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Rockford committee advances process to form regional Tourism Improvement District
Summary
After a presentation and Q&A with hotel operators and consultants, Rockford aldermen approved a resolution of intent to begin the statutory process for a regional Tourism Improvement District that would levy a 2% assessment on stays at hotels of 45 rooms or more and funnel funds to Go Rockford for marketing and bid incentives.
The Planning & Development Committee voted to advance a resolution declaring the city’s intent to begin the statutory process for a Rockford Regional Tourism Improvement District (TID), a five‑year, industry‑led assessment the hotel sector says will fund marketing, events and destination development.
Tiffany Gallagher, vice president of Civitas, told the committee the model is a “special benefit assessment” that is collected by the city and remitted to a managing entity. “This is a 5 year term as mandated by law, cannot exceed 5 years on a 1st term,” Gallagher said, summarizing statutory limits and how the district plan must tie benefits to the levy. Michael Jacobson, president and CEO of the Illinois Hotel & Lodging Association, described the structure as “a lockbox fund that can't be diverted into other areas,” and noted petition support from about 26 of 31 impacted hotels representing roughly 84–85% of revenue in the proposed district.
Under the proposal presented, the district would cover hotels with 45 rooms or more in Rockford, Loves Park, Cherry Valley and South Beloit. The initial levy would be 2% on room nights, estimated to generate approximately $1.38 million annually; the city would retain a 1.5% administrative fee for collection. Gallagher and hotel representatives said the funds would be governed by a committee of lodging businesses under Go Rockford and would be subject to annual audits and reporting back to the city.
Aldermen asked about boundaries, how new hotels would be handled and whether the assessment effectively functions like an additional room fee for guests. Staff and presenters emphasized the district is industry‑initiated under state statutes (2023 TPSD law) and requires petition signatures from hotel operators to move forward to the public‑notice and hearing phase. The committee approved the resolution of intent and set the time frame to begin the required public‑hearing and notice process; the vote starts the 30+ day statutory window for public input.
