Everybody drive safely and drink responsibly and all that… but most importantly, have a Happy New Year!
Monthly Archives: December 2010
Bar Louie is gone
I thought this was kind of funny. On page B1 of the Journal Star Thursday, December 30, there’s this little blurb:
What’s up with Bar Louie?
Blogger and entertainment editor Danielle Hatch is still trying to find out details on why there’s a closed sign on the door at the Bar Louie restaurant a the Shoppes at Grand Prairie. If you know more, join the conversation online.
So I go online and just type “Bar Louie Peoria” into Google. WEEK’s site pops up, where this story is posted with a date of Wednesday, December 29:
The General Manager at the Shoppes, Dawn Shipman says Bar Louie has closed “as a normal course of business.”
Bar Louie’s lease at the Shoppes has expired and closed immediately.
Mystery solved! Can someone from WEEK drop the Journal Star a line letting them know what’s going on over there at the Shoppes? They’re looking for details….
Questions about Old Chicago and Riverfront Village
By now, you’re all aware of Old Chicago’s big announcement about their location atop Riverfront Village: they’re closing for the winter. The story was covered by WMBD-AM and the Journal Star. From WMBD:
Old Chicago along Peoria’s riverfront is closed until April 4th, according to CFO Dale Paulsen. Paulsen says it’s best for the riverfront restaurant to open on a seasonal basis until there’s a lure of more customers to the area.
This decision has raised a number of questions in my mind.
First, why are they waiting until April to reopen? Isn’t March Madness one of the busiest times of the year downtown? Why would a pizza restaurant want to miss a time when 20,000 people a day — most of them young kids who presumably would like pizza — descend on Peoria’s Civic Center? They’re going to open up right after this large event?
Second, what impact is this going to have on the City financially? We’re already losing money on this due to a non-profit organization moving into the old Damon’s instead of a tax-paying restaurant or other retailer, plus we’re having to replace the defective stairs at taxpayer expense, even though that should have been the developer’s responsibility. Now we’re going to lose sales tax and HRA revenue for three months, too? What implications does this have on repayment of the bonds used to build Riverfront Village?
Third, they really expect the museum to be their salvation? If they won’t open the doors when 20,000 people a day are downtown (March Madness), why would a supposed 1,000 people a day (predicted by the museum group) be worth their while? And if museum patrons wouldn’t park in Riverfront Village’s lot and walk across the street to see the museum due to fears of safety, weather conditions, or whatever reasons were given for requiring an attached parking deck, wouldn’t the reverse also be true?
Fourth, I thought Riverfront Village was built to lure people to the riverfront. Now Old Chicago is wanting customers to be lured by something else? Doesn’t this point to a fundamental failure of the Riverfront Village plan? Former Mayor Jim Maloof was quoted by the Journal Star in 1995 as saying, “The entire community is going to be thrilled when they see the magnitude of this project and what it is going to do for our downtown.” Fifteen years later, what has it done for our downtown, exactly?
Joint Review Board approves East Village TIF
Today at 3:00, the Joint Review Board (JRB) approved the East Village Growth Cell (EVGC) TIF unanimously with no discussion. Dr. David Kinney, representing Peoria Public Schools District 150, voted “present.” The meeting lasted three minutes. A presentation on the EVGC TIF was given to the JRB at the last meeting on December 10, but according to the minutes of that meeting, there was “a desire to continue discussion between Peoria Public School District 150 and the City of Peoria[;] therefore, a motion to defer was requested.”
Any further discussion that took place apparently happened in private, because no public discussion was held. I asked Dr. Kinney afterward what message District 150 was wanting to send by voting “present” instead of coming out for or against the TIF. He replied that TIF districts are generally not good for school districts, and a residential TIF in particular is a “double whammy.” Nevertheless, the district wants to maintain a positive relationship with the City and try to work out an agreement where the school district can share in the TIF revenue.
Present at the meeting in addition to Kinney were Robert Gates (District 150 legal counsel), Stan Browning (Sanitary District), Jim Scroggins (Finance Director, City of Peoria), Patrick Nichting (Treasurer, City of Peoria), Scott Sorrel (Peoria County), Tim Riggenbach (3rd District, City Council Representative), Bobby Gray and Stephanie Doss (both Economic Development, City of Peoria).
Joint Review Board members who were absent included Debbie Ritschel (General Manager of the Civic Center, but officially representing the general public on the JRB), John Stokowski (Greater Peoria Mass Transit/CityLink), Edward Szynaka (Peoria Public Library), and Glen Olson (Airport Authority). These members were also absent from the previous JRB meeting on December 10.
According to the City of Peoria website, “The Joint Review Board (JRB) is made up of one representative from each taxing authority affected by a TIF (i.e. school district, park district, etc.) The JRB also includes at least one member of the general public. The JRB must meet at least annually to review the progress of each TIF. Also, before a TIF is created, the JRB must review the plan for redevelopment for the area.”
There was no other business discussed at today’s meeting, and no citizens addressed the board. No date was set for the next JRB meeting.
Hat tip: Martin Palmer for alerting me that this meeting was taking place today.
New York Times and George Will have different answers to state crises
Yesterday I read George Will’s column in the Journal Star (here’s the same article in the Washington Post), and then the New York Times editorial. They both happened to be on the same subject: States in crisis, with Illinois in the limelight.
The New York Times says the Feds should step in and give more money (emphasis added):
A state or city unable to make its bond payments would send harmful ripples through the financial system that could cause damage even to healthier governments. But if states act quickly to deal with their revenue losses and address their debt — and receive sufficient aid from Washington — there is still time to avoid a crisis.
…[F]ederal stimulus money — which has been keeping many states afloat — is largely scheduled to expire. Renewing a portion of that aid would be one of the most effective ways to assist the economy.
And they think states and cities should raise taxes on the rich — something they criticize the federal government for being unwilling to do.
In contrast, Will says the Feds shouldn’t give another penny to states or cities that have brought this all on themselves, unless they’re willing to reform.
San Francisco voters defeated Proposition B [which would have required city employees to contribute up to 10 percent of their salaries to their pension plans, and to pay half the health-care premiums of their dependents]. If they now experience a self-inflicted budgetary earthquake, there is no national obligation to ameliorate the disaster they, like many other cities and states, have chosen.
Furthermore, any existing aid they receive should come with strings attached, he says:
[Rep. Devin] Nunes’s bill [H.R. 6484] would require [states and municipal governments] to disclose the size of their pension liabilities – and the often-dreamy assumptions behind the calculations. Noncompliant governments would be ineligible for issuing bonds exempt from federal taxation. Furthermore, the bill would stipulate that state and local governments are entirely responsible for their pension obligations and the federal government will provide no bailouts.
Nunes’s bill would not traduce any state’s sovereignty: Each would retain the right not to comply, choosing to forfeit access to the federally subsidized borrowing that facilitated their slide into trouble.
Tough love, as it were. I’m more inclined to agree with Will. The problem with the New York Times’ solution is that it doesn’t do anything to deal with the root problem. In fact, it exacerbates it. Extending stimulus benefits to states and municipal governments without requiring any change in the way they operate will only help them slide into insolvency quicker and result in bigger losses. Will’s suggestion requires reform if federal benefits are to continue and mitigates losses to taxpayers and investors alike.
Merry Christmas
I’d like to wish all my readers a very Merry Christmas! Hope the holidays are happy for you and your family.
Business PAC no longer affiliated with Chamber
As a candidate for City Council, I received an expected questionnaire from the Peoria Area Chamber PAC, except that it’s not the Peoria Area Chamber PAC anymore. It’s the Business PAC of Central Illinois, or “Biz PAC” for short. The letter explains that they are “no longer a subsidiary organization of the Chamber,” but rather “an independent business focused political action committee.” According to the Peoria Area Chamber of Commerce’s website, the change was effective November 1:
[T]he Chamber and the Peoria Area Chamber PAC are ready for change. Both organizations’ boards have made the decision that it is time for the PAC to stand on its own. We believe this strategy is advantageous for both. The Chamber can focus its political efforts on its issue advocacy work. The PAC can focus its efforts on candidates and issues important to the business community even if those candidates or issues are outside the sphere of the Chamber.
Effective November 1, 2010, the Peoria Area Chamber PAC will no longer be an affiliate of the Peoria Area Chamber of Commerce or The Heartland Partnership. The PAC will stand on its own under the name Business PAC of Central Illinois. All governance connections between the two organizations have been eliminated. The Business PAC of Central Illinois, as other organizations have done with various members of the Heartland Partnership family, has contracted with the Chamber to provide administrative services that include staff support, meeting space, etc.
The committee members listed on the Biz PAC’s stationery are: Tom Landon (Chairman), Henry Vicary (1st VP), Diana Hall (2nd VP), Julie Russell (Treasurer), Tim Moore (Secretary), Tim Bertschy, Dr. Andy Chiou, James Gilkesson, and Jay Harms. Biz PAC’s mission is, “Dedicated to electing pro-business candidates in races of local importance.” And just what do they consider a “pro-business” candidate, you may ask? The Chamber’s website indicates it would be someone “who support[s] the business community, stands[s] for growth and believe[s] in good government.”
Feds to provide money for basic City services
News came yesterday that the federal government will be paying for ten of our police officers for the next three years. Nevertheless, Peoria will still be losing three officers, as 13 positions were cut from the 2011 budget. Peoria can’t afford them because it’s too busy spending its money on civic centers, hotels, risky start-up businesses, and other non-essential, losing propositions, as well as giving away its assets to other tax-collecting public bodies.
The good news is that Peoria will get to keep 10 of its police officers who would otherwise get cut. The bad news is that the entire nation is now paying for the City’s poor fiscal management. What’s another $2.7 million to the federal government? They’re only in debt by $13.8 trillion or so. Big whoop.
Don’t be fooled by empty rhetoric from City officials
There’s an article in today’s Journal Star I just couldn’t let pass without comment.
City officials including Mayor Jim Ardis have … expressed some of their frustrations with other taxing bodies in Peoria — namely Peoria Public Schools District 150 — for increasing its property tax rate while the city avoids similar hikes despite increasing political pressure to do so.
Reporter John Sharp did a good job of covering what I’m about to say, but I just want to emphasize it: The City didn’t raise property taxes because it raised taxes on our natural gas bills. The mayor and city council members can crow all they want about how they didn’t raise our property taxes (and District 150 did), but the truth is that the City will be taking more money out of our pockets next year than District 150.
According to this report, “Under the projected rate next year [for District 150], the owner of a $100,000 home would expect to pay about $1,640, excluding any Homestead exemptions or increase in assessed valuation, an approximately $13 increase [emphasis added] above this year under the same determinations.” In contrast, the natural gas tax is “a 3.5 percent tax on gross receipts resulting in about $33 to $34 more [emphasis added] for the typical residential user each year.” So the average homeowner will only be paying $13 more next year to District 150, but $33 to $34 more to the City of Peoria, albeit by different means. The total dollar increases are also significantly different: the City’s natural gas tax raises $2.2 million in revenue, whereas District 150’s increase raises up to $900,000 in additional revenue.
Furthermore, guess who else gets to pay the natural gas tax? That’s right — District 150! So the council has raised taxes on the school district, and is now complaining that the school district is raising property taxes. To a certain extent, the City is really raising property taxes by proxy. District 150 doesn’t have the ability to tax natural gas, garbage, water, liquor, etc., like the City does. When their costs increase, they have to go to the property owners to get more revenue.
Keeping these facts in mind, consider these outrageous statements from City officials quoted in the article:
“It doesn’t seem like there has been a lot of consideration from the other taxing bodies to continue to (not) increase their portion (of the property tax).” [Mayor Ardis]
“We’re on the edges of a tax revolt in this country…. The bottom line is we have to live within our means. If we have to afford less government, we have to put less government in place.” [Eric Turner]
This from two members of the council who voted to spend $55 million on expanding the Civic Center, spend $37 million to build a hotel (including a $9 million developers fee), give away the $10 million Sears block for $1, give away the $2.8 million Kellar Branch for $1 (and indirectly cost the taxpayers $1.25 million for its acquisition by the Park District), back a $3.3 million loan to now-defunct Firefly Energy (resulting in over $1 million owed by the City)… need I go on?
“If you are a citizen of Peoria and open your tax bill each year, you will see your taxes have been increased year after year…. I do think it’s important we continue on the city side to hold our property taxes away from an increase.” [Ryan Spain]
Apparently, all other taxes are okay to raise. Fees on our water bills, taxes on our Ameren bills, sales taxes downtown, the continuation of HRA taxes to pay for the overbuilt Civic Center — these apparently don’t have any affect on citizens. As long as we “hold our property taxes away from an increase,” then the quality of life here is golden!
A word to the wise: Council members in glass houses shouldn’t throw stones.
Council meeting tonight
The Peoria City Council will be meeting tonight (Tuesday, Dec. 14) to approve the final 2011 budget and dispose of other regular business. Here’s the agenda. You can hear the meeting on 89.9 FM (WCBU) tonight at 6:15 p.m., either on the radio or live-streamed over the Internet. The meeting will also be broadcast on Comcast Cable channel 22. Past meetings can be viewed online here.