If hotel moves in, East Dundee ready to collect

East Dundee trustees this week approved a tax on hotels which village officials say would be used to bolster the village's efforts in promoting itself as a tourist destination.

But the village won't be spending any revenue from the 5 percent tax on brochures or other promotional materials anytime soon.

That's because there are no hotels, motels, inns or lodges in the village.

"We want to have it on the books because there has been some interest from a few developers," Village President Dan O'Leary said. "If someone is planning on coming into the area then they can see what the taxes are. It could make a difference to come two miles up the road to Kane County instead of Cook County where the taxes are higher."

State statute caps the municipal hotel tax at 5 percent and mandates that those funds be used for tourism and destination promotion, O'Leary said.

Since the village does not have any lodging, O'Leary said it would be impossible to determine the amount of revenue the tax is expected to generate.

Still, O'Leary said, once the village designs and distributes promotional materials, the revenue would not be significant.

"We are dreaming right now because we don't have a hotel," O'Leary said. "But dreaming is what we are doing at this point."

Village Administrator Fank Koehler said developers have shown interest in the Santa's Village site on Route 25 in an area touted as Dundee Crossings. Koehler declined to identify the hotel chain, but said possible uses for the site ranged from a standard hotel to extended stay suites and inns.

"We are talking to developers but nothing is definite," said Koehler of the site that has laid empty since the Santa's Village amusement park closed its gates in 2006.

"We are just targeting any number of companies out there."