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ECONOMIC & COMMUNITY DEVELOPMENT DEPARTMENT <br /> No. 2026-6 <br /> January 20, 2026 <br /> TO: Mayor Julie Moore Wolfe and City Council Members <br /> FROM: Melissa Hon, Interim City Manager <br /> Lacie Elzy, Economic & Community Development Director <br /> SUBJECT: A Resolution to Induce the Redevelopment Located at 250 North Water <br /> Street, Commonly Referred to as the Citizens-Barnes Building. <br /> SUMMARY RECOMMENDATION: Staff recommends approval of the attached <br /> Inducement Resolution authorizing the City to begin negotiations for a future <br /> Redevelopment Agreement related to the proposed redevelopment of the Barnes-Citizens <br /> Building at 250 North Water Street. This action does not obligate the City to provide <br /> funding or approve incentives. <br /> BACKGROUND: The Barnes-Citizens Building, located at 250 North Water Street, is <br /> within the Central TIF Redevelopment Project Area and has been identified as a priority <br /> site for redevelopment. The building is currently owned by the Best-4-Best Land Trust <br /> and has remained underutilized. <br /> Decatur Management Services, LLC has proposed redeveloping the property into a <br /> boutique hotel known as The Treasury. The project would involve rehabilitation and <br /> adaptive reuse of the existing structure into a mixed-use development featuring an <br /> approximately 120-room hotel, residential apartments, restaurant and coffee bar, <br /> conference and meeting space, and related hospitality amenities, supporting downtown <br /> revitalization, tourism, and private reinvestment consistent with the adopted Central TIF <br /> Redevelopment Plan. <br /> This inducement resolution is a procedural step required to preserve the City's ability to <br /> consider eligible redevelopment costs under Illinois Tax Increment Financing law. <br /> Approval of this resolution: <br /> • Signals the City's preliminary intent to consider redevelopment incentives <br /> • Authorizes staff to negotiate a potential Redevelopment Agreement <br /> • Preserves eligibility for certain project costs should a future agreement be <br /> approved <br /> Importantly, this resolution does not approve funding, commit TIF resources, or authorize <br /> execution of a Redevelopment Agreement. <br /> POTENTIAL OBJECTIONS: There are no known objections. <br /> STAFF REFERENCE: Should the City Council have any questions, they may contact, <br /> Lacie Elzy at 542-3559 or lelzy@decaturil.gov <br />