DeKALB, Ill. — The DeKalb City Council on Aug. 25 directed the city manager to prepare an ordinance for a proposed 10‑year revenue‑sharing agreement that would rebate up to $2 million in hotel‑motel tax for a planned Marriott‑branded TownePlace Suites and Fairfield Inn on Peace Road. The developer has site and building plans and is preparing to begin construction, city staff said. City Manager Nicholas told the council the proposal is being brought for discussion and, if the council directs, staff will return with a formal ordinance at the next regular meeting.

The proposed project would sit on about 2.5 acres and include roughly 120 rooms, split “roughly equally” between standard‑stay and extended‑stay units, according to the city manager’s presentation. The revenue‑sharing proposal before the council would not exceed $2,000,000 over a 10‑year term. The benefit would be front‑loaded: 90% in year one, 80% in year two, 70% in year three, 60% in year four and 50% from years five through ten; the agreement would end earlier if the $2,000,000 cap is reached.

Why it matters: council members said more hotel rooms could allow DeKalb to host larger events and keep visitors’ spending in the city. Alderman Larson said the developer has invested in DeKalb repeatedly and that expanding room supply would help the community attract events and generate property‑tax and hotel‑motel tax revenue for the city and other taxing bodies.

City staff noted the hotel‑motel tax is currently part of DeKalb’s general fund and described a straightforward reimbursement process: once the city receives hotel‑motel tax payments, staff would remit the agreed revenue share within 60 days. The city manager also said the developer is already pursuing state enterprise‑zone benefits that can reduce sales tax on construction materials but that local property‑tax abatement tools do not apply to commercial hotel projects.

Council members who spoke at the meeting expressed support for drafting the ordinance. Alderman Larson said, “this is your third time that you've chosen DeKalb to invest in our city,” and argued the additional rooms will bring more visitors and related economic activity. Alderman Vergic called the incentive “very reasonable” given project scale, and Alderman Zaza echoed support.

No formal vote to approve incentives occurred on Aug. 25; the council’s action was a direction to staff to prepare and return an ordinance for formal consideration at a future meeting. If the council votes on an ordinance, the council record will show the formal motion and vote tally.