Project leaders behind a new Marriott-branded hotel are getting a boost from the city of DeKalb.

At its meeting this week, the DeKalb City Council voted in favor of a tax-sharing deal to help make the new build possible at 902 Peace Road, between the Bumper to Bumper auto parts store and the Fast Stop Express gas station.

Once it’s built, the hotel will consist of 61 rooms branded as Fairfield Inn and Suites by Marriott and 59 rooms branded as TownePlace Suites by Marriott, all of which will share the same lobby, front desk, meeting room, and swimming pool.

The applicant, Pramit Patel of EO5 Hotels, had approached the city to propose a hotel tax-sharing agreement to help with an additional $4 million in construction costs for the $23.2 million build. Patel pointed to tariffs and inflation as a reason for the unexpected costs, according to city documents.

City Manager Bill Nicklas urged the City Council for its support.

“The Peace Road hotel, which is what it’s doing business as, has already qualified for state-level exemptions on sales tax for building materials,” Nicklas said.

The deal, as approved, allows for a 10-year arrangement for sharing or distributing hotel-motel tax, with payment of revenue to the company payable at 90% the first year, 80% the second year, 70% the third year, 60% the fourth year, and 50% every year thereafter until the deal expires. The maximum payment over 10 years would not be allowed to exceed $2 million over the life of the agreement, according to city documents.

“The motel tax would be paid solely from this particular hotel complex’s revenues, not generally across the city from other facilities,” Nicklas said.

After reaching a consensus on this topic at a council meeting last month, DeKalb city leaders this week voted unanimously in favor of establishing the hotel-motel tax-sharing agreement. Second Ward Alderwoman Barb Larson was absent.