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Council Approves 10-Year Hotel-Tax Rebate for Peace Road Hotels LLC

September 08, 2025 | DeKalb City, DeKalb County, Illinois


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Council Approves 10-Year Hotel-Tax Rebate for Peace Road Hotels LLC
The DeKalb City Council voted Sept. 8 to approve a hotel-tax rebate agreement with Peace Road Hotels LLC to support construction of a four-story, 120-room Marriott-branded hotel complex at 902 Peace Road. The resolution passed by roll call, with a 7–0 vote in favor.

Why it matters: The rebate is intended to help offset development costs and incentivize a branded hotel that the city says will expand lodging options and capture hotel-motel tax revenue locally.

Terms and scale: The developer will receive a share of hotel-motel tax revenues from that facility for a 10-year period, with a descending distribution schedule (90%, 80%, 70%, 60%, 50% and 50% for the remaining years). The total rebate is capped at $2,000,000; payments would come only from this hotel’s receipts and be paid within 60 days of the city’s receipt of the tax proceeds. City staff said the developer had already qualified for a state sales-tax exemption on building materials under the DeKalb County enterprise zone.

Project details presented: City staff said the project will include 120 rooms (61 standard-stay and 59 extended-stay rooms) and sit on about 2.5 acres at 902 Peace Road. The project has been before the council in development form since August 2024. The developer, represented in the audience by Mr. Patel, told council members he plans to proceed with construction and the city welcomed the investment.

Council action: The resolution (2025-581) to bring the hotel-tax rebate to the floor was moved by Alderman Smith and seconded by Alderman Susada; after staff presentation and brief discussion the council approved the agreement by roll call with seven aye votes.

What’s next: The city will administer rebate payments from tax receipts and is authorized to request relevant tax returns to confirm proper distributions. The rebate stops if cumulative payments reach the $2 million cap before the 10-year term concludes.

(Reported from the Sept. 8 DeKalb City Council meeting.)

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