Joliet is considering more than $3 million in hotel tax incentives for a downtown Marriott Springhill Suites.
The incentives include $1.1 million in hotel tax rebates at a time the city is putting in place a hike in that tax rate to 10%, which starts Feb. 1.
Other proposed incentives include property tax abatements expected to total about $1.5 million over 21 years, a $250,000 city tax increment financing grant and waivers on $173,000 in building permit fees.
The sales tax rebates would be in effect for the first five years of business.
Joliet also would set aside public parking spaces for hotel guests.
The Marriott Springhill Suites is a $15.9 million project, according to the staff memo. The hotel is expected to generate $8.4 million in new tax revenue for the city over 20 years.
The developer is converting the former Barrett’s Hardware store at 65 N. Ottawa St. into a six-story hotel. The all-suites hotel would include 82 rooms, a first-floor restaurant, 1,500 square feet of meeting space, outdoor patio and fitness center.
The project would not be financially viable without city assistance, according to the staff memo to the Joliet City Council Economic Development Committee. The committee will consider the incentive package when it meets at 5 p.m. Tuesday.
The city also plans to provide the hotel with parking spaces at a city-owned lot and 45 reserved spaces in the Ottawa Street parking deck.
The project is being developed by Mike Patel, who has been in the hotel business in Joliet since 2012. His other hotels are Quality Inn & Suites, Comfort Inn North Joliet and Best Western Plus Joliet.