County takes charge of museum project

PRM LogoI received a copy of the following letter in the mail from an anonymous source. The letter is on State’s Attorney letterhead and is signed by Kevin Lyons. It’s not addressed to anyone in particular — in fact, it looks more like a memo than a letter:

RE: Persons and organizations vested in the Peoria Riverfront Museum project

On Thursday, August 13, 2009, the Peoria County Board certified a necessary resolution that will inform the Illinois Department of Revenue that, commencing January 1, 2010, a special sales tax shall be collected throughout the County of Peoria (County) to carry out the objectives of the March, 2009, referendum. The County is pleased to partner with your efforts, and with the fine men and women of Caterpillar, to organize and shape a superior project that, when complemented by The Caterpillar Experience, will serve well the many interests of this enterprise and all of Central Illinois.

To that end, the County of Peoria will provide the appropriate guidance for creating the organization(s) necessary to develop and to carry out the objectives of the project. As this is no time to learn as we go, I have engaged well experienced counsel at the law firm of McDermott Will & Emery to help provide for this important detail and direction. I have, in part, carefully selected this reputable firm because of their long history of experience with issues relative to museums, including those public and private and blended, and their appreciation for the broad collaboration of interests that birthed and brought this project to its place today.

Because it will be largely funded by public money, through sale of non-general obligation revenue bonds, it is important that the project commence and operate in compliance with public policy and statutes. A gathering of all interested parties will be planned for September so that the County may provide detailed framework that can be followed in order to formally organize, commence, develop, construct, and carry through the project.

This will involve, but certainly not be limited to, the following items:

  1. The organization and eventual tax exempt qualification of a museum authority. The museum authority would serve as lead coordinator for the project’s space, programming, and development.
  2. A description of roles and responsibilities of a museum authority and the steps required to form a board of directors and all other necessary project components.
  3. An explanation of how funding will be delivered and how the County and the museum authority will develop and refine the project, and how entities (licensees) will occupy and operate within the project.
  4. As with any County capital development project, construction of the project would be bid, let and overseen/administered by the County.
  5. The County would engage the museum authority to operate the project pursuant to the terms of an operating agreement and, upon completion of construction of the project, and pursuant to the operating agreement, the county would deliver the project to the museum authority for operation.
  6. The museum authority would annually account to the County regarding financial performance and community benefit.
  7. A clear and partnered coordination with Caterpillar, Inc., to insure that the project and The Caterpillar Experience, and the many shared goals and responsibilities attendant thereto, are smoothly addressed and accomplished.
  8. Although licensees and entities may be otherwise self-identified, it is understood that the project will be named exclusively Peoria Riverfront Museum.
  9. Your overwhelming efforts, along with ballot box support and the work of others, can permit you and your communities to now step closer to the realization of a magnificent facility along the Peoria riverfront. A September gathering will further assist everyone in understanding, in greater detail, how this significant project can now launch and grow.

    Thank you for your meaningful contributions on behalf of the citizens of Peoria County and all of the greater Peoria area.

    Very truly yours,
    KEVIN W. LYONS
    State’s Attorney

There are a few notable things here:

  • Transfer of Power: First of all, the letter states that in order for “the project [to] commence and operate in compliance with public policy and statutes,” a tax-exempt “museum authority” would need to be organized. This is interesting because there’s already a tax-exempt umbrella organization called the Museum Collaboration Group (MCG). The MCG has, to this point, been calling the shots on everything regarding the proposed museum. But now, it appears that will be coming to an end.

    The new “museum authority,” under the guidance of a newly-established board of directors, will “serve as lead coordinator for the project’s space, programming, and development.” It will be a separate entity from the County, and will also be in charge of museum operations.

    This can be characterized as nothing less than a transfer of power. I suppose it could just be a renaming/reorganization of the MCG, but why that would be necessary (other than providing some additional billing for lawyers) is mysterious to me. It will be most interesting to see who gets a seat on the new museum authority’s board of directors . . . and who doesn’t get a seat.

  • Bidding/letting overseen by County: Museum representatives have long touted their “unprecedented agreement among Caterpillar, the Museum Collaboration Group and the Greater Peoria Area Contractors and Suppliers Association,” promising that “both the Peoria Riverfront Museum and the Caterpillar Experience would be built with 100 percent local union labor.” However, that may be a promise they can’t keep, given that Peoria County Code 6.5-21(9) requires:

    All bids and contracts for the purposes of public works, as defined and provided for by the Illinois Prevailing Wage Act (Act), 820 ILCS 130/1 et seq., prohibit the prime contractor and all participating subcontractors from discriminating in employment practices. This act requires that the prevailing wage shall apply to these projects. [820 ILCS 130/2 specifies: “‘Public works’ means all fixed works constructed by any public body, other than work done directly by any public utility company, whether or not done under public supervision or direction, or paid for wholly or in part out of public funds.”]

    Clearly, under this statute, a non-local and non-union shop could very well have the winning bid, and the County would have to award it. This isn’t a new revelation. The question came up during the County’s public forums on the referendum, but the local unions continued to support the referendum anyway, and museum supporters continued to promise that local union labor would definitely be used. It will be interesting to see what bids come in, and who wins.

  • Don’t change the name: It looks they want to avoid this fiasco from happening again. Apparently the name of the Peoria Riverfront Museum is now non-negotiable.