The city of East Peoria is poised to move forward on a redevelopment agreement that will bring a new hotel to the riverfront. Frontier Hospitality has plans to build a $13 million Hilton Hampton Inn near the Bob Michel Bridge and the existing Embassy Suites.
The 90-to-110 room hotel would be in the Camp Street Tax Increment Financing (TIF) District and the East Peoria Enterprise Zone.
It will be eligible for a number of incentives, including up to 80% of the new tax increment generated by the completed property for 10 years, and up to $1.3 million in development reimbursement costs.
The development agreement was approved on its first reading with little discussion at Tuesday's East Peoria City Council meeting. It will come back for final approval on Nov. 19.
The hotel agreement has been in the works for over a year. In 2023, the city council approved giving the land away for free, contingent upon a mutually-beneficial redevelopment being hammered out.
Plans for a $13 million apartment complex in the same spot fell through.
Frontier Hospitality operates several other hotels in Illinois and Iowa, including the Residence Inn and Holiday Inn Express & Suites, also on the riverfront in East Peoria.
