Peoria Chronicle Endorsements — Public Facility Sales Tax: No

Much has been written on this, both in my blog and at the NoMuseumTax.org website, so I won’t go through all the standard arguments again. What I would like to do briefly is respond to a few of the more common rebuttals I’ve heard.

  • First, there is the rebuttal that absent this museum plan, the block will remain vacant for years to come. Museum supporters base this belief on their assertion that the block has been vacant for fifteen years, and if anyone had wanted to develop it, it would have happened by now. The premise is completely false. Sears closed their downtown store and moved to Northwoods Mall in September of 1998, which is about ten and a half years ago, not fifteen. Plans to put a history museum on the block surfaced the same year, before Sears even closed its doors. Furthermore, the City of Peoria bought the Sears block in July of 1998 — also before the store closed. The city, on the advice of the Riverfront Business District Commission, started the process of putting out requests for proposals on the site in March 2000 to see what private developers would be interested. In July 2000, they aborted that process, deciding instead to wait until a “comprehensive study of the downtown” could be completed. That study came in 2002 and is called the Heart of Peoria Plan. Yet, after the plan was completed, the City didn’t put out RFPs based on that plan, they just gave the bock to the museum in September 2003 when they signed the first redevelopment agreement. The block has been locked up ever since. This block, which has been described as the “crown jewel” of Peoria and the most valuable piece of property in downstate Illinois, will most assuredly be redeveloped if the museum proposal doesn’t pan out. Given the state of the economy, it will likely take a little time for mixed-use development to happen, but I’ll bet a lot more is built in six years of private development than has been built in the last six years while we’ve been waiting for the museum to get its act together.
  • Second, there’s the rebuttal that any development on the block will require a public subsidy, so why not just give it to the museum? I won’t dispute that some public subsidy will be needed, if for no other reason than that the council has set a precedent of handing out subsidies like candy. The question is how much of a subsidy, and how much of a return for that subsidy can we expect? This sales tax is only the latest in a long list of subsidies the museum has already been given. They’re being leased the land — which is estimated to cost several million dollars alone — for $1 a year. They’re in a tax increment financing (TIF) district. They’ve been promised no small amount of public infrastructure improvements around the block, most notably on Water Street. And the City of Peoria is going to own, operate, and maintain the underground parking deck once it’s built. Then there are all the state and federal funds the museum has received. Yet on top of all that, they want $40 million more in public subsidy from the county. And this is for a private, not-for-profit business that will charge admission and pay no property or sales taxes itself. If the city were to give the land to a private developer along with the existing TIF incentive, I bet that would be enough subsidy without having to tap the taxpayers for $40 million extra in bonds. Plus, we’d increase the property tax base and bring in sales tax to boot.
  • Third, there’s the Civic Center rebuttal. It sounds like this: “Can you imagine Peoria without the Civic Center? It was built in hard economic times, too, and now look at what an asset it is to the community! This is our generation’s ‘Civic Center’ moment.” The problem with this argument is that our generation has already had its “Civic Center moment.” Our generation just borrowed and spent $55 million to expand the Civic Center, plus we’re spending another $40 million to put an attached hotel next to it. That’s a total of $95 million in public investment. This was also supposed to stimulate our economy and make us a tourist destination. How quickly that’s been forgotten. How many “Civic Center moments” can we afford? Think about it. At the same time supporters want us to raise taxes for an “education and entertainment” complex, the city is talking about laying off police officers and cutting road maintenance in half, and our local school district is closing schools right and left. What’s wrong with this picture?

Finally, the idea that a “yes” vote will somehow prove that Peoria “believes in itself” is nothing more than touchy-feely marketing spin. Peoria believes in itself. Look around. Peoria has all kinds of educational and entertainment opportunities: the recently expanded Glen Oak Zoo, Wildlife Prairie State Park, the Peoria Civic Center, multiple movie theaters, Cornstock Theater, Peoria Players, Peoria Chiefs baseball, Bradley basketball, Rivermen hockey, Peoria Pirates indoor football, and yes, even Lakeview Museum. Many of these have been done with large amounts of public investment. To chastise taxpayers as uninterested in quality of life issues if they reject this latest tax after all the money they’ve poured into these projects is an insult to Peoria’s residents.

Don’t be fooled. A “no” vote on the sales tax is an honorable vote. It reflects not only fiscal responsibility, but also faith in the community — faith that we can do better, that we can be patient in achieving our vision, and that we can work together to build a better block for all Peorians.