Monthly Archives: January 2006

Blogosphere, Peoria Mayor, Radio

Open Forum: What did you think of the State of the City address?

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WCBU (89.9 FM) is replaying Mayor Ardis’s State of the City address tonight at 7:00, followed by an interview with Bill Dennis and me on our reaction to Ardis’s address.

One of the things I love about blogging is the dialogue that takes place in the comments section.  I learn a lot from those who reply to my posts, so I want to open up this post for your reaction to the State of the City address.  What did you like about it?  Was there anything that disappointed you?  Do you think the city is on the right track?  Feel free to also comment on Bill’s and my interview on WCBU tonight.  I look forward to reading your insights.

Blogosphere

New Peoria Blogger

No one knows more about trains–specifically Peoria trains–than my friend David P. Jordan. I’ve been part of the PeoriaRails Yahoo Group for quite some time now and have enjoyed his insight into this little-reported part of Peoria’s transportation system.  Now David has established his own blog to report “news, information and analysis of local rail transportation issues.”  As a bonus, he will also be covering commercial aviation issues.

This is a very welcome addition to my blogroll.

Kellar Branch

Why hasn’t Peoria fired Central Illinois Railroad Company?

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Let’s recap Central Illinois Railroad’s less-than-stellar operation in Peoria.

The Contract.  On April 27, 2004, the City of Peoria signed a contract with Central Illinois Railroad Company (owned by DOT Rail Service of LaSalle, Ill.) to replace Pioneer Industrial Railway as the common carrier provider on the Kellar Branch.  There was quite a bit of delay as Pioneer contested this with the Surface Transportation Board, but the City won their case, partially on the premise that “[t]here is no evidence that [Central Illinois Railroad Company’s] rail service on the Branch would be inadequate in any respect,” and Pioneer left the line in mid-August 2005.

Solicitation for Murder.  On May 12, 2005, the owner of DOT Rail Service, Donny Lee Gibson, was arrested and charged with a Class X felony solicitation of murder for hire. Gibson, 65, wanted to have his 28-year-old girlfriend killed before his wife found out about her.  He copped a plea this past Tuesday, pleading guilty to a Class 1 felony solicitation of residential burglary charge instead.  That’s punishable by four to fifteen years in prison.

Runaway Train and Derailment.  On August 27, 2005, the Central Illinois Railroad Company, on their maiden voyage up the Kellar Branch to make a delivery to Carver Lumber, lost traction and sent the load backwards down the line at 30 mph — dragging the “engine” with it (they didn’t actually use a real engine, but rather a Trackmobile which has insufficient power for the Kellar’s steep grade).  The speed limit for trains within the city is 10 mph.  The runaway train went through several grade crossings — including such busy streets as Abington, Madison, Jefferson, and Adams – endangering Peoria motorists. Miraculously, no one was hurt.  The runaway train derailed when it hit other cars parked near the switch that connects the Kellar Branch to the Tazewell & Peoria line (TZPR).

Breach of Contract.  Since the derailment, no shipments have been made to Carver Lumber by Central Illinois Railroad Company.  That puts them in breach of contract, as their agreement with the city specifically states:

Article 11. Level of Service. DOT shall pick up and deliver cars within twenty-four (24) hours after being notified by the P&PU that the cars have been placed on the Kellar Branch.

Carver, in its filing with the Surface Transportation Board this month, said they’ve been forced to have their lumber delivered via truck — at an additional expense of $25,000 — because no deliveries are being made by Central Illinois Railroad Company. 

City Response.  In a letter from Peoria Public Works Director Steve Van Winkle dated November 10, 2004, he assured Carver Lumber there would be no interruption in their rail service, and that if there was, “[t]he City stands ready and willing to enforce all aspects of its contract with DOT….”  He went on to say, “The City has the ability, under its agreement with DOT, for all legal remedies up to and including termination which would allow the city to replace their service with another company.”

According to the contract, if Central Illinois Railroad Company does not perform its duties under the contract, and if that default continues for sixty days (two months) after receiving written notice from the city, the city can terminate the contract.  The derailment — the first instance of Central Illinois Railroad Company’s default — occurred in August 2005, a full five months ago. 

That means they’ve been in breach of contract for five months, costing Carver Lumber — a local business since 1946 — over $25,000 in extra shipping costs.  Why isn’t the city enforcing its contract with Central Illinois Railroad Company and fulfilling its promise to Carver that rail service would not be interrupted?

Why hasn’t the City of Peoria fired Central Illinois Railroad Company?

Peoria Mayor, Peoria Public Schools

A-B-C-D-E-F-G-H-I Wanna Be Like Kalamazoo

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Another plan I will pursue this year is one we may call the “Peoria Promise.” It is based on a similar successful program in Kalamazoo, Michigan. The premise is this: Any student graduating from Peoria’s Public Schools will be eligible for a scholarship to any Public University or College in Illinois. Maybe it will give those graduating in the top 10% of their class a chance to attend Bradley. How does it work? The scholarships would be available to anyone who has been in the Public Schools at least four years at the time of graduation. The amounts are dispensed on a sliding scale, with those who have been enrolled since kindergarten eligible for one hundred percent of their tuition costs. How will it be funded? Through anonymous donors…like in Kalamazoo. What will be the impact? I believe that you will see colleges and universities competing for our students. And, I also believe that you will see the program result in more businesses, jobs and homebuyers being attracted to our area, creating the need for more schools and good teachers. Is this pie-in-the-sky? Am I being unrealistic? Can Peoria do this? Can we duplicate Kalamazoo’s success, where the benefactors underwriting the scholarships have promised funding for at least the next 13 graduating classes? Can we make this happen — right here in Peoria? You tell me. I believe we can and I invite anybody in this room with an interest to contact me.

–Jim Ardis, State of the City Address, 25 January 2006

With that, Mayor Ardis laid down the gauntlet to bring “The Kalamazoo Promise” to Peoria. I decided to familiarize myself with Kalamazoo’s program a little bit so I could better understand how it might play in Peoria.

The Kalamazoo Promise was first announced just two months ago, on November 10, 2005. It caused quite a stir in Michigan and, later, nationwide. Grand Rapids’ WOOD-TV channel 8 has a good archive of stories on this topic, and provide this concise explanation of the program:

Eligibility for this program is based on how long the student attends Kalamazoo public schools.

To receive any assistance, a student must live in the Kalamazoo Public School District and would have had to attend since at least ninth grade. Sixty-five percent of that student’s tuition would be paid.

The scale goes up from there, with eighth graders receiving 70 percent of their tuition paid, 75 percent for seventh graders, 80 percent for sixth, 85 percent for fifth, 90 percent for fourth, and 95 for first through third graders. Students attending schools in the district from kindergarten through high school graduation will have 100 percent of their tuition and fees paid.

It’s easy to see the advantages of such a program. Like Ardis said, it rewards starting and staying in the school district — the longer you stay, the more you benefit. That gives a strong incentive for parents to put their children in public schools, and a larger student population also means more state and federal funding. It’s conceivably strong enough to motivate parents to move into the school district, which would help housing sales and population density, and that means higher property tax revenues, which means more money for the school district.

In fact, that’s just what has been happening in Kalamazoo in just the last two months. “Kalamazoo Public School Superintendent Dr. Janice Brown says more than 200 students have enrolled since The Kalamazoo Promise was announced in November,” according to a report on WOOD-TV today. WZZM-TV 13 (Grand Rapids) reports that real estate agents are using the Kalamazoo Promise as a marketing tool to sell homes, and that a local developer “recently spent $7 million dollars on land in the Kalamazoo School District, to build new homes.” It’s too early to see any impact on home sales, but Kalamazoo is poised to grow.

Of course, all this only works if there is funding. In Kalamazoo, the funding is coming from a group of anonymous donors. The Journal Star erroneously reported the Promise is “funded through a private foundation. There, nearly $15 million in scholarships has been awarded to 3,800 area students over the years.” They were referring to the Kalamazoo Community Foundation which has awarded scholarships to Kalamazoo students, but has not claimed to be the Promise donor. How much will it cost? Nobody knows for sure, but it’s been estimated to cost “$12 million a year by the time four graduating classes are in college.”

A “Peoria Plan” would cost considerably more, since Peoria’s public school district has about 4,200 (40%) more students than Kalamazoo’s (14,700 vs. 10,500). And the cost could be even higher than that, considering an extra wrinkle in Ardis’ plan that differs from Kalamazoo’s. Students cashing in on The Kalamazoo Promise can only choose to go to a state university or community college. Ardis proposes “giv[ing] those graduating in the top 10% of their class a chance to attend Bradley [University].” That’s a difference of roughly $10,000 in tuition for each student.

So, from where is the funding going to come for the proposed “Peoria Plan”? Ardis wants it to come from private donors, just like in Kalamazoo. Well, it would be wonderful if a group of anonymous donors would come forward unsolicited like they did in Kalamazoo. I think it will be harder to get someone (or some ones) to take up the challenge here. But maybe I’ll be proven wrong. I hope so. It actually sounds like a great idea if the private funding comes through.

City Council, Peoria Civic Center

How about if Peoria buys the naming rights?

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I got to thinking about my last post, and I have an idea.

Do you remember how the federal government regulated speed limits in the ’70s?  They told states they could have any speed limit they wanted, but if they wanted federal money to maintain the roads, the speed limits had to be no faster than 55 mph.

Suppose the City Council were to pass an amendment that says the Civic Center Authority can name the venue and arena whatever it wants, but if it wants HRA tax revenues, it will have to be named the “Peoria Civic Center” and “Carver Arena”?  Doesn’t that sound fair?  That way, if they can wean themselves off HRA taxes, they can sell the naming rights.  But as long as they’re operating on taxpayer dollars, the taxpayers get to decide the name.

I think we’ve earned that right, don’t you?  According to the Journal Star’s editorial today, HRA taxes amount to $55 million.  Here’s an issue where I agree with the Journal Star — the Civic Center should scale back their plans instead of selling the naming rights.

Peoria Civic Center

Naming the Civic Center

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The Journal Star reports that any renaming of Carver Arena may need City Council approval. Whether or not that’s true, what do you think of selling the naming rights for the Civic Center and Carver Arena?

I personally think it stinks.  The reason they need to sell naming rights is because they don’t have enough money, which begs the question, “why are they expanding if they don’t have enough money?”  I thought the Civic Center was supposed to become self-sustaining, eliminating the need for the HRA tax.  Now, not only do we get to continue paying these taxes, we won’t even be able to call the place the “Peoria Civic Center” much longer.  If they’re that short on funds, they should scale back their expansion plans rather than strip the venue of its names.

O’Brien Automotive pays $150,000 a year for naming rights on the ballpark.  Haven’t Peoria area residents paid enough in HRA taxes to earn having the name of our city on the Civic Center?

City Council, Television

State of the City

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Mayor Ardis delivered the State of the City address today at the Holiday Inn City Center.  HOI News and 1470 WMBD each have good reports. If you’d like to see it for yourself, Insight Communications will be rebroadcasting it tomorrow, January 26th, at noon on cable channel 22.

UPDATE: Jonathan Ahl has informed me that a podcast of the State of the City address is available from www.wcbufm.org. WCBU (89.9 FM) will also be rebroadcasting the address at 7 p.m. Tuesday, January 31.

UPDATE 2: The Journal Star has a PDF of the speech on its site.

Kellar Branch

More propaganda from the Journal Star

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There are few things in today’s Journal Star editorial about the Kellar Branch that deserve a response:

The park district, unable to act, has watched about half of a $400,000 state grant evaporate.

It’s worth pointing out that the park district applied for that money prematurely–before going to the STB, building the spur, etc.  It’s their own fault that they jumped the gun and are paying the consequences now.

. . . the lumber company is temporarily shelling out more for truck service . . . 

This is the only reference, vague as it is, to the fact that Carver has incurred over $25,000 in additional costs for truck service. Why didn’t they put the numbers in their editorial?  They didn’t have any trouble mentioning the $400,000 grant the park district is concerned about.

. . . it has Pioneer to blame for blocking early construction.

Ah yes, it’s all Pioneer’s fault!  I’m not about to contest the fact that Pioneer did in fact delay construction, but they’ve been off the tracks since August 2005.  What’s their excuse for the past five months?  At least while Pioneer was delaying construction, they were making deliveries to Carver.  Now that construction is not delayed, Carver’s getting no shipments at all.

Besides that, this editorial leads people to the false conclusion that the reason Carver isn’t getting shipments is because the western spur isn’t finished.  That’s misleading.  The reasons they aren’t receiving shipments is because (a) Metroplex tore up a part of the line where the spur meets the Kellar Branch, so no trains can cross, and (b) the city’s carrier, Central Illinois Railroad, can’t get the rail cars up the steep incline of the Kellar Branch. And did I mention because they’ve never made a sincle shipment to Carver, they’re in breach of contract with the city?  I wonder what action, if any, the city is taking against them for that. 

Central Illinois Railroad and long-hauler Union Pacific have some physical stumbling blocks to sort out.

This is excessively vague. What do they mean by “physical stumbling blocks”? Do they mean the junction the city is building where the western spur meets the UP line that will only allow for cars to be dropped off by north-bound trains?  Or do they mean CIRY’s inability to secure trackage rights to run a train to the western spur on the UP line?

U.S. Rep. Ray LaHood, who has worked diligently to get the trail going, has again offered to help.

And by “help,” they mean “help the park district get its beloved trail.” It’s gotta make a business like Carver feel good to know their own congressman is siding against them.

As usual, the problems with the city’s carrier (CIRY) and contractor (Metroplex) are glossed over and the plight of Carver Lumber is minimized.

Ray LaHood

Firefly Energy given military contract via controversial “earmark”

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The Associated Press reports that Peoria-based Firefly Energy, Inc., has “landed a $2.5 million contract to develop its new generation of lighter, more powerful batteries for the military.”  Firefly is a pretty new company, founded in May 2003.  They use technology developed by Caterpillar to replace the lead plates found in batteries with a lighter, longer-lasting, and more ecologically-friendly material.

The part of the AP report I found interesting, though, was this:

LaHood said he secured Firefly’s contact through an addition to the defense bill known as an “earmark.” The practice has drawn criticism during recent debate over ethics reform because opponents say it breeds corruption, providing millions of dollars for lawmakers’ pet projects.

“Earmarks” are getting a lot of press these days. Congressman Joel Hefley (R-Colo.) gave his “Porker of the Week” award to Congress for earmarks in the federal transportation bill for “the bridge to nowhere“ last November. The bridge in question costs $320 million and connects the town of Ketchikan (pop. 8900) with the island of Gravina (pop. 50) in Alaska. And it was John McCain (R-Ariz.) who said that earmarks “breed corruption.”

Being a curious person by nature, I wanted to find out how these dastardly “earmarks” get into bills in the first place. It appears no one knows except congresspersons and lobbyists. But somehow, through some secret process, members of Congress can direct money to individual companies by inserting these “earmarks” into huge appropriations bills. The earmarks are not debated and thus need not be defended.

So, I guess the question we have to ask ourselves is, do the ends justify the means?  Obviously this military contract for Firefly is good for Peoria, but I imagine the bridge in Ketchikan is good for the economy there, too.  Where do we draw the line?Â