Category Archives: Museum Block

Museum “impossible” without federal earmark

PRM LogoWell, look who’s on the federal earmark bandwagon: Lakeview Museum.

Peoria’s Lakeview Museum has big plans for the empty Sears block in the heart of Downtown, but a museum official says they will be impossible without a federal earmark.

“It couldn’t be done,” Kathleen Woith said of trying to reach private fundraising goals to build the nearly $130 million Peoria Riverfront Museum, which officials hope to open in 2012. About $1.4 million for the project — which still faces a $24 million shortfall — is coming from federal earmarks that the museum received over the years.

It can’t be done without federal earmarks … and evidently it can’t be done with them, either. The truth is that federal earmarks are, as the article says, “nothing more than budget-bloating spending that amount to political pork.” And the museum is a perfect example of why earmarks should be eliminated.

First of all, one could argue whether federal dollars should be spent on local museums at all. But assuming the case could be made, federal money for local projects like this should be put into a grant fund to which cities could apply. Grants would be awarded based on criteria set by Congress — presumably awarding more money to projects with the most national interest. This would be a fairer, merit-based approach, and it would limit federal spending on these types of projects.

Secondly, one could make the case that earmarks are the reason this project is as bloated as it is, and why it’s failing to win popular support. The project started out as several smaller projects, each with its own plans and fundraising goals. They only combined efforts at the prompting of Rep. Ray LaHood. Why? According to a March 25, 2001, Journal Star article, “U.S. Rep. Ray LaHood has organized a Museum Collaboration Committee to encourage arts leaders to present a united front in the struggle to get federal dollars for a museum complex on the riverfront.” So because of the promise of federal pork, all our eggs are in one basket. If not enough money for the übermuseum is raised, all the individual projects fail along with it.

Finally, are we really supposed to believe that this project is impossible without federal earmarks? The earmarks amount to only $1.4 million, or one percent of the total cost of the project. I think if you took the Lakeview relocation portion out of the project, and came up with a smaller, urban design, you would have plenty of money for a history and achievement museum without having to take any federal money at all.

Peoria’s commitment to the museum so far: $16-26 million

Peoria LogoLakeview Museum Board President Jim Vergon said at last night’s museum presentation to the Peoria County Board, “Over the past four years, our project has received $6 million towards the $30 million goal for public funding, leaving a $24 million gap.” He said this included federal, state, and local support. Later, Caterpillar Vice President Sid Banwart drove home the point: “We’ve looked at a lot of museum complexes around the country and around the Midwest, and we have not been able to find any that were built without substantial public funding,” he said.

What you need to know about these statements is that these museum officials are talking about cash funds. They’re not talking about other benefits such as land use, TIF benefits, etc. In fact, the City of Peoria has provided what I would consider “substantial” public investment in the museum. How much public investment? The city provided these numbers:

The following provides the City’s commitment, as approved by the Mayor and Council, to this project. Please note this analysis assumes a 2009 completion date and does not include federal grant funding.

Land value (65% of $10 million)1 $ 6,500,000
TIF through 20212 $ 7,525,892
Change in grade of Water Street $ 2,600,000
Sub-Total $16,625,892
Potential Extension of TIF3 $ 9,408,615
Total $ 26,034,507

1Based on appraised value.
2Assumes completion of the Caterpillar Center and Regional Museum by 2009.
3The original agreement proposes an expansion of the length of the TIF. This assumes the TIF is extended 15 years from the current expiration date.

To his credit, Jim Richerson did mention these items during his presentation, although he didn’t give any total dollar amounts. The $6 million in “public funding” to which Vergon referred is in addition to the $16-26 million from the city outlined above. That fact should be kept in mind while considering the museum-backers’ request for $24 million more from largely the same taxpayers.

More on the Museum

Peoria County LogoSince I was attending our neighborhood association meeting last night, I was unable to attend the County Board meeting and hear the museum presentation. So I asked Patrick Urich, Peoria County Administrator, what happened. Here’s his account of the evening:

The Museum supporters came to the Board last night in force. Congressman LaHood opened by providing a historical account of where they have come from, Dave Koehler urged support for the project as a legacy project, Jim Vergon outlined the funding shortfall ($24 million), Jim Richerson presented the museum overview, Sid Banwart (Cat VP) stated that they have a significant commitment that will not go forward without the museum, Mark Johnson of Cat outlined what the Visitor’s Center would look like, Dan Silverthorn of the West Central Building Trades Council outlined the number of jobs and the payroll this would generate locally, and Dave Leitch closed by urging support. The challenge is that they would like an answer by mid-December.

Tim Riggenbach asked that the County staff review what options we have to assist and present that to the Finance Committee. The main issue is that as non-home rule county, we can only do what the statutes allow, unlike the City – which is home rule – who have the authority to raise taxes (HRA, sales, utility, property) by a simple majority vote. So our options are likely limited in the short term, but long term (which may mean forgoing the new market tax credits for now) we would work with the legislature to craft something that would have some sort of voter approval tied to it.

…We will also be putting the video up on our website. You can check today at http://www.peoriacounty.org/county/avmeeting

The best part of this report is the commitment to getting voter approval. If only other public bodies (*coughdistrict150cough*) would have such a commitment to inclusion.

Museum’s fate in the taxpayers’ hands

PRM LogoWEEK-TV reports that the Peoria Riverfront Museum is only going to receive four to ten million dollars in New Market Tax Credits — far, far less than the $100 million they were hoping to receive. Now there’s only one place left to get funding: the taxpayer.

So, museum officials appeared before the Peoria County Board tonight and asked for $24 million to plug the funding gap. Just for comparison purposes, the county collected $22.35 million in property taxes in 2006, and the proposed spending plan for 2008 is $122.1 million, according to the Journal Star. It’s a lot of money, and obviously it would have to be raised through municipal bonds.

How much would the repayment of those bonds be per taxpayer? I don’t know, but consider that the library referendum, which asked for bonding $35 million, would raise taxes by $50 per $100,000 equalized assessed valuation (EAV). Using that as a baseline, bonding $24 million could be in the neighborhood of $34 per $100,000 EAV. Granted, it might actually be less, since the library referendum was just for the city, and this request would include the whole county. On the other hand, most of the taxes in the county come from the city of Peoria, so it’s not going to be a whole lot less. [UPDATE: According to the Journal Star, “Museum backers say their preliminary figures indicate that…the cost to the owner of a $100,000 home would be about another $20 a year.”]

And the Museum officials need to know by the end of the year if the County is going to pitch in. That doesn’t give them much time to study or debate the proposal. And it certainly doesn’t give them enough time to have a referendum vote like the library did. The reason for the deadline? They have to have their funding in place by the end of the year in order to get that $4-10 million in New Market Tax Credits.

The Museum officials’ argument is that all museums receive public funding, and they were counting on getting $24 million in federal and state dollars that didn’t materialize. So, now the only public funding sources left are local, and the city council has made it abundantly clear they’re not going to consider any more requests for money from the museum folks. That leaves the County.

So, should the local taxpayers bail out the museum?

Believe it or not, I’m not inherently opposed to some public funding for a Peoria history museum. Further, I’m not inherently opposed to those funds coming from the county either, since I think such funding should be as regional as possible. But the question is, is this museum proposal fiscally responsible and worthy of public funding — specifically, $24 million in public funding?

I don’t think so, mainly for reasons I’ve detailed in this previous post.

Just as a thumbnail sketch, my primary concern is with the interior of the museum — it’s too small for the all the subject matter it wants to cover, even utilizing the vaunted “Delta approach.” There’s not enough storage space for artifacts. In fact, they would largely have to be stored off-site. It is, in part, a replacement of Lakeview Museum, which is unnecessary and unjustifiable.

Second, the exterior is completely objectionable. It is the antithesis of the type of development for that block that has been recommended by every consultant the city has hired from Demetriou to DPZ. The block should be urban in character, dense, and include a mix of uses including retail and residential components to make the block active 24/7. The museum’s plan is suburban in character, it leaves two-thirds of the block as open space, and is single use, making the block active only from 9 a.m. to 5 p.m. In fairness, there is a small retail component on the Water Street side in the plans, but (a) it’s not part of the initial phase, (b) it’s a very small portion of the block, and (c) there’s no residential component which is what would make the block active 24/7.

I have other concerns, but I don’t want to look like I’m piling on. Suffice it to say, I am opposed to using public funds for this museum plan. But I still think we need a Peoria History Museum (not a Peoria Art-Science-History-Achievement-And-A-Partridge-In-A-Pear-Tree Museum), and that the Peoria Historical Society should begin (resume?) working on such a project. It could be built on a portion of the Sears block, or it could be put in a remodeled/reused building somewhere downtown. I think there would be enthusiastic support for such a project if it’s focused, offers sufficient space, and has an attractive, urban design.

Museum Update: New Markets and IMAX

PRM LogoTime for an update on the Peoria Riverfront Museum project.

New Markets Tax Credits

On October 5, the U. S. Department of the Treasury awarded $3.9 billion in New Markets Tax Credits to 61 organizations. The Peoria Riverfront Museum will now try to get some of that funding for their museum project.

According to an August 29 Journal Star article, Lakeview Board Chairman Jim Vergon told the city council that “officials are waiting to hear if they can secure $100 million in New Market Tax Credits, which will generate the necessary $22 million needed for construction to begin.” It looks like they’ll have their work cut out for them.

Awards ranged from $12 million to $133 million for each organization. Each organization gives a brief description of the kinds of programs it’s interested in funding. A couple look like good candidates for the museum project: the Urban Development Fund, LLC (which was allocated $60 million), and USBCDE, LLC (which was allocated $125 million). However, I’m not sure how likely it is that the museum will get the $100 million they’re seeking, since it would mean getting a significant portion of one or more organizations’ allocations — and there is fierce competition for these funds.

The organizations have several months to dole out their New Market Tax Credit money, so the museum group doesn’t know when they’ll find out how much, if any, money they will receive.

If they don’t get enough of the New Market Tax Credit funds, they’ll be looking for other public funding. I’ve heard an unsubstantiated rumor that they’ve approached Illinois Central College about possibly using their bonding authority, but were turned down. Rumors persist that they’re looking for a way to access the Public Building Commission.

IMAX still a possibility

Last month, museum officials met with the folks from IMAX to talk about bringing the big screen theater to Peoria. Kathleen Woith, Vice President of Communications and Community Relations for Lakeview, had this to say about their progress:

Our visit to Toronto to talk with IMAX and see some of their new digital technology went very well. Negotiations continue, also, and we are very optimistic that the theater at the Peoria Riverfront Museum will be an IMAX.

As we continue negotiations with IMAX on leasing costs for their projectors and films, we are working with our architects and consultants to integrate the IMAX technology into the theater design. This is a very complicated process. Among the thing we are looking at are: how many seats and how far away from the screen, what angle will the seats be, how big will the screen be, what will be the projector location, how does digital technology affect 3-D films, and even how much do we pay for the hundreds of 3-D glasses we will purchase and how much will the 18-foot glass washing machine cost?

Operations costs also are being negotiated. How much will we pay for the IMAX digital movies? And how much will leasing costs be for the first-run movies at night.

Will it happen? If we successfully fund and build the Peoria Riverfront Museum, yes, we will have a “giant-screen” theater and it most likely will be an IMAX. Will it not happen? If we don’t fund and build the Peoria Riverfront Museum, we won’t have the theater.

We are very pleased with our progress with IMAX and are looking to a long and entertaining relationship with them.

Having an IMAX in Peoria would be awesome. I hope that becomes a reality, whether it’s the museum or someone else who brings it to town.

IMAX would be a boon to downtown

IMAX Theater LogoThe Journal Star is reporting that museum officials are trying to get an honest-to-goodness IMAX theater to come to town, instead of an “IMAX-like” theater. A real IMAX would be a big draw for locals and tourists alike, especially in the evenings after the museum closes, so I see this as a step in the right direction.

If they could score a 3D IMAX, it would be especially sweet. Just think of how many people would show up for “Harry Potter and the Order of the Phoenix” in 3D!

Museum hours: “9 or 10 a.m. to 5 p.m.”

One of the criticisms of the museum having the entire Sears block is that the block will be dead after the museum closes each night at 5:00. By having a mix of residential and retail, the block could be hopping around the clock.

Whenever that objection is raised, the rebuttal has always been along the lines of, “how do you know the museum will close at five? No one has ever said what the hours of operation are going to be. You’re assuming facts not in evidence!”

Not anymore. Councilman Bob Manning asked Jim Richerson point-blank what the new museum hours will be, and he answered that they will be the same as the hours now: “9 or 10 a.m. to 5 p.m.” He did say that the large screen theater “may” be open “later.” And that the museum “could” have “extended hours.” Maybe. Could. To only one thing did he specifically commit: “9 or 10 a.m. to 5 p.m.” So those are the hours, for the record.

Rumor mill: Museum “Plan B”

Tonight at the council meeting, Councilman Bob Manning asked the museum group what they would do if the New Markets Tax Credits funding didn’t come through, or if not enough of it came through for them to be able to move forward on the museum. As he put it, “What’s ‘plan B’?”

The answer he got from Jim Vergon, President of the Lakeview Museum board, was that they would go back to federal, state, and local governments and ask them again for help to make up the difference.

But I’ve heard a rumor that the real “plan B” is for the museum to get money through the Public Building Commission, which of course would be collected through property taxes, all without a referendum or any council action whatsoever. “How can that be,” you ask, “when they’re a private organization and not a public one?” The rumor mill says that Rep. Dave Leitch is already working on legislation that would take care of that problem. Hey, he did it for District 150 — who says he couldn’t amend the law again to allow a “public” museum? He got the city council to use public dollars to guarantee a private loan for Firefly Energy. I wouldn’t be too quick to pass this off as an impossibility.

Of course, this is all unsubstantiated rumor. Take it with a grain of salt… but keep an eye on your wallet just in case it turns out to be true.

PJStar: Museum “slightly less impressive”

The Journal Star’s Editorial Board has low expectations. How do I know that? Because they say in their editorial today that recent changes to the proposed downtown museum make it “a slightly less impressive facility, from a size and architectural standpoint.”

Slightly?

Since the original plans came out, the size of the museum has shrunk by over 25% (110,000 to 81,000 square feet), yet the price tag has remained the same. Fundraising has been stalled for months. The only architectural feature that could have been considered “impressive” — the floating globe in the glass box — has been axed. What’s left? This:

I would say the JSEB is easily impressed. They’re like the proverbial frog in the stove pot who lets himself be boiled to death because he doesn’t notice the gradual increase in temperature. The downtown museum has changed dramatically for the worse from what was originally proposed, yet the JSEB, et. al., focuses only on the incremental change and says it’s not that bad. It’s only “slightly less impressive.”

No, it’s not impressive at all. It’s not what Peoria was promised originally. It’s a bait and switch. It’s basically just moving Lakeview Museum downtown and adding a few permanent exhibits. And on top of it, they want to remove the retail portion of the plan — the only remaining vestige of the Heart of Peoria Plan (or Demetriou plan or any consultant’s plan for downtown).

As a friend of mine would say, “God love ’em for trying.” But that’s not the vision for the Sears block. That’s not even “slightly” the vision. If we’re going to focus on the “big picture,” as the JSEB exhorts, then let’s commit to getting the best development for that block instead of settling for mediocrity. I think we have enough mediocrity in this town.