39 thoughts on “2009 Worst Timing Award: Craig Hullinger”

1. C.J., thanks for putting this into perspective for me (with my financially challenged mind). I had a feeling we were being sold a “bill of goods.” When I heard the part about housing for Bradley students, my mind went immediately to the “Bradley housing project” proposed for West Peoria in a “TIF” district. Fortunately, I think that possibility in West Peoria is a thing of the past. Now that another private developer is proposing Bradley housing, any future efforts to put housing in West Peoria should be dead.

2. I see the picture from a different angle:

   1. the property is in decline and therefore tax revenues on it could decline furhter;
   2. as long as the new projects holds the tax revenues at the existing base, D150 hasn’t suffered any loss;
   3. unless there is another project not wanting the incentives, there is no potential loss to D150;

   There is also potential for the surrounding properties to increase in commercial value with the development of a student population and modern structures.

   The concern I would have is that this would reduce the student demand for houses on the West Bluff, whose multiple bed and bath houses would then be filled by…..Section 8.

   Also: if you look at the origin of the money, this is really about reducing the market rent that UNIVERSITY STUDENTS are charged, in effect taking revenue from out of town private sources to pay for local public education and the profit of local developers. Regardless of where your sympathies lie, let’s at least be cognizant about where the money is coming from and where it is going.

3. CJ – I gave my copy of the details to Mr. Waalvord at the meeting, but will forward a copy of them once returned. While we would see no incremental revenue for two years relative to the status quo, beginning in year three the state would reimburse the district for lost revenue through participating in the Enterprise Zone. The States slow pay and questionable finances makes me pause for consideration, but I doubt development would occur without the “incentive”. After year two, they are showing us a significant incremental increase in property tax receipts – figures to follow. As for the TIF’s, the one that troubles me most is the Southtown TIF. It was extended years back, without any interaction by the council with the district, as far as I know. I have asked for consideration of relief, but don’t expect a positive response. If the Enterprise Zone incentives provides a quicker breakeven or more acceptable ROE, while providing significant incremental revenue beginning in year 3 – why shouldn’t we give it consideration?

4. what about the 100 million of debt in process, the wreckless spending has just started

5. Bradley students in need of housing? I just passed 14 or 15 for rent signs on main street across from campus… $400 bucks per person for old houses that probably hold 6 or 8 kids and have a $500 mortgage.

6. Jim — Why do you “doubt development would occur without the ‘incentive'”? Devonshire Group didn’t need an enterprise zone or TIF to develop Jacobs’ Landing in Champaign. Why do they need one here? Especially when their feasibility study shows that it will be filled to capacity immediately? Since their development is designed to appeal to Bradley students, what’s their alternative site? A greenfield development for student housing?

7. I just wish that the board members would care as much as to let parents know where children will be attending school next year….There is more of a deadline for this communication….School will be out and children will be left out until next fall when they will be expected to understand why they all of the sudden are at a new school separated from the comfort zone…Research tells us that moving schools is traumatic.
   It is another example of adults causing upheavals in children’s lives…

8. Once again, the Devonshire Group is moving ahead without consulting the residents. This is my neighborhood and this is not the project that had been presented to residents. I will vigorously oppose this.

9. I knew this would chap the asses in the Uplands. This isn’t the project on the billboard outside of the old Walgreen’s is it? This is simply more Bradley type dorms only this is on the north side of Main Street. Well, don’t worry folks, you 2nd District council woman will roll out the red carpet for these folks. This is a done deal.

10. That remains to be seen, Emtronics. By the way, it is University East, not the Uplands.

11. These issues are complex, and hard to understand. Taxing bodies join the Enterprise Zone and provide a five year abatement for the additional property tax paid by new development. The reason they participate is that they believe this incentive will get developers to invest in the older parts of the city, and that they would not invest here but for the incentive.

    All the taxing bodies in the Heart of Peoria participate except District 150. The State of Illinois picks up the cost of the Enterprise Zone incentives for school districts with high poverty. District 150 qualifies. So, it does not cost the District to join the Enterprise Zone, although there is a time delay in getting the money.

    The taxes are very low on the closed Walgreens. If this development goes through, taxes will be much higher. District 150 gets the increase soon. It takes five years for the rest of the taxing bodies to get the increase.

    The question is, should we do nothing? That is the safest thing to do. But it is also the wrong thing to do. By helping this development go through we get an increase in numbers of people living in the Heart of Peoria, increases in taxes, and another step in revitalizing the Heart of Peoria.

    More then you ever wanted to know on the Enterprise Zone on my blogs at:

    http://peoria.blog.com/

    Look under Incentives, Enterprise Zone and TIF

    Thanks

12. University East, Uplands, yada yada yada Anything is better than an old empty building.

13. “I knew this would chap the asses in the Uplands.”

    I liked the original idea that Devonshire put forth. I can’t think of anyone who was in any way opposed or chapped to the concept; First floor retail space, upper floors residential, underground parking for residents. Looks good. Now Devonshire, in imitation of the museum, keeps changing things (much less mixed use retail, resident parking in an open air lot behind, meaning more inefficiently used space) and now wants more breaks.

    I bet they do want the breaks, some of these student apartments are having a hard time getting student tenants. The West Bluff market is saturated with rentals.

    “Anything is better than an old empty building.”

    That isn’t always true. Build something unattractive and no one else will want to build in the area either. You might fix one empty lot and create dozens more.

14. Who owns the land, anyway? Unless they’re giving away the land, a TIF or Enterprise Zone ultimately increases the CURRENT value of the land for the benefit of the landowner, at the expense of the taxing authorities, in exchange for the promise of future higher taxes for the authorities.

    For simplicity, if a developer were faced with spending $1,000,000 to buy the land, and expects to pay an increase of $100,000 per year in taxes, then ignoring the time value of money and with respect to land and taxes only, the developer is anticipating spending $1,500,000 over 5 years. If he’s only willing to pay $1,000,000 over 5 years for the property and its increased taxes, and there have no other buyers for the property, then can the landowner really expect the property to be worth $1,000,000? Yes, he can, as long as he can convince the city and other taxing bodies, with the help of the economic development director, to waive their tax increase for the 5 years. The developer really doesn’t care if he pays $500,000 for the land and $500,000 in increased taxes, or $1,000,000 for the land with no increased taxes, as long as he pays no more than $1,000,000.

    The goal is to get more people who have a stake in the project to help reduce costs so the the developer will pull the trigger. While we’re at it, why don’t we try and get the construction workers to take a pay cut. After all, their participation is vital to this project. If it doesn’t happen, they might lose their jobs. Come to think of it, the utility companies stand to gain if this project goes thru, maybe they should agree to not increase their bills for 5 years. And so on, and so on, and so on….

15. First of all the plan that was submitted by devonshire to the residents of the neighborhood, those who chose to attend, clearly dipicts first floor retail and also first floor building parking, not parking behind the building. The building itself is not only attractive but falls in line or exceeds all the requirements in the form based code system.
    Anyone familiar with the site also knows that the condition of the walgreens property, and the residential lots that are being lost to the project, are in very poor condition and arguablly are a drain on the community not an asset.
    Devonshire has had an open line of communication with the neighborhood, has willingly had several sit down public meetings with the neighborhood, and even works with a liason who was appointed from the neighborhood to work on the plan for this project.
    The Main St Commons development is an important investment into the neighborhood and into the Ren Park project. The undeniable fact is that without major development the neighborhoods on the east side of university are facing an uncertain future with fewer homeowners and more low income rental.

16. Oh and to answer the last question by Jon. Devonshire purchased the walgreens lot for 1.4 million last year. The current project requires no rezoning and will be using lots that are currently zoned for commercial use. Any homes existing on these lots were slated to be eventually removed for commercial development which is why they were zoned dual use properties; to enable said development to more easily occur. This development is basically a fulfillment of the goals of Ren Park.

17. Actually, the UE neighborhood and the Devonshire Group had gone through a bit of a rough patch on this issue. The initial concept was universally supported. The most enthusiastic supporters of the next modification were those homeowners who got offers to sell their property, while other affected residents had a lot of legitimate concerns and questions that were not really addressed until recently. As a resident of the Main Street corridor, I am particularly concerned when anyone says that a goal of Ren Park is to destroy owner-occupied residences for commercial development. The whole Med-Tech/Ren Park concept was sold as a way for commercial and residential to co-exist in a New Urban-style situation. I just don’t believe chasing homeowners out of the Main Street corridor is, or ever was, a Ren Park goal. But I digress. .

    After communicating with Council member Van Auken and some UE neighbors on the most recent meeting with Devonshire, I have recently been made aware that the newly rolled-out current concept of the Main Street Commons addresses the major concerns I had regarding the development. While I am disappointed with the decisions of those homeowners who chose to sell their property for this development, I feel I must respect their decision and wish them well. While an empty building is not desirable, neither is a development approach that is not in the best interests of the residents. Fortunately, the Devonshire Group has stepped up and addressed the major concerns expressed by UE residents. While I would prefer the original concept, I can live with what is now on the table. I do believe it will help spark good things for the area. While I am not a fan of public programs supporting private development, the area is in (among other things) a Federal Historically Underutilized Business (HUB) zone. If public programs are to be used, then I would prefer they be used in areas where they were intended to be used. I strongly believe that Main Street and the core neighborhoods must be a priority and, while this development is not perfect, it is a step in the right direction.

18. CJ — I’m curious if you would support a bill to repeal the state law that allows homeowners to abate property tax increments for 4 years when they make improvements to their homes (like add a room). That law robs all taxing bodies — including the school district — of hundreds of thousands of dollars, too. Fact is, we use incentives to get people to do what they might not ordinarily do. You might not want to improve your home for fear that your property taxes will rise. Devonshire might not want the hassle of this project if the ultimate cost will be too much. Just because they say they will be full doesn’t mean they will make a boatload of money.

    So, what do you say? Will you join in the fight against the homeowner improvement exemption?

19. I dont think the purpose of the med/tech ren park is to run off homeowners living in the main street corridor; however why rezone residential property in the 1000 blocks off the main street corridor to be both commercial and residential if the long term goal wasnt commercial development. I do not think that the goal of ren park was for people to run businesses or sell avon out of the residential properties currently existing on the 1000 blocks. The reality of the situation is that those homes along the corridor were multi zoned so that developers wouldnt have to have the lots rezoned when the time to develop them finally came to. The lots could be demolished and would be shovel ready for commercial development without time and money loss due to hang ups with zoning and neighborhood development. I would argue that developments like the one deveonshire is proposing do not drive home owners away from main street but in fact due the opposite and encourage people to move to areas that at one time were all but blighted. There are always urban frontiersmen who will move into neighborhoods under the idea that toughing it out will return the investment, but most people want to move into neighborhoods that show clear signs of improvement and investment, not only by residents but also by the city and outside sources. Have you walked down frink lately? I would worry that without this development the neighboring streets could quickly see that fate as their future.

20. Sud — I have a better idea. Let’s abate ALL taxes for five years. That’s right — nobody pays any property taxes in Peoria for five full years. I realize this will be a hardship on taxing bodies in the short run, but so many people will develop homes and businesses during that time that when the taxes return, everyone will get a windfall! What do you say? Will you work with me to abate all property taxes?

21. Nice try, but you didn’t answer my question. There is a law on the books that provides homeowners an incentive to improve their property by abating the increase in property taxes for 4 years. No individual taxing body gets a say. How is the Enterprise Zone any different, other than it is only available in certain areas?

22. Pingback: The Peoria Chronicle » Main Street Commons

23. More info on the proposed Devonshire Redevelopment on Main Street

    http://cityofpeoria.blogspot.com/2009/05/this-great-new-building-is-proposed-by.html

    http://cityofpeoria.blogspot.com/2009/05/enterprise-zone-request-for-district.html

    WMBD/WYZZ TV did a good job explaining this issue.

    http://centralillinoisproud.com/content/fulltext/?cid=58761

24. Pingback: The Peoria Chronicle » Enterprise Zone answers raise more questions

25. An update on the Coveted Worst Timing Award.

    http://planningnews.blogspot.com/2011/09/blog-post.html

26. Will try again. The coveted 2009 Worst Timing Award – An update

    http://planningnews.blogspot.com/2011/09/worst-timing-award.html

27. Way too soon, there, Craig. There is no retail development on the bottom floors. Freshmen are being shoveled in there. It may yet fold.

28. Abandoned Walgreens – no taxes or jobs

    Big 4 story building – people living in the HOP, jobs, property taxes, utility taxes, hopefully sales tax as we come out of the great recession.

    You can wait – I am declaring victory.

29. And the good news of Belwood moving to West Peoria is the older folks might be able to get Depends @ Haddads in bulk.

30. craig, I guess it depends on how you measure your success. Apparantly you rank with much of our city council, county board, and museum board members, Lying to public and utilizing the people’s money to fund those lies apparantly has no ethical or moral concerns. You’re not getting it and undoubtedly never will.

    I question the jobs, what jobs? RA’s would have worked for BU anyway. construction is over. The people living in HOP are students, mainly freshman who would have been living at some type of campus housing, so that’s a wash. there is no retail, therefore no sales tax. Again, utilities are paid by residents, BU is or would have paid utilities taxes anyway, so that is a wash. Property taxes. there was an abatement so no revenue from that.

    Now, since it is now basically a freshman frat house, we’ll see what kind of damages the kegger parties cause to the properties and how quickly it becomes run down. so I’ll wait.

31. Retail was/is a requirement for Enterprise Zone status. They don’t have it now and don’t seem to be going out of their way to get any. How much longer can they do this before someone figures out they aren’t meeting the requirements for EZ status and pulls the plug? Heck, I think the CoP and D150 could use the increased property tax immediately. Sorry, Mr. Hulllinger, your victory is hollow at best.

32. Retail is tough, especially during this very tough economic times. Retail has been in decline on Main Street for many years. Bringing it back requires more people with higher incomes living in and near Main Street.

    That is what this building does.

    Everyone is of course entitled to their opinion, but some folks always see the glass half full.

33. A Subway restaurant in the Main Commons would be popular with students. ISU Dorms each have one on the main floor level, if students don’t have time to go to a dining hall.

    A place like Kinkos would come in handy, I would think.

    If not a Subway, then a coffee bar, like Starbucks. Yes, I know there’s already a Subway and Starbuck’s in Campustown, but so what?

34. I think bringing retail back to Main would be easier if efforts were actually being made. Neighborhood groups and BU students have repeatedly asked the developers about retail, only to be told that it wasn’t a priority. That lack of priority is easy to see. Currently, BU students are asking the university to shuttle them to East Peoria so they can buy groceries, since there isn’t a place close to campus. Wouldn’t a small convenience grocery be a no-brainer to add to the 1st floor of the building? I think the “bad economy” can be a smoke-screen that some like to hide behind to excuse a lack of serious effort. Oh, and college freshman are the “high income” group that is supposed to drive a Main Street retail revival? Get real!

35. soothsayer – dead on! 18-22 year olds usually don’t have a dime. a small, urban scaled grocery store would be a great fit (hopefully without urban-trendy prices).

    it’s too soon to raise the “mission accomplished” banner, but it is adding value to the area slowly.

    as great as subway and starbucks are, i’d like to see the Peoria Next Innovation Center down the street pump out something in lieu of the usual.

    …with the glass half full – on the bright side this is actually being built/completed and hasn’t been held up for years nor does it cost an ungodly amount of taxpayer money.

36. What I have heard…. is that yes students would really really like to have a grocery close by (Haddad’s opens soon…). The experience has been that a grocery along Main attracts a significant undesirable element from beyond the West Bluff that alarms BU parents and BU students. This undesirable element was making it difficult, to impossible for a decent grocery store to be profitable as it drove away customers. Some in the neighborhoods have argued that the developer was complicit in the decline of Campus Town as a grocery destination by refusing to or inadequately trying interest higher quality vendors (versus Sav-A-Lot), ie downselling the area. I think there is some truth to that but people forget the difficulties Thompson’s had in staying profitable. It is believed that BU is less than pleased with D Joseph’s management of CampusTown. Thompson’s had a very serious problem with theft and criminal activity. Thompson’s would likely have closed even before the company disappeared as a whole. It only got worse with Sullivan’s and Sav-A-Lot. Word is that BU want’s the Dollar Store gone when it’s lease comes up.

    Now that Bradley has moved in, the undesirable element has declined significantly. This has pleased BU parents, students, and donors. Talk is that BU might just take over (buy from Joseph) Campustown entirely and make the move permanent. BU has long resisted opening a grocery store on its own but it may yet happen. Unfortunately this all coincided with an economic downturn.

37. There is a strong correlation with the increase in that undesirable element in the West Bluff, as grocery stores closed on the East Bluff (ty midtown and east Peoria Wal-Mart) and down in Lincoln-Western area.

38. I like the idea of a mini-grocery in the BU area. More like a whole foods with pre-cut veggies and fruit, fresh bakery goods, take-n-go meals, etc. Seems like it would be a good fit for the residents and students in and around the BU area.

39. Yea, another Subway or Starbucks 50 feet away from each other. No imagination which is one reason why this city suffers.

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