PEORIA, Ill. – Now that it’s under new ownership, the Peoria City Council will take up what’s been dogging the city for years: financing for the Hotel Pere Marquette that led to the original remodeling and reopening of the facility and its next-door neighbor.
The Peoria City Council Tuesday is scheduled to vote on approval of a redevelopment agreement (PDF document) with Texas-based Shreem Capital so that it can make improvements promised to the Pere, the Courtyard by Marriott, and the parking garage they share.
The city will provide sales tax rebates to cover portions of the renovation work, including on unused planned retail space.
The owners will still pay property taxes on the hotels – their value assessed at $44 million, but purchased for $20 million. The purchase by Shreem was announced in October.
The city, by the way, will continue to pay $1.5 million a year for the next 20 years to cover debt service on the bonds issued under previous ownership.
The city says the deal will be “beneficial.”
The hotel is part of a Tax Increment Financing District.
