Hoffman Estates closer to hotel tax hike

Hoffman Estates trustees Monday night gave preliminary approval to an increase in the hotel tax.

The 1 percentage point tax increase, going from 5 percent to 6 percent, will generate $230,000 for the village from its eight hotels, village officials say. The extra revenue would be seed money for the Northwest Suburban Chicago Sports Council, a marketing group established this year to bring amateur athletics to venues including the Sears Centre in Hoffman Estates.

The group could help position the village to host events if Chicago earns the 2016 Olympic bid, but also will help draw events like last weekend's NCAA Chicago Invitational Challenge men's basketball tournament at the Sears Centre. Village Manager James Norris said the event was a success, even though the University of Illinois did not participate as the Illini did last year, which drew local interest.

Last month, the village board promised $20,000 in seed money to get the council started. That figure has been revised to $50,000 factoring in the new tax.

The hotel tax would also help pay for a Hoffman Estates Tourism Guide, which would be like the Greater Woodfield Chicago Northwest Convention Visitors Guide. The eight-page guide would be updated six times a year and cost about $35,000 to print.

The money would also help start the Web site visithoffman.com, as well as other marketing strategies, including investigating the feasibility of holding a summer festival on par with the Taste of Chicago or Naperville's Rib Fest. Money would also go toward signage for the entertainment district, which includes the Sears Centre and the planned outdoor Prairie Creek Music Theater.

The tax was initially established in the early-1980s for the Red Roof Inn, Mayor William McLeod said. Conditions have changed drastically from back then, McLeod said.

"We did it just to generate money back then," he said.

Norris said the village met with hotel officials recently and came up with the tax increase together. The tax would go into effect in January if formally approved by the village board on Dec. 3. In addition, there are plans for three hotels for the village.

The Hoffman Estates Park District has also pledged $8,000 to the council.