Daily Archives: June 7, 2010

City of Peoria, Restaurants

River Station lease renewed for another 10 years

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From the most recent Issues Update for Peoria:

The City has received notice from River Station LLC that it is renewing its lease to the River Station building for an additional ten (10) years. The original lease was dated August 28, 1979. On November 17, 2000, it was assigned from Mathers Co., Inc. to River Station LLC, which is Kert Huber’s entity. The right to extend is given to the Lessee, and the City cannot deny the extension. This matter will not come before the Council.

The original lease dated August 28, 1979, provides for a twenty?year term commencing when the restaurant opens. It provides for three (3) ten?year extensions. The first ten?year extension was executed by Mathers on November 16, 2000, providing for a ten?year extension which would terminate February 1, 2011. River Station LLC has provided notice of its intent to extend for an additional ten (10) years, until February 1, 2021, at which time there will be the probability of another, final ten?year extension until February 1, 2031, at which time the lease will end.

Rent under the lease is two percent (2%) gross sales from the operation of businesses on the premise. There is no minimum amount, so that the City is realizing some income from the presence of Martini’s on the premises.

Martini’s is the only tenant in the old Rock Island Depot, now known as the River Station. Not that other restaurants haven’t given it a try. Most recently, a restaurant called “Tilly’s” tried to make a go of it. Here’s to hoping a new restaurant can be successful in that location someday soon.

Museum Block, Peoria County

County wants more control over museum construction

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An interesting item is on the agenda for the Peoria County Board Rules Committee this coming Thursday evening:

ISSUE:
Establishment of Museum Standing Committee of the County Board and temporary Museum Building Committee

BACKGROUND/DISCUSSION:
In the initial Capital Lease and Operating Agreement (posted on the County website in February 2010) between the County and the Peoria Riverfront Museum (PRM), it was determined that the County would construct the parking deck and the PRM Board would construct the museum and the perimeter improvements. The following changes to the County Board Rules of Order would establish a standing committee of the County Board to oversee construction of the PRM and leasing of the PRM site and create a temporary Museum Construction Committee to oversee construction of the PRM building.

The Museum Standing Committee would be comprised of County Board Members. The general duties of the Museum Standing Committee would be to: a) make recommendations to the County Board for awarding contracts for the construction of the PRM; b) approve all change orders for the construction of the PRM of less than $250,000 additional cost; c) exercise general oversight of the PRM building and grounds; d) review and comment upon those items provided in the Lease and Operating Agreement with PRM; e) initiate all actions of the County exercising powers under the Lease and Operating Agreement; and f) review all actions of the Museum Construction Committee.

The Museum Construction Committee would be comprised of individuals selected by the Peoria County Board Chairman from the County Board, the PRM Board of Directors, county staff, and/or other citizens with building and construction experience. The Museum Construction Committee is a temporary committee that shall automatically dissolve upon the opening day of the Peoria Riverfront Museum. The general duties of the temporary Museum Construction Committee include: a) approve all change orders for the construction of the Peoria Riverfront Museum of less than $100,000 additional cost; b) Exercise general oversight of the construction of the Peoria Riverfront Museum Project; and c) report regularly to the Museum Committee regarding the progress of construction.

The advantages of the County managing the construction are numerous: a) for transparency purposes, having the construction of a public building on public property performed by a public body assures that the discussions will be open to the public; b) the PRM Board of Directors can spend more time focusing on operations, exhibit planning, and fundraising; and c) the County can be assured contractually that our capital contribution is a set dollar amount. In addition to memorializing this change in the County Board Rules, the Capital Lease Operating Agreement will have to be modified. The PRM Board of Directors is scheduled to have their organizational meeting on June 8, 2010. Once organized, the PRM Board can take up the Capital Lease and Operating Agreement and Redevelopment Agreement for either a late June or early July approval by the County Board.

At first blush, it looks like a reasonable action given the benefits listed. But look closer. This establishes a new standing committee, and the County Board Chairman is responsible for making appointments to all standing committees. Only those appointed to the Museum Standing Committee could “initiate all actions of the County exercising powers under the Lease and Operating Agreement.” That stipulation effectively freezes out board members who are opposed to the museum. Board members who believe the museum group is not fulfilling the terms of the agreement will have no way of holding them accountable because they can’t initiate any action on it. How is that in the public’s interest?

Furthermore, the County Board Chairman is free to appoint only those who agree with him, and remove anyone who crosses him. Just recently the Chairman removed board member Brian Elsasser from the Tri-County Regional Planning Commission because he (the Chairman) “owed a political favor to a friend.” Just imagine what political favors might be called in for the museum project, especially since this committee will also “make recommendations to the County Board for awarding contracts for the construction of the PRM,” and the County Board promised to have local contractors build the project.

This is a recipe for political corruption.