Civic Center TIF preposterous

They’ve got to be kidding.

The Civic Center Authority decided today “to ask the Peoria City Council next month to expand the Warehouse District TIF to include the site of a proposed hotel,” according to the Journal Star.

That’ll go over like a lead balloon. I can’t wait to see the council laugh the Civic Center Authority out of council chambers when this comes up. This is such a bad idea on so many fronts, it’s hard to know where to start.

Let’s start with the fact that TIF districts are for blighted areas, and the Civic Center just completed a $55 million improvement to their property. TIF districts have to pass the “but for” test: “But for the incentive provided by Tax Increment Financing, would development occur in the designated area?” At the Civic Center, they just completed $55 million of development on the site.

On that last point, here’s a little taste of their logic:

Without the [TIF] expansion there’s little chance the developer of a full-service upscale hotel attached to the Civic Center could be lured to build on the proposed site at the northeast corner of Kumpf Boulevard and Jefferson Avenue, officials said.

I hope this is not the argument they’re planning to use to show that they pass the “but for” test. That’s not how the test works. The test is whether there would be any development, not a specific development like a hotel. Otherwise, you might just as well put a TIF out at the Shoppes at Grand Prairie because “but for” a TIF they can’t get a Nordstrom.

Then there’s the fact that the City Council already turned down a previous attempt to expand the proposed Warehouse District and Eagle View TIFs. When the Peoria Housing Authority expressed interest in being included in the TIF, the Council essentially told them to take a hike. What makes the Civic Center Authority think the Council will look on them any more favorably?

I could go on and on, but let’s wrap this up with the pièce de résistance: This whole hotel issue is the result of poor planning at best, deliberate deception at worst. As I wrote in a previous post, the Civic Center Authority said this to the City Council in a letter last March:

The Peoria Civic Center Authority is not now and has not previously requested public funding for a hotel. We have always hoped that a private development would be interested by the Peoria Civic Center expansion and upgrade to come forward with a proposal. We hope that the community will enable such a development.

The Peoria Civic Center Authority is committed and continues to be committed to the success of the expanded facilities. We believe it can be successful without an attached hotel but more and larger regional opportunities will be possible if more and better downtown hotel rooms are available.

To come back to the council with their hand out less than a year later, before the mortar is even dry on their $55 million expansion, claiming that now they can’t be successful without a publicly-incentivized hotel connected to the Civic Center is irresponsible.

Broski to retire; Bradley free to move on to Western

“As long as I’m president, we will not move farther west than Maplewood,” Broski, 61, said in addressing [Arbor District] neighborhood fears that the landlocked school wants to keep expanding that way.”

— August 24, 2006, as reported in the Journal Star

In an e-mail sent to faculty and staff Thursday, David Broski said that he planned to retire in June.

— January 25, 2007, as reported by WEEK.com

That didn’t take long, now did it?

2007 Homicide #3: Domonique Alexander

Someone asked over on Billy’s blog what the big issue is going to be in this year’s at-large City Council elections. My answer: crime.

In a sad and unwelcome underscoring of my point, the Journal Star is now reporting on Peoria’s third homicide of the year. We’re not even out of January yet.

Peoria Police responded to the shooting at approximately 11 a.m. at 231 Hancock St. Apt. 309. The victim was reportedly shot in the head. …Police said no one is in custody, but they are interviewing witnesses.

With homicides evidently on the rise and the recent riot at Club 112 downtown in which police officers were attacked, I think any candidate forum is going to include a healthy number of questions about crime and what Peoria should be doing about it.

UPDATE: The Journal Star now reports that the teen is 16-year-old Domonique Alexander, a junior at Woodruff High School who was killed while he was sleeping.

RTA plans full of sound and fury, signifying nothing

The RTA (Rabid Recreational Trail Advocates) is on the rampage again. They’ve stepped up their efforts to convert the Kellar Branch into a dedicated trail. The article in the paper is full of interesting information on their efforts:

The group then voted to spend up to $10,000 to hire its own lawyer, and will set up meetings with U.S. Rep. Ray LaHood, R-Peoria, and Democratic U.S. Sens. Dick Durban [sic] and Barack Obama, to seek their backing.

Of course, the city has had their lawyer working on this issue for about 10 years, but sure, go ahead and waste your money on yet another lawyer. That and a dollar will get you a cup of coffee.

They’ll ask members to write the U.S. Surface Transportation Board, and will gather petitions signed earlier in favor of the trail to submit to local officials.

Do these people not realize by now that the STB exists to ensure competitive rail service is protected? They’re more concerned about Carver Lumber and new businesses that may be coming on line than the efforts of trail advocates to rip up rails and ties at any cost.

They also will talk with members of the Peoria City Council and Peoria Heights Village Board.

The Heights may be a linchpin in this debate. They don’t appear to be as sold on the trail proposition as Peoria has been thus far. If they pull out of the deal, it will be a dead issue.

The group discussed proposed new shippers on the line, and said they were located either south of War Memorial Drive on a part of the line that will not be turned into a trail, or at Pioneer Park where they can be served by the $2 million line the city built to serve an industrial park there.

This ignores the whole issue behind why the discontinuance proceeding was held up in the first place. The basis for Carver Lumber’s objection to shutting down the Kellar Branch permanently was that they were not getting comparable or competitive service via the western connection. Taking out any portion of the Kellar Branch, no matter how small, breaks Carver’s link to competitive rail service and leaves them hostage to Union Pacific’s rates. That’s going to be true of any new customers that come on line in Pioneer Park as well — they’re going to want competitive rail service via the Kellar Branch.

Elsewhere in the article, Rucker claims that the STB ruling is “highly favorable” to the RTA’s goals for trail use, and City Attorney Randy Ray says he’s heard that Union Pacific (UP) is working with Central Illinois Railroad to provide competitive service to Pioneer Park from the west. This shows a profound naïveté on both Rucker’s and possibly Ray’s part.

Rucker doesn’t know the difference between “discontinuance” and “adverse discontinuance,” nor does he understand what an “alternative service request” is, so he’s misreading the STB’s decision. Ray can’t seriously believe that any “agreement” worked out between UP and CIRY is going to have any long-term impact. UP still has a monopoly on service to the western spur, and though they could lower their rates today, they could just as easily raise them tomorrow. The only guarantee of competitive service is competition. Competition is only available via the Kellar Branch.

[Park District Director Bonnie] Noble said that both Peoria and Peoria Heights agreed to pursue the trail years ago, and contracted with the park district to build and maintain it.

I don’t believe this is true. The only contract I know of is this ground lease, and that is only between the City of Peoria and the Park District, not Peoria Heights. In any event, §2.2 states that the contract does not take effect until the STB rules to discontinue service on the Kellar Branch. That hasn’t happened.

Money from the state and federal governments is still available, she [Noble] said, but they will not fund a trail beside a rail line, as some have suggested.

If the reporting is accurate on this, that’s a new story from Ms. Noble. I wonder to which grant(s) she is referring. The Illinois Bicycle Path Grant Program will indeed fund a trail beside a rail line.

[Peoria Heights Mayor Mark] Allen said he’s also interested in the potential of running a rail car along the line to transport people from the new museum on the riverfront to Peoria Heights, Junction City and the Rock Island Trail. “I think the interest would be there if it’s marketed properly.”

Great idea! You know what else they could do? They could put a bike rack on the rail car similar to the ones on CityLink buses. Then trail enthusiasts can ride the rail from downtown to Pioneer Park to pick up the Rock Island Trail. You can’t tell me that wouldn’t be a bigger tourist draw than having a trail through residents’ backyards.

The rail line is in poor condition and has been ruled unsafe by federal inspectors. Some of the rails date from 1902, Rucker said.

Pioneer has offered to pay for the line’s rehabilitation.

Bingo. Pioneer has also offered to purchase the line from the city for $565,000. The park district wants to lease the line for 99 years at $1 per year. Which do you think is a better deal for the city?