Category Archives: Caterpillar

What happened to Peoria’s stimulus package? Also, will Ardis be drinking the Kool-Aid this time?

Well, it certainly is heartwarming to hear that $3 million in additional donations have rolled in for the proposed downtown museum, but it got me wondering… remember all the talk about this project putting people to work during the recession? Who was it that said that? Oh, yeah, Michael Bryant in InterBusiness Issues:

The message to “Build the Block” as our own stimulus package should be viewed very positively. We would be taking control of our destiny and using our talents and resources to help each other, not waiting for a helping hand. While Peoria may get some monies from President Obama’s economic stimulus package, it would be a mistake for us to wait and see what monies we may get while we have our own outstanding stimulus package right in front of us, literally “shovel-ready.”

Except that they’re not going to start shoveling until at least next year. But according to a new report by Bradley professors Scott and Lewer (you remember them), “the recession will end sometime during the second half of this year.”

So much for helping us stimulate the economy or helping our residents through tough times. Sounds like the economy is correcting itself just fine without turning a spade of dirt for the proposed museum. Who’da thunk? Why, I bet once the recession is over, there would even be a market for the land that’s been held hostage by the museum for the past 11 years.

It’s not too late to correct past mistakes. The current redevelopment agreement for the old Sears block is set to expire at the end of June and must be renegotiated. Now would be the time for the city to require a larger portion of the block be opened up to private, mixed-use development. That would allow the museum to still locate on the block, but in a different form, and it would allow a larger portion of the land to produce property and sales tax income for the city — something we desperately need.

It would not be unprecedented, you know. After voters overwhelmingly supported the library referendum, the city decided to scale back their plans, issuing only $28 million for expansion/updating instead of the $35 million voters approved. I believe the phrase at that time was that the mayor wasn’t “drinking the Kool-Aid on the 72%” of voters who approved the referendum. In fact, Ardis said, taking into account the low voter turnout, that really meant that only 15% of all registered voters voted in favor, and the council has a responsibility to look at the bigger picture and represent all residents whether they voted or not. Well, guess what percentage of registered voters voted in favor of the museum? 12.29% (15,327 of 124,730). So, it only stands to reason that the city would take the same cost-saving measures with this project that they did with the library project, right? After all, times are even more dire now than when the library referendum passed; now we’re staring in the face of a $10 million deficit. Will the mayor be representing all residents whether they voted or not this time?

Of course, the city won’t actually do what I’m suggesting. They’ll pass up (for the fifth time now on this project alone) an opportunity to save money for taxpayers and increase revenues to the city, and instead look for more regressive ways to plug the budget deficit, like cutting public works and public safety, and raising garbage fees.

Remember the good old days when we only worried about Cat leaving Peoria?

Now we have to worry about Caterpillar leaving the country, evidently. Check out Congressman Aaron Schock’s interview on Neil Cavuto’s show:

Or, if you don’t want to watch the whole thing, here are the comments that concern me:

SCHOCK: What this bill will do is only speed up foreign competitors buying U.S. corporations. If the President likes Fiat owning Chrysler, and so many of these other foreign competitors gobbling up their U.S. competition because it makes more sense for them to be foreign companies. For the sake of Caterpillar, they only sell 30% of their goods here in our country. If they’re going to be double-taxed on the other 70%, why fly the American flag? […]

CAVUTO: Do you think Caterpillar’s going to bolt?

SCHOCK: I hope that companies like Caterpillar and their brothers and sisters like them around the country will help educate their members of Congress, will help educate their shareholders, and more importantly their employees of the devastating effect of the President’s tax policy, and that members of Congress will hear their phones ring, and ultimately we can kill it.

In other words, Cat should warn everyone that if the President’s tax policy passes, then Cat may leave the U.S. and become a foreign company. Personally, I’m not worried. Peorians ensured that Cat has “drive[n] deep stakes in this community” by passing that museum tax. Cat wouldn’t leave now that we’ve proven our love for them.

Cat talking points on museum

In the post office box of the Citizens for Responsible Spending, we anonymously received this memo purportedly from Caterpillar, dated April 9, 2009:

Build the Block: Peoria Riverfront Museum and Caterpillar Visitor Center Leader Talking Points (Peoria Area)

Caterpillar is pleased about the vote to move forward with Build the Block. We made a commitment in 2002 to support a new regional museum and we will stay true to this commitment. Caterpillar’s funding of this project will be in the near future, but will not occur in 2009.

  • The budgeted cost of the Visitor Center is $41 million. Planning for this project will be modified to reflect our current financial circumstance.
  • The Caterpillar Foundation has pledged $13.5 million to the museum. We have made the decision to temporarily suspend outright cash payments, however, the Foundation will continue to match payments to the museum project from employees and retirees.

The Visitor Center will benefit Caterpillar in many ways:

  • Enhance the overall customer experience when Caterpillar dealers bring customers to Peoria to visit the company.
  • Provide a complete perspective of our commitment to customer success, regardless of where they are working around the world.
  • Exhibits will focus on the value of our equipment, engines and services and the long-term relationships which offer customers a superior value in providing solutions to their business challenges.

Hmmm. So much for stimulating the economy while so many people are facing hard times. Evidently the new plan is to wait for better economic times to build.

Cat encourages remaining employees to vote for museum tax

A source who wishes to remain anonymous forwarded me this e-mail that was sent to Caterpillar employees today:

Dear Team Caterpillar:

In 2002 my predecessor, Chairman Glen Barton, committed Caterpillar’s support to a new regional museum. Since then the company has supported this project to revitalize the downtown Peoria community. Our involvement has grown from a relatively simple presence in the new museum to the current concept — a separate facility housing a corporate visitor center, called the Caterpillar Experience.

This new riverfront development along with the proposed renovation of the Hotel Pere Marquette and the recent expansion of the Civic Center, should transform the landscape of downtown Peoria. The Museum project specifically will offer tremendous educational and entertainment opportunities to residents throughout Central Illinois.

Peoria County voters now have an opportunity to support the Museum project through a countywide referendum on April 7. The proposed 0.25 percent county sales tax increase will provide critical public funding for the new Museum. As federal and state funding sources have disappeared, this local funding initiative has become the last opportunity for moving this project forward.

If you live in Peoria County and can vote on this referendum, I encourage your support. Without a doubt, this project will make Peoria a better place to live, will make downtown Peoria a better place to work and will help us attract the best and brightest employees for the future.

Please remember to vote on April 7. You’ll find the issue as the last item on the ballot which references “public facilities sales tax.” If you’re going to be out of town on election day, you can take advantage of early voting between March 16 and April 2.

Thank you for your support. This is an important opportunity for the members of Team Caterpillar to make a difference in Peoria.

Sincerely,
James W. Owens

There’s nothing wrong with Cat encouraging its employees to vote a certain way, of course. I post this merely to show what Cat’s thinking is on the issue. Several things stood out to me:

  • “…educational and entertainment opportunities…” — Meanwhile, District 150 can’t make payroll, and county school districts need to make facilities improvements. And as for entertainment — it’s not enough that we just spent $95 million expanding the Civic Center and adding an attached hotel? How many more millions can the public afford for “entertainment”?
  • “As federal and state funding sources have disappeared…” — I thought we just heard yesterday at the Build the Block news conference that these funding sources have reappeared. Aren’t they hoping to get $14 million in stimulus money now? Didn’t Illinois Secretary of Transportation Hannig say that the state is “committed to this project” financially? Sounds like the tap has been turned back on.
  • “…this local funding initiative has become the last opportunity for moving this project forward…” — I thought the New Market Tax Credits were the last opportunity to move the project forward. And before that, I thought extending the redevelopment agreement was the last opportunity to move the project forward. How many “last opportunities” are there?
  • “…this project will make Peoria a better place to live…” — For whom? How many Cat executives live in Peoria? How many live across the river? How many live on the south side?
  • “…will make downtown Peoria a better place to work and will help us attract the best and brightest employees for the future.” — And where are those future employees going to live? The east bluff? South Peoria? Averyville? If not, why not? I thought this museum was supposed to make Peoria a better place to live. Why wouldn’t they want to live here? What’s wrong with these parts of town that a new museum doesn’t cure?
  • “This is an important opportunity for the members of Team Caterpillar to make a difference in Peoria.” — The members of Team Caterpillar who are left after all the layoffs, that is.

Sears block may remain parking lot until 2010

There are a couple of items regarding the Sears block on the City Council’s agenda for Tuesday night, Dec. 9.

The first one is a six-month deadline extension of the Museum Block Redevelopment Agreement. The original redevelopment agreement was signed way back in 2004, and the deadline for the agreement was December 2006. Each year since then, the deadlines have been pushed back as the council waited for the museum group to get the funds they needed; there was always one more avenue that was sure to bring in the money. Each attempt to secure the needed funding has failed.

The latest plan is to ask Peorians in the midst of a recession to voluntarily raise sales taxes on themselves via referendum to pay for the construction and ongoing maintenance of the proposed museum. The county board will be discussing this ballot question soon, even as Caterpillar contractors are being laid off, and other local bodies (such as the school board) are realizing dramatically lower tax revenues due to the current economic climate. Could the museum folks and our elected officials from the city and county be any more out of touch? Why are they continuing to pursue this?

No doubt there will be a fourth amendment on the agenda for June 2009 after this latest plan fails and all the players look for a way to get that tax money anyway by circumventing the voters (anyone want to take bets that they’ll be asking the Public Building Commission for the money?). That seems to be the M. O. of our “public servants” these days.

Even if the museum project folds up after June, we’re still going to have a big parking lot on the Sears block because the council will also be approving an agreement to extend Caterpillar’s lease of the block for use as a parking lot until December 31, 2009. Why not extend it only until June 30, just like the redevelopment agreement? Under this parking plan, the city would potentially be unable to pursue other development projects for this block until 2010.

Both of these items are on the consent agenda, which means there will be no discussion on them unless a council member asks for them to be voted on separately.

Koehler: Even museum may not be enough to keep Cat here

Word on the Street was especially newsy today. What I found most interesting was the response from Mayor Ardis and Senator Koehler when asked about comments that I and other bloggers interpreted as fear mongering to gain support for the proposed museum.

Ardis said he didn’t mean it that way. But Koehler upped the ante:

State Sen. Dave Koehler, D-Peoria, […] said he’s concerned about the future of Caterpillar in Peoria with or without a museum, especially in today’s global corporate climate.

“If Peoria wants to turn this down, we need to be responsible for anything that happens in the future,” he said. “I’m not trying to overplay this. I’m being realistic.”

Wow. So, the future of Cat in Peoria is uncertain whether there’s a museum or not. What a comforting thought. So much for the museum driving “deep stakes” here for Cat, as Brad McMillan suggested. But here’s the best part: If we build the museum (translation: if we pass a big county-wide tax increase) and Cat decides to leave anyway, it will evidently be because of “today’s global corporate climate.” But if we don’t build the museum and Cat decides to leave, it’s all our fault for voting against a tax hike. It’s not scaremongering; it’s just “being realistic.”

It’s being realistic, but what was the other thing he said? Oh yeah: “State Sen. Dave Koehler, D-Peoria, said he hasn’t had any conversations with anyone from Caterpillar about its future in Peoria if a museum isn’t built.”

I think it’s time for Caterpillar to clear the air. They didn’t return a call for comment to the paper. They should. Peorians deserve to know whether Caterpillar is giving Peoria an ultimatum or if the museum backers are just trying to use fear and misinformation to scare people into voting for a tax increase to build a museum whose current plans and cost they don’t like.

Bryant continues to make case for museum

I got my latest issue of Illinois Business Issues, and I have to say that it looks really good. It’s now full-color, and all the whole thing has been reformatted and updated. Kudos to the folks at Peoria Magazines for a fine makeover.

If only the museum folks would do the same with their plans for the Peoria Regional Museum. Instead, we have yet another article from W. Michael Bryant on why building the museum is critical.

It has been well communicated by Caterpillar that the Visitors’ Center will not be built on the Sears Block without the Peoria Riverfront Museum being built alongside—the company’s vision is that the combination of these two will be spectacular. To that end, Caterpillar has committed $51 million toward its Visitors’ Center and the Riverfront Museum. Without question, we as a community must do everything possible to match Caterpillar’s commitment.

…We must demonstrate our commitment that the future of Caterpillar should remain in Peoria. We will never get another opportunity to partner with Caterpillar like this again—we cannot afford to lose it!

Translation: Heed the dire warning, peasants. If you don’t give your tribute money to this project, you will offend the gods.

This sounds like a veiled threat to me. The implication is that if we don’t want to build the proposed, poorly-planned, overpriced museum, then we will somehow be demonstrating our non-commitment to “the future of Caterpillar…in Peoria.” Hogwash. Peorians can both affirm our desire for Cat to stay and reject a museum development proposal that is flawed and needs revision.

It’s worth noting that Cat hasn’t made any threats. All they’ve said is that they won’t build their visitors center if the museum isn’t built next to it. Fair enough. But they haven’t said that building or not building the museum would have any impact on their “future…in Peoria.” It’s the museum officials that are making that leap.

This article tells me that the museum folks are getting desperate. They obviously don’t feel that the museum can be sold to the public on its own merits, or else they wouldn’t need to resort to this kind of breathless rhetoric about the future of Peoria’s largest employer.

If we have to be motivated by fear to hand over our money to this project, then the project isn’t worth it.

Keep the paramedics on call

Pedestrian CrossingJonathan Ahl and WCBU news are reporting that the Sears block is going to be used as a temporary parking lot while Caterpillar does some maintenance work on its parking deck.

I’m aghast at Caterpillar’s callous disregard for employee safety. In case you’ve forgotten how dangerous this situation is, I’ll remind you that Cat said we couldn’t change Adams and Jefferson streets from one-way to two-way because their employees would be unable to adapt to changing traffic patterns:

The safety of Caterpillar employees is of the utmost importance. A key concern of our workers in downtown Peoria is pedestrian safety…. Changing streets from one-way to two-way would create more vehicle/pedestrian conflicts at intersections…. Our employees are familiar with the traffic patterns as they exist today and know what to expect.

Well, this new parking scheme is a cinch to lead to widespread disorientation and employee injury. Traffic patterns will be seriously altered since all those cars will be going into and out of the Sears block instead of the parking deck. Unable to scamper across their gerbil tube from the deck to the World Headquarters building, unsuspecting employees will be forced onto the mean streets of Peoria at rush hour and expected to navigate a crosswalk spanning a dreaded unfamiliar two-way street. I shudder to think of the carnage as hundreds of employees, conditioned to only look one direction before jaywalking, end up hit from behind by motorists. Oh, the humanity!

Bloggers are often accused of just complaining but doing nothing to help the situation. Well, today, I’m going to do something to help. As a pedestrian experienced in crossing complicated intersections, I hereby offer to provide training to Caterpillar’s employees before this new parking plan takes effect. I charge reasonable fees and boast a mortality rate of six sigma quality. In addition to my personal experience crossing intersections, I have also helped the elderly across the street during my participation in Cub Scouts and Webelos, and I’ve taught children as young as 6 and 7 years old how to safely cross the road on their own.

Give me a jingle. I’m always happy to be of service.

Cat wants traffic patterns unchanged downtown

One Way SignI meant to post this awhile ago and just never got around to it. One of the things the Heart of Peoria Commission is focusing on these days is fixing the streets. That doesn’t just mean filling potholes. It means making the streets more balanced thoroughfares — streets that comfortably accommodate not just cars, but also pedestrians, bicycles, and mass transit.

Downtown, there are a few street changes that the Commission would like to see and that the Heart of Peoria Plan advocates. In the Warehouse District, the Commission would like to see the Washington Street corridor improved by widening the sidewalks, allowing on-street parking, planting street trees, lowering the speed limit, and narrowing it from five lanes to three. IDOT put the kibosh on that plan, but there are efforts underway to change their mind. The Heart of Peoria Plan advocates changing Adams and Jefferson streets to allow two-way traffic again.

All of this talk about changing the streets downtown has led Caterpillar to publish their position, which can be summed up thus: status quo. They like things just the way they are, thank you very much. Here’s their full statement:

Caterpillar Inc. supports maintaining the existing traffic patterns on Adams, Jefferson, and Washington Streets in downtown Peoria (specifically one-way traffic on Adams and Jefferson, and two-way traffic on Washington).

We oppose any change that would reconfigure Adams Street or Jefferson Street for two-way traffic.

We oppose any change that would result in shifting heavy truck volume through downtown Peoria from Washington Street to other streets.

We believe that one-way traffic flow on Adams and Jefferson is smoother, less disruptive and consistent than would be the case if the streets were changed to two-way traffic. This is particularly true in front of our world headquarters on Adams Street. In order to properly host Caterpillar visitors, VIP vans, buses, and cars must be able to park conveniently and safely in front of our headquarters. Adams Street accommodates this activity effectively and safely in a multiple lane, one-way configuration.

Moreover, the image of Adams Street is a valuable component of the overall image conveyed by Caterpillar’s headquarters. We consistently receive positive comments from dealers, customers and visitors on the pleasant qualities of this area, and we attribute this ambience, in part, to the smooth, one-way traffic flow on Adams Street.

The current street routing in downtown Peoria, coupled with new and efficient links to Interstate 74, allows heavy trucks serving ADM and other industries to use Washington St. This pattern results in lower truck traffic volume on Adams and Jefferson through the most congested downtown areas.

The safety of Caterpillar employees is of the utmost importance. A key concern of our workers in downtown Peoria is pedestrian safety. In addition to our numerous buildings, Caterpillar employees occupy office space in many downtown office buildings and generate a large amount of pedestrian traffic during the typical business day. Changing streets from one-way to two-way
would create more vehicle/pedestrian conflicts at intersections. This would be especially true at the intersection of Adams Street and Main Street, which is traversed by hundreds of Caterpillar people daily. Although one of the busiest in downtown Peoria, it is easier to navigate because Adams Street is one-way. Our employees are familiar with the traffic patterns as they exist today
and know what to expect.

Caterpillar operates several parking lots for employees in downtown Peoria. In some cases the entrances and exits to these lots are located to accommodate current traffic patterns. For example, the exit from our parking lot in the 200 block of Northeast Adams allows for safe discharge in one direction on Adams Street, avoiding the safety issues associated with a left turn onto a two-way street.

We believe that any revisions to the current traffic patterns on Adams, Jefferson, and Washington Streets in the downtown Peoria area would be detrimental to our employees and visitors.

For a company that touts fact-based or measurement-based decision making (Six Sigma), this statement sure is full of a lot of conjecture. Who would have thought that the “pleasant qualities of this area” could be attributed to one-way streets? Or that cars and vans cannot park conveniently or safely in front of a business unless the street is one-way?

I agree that we don’t want heavy truck traffic diverted from Washington to Adams/Jefferson. Preferably, the truck traffic would be diverted instead to the Bob Michel bridge for I-74 access, bypassing the most congested part of downtown altogether.

But the paragraph about worker safety is the one that really takes the cake for me. “Our employees are familiar with the traffic patterns as they exist today and know what to expect.” So, if we were to change Adams to two-way, Caterpillar is telling us that their management employees — most if not all of whom have advanced degrees — will become confused or disoriented by the change, resulting in pedestrian accidents and casualties? If so, maybe traffic patterns outside shouldn’t be their biggest concern right now. Personally, I believe Cat employees are sharp enough to be able to navigate the crosswalk with little difficulty were traffic to change to two-way. I guess I just have high expectations.

The Cat lot in the 200 block of NE Adams is on the southeast side of the street, which means that traffic out of that lot can continue unchanged simply by making it a right-turn only exit, were the street to ever change to two-way.

Suffice it to say, I don’t find Cat’s objections compelling. I’d like to see them have an open mind as Councilman Sandberg works with them and other stakeholders regarding the possibilities for these downtown corridors (Washington, Adams, and Jefferson) and how they can be improved.

Museum Partners tip their hand: retail unlikely

PRM LogoThis week’s council agenda has a fascinating account of the city’s efforts to negotiate with the museum partners and Caterpillar over changes they want to make to their development agreement for the Sears block. They never reached consensus:

The Museum wanted total control over development of the retail space. Conversely, we believe that the City’s Office of Economic Development is in a better position to market and negotiate the deal. It was clear from this meeting that the real issue was the Museum wants architectural and functional (what the building could be used for) control. We suggested that a rendering could be included that would define the architecture; however, the Museum declined that alternative. It was even mentioned by a representative of the Museum that perhaps the idea of commercial/retail needed to be reevaluated. [emphasis mine] We advised them that was a Council decision. The architectural discussion also mentioned the possibility of extending the plaza over the retail/commercial space. We have attached the original site plan presented in February, 2006. While this is a wonderful idea and is what was originally proposed by the Museum, it will not be financially affordable as a standalone project. We agree that the function needs to be compatible with the Museum (i.e. no adult entertainment uses), however, believe acceptable function can be defined. The discussion then moved to the issue of parking (i.e. where would these individuals park). Riverfront Village was discussed as one option for parking. It appears that a concern of the Museum is use of the parking developed to support this project. [emphasis mine]

We offered, as a follow up to that meeting, to allow the Museum to have exclusive development rights for three years following completion of the Museum with the City’s Office of Economic Development having development rights after that time. If the property was developed by the City, architectural and functional control would be determined by City Council. The Museum declined that offer. [emphasis mine] The City could still recommend tenants during the first three years.

What do you think? Does it sound like the Museum/Caterpillar is seriously interested in developing retail along Water street? First, they floated the idea of getting rid of retail altogether. That’s an indication of how committed they are. At best they don’t care whether it’s there or not; at worst they have no intention of developing it and are including it in the plan for appearance’s sake.

Next they bring up parking. Now let me ask you, why is this an issue? There’s going to be on-street parking along the museum side of Water, there’s already on-street and lot parking across Water, and museum square itself is getting a parking deck. This was the configuration that Cat and the museum partners agreed was adequate when the museum was larger and all else was equal. Why, now that the museum is shrinking would parking for retail somehow become a problem? Setting aside the fact that there’s a glut of parking downtown making the new deck completely unnecessary in the first place, the mere fact that the museum is significantly smaller should lower concerns about adequate parking — unless the museum is looking for ways to put the kibosh on the retail element.

Finally, the city offers to give them exclusive development rights for three years following completion of the museum — if all goes according to the new plan, that would be years 2011-2014. But the museum folks rejected that idea. That tells me that they lack confidence that they’re going to be able to develop it in that time frame. Now remember that museum officials believe that they’re going to get 360,000 people a year visiting the museum. With all that traffic, and with low lease rates (the museum agreed to lease the retail space for $1/year), they don’t believe they can develop 15,000 square feet within three years? How many years do they think it will take? Until 2015? 2020? The fifth of never?

It all adds up to a decided lack of interest on the museum’s part in developing the retail. They don’t want to do it, and they don’t want the city to do it either. They apparently prefer the whole museum block be dedicated to the museum and Cat visitor’s center. That would be the worst of all scenarios. The block needs more mixed use development, not less. It needs a residential element added, not the retail element removed.

If the council is serious about wanting retail development on that block (and I think they are), they should reject this amendment.