Dixon City Council OKs incentives for Tru by Hilton development

DIXON – The Dixon City Council moved forward with incentives for the Tru by Hilton hotel development that will soon be built behind the Super 8.

In 2021, hotel developer Al Hill announced plans for a Tru by Hilton at 1806 S. Galena Ave., which will be four stories high with 82 rooms.

Hill, who built and co-owns the Quality Inn at 136 Plaza Drive, partnered with Dixon Super 8 owners Magan Patel and Nitin Patel to develop the Hilton. Plans were to break ground a year ago, but it was delayed because of increasing costs of building materials.

[ Dixon hotel developer getting close to breaking ground ]

The council approved a redevelopment incentive agreement Monday that includes a 50% property tax rebate for 10 years through the new Fargo Creek tax increment financing district. It also includes waiving the fees for building permits as well as for water and sewer connections and the cost of water meter equipment, City Manager Danny Langloss said.

“It’s go-time for them,” Langloss said. “This is well within an acceptable deal within the market for the development, and, but for this agreement, this project would not happen.”

The 40,000-square-foot hotel will have 14 full-time employees, eight part-time employees and 96 parking spaces.

Mayor Li Arellano Jr. said the city has been wanting to bring new hotels to town for years and previously had a hotel study done to show the need for the business.

“It’s a big deal to get to this point where it’s coming to a conclusion,” Arellano said.

Hotels add to the city’s tourism efforts and its ability to further market the vision for Dixon, he said.

Its go-time for them. This is well within an acceptable deal within the market for the development, and, but for this agreement, this project would not happen.”

—  Danny Langloss, Dixon city manager

Hill has constructed more than 100 hotels through the development firm Hillcrest Development Inc.

The Hilton won’t be the only new hotel coming to Dixon. Another hotel will be built in the Gateway Project commercial development footprint in the coming months across from Walmart on South Galena Avenue.