish the district, but it moves the proposal into the next phase. Creation of the district requires support from more than half of the hotels that would be subject to the assessment. City officials said 12 hotels had submitted petitions, satisfying that requirement.
Mayor Rita Ali said the hotel owners’ support was an important consideration. She said the owners believe the initiative could increase tourism and hotel business rather than harm their properties.
Debate centers on taxes and outside spending
Council member Alex Carmona removed the item from the consent agenda to raise concerns about creating another charge. He argued that higher taxes and costs could make Peoria less competitive with neighboring communities and objected to what he described as a broader trend of creating additional districts and revenue mechanisms.
Council member Mike Vespa offered a different perspective, saying the assessment would be paid by visitors from outside Peoria. In his view, the money could help attract more visitors, creating a cycle of increased spending and additional tax revenue for the city.
How the money could be used
Discover Peoria, the region’s convention and visitors bureau, would administer the revenue under the proposal. President and CEO JD Dalfonso said spending decisions would be made through a board representing hotel ownership, rather than solely by the city or the visitors bureau.
Potential uses include marketing campaigns, efforts to attract youth athletic tournaments to facilities such as the Louisville Slugger complex, and support for programming at the Peoria Civic Center. The central goal would be to generate more overnight stays.
Peoria seeks an early position in Illinois
Dalfonso described tourism improvement districts as an established model used across the country. If approved, Peoria would become the first Illinois municipality outside Chicago to create one, according to Discover Peoria.
Other Illinois-area communities, including Rockford, Champaign County, the Quad Cities and Bloomington-Normal, are also considering similar approaches. Supporters say moving forward could help Peoria compete for visitors and events before neighboring communities adopt comparable programs.
The Sept. 8 public hearing will give residents, hotel operators and other stakeholders an opportunity to weigh in before the city considers final action.
