Category Archives: City of Peoria

Tough questions from IFA about hotel project

In January, hotel developer Gary Matthews appeared before the Illinois Finance Authority (IFA). According to their website, The IFA “is a self-financed, state authority principally engaged in issuing taxable and tax-exempt bonds, making loans, and investing capital for businesses, non-profit corporations, agriculture and local government units statewide.” The IFA is subject to the Open Meetings Act, so their agendas and minutes are public information.

The IFA’s proceedings give us a bit of insight into what lenders and other governmental bodies may think about the proposed downtown hotel project since hotels are really important for people travelling, and many places have hotels or even lodges for people to stay as you can find in the Borneo Eco Tours that offer the best nature surrounded lodges for people to stay. It looks like the concerns are more than just the economic downturn:

Director Meister also noted that the Hotel Pere Marquette project will not come before the Board this month, but the project’s developer, Mr. Gary Matthews, is in attendance at the Committee of the Whole Meeting to answer the Board’s questions. Mr. Durburg stated that he was aware of the Pere Marquette Hotel project and wanted to know if it would be appropriate to ask tough questions of the developer as a new Board Member. Dr. Herrin emphatically stated that it was not only appropriate but Mr. Durburg’s duty as a Board Member to ask tough questions of any project. Chairman Brandt explained to the Board that aside from lack of specificity on project costs, there is also a potential issue with the way this project could be perceived. The fee that the developer is requesting is large and is of concern.

Dr. Herrin agreed with Chairman Brandt regarding the fees. Dr. Herrin stated that he needed firm numbers from Mr. Matthews as to the exact project costs, and then the sources and uses. He wanted to emphasize that this would not be a conduit financing, but essentially a commercial loan to EM Properties.

Chairman Brandt clarified for the rest of the Board that if this project is approved as presented; it would allow the developer to take as much as $9 million in fees out of the project at the completion of construction. Mr. Durburg offered his assistance underwriting this project as he has experience in this field. He also asked if this project would result in other hotels in Peoria closing.

Chairman Brandt explained that the Hotel Pere Marquette is an important civic facility that acts as the main event venue for the area. The project is also part of a downtown redevelopment plan for Peoria. Chairman Brandt cautioned that the State of Illinois has a history with hotel developments that is not positive and the IFA must avoid any similar entanglements.

That was just introductory. Later in the meeting, they dealt at length with this project:

No. 4: EM Properties, LTD (Hotel Pere Marquette Project)
Request for the preliminary approval of the issuance of taxable bonds backed by the “additional security” of the moral obligation of the State of Illinois. The moral obligation financing will finance a portion of the energy efficient upgrades of the 270-room historic Pere Marquette Hotel that will be renovated and converted to a Marriott and a “to be” constructed 180-room Courtyard. The development is located in downtown Peoria on Main Street two blocks from the Caterpillar world headquarters. The developments adjacent and will be connected to the skywalk to the Peoria Civic Center. Proceeds will be used to acquire the land, rehabilitation of the Pere Marquette Hotel, construction of the 180-room Courtyard Hotel, construct the parking desk, pay costs of issuance and fund capitalized interest and bank fees.

Mr. Bill Claus, Funding Manager, introduced the Board to Mr. Gary Matthews, the project developer; and stated that Mr. Matthews attended the meeting to answer questions regarding his project. He clarified that the project had already been pulled from the agenda and would not be presented for approval this month.

Mr. Matthews stated that he understood the Board was concerned about the developer fees for his project. Mr. Matthews explained that the fee was only 9%, well within the industry average of 7 to 12%. He added that he would still be willing to compromise on the exact number or timing of the fees.

Mr. Durburg asked Mr. Matthews how he could reconcile the supply and demand in a small area such as Peoria, where most of the major economic agents (i.e. Caterpillar) are suffering from the economic downturn. Mr. Matthews responded that the nearby Embassy Suites hotel has had four rate increases in the recent past. He understands that that project is doing very well, despite the economy. Mr. Mathews stated his belief that older hotels are suffering in this economy while the newest hotels in any area are not. Mr. Matthews stated that Peoria is lacking new, quality hotel rooms. He believes that with Marriott’s 30 year management agreement, along with several other factors, this property will succeed.

Mr. McInerney asked what the “per key” value of the Embassy Suites was. Mr. Matthews responded it was between $170 and $180 “per key”. Mr. McInerney requested an explanation of why the Embassy Suites’ per key rate was lower than the Hotel Pere Marquette’s. Mr. Matthews explained that the Hotel Pere Marquette project also includes an elevated walkway to the Civic Center and a 500 car parking lot that the Embassy Suites does not have.

Mr. Durburg asked if the project was contemplating any sort of agreement with Caterpillar for rooms. Mr. Matthews stated that Marriott was not interested in that sort of arrangement as they want to remain flexible. Mr. Matthews is not concerned, as Caterpillar has a long history with the Pere Marquette given the fact that their international headquarters and training center are within a few blocks of the hotel.

Dr. Herrin added that St. Francis Hospital will be developing a new children’s hospital across the street from the proposed project. This is expected to be a premier children’s hospital with people traveling from far away to receive treatment. This may be positive for the Hotel Pere Marquette. Mr. Matthews pointed out that this project was structured by Marriott based on its analysis of the market. This project includes the Hotel Pere Marquette as a full service property and the yet-to-be-built Courtyard by Marriott property will be special service.

Mr. Durburg asked if the first mortgage on this property will be non-recourse. Mr. Matthews responded that it was recourse debt to him, personally. Mr. Durburg then asked if Mr. Matthews had prepared a pro forma for occupancy over the first few years. Mr. Matthews responded that he could not off the top of his head, but that he believed that Marriott had prepared and submitted that report. He believed Marriott projected 73% occupancy for the Courtyard and Pere Marquette in the first few years. The breakeven point for the project is 50% occupancy for the Pere Marquette and 53% for the Courtyard by Marriott Hotel. This data is based on three different feasibility studies that were conducted.

Dr. Herrin asked if the IFA had all of these studies. Mr. Matthews responded that he believed the IFA did. He added that Marriott disagreed with one of the studies that suggested both hotels be full service. Mr. Claus added that the IFA will need an “as built” study as well. Mr. Durburg then asked what the occupancy rate at the Embassy Suites was. Mr. Matthews stated that December was not a good month for the Embassy Suites, but that other than that occupancy has been high. Embassy Suites has projected that January through February will be rough as well but that occupancy will pick up in March with March Madness. It is currently at about 45%.

Mr. Durburg pointed out that to break even, the project must have 50% occupancy and the projections are for 73% occupancy. He asked how Mr. Matthews could account for that.

Mr. Matthews stated that the project will have other sources of revenue including shops, restaurants and the parking deck. Mr. Durburg asked if there would be a need for the additional parking. Mr. Matthews explained the site lay out and adjacent businesses on a large scale map of the proposed development, clarifying the need for additional parking.

Mr. Durburg then asked if Mr. Matthews will be competing with the Embassy Suites hotel. Mr. Matthews responded affirmatively.

Dr. Herrin stated that he would like Mr. Matthews to prepare a finalized total project cost, including acquisition and renovation, as well as a list of the pledged financials. The IFA can then determine if it is possible or appropriate for the IFA to fill any gaps in total financing.

Mr. Matthews explained that the City of Peoria will not close on the funds they have pledged until a guaranteed construction cost agreement has been reached with a contractor. This cannot be completed until the design for the project is completed, which is still in process.

Mr. Durburg asked who currently owns the Hotel Pere Marquette. Mr. Matthews responded that it was a long established partnership. Dr. Herrin asked if Mr. Matthews would be able to break down and identify the actual costs of the project. Mr. Matthews stated he would be able to in two to three weeks.

Chairman Brandt stated that the State of Illinois has not had a positive experience with hotels in the past, which could create problems for this deal. He added that while that alone is not a reason to forgo this project, it is an excellent reason to proceed with great caution. Chairman Brandt stated that the other primary concern for the Board is the lack of certainty on numbers. The IFA will need a final project cost before we can proceed any further.

Large developer fees, “lack of certainty on numbers,” extremely high occupancy rate projections — these are the kinds of questions the IFA had for the developer. Nobody called it a “wonderful development,” incidentally. My guess is that other lenders had the same kinds of questions.

The next IFA board meeting is Tuesday, March 9, 3 p.m., at (are you ready?) the Pere Marquette Hotel in Peoria. The agenda hasn’t been posted yet.

Peoria to try to woo Google

From a press release:

Mayor Jim Ardis will hold a news conference on February 23, 2010, at 1:30 p.m. The news conference will be held at the PeoriaNEXT Innovation Center (801 W. Main Street, Peoria). The Mayor will be joined by community leaders to discuss our efforts to submit an application to become a test market for Google.

County Board member Merle Widmer has some additional information on his blog, including an e-mail from Mayor Ardis:

As you may have recently seen, Google announced an effort to bring 1GB Internet service to a test market somewhere in the United States. This would be a phenomenal service that would deliver speed up to 100x faster than the best current system available. The impact on economic development will be enormous.

You might also have seen me talk about the importance of this opportunity to Peoria. The City of Peoria has started an application and has now joined the County of Peoria in working collaboratively.

You can read the rest at Merle’s blog, but you get the idea. Here’s some more information on Google’s effort from their official blog.

Former mayor counsels council

Former mayor of Peoria Bud Grieves, who also happens to own a hotel downtown, has written the current mayor and council a letter with some advice on how to handle the so-called “wonderful development” — i.e., the proposed downtown Marriott hotel deal:

TO: The Honorable Mayor and Members of the City Council
FROM: Lowell (Bud) Grieves, Mark Twain Hotel
DATE: February 19, 2010
SUBJECT: JOURNAL STAR ARTICLE OF FEBRUARY 16, 2010

I am writing to clarify my position regarding the Downtown hotel project that was covered in an article appearing in the Journal Star on February 16, 2010. The article, while generally correct, missed some important points of which you should be aware.

I am supportive of City assistance in this project and stated so publicly over a year ago. I am still supportive of the concept of public assistance but only for the purpose of tearing down Big Al’s and other bars in upgrading the entire block. It’s a stretch, but this can be interpreted as a public improvement that the City can choose to make to leverage the recently upgraded Civic Center – I understand the importance of this!

However, I talked to City Attorney Randy Ray prior to the interview and was told that the $40 million in public funds were not restricted to public use outside the hotel but instead could be applied to any portion of the project. That means carpeting, televisions, elevators, and even the walkway connecting a private hotel to the Civic Center could be paid for with these funds. This is simply not fair to taxpaying, existing Downtown hotels that have to pay for these very same things on their own to compete. If your goal is to offer public assistance to Downtown hotels to accommodate Civic Center conventions, then you should see to it that all Downtown hotels get public assistance! I would like to build a skywalk from my hotel to my banquet facility (Packard Plaza) and would request City funding assistance to do so.

The convention business is slow, and I have never seen the hotel business this bad. John Q Hammonds recently backed away from the build out of additional rooms at the Embassy and gave back $500,000 to the City of East Peoria. Does this sound like a strong recovering market to you? Perhaps this project will not go and let you off the hook. If not, I would urge you to limit the use of public money to public improvements, prior to issuing the bonds. Failure to do so will set an indefensible precedent, and you will have to live with the consequences.

Thank you.

The project’s developer, Gary Matthews, who last year confidently stated that he’d have all his financing in place by January of this year, now says he’ll ask for an extension from the City Council on the redevelopment agreement. He added this:

Design plans for the $100 million hotel are also set to change: Matthews tells us the “blended look” between the Pere Marquette and the Marriott will be slightly different.

There’s only one reason to change the design at this point, and that’s to save money. I shudder to think what the “new” look will be.

What the Council should do (but they won’t) is cancel the whole project for the same reasons they never should have entered into the agreement in the first place. Matthews’ inability to secure financing despite having 40% of the cost of the project covered by the City should be a clear enough sign to the council that this is a bad investment.

But then, bad investments are no big deal when all you’re investing is other people’s (i.e., Peoria taxpayers’) money.

Sidewalks, snow, and people with disabilities

WMBD-TV channel 31 is reporting that disabled residents are having a hard time getting around the city because sidewalks are not cleared of snow. Last month, readers of the Peoria Chronicle debated whether or not residents and businesses should be required to shovel snow off the sidewalk in front of their property. Here’s the answer WMBD heard as a result of their investigation:

[JoAnne] Rose says “I’m in constant fear of getting stuck, and not able to get out, then what do I do.” …She’s now challenging residents put themselves in her shoes– “Tie themselves into a wheel chair where they can’t move their limbs and try to get around.”

The issue regarding pedestrian mobility in Peoria goes beyond removing snow from the sidewalks a few times in the winter. It also involves having sidewalks in the first place, and then keeping them in good repair. Unfortunately, these are the two things the city doesn’t do very well.

There needs to be a comprehensive transportation plan for the city that addresses not just automobile traffic, but all modes of transportation. We need a strategic plan that sets the vision for mobility within the city and has an action plan for reaching that vision over a number of years. It will take a long time to implement because of the cost involved, but nothing will ever change if we aren’t intentional about planning to make the city more accessible. I’m not talking about merely meeting ADA requirements, but actually making the city’s transportation network/infrastructure multi-modal.

Perhaps the Traffic Commission could add that to their work plan, since they don’t appear to have anything else on their agenda.

Liveblogging the City Council (from home) 2/9/2010

Hello everyone. I’m not going to venture out in the snow and try to find parking on a night that Bradley is playing ISU at the Civic Center. So, I’m going to snuggle up at home and listen to the council meeting on WCBU radio. As usual, I’ll be updating this post throughout the evening, so be sure to refresh often. Here’s the agenda:

PETITIONS, REMONSTRANCES & COMMUNICATIONS – CITY OF PEORIA UNFINISHED BUSINESS

(09-500) PUBLIC HEARING Regarding Proposed ANNEXATION of 9900 N. ALLEN ROAD (Temporary Address) (Continued from November 24, 2009).

Councilman Irving moves to open the public hearing, seconded by Van Auken.

  • Joyce Blumenshine: Has a few issues with the annexation — actually with the plan for the site. She asks that the annexation not be voted on tonight. Developer is trying to maximize density for the site to the detriment of the environment. It’s not consistent with the City’s ordinances, such as the stream buffer ordinance.
  • Kiersten Sheets: Lives in Marshall County, but is on the Sustainability Commission as well as a member of other environmental groups. She also is concerned about the site plan, not so much the annexation. She also takes issue with the storm-water management plan. Recommends a “low-impact development storm water ordinance.”

That’s it. No one else wishes to speak.

(09-501) Communication from the City Manager and Director of Planning and Growth Management with Recommendation from the Planning Commission to Adopt the Following:

A. RESOLUTION Approving the ANNEXATION AGREEMENT for Property Generally Located NORTHEAST of the ROCK ISLAND TRAIL (Parcel ID No. 09-31-251-004) EAST of ALLEN ROAD, SOUTH of BROMPTON COURT and Parcel ID No. 09-31-208-031, and WEST of Parcel ID No. 09-31-226-027; the Property Proposed for Annexation is Parcel ID No. 09-31-251-006, with a TEMPORARY ADDRESS of 9900 N. ALLEN ROAD, Located within One and One-Half Miles of the City of Peoria;

Councilman Irving makes several changes to the resolution in his motion, seconded by Turner. Councilman Sandberg is concerned about the proposed apartment complex. There is too much traffic in this area already, and this apartment complex adds 96 units which will make traffic even worse. He’s also concerned about the amount of dirt that they’re planning to move and the impact it will have on drainage. In the Comprehensive Plan, this is designated as a conservation area, and the developer wants to “shoehorn in” three significant buildings. Sandberg is okay with the proposed single family home on Brookshire. Motion passes 10-1; Sandberg voting no.

B. ORDINANCE ANNEXING TERRITORY Contiguous to the City of Peoria – 9900 N. ALLEN ROAD (Temporary Address).

Irving moves to approve, seconded by Turner; no discussion. Passes 10-1 (Sandberg).

(09-502) Communication from the City Manager and Director of Planning and Growth Management with Recommendation from the Zoning Commission and Staff to Adopt an ORDINANCE Rezoning Property Located in the 9900 BLOCK of ALLEN ROAD Upon Annexation from Class R3 (Single Family Residential) District to a Class R6 (Multi-Family Residential) District.

Irving moves to approve, seconded by Turner; no discussion. Motion passes 10-1 (Sandberg).

(09-503) Communication from the City Manager and Director of Planning and Growth Management with Recommendation from the Planning Commission and Staff to Adopt an ORDINANCE Approving the MULTI-FAMILY PLAN for Property Generally Located NORTHEAST of the ROCK ISLAND TRAIL (Parcel ID No. 09-31-251-004), EAST of ALLEN ROAD, SOUTH of BROMPTON COURT and Parcel ID No. 09-31-208-013, and WEST of Parcel ID No. 09-31-226-027, with the Property Identified as Parcel ID No. 09-31-251-006, with a TEMPORARY ADDRESS of 9900 N. ALLEN ROAD, with Conditions.

Irving moves to approve with some changes; seconded by Spain. Irving thanks the developer. Motion passes 10-1 (Sandberg).

ITEM NO. 1 CONSIDERATION OF CONSENT AGENDA ITEMS BY OMNIBUS VOTE, for the City of Peoria, with Recommendations as Outlined:

A. Communication from the City Manager and Police Chief Requesting Approval for the ANNUAL PURCHASE of FACTORY AMMUNITION for POLICE DUTY USE from KIESLER POLICE SUPPLY, INC., in the Amount of $28,992.32.

B. Communication from the City Manager and Police Chief Requesting Approval of a SOLE SOURCE PURCHASE of THREE POLICE CANINES, One with Specialty in Explosives Detection and Patrol Function and Two with Narcotics and Patrol Specialties from SOUTHERN POLICE CANINE, INC., in the Total Amount of $41,800.00, with Funds Coming from the Federal Asset Forfeiture Account.

C. Communication from the City Manager and Director of Public Works Requesting Approval to PURCHASE THREE (3) PICK-UP TRUCKS Through the State of Illinois Contract Bid Process for the PARK DISTRICT’S USE to Include TWO FORD F250 TWO-WHEEL DRIVE PICK-UP TRUCKS and ONE FORD F250 FOUR-WHEEL DRIVE PICK-UP from LANDMARK FORD in Springfield, Illinois, for ROUTINE REPLACEMENT, in the Amount of $63,000.00.

D. Communication from the City Manager and Director of Public Works Requesting Approval to PURCHASE TWO F550 SUPER DUTY TRUCKS, Fully Equipped with Dump Box, Snow Plow and Salt Spreaders from LANDMARK AUTOMOTIVE GROUP in Springfield, Illinois, in the Amount of $138,124.00, Utilizing the State Contract Bidding Process.

E. Communication from the City Manager and Director of Public Works Requesting Acceptance of the LOW BID of R. A. CULLINAN & SONS, INC. and Award the CONTRACT, in the Amount of $1,803,195.91, with Additional Authorization of $90,159.80 (5% for Contingencies) for the GLEN OAK SCHOOL IMPACT ZONE STREET IMPROVEMENTS for WISCONSIN, REPUBLIC, MARYLAND, and KANSAS STREETS.

F. Communication from the City Manager and Director of Public Works Requesting Acceptance of the LOW BID of ILLINOIS CIVIL CONTRACTORS, INC. and Award the CONTRACT, in the Amount of $1,373,739.95, with Extra Authorization of $68,687.00 (An Additional 5% for Contingencies) for the HOLLY HEDGES/DEVEREUX CHANNEL IMPROVEMENTS. (Refer to Item Nos. 08-615 and 09-430)

G. Communication from the City Manager and Director of Planning and Growth Management Requesting Approval of an AMENDMENT to the HAND UP DEVELOPMENT CORPORATION 2009 CHDO PROJECT SCOPE to Develop ONE NEW, SINGLE FAMILY, OWNER-OCCUPIED HOME Located at 522 W. WILLCOX AVENUE (Parcel ID No. 14-33-152-020) and CANCEL DEVELOPMENT of ONE NEW, SINGLE FAMILY, OWNER-OCCUPIED HOME Located in the 3400 BLOCK of SYLVAN LANE (Parcel ID No. 13-24-453-012). (Amends Item No. 09-450)

H. Communication from the City Manager Requesting Approval to FORBEAR on a LOAN to GLOBE ENERGY for 90 DAYS and Requesting Authorization for the City Manager to Execute the Necessary Documents. (Refer to Item No. 07-268)

I. Communication from the City Manager and Director of Public Works Requesting Approval to Execute a TWO-YEAR CONTRACT with INDUS LUBRICATING for OIL PRODUCTS used by the CITY’S FLEET MANAGEMENT DIVISION and FIRE GARAGE, as Outlined.

J. Communication from the City Manager and Director of Public Works Requesting Approval of a CONTRACT with FOTH INFRASTRUCTURE & ENVIRONMENT for 2010 ENGINEERING SERVICES for the PEORIA CITY/COUNTY LANDFILL, in the Amount of $376,000.00, as Recommended by the Peoria City/County Landfill Committee.

K. Communication from the City Manager and Director of Public Works Requesting Approval of a SEWER IMPROVEMENT AGREEMENT with the GREATER PEORIA SANITARY DISTRICT for the REPAIR of SEWERS, as a Part of the City of Peoria’s Sewer Rehabilitation (Design Area 1 Sewers, Manhole Rehabilitation Project 3), and Requesting Concurrence in the Award of the CONTRACT for the Work to MIDWEST TRENCHLESS SERVICES, in the Amount of $358,660.00.

L. Communication from the City Manager and Finance Director/Comptroller Requesting Adoption of an ORDINANCE ABATING the TAX Heretofore Levied to PAY SPECIAL SERVICE AREA TAXES on the RIVERWEST NEIGHBORHOOD (Formerly the Colonel John Warner Homes Development).

M. Communication from the City Manager and Finance Director/Comptroller Requesting Approval of an ORDINANCE Partially ABATING the TAX Heretofore LEVIED to PAY PRINCIPAL OF and INTEREST ON GENERAL OBLIGATION LIBRARY BONDS SERIES 2008A, in the Amount of $798,000.00.

N. Communication from the City Manager and Finance Director/Comptroller Requesting Approval of the ORDINANCE ABATING the TAX Heretofore LEVIED to PAY PRINCIPAL OF and INTEREST ON GENERAL OBLIGATION CORPORATE PURPOSE BONDS, of the City of Peoria,1998 SERIES C, 2002 SERIES A & B, 2003 SERIES A & B, 2004 SERIES B & C, 2005 SERIES A & B, 2007 SERIES A, and 2009 SERIES A.

O. Communication from the City Manager and Finance Director/Comptroller Requesting Adoption of an ORDINANCE Amending the CITY OF PEORIA BUDGET for FISCAL YEAR 2010 Relating to the OUTSTANDING ENCUMBRANCES as of DECEMBER 31, 2009, in the Amount of $6,481,002.00.

P. Communication from the City Manager Requesting Approval of the Following:

1. TRANSFER of PROPERTY Located at 720 E. PARK AVENUE to PEORIA AREA COMMUNITY EVENTS (P.A.C.E.) FOUNDATION for the Amount of $1.00, and Authorize the City Manager to Execute the Necessary Documents;

2. ADOPT an ORDINANCE VACATING a PORTION of LAKE VIEW AVENUE Approximately 315 FEET NORTHEAST of PERRY AVENUE.

Q. Communication from the City Manager and Corporation Counsel Requesting Approval of DATES for SCHEDULED EVENTS SPONSORED by PEORIA AREA COMMUNITY EVENTS, INC. (P.A.C.E.), Subject to Their Filing the Necessary Permits and Approval as Required by the Peoria City Code. Dates Scheduled are: Steamboat Festival – June 17 through 19, 2010; Taste of Peoria – August 11, 2010 (Rain Date: August 12, 2010); Labor Day Picnic – September 6, 2010; and RibFest & Chili Cookoff – October 1 and 2, 2010.

R. Communication from the City Manager and Corporation Counsel Requesting Approval of a SITE APPLICATION for a CLASS A (Tavern) LIQUOR LICENSE at 7719 N. UNIVERSITY, with Recommendation from the Liquor Commission to Approve.

S. Communication from the City Manager Regarding the PEORIA PARK DISTRICT FOURTH QUARTER 2009 REPORT of ACTIVITIES for the RIVERFRONT and GATEWAY BUILDING, with Recommendation to Receive and File.

T. Communication from the City Manager with Request to ACCEPT the PEORIA PARK DISTRICT RIVERFRONT PROGRAMMING WORK PROGRAM AND BUDGET REPORT for 2010.

U. REPORT of the CITY TREASURER PATRICK NICHTING for the MONTH of DECEMBER 2009, with Recommendation to Receive and File.

Item Q removed by Montelongo. Jacob abstaining on Q and R, removes item F. Motion to approve remaining items by Spain, seconded by Turner; passes unanimously.

  • Item F: Motion to approve Jacob; Spears seconds; passes unanimously.
  • Item Q: Montelongo moves to approve; Spain seconds; passes unanimously.

ITEM NO. 2 Communication from the City Manager Requesting Approval of the CITY OF PEORIA’S PORTION of the COMMUNITY LEGISLATIVE AGENDA Regarding FY2011 CONGRESSIONAL APPROPRIATION REQUESTS.

City Manager Scott Moore asks if staff can bring this item back at a later date so they can be discussed at next week’s policy session before submitting. Motion to defer by Van Auken; seconded by Riggenbach. Motion passes unanimously.

ITEM NO. 3 Communication from the City Manager and Corporation Counsel Requesting Approval of the MAIN CONSTRUCTION and DEVELOPMENT AGREEMENT with ILLINOIS-AMERICAN WATER COMPANY, and Requesting Authorization for the City Manager to Execute the Necessary Documents.

Irving moves to approve; seconded by Van Auken. Sandberg asks for clarification, that the City is not obligated to build water main extensions; it would be the developer’s responsibility. City attorney Randy Ray assures Sandberg that the City is not obligated. Motion passes 10-1 (Sandberg).

ITEM NO. 4 Communication from the City Manager and Director of Planning and Growth Management with Request to Concur with Either the Recommendation from the Zoning Commission to ADOPT or Concur with the Recommendation from the Staff to DENY the Following:

A. ORDINANCE Rezoning Property Located at 1717 W. GLEN AVENUE from the Present Class R3 (Single Family Residential) District to a Class O2 (Exclusive Office Park) District, with Conditions;

B. ORDINANCE Amending Ordinance No. 13,345, a Previous Use with Approval as Amended, for a SPECIAL USE in a Class O2 (Exclusive Office Park) District for an OFFICE DEVELOPMENT Commonly Known as the GLEN PARK PLACE OFFICE PARK to Add the Property Located at 1717 W. GLEN AVENUE and Allow for a BUILDING ADDITION and PARKING LOT for Property Located at 4909 N. GLEN PARK PLACE and 1717 W. GLEN AVENUE, with Conditions.

Councilman Spears moves to approve ordinance A; seconded by Van Auken; passes unanimously.

Spears moves to approve ordinance B; seconded by Riggenbach; passes unanimously.

ITEM NO. 5 Communication from the City Manager and Director of Planning and Growth Management with Request to Concur with Recommendations from the Historic Preservation Commission Contained within the ACTION PLAN to:

A. ADOPT an ORDINANCE Amending CHAPTER 16 of the Code of the City of Peoria Related to the DESIGNATION PROCESS and the CERTIFICATE of APPROPRIATENESS PROCESS;

B. APPROVE a PROCEDURAL CHANGE Related to HOUSING and DEMOLITION CASES; and

C. RECEIVE and FILE a COMMUNITY LIST of PROPERTY NOTED as WORTHY OF POTENTIAL HISTORIC LANDMARK STATUS and the LONG-TERM RECOMMENDATIONS.

Van Auken asks chair of Historic Preservation Commission, Robert Powers, to speak before she makes a motion. Powers gives a history of the ad hoc committee that worked on this council request. He also gave an explanation of the request, which is basically a restatement of what is written here. Van Auken thanks the ad hoc committee and compliments them.

Van Auken moves to approve item A; seconded by Montelongo. Sandberg also compliments the committee. However, he suggests a couple small amendments limiting the number of colors one can have on their house without having to get a certificate of appropriateness. Sandberg moves that Item A be deferred until May 11; seconded by Gulley. The reason is so neighborhood organizations and other stakeholders who live in historic districts have time to read and clearly understand the ordinance before final action is taken. Van Auken supports deferral. Motion passes unanimously.

Van Auken moves to approve item B; seconded by Spain. Jacob asks if this ordinance will unduly delay the process of demolishing other structures. Planning and Growth Director Landes answers: No. Inspections Director Kunski agrees. Motion passes unanimously.

Van Auken moves to receive and file item C; seconded by Gulley. The floor is opened to anyone who would like to address the council on this item.

  • Margaret Cousin: Reads a prepared speech about the virtues of historic preservation, complete with dramatic analogy about being a ball instead of a cube. Cue violins. (I’m sure she was sincere; I’m just jaded.)
  • Jim Bateman: Spoke off the cuff. Makes snide comment about the city losing a previous list that was also received and filed! (“No one can find it. I guess that’s what happens when you receive and file.” LOL!) For the most part he reiterated information already presented. He did explain that the list is a list of historic properties and includes properties that are already landmarked, properties in historic districts, and properties that could potentially be landmarked.
  • Roger Meyer: Member of Trinity Lutheran Church, speaking for the church. Requests removal of the church building (135 NE Randolph) because it’s a church building and changes to the sanctuary shouldn’t be subject to a secular body. Believes all churches on the list should be taken off the list.

Van Auken basically says in response to Mr. Meyer that they’re not going to take any properties off the list at this time.

Turner asks if merely being on the list will cause a hardship — i.e., will it make it difficult for property owners to sell properties that are on the list? Van Auken says no; preservation is economical and reusing properties is sustainable development. She also says the ordinance is “not as onerous as people think it is.” Sandberg agrees with Van Auken. “There’s a whole cadre of developers who will only invest in historic properties,” he says. “Historic preservation is not a negative in almost all cases.”

Sandberg would like to see historic properties put on the City’s website, not just received and filed. He’d like to see us “show off” our historic community.

Jacob asks if all areas of the community were included. Bateman says “we tried,” and says that there very well could be properties that they missed. He says he hopes the list will be a work in progress. The list is not exclusive and can have properties added to it. Jacob says that there is a perception among some developers that the historic preservation ordinance has been used as a weapon to stop some development; he wants to make sure property rights are preserved.

Spain is “conflicted on this issue.” He’s received calls from property owners who are concerned about their properties being on the list. Yet, he recognizes that the City Council asked for this list because of previous attempts to landmark properties at the eleventh hour. So, he wants to know what the process is to get off the list. Bateman says the problem is one of uncertainty — will the property fall under the ordinance or not? In a perfect world, all the properties on the list would have applications drawn up and decided in short order to take the uncertainty out of it. “That’s in a perfect world, but we live in Peoria.” So, his suggestion is to try to get the applications done as quickly as possible, but recognize it’s going to take time to get through 115 properties. Bottom line, the way to get off the list is for the property to fail the landmarking process. Spain concludes that he will support this item.

Montelongo will be supporting this item, and would like to see a process for getting properties on and off the list.

Motion passes unanimously. That was a lot of discussion on a motion to receive and file!

UNFINISHED BUSINESS

(09-616) Communication from the City Manager and Director of Planning and Growth Management with a REQUEST TO DEFER for 30 DAYS a REPORT BACK Regarding CONDITIONS to ENTER into an ANNUAL CONTRACT with the EAST BLUFF NEIGHBORHOOD HOUSING SERVICES (EBNHS) Related to Ordinance No. 14,534.

Riggenbach reports that they have had some “really productive negotiations” in the last couple of weeks. He would like to defer the item for two weeks instead of 30 days. Moves to defer two weeks; seconded by Irving; motion passes unanimously.

NEW BUSINESS

  • Turner mentions a couple upcoming boys tournaments.
  • Spain moves to remove item 09-506 from the table and place it on the 2/23/10 council meeting; seconded by Gulley. Passes unanimously. Item 09-506 was from the October 27, 2009, council meeting: “Communication from the City Manager and Director of Public Works with Recommendation to ACCEPT the LOW BID of ILLINOIS CIVIL CONTRACTORS, INC., and to Award a CONTRACT, in the Amount of $492,382.70, Plus a 5% Base Bid Contingency of $21,753.14 for the JEFFERSON AVENUE SAFETY IMPROVEMENTS.” I didn’t cover that council meeting, so I don’t know why it was deferred, if any reason was given at all.
  • Ardis will host a “community call to action” forum at the Dream Center this Saturday at 10 a.m.

PRESENTATION

ITEM NO. 1 PRESENTATION by the ECONOMIC DEVELOPMENT COUNCIL Regarding the FOURTH QUARTER 2009 PERFORMANCE INITIATIVES Under the SCOPE of WORK for the CONTRACTUAL AGREEMENT Between the City of Peoria and the Economic Development Council, with Request to Receive and File.

Van Auken moves to receive and file, seconded by Montelongo. Spain is abstaining due to the EDC’s relationship with his empoyer. Presentation ensues. Technical difficulties precluded the use of a PowerPoint presentation. I think it was sabotage. 🙂 Kidding. Motion passes unanimously.

CITIZEN REQUESTS TO ADDRESS THE COUNCIL

Nobody wants to address the council tonight. And there was much rejoicing.

EXECUTIVE SESSION

ADJOURNMENT

Spears moves to go into executive session, seconded by Riggenbach; passes unanimously. And then they move to adjourn and we’re done!

I realized right before Citizens to Address that somehow the ability to leave comments on this post was turned off. I do not know how that happened, but that’s really annoying! I was having some technical difficulties with this post early on, so something must have gotten messed up then. Sorry if you wanted to leave a comment earlier and couldn’t.

Goodnight everyone!

Blogging Bits and Pieces

Here are some odds and ends that I just don’t feel like writing a whole post about:

  • It looks like District 150 has just about settled on a new superintendent, and her name is Grenita Lathan. She’s currently the “interim deputy superintendent at California’s San Diego Unified Schools.” Other than that I don’t know much about her, and there’s surprisingly little on Google, Lexis-Nexis, the San Diego Union-Tribune, the Chicago Tribune, or any number of additional sources I checked. Oh, there are some snippets here and there. You can see some interview footage with her here. Commenters on another post have several links to quotes and information they find troublesome. Some have already passed judgment. I’m kind of old-fashioned, though. I like to wait until someone actually screws up before I start criticizing them. From what I’ve heard, the first thing she wants to do is purge the administration of unnecessary and ineffective administrators. I certainly can’t complain about that.
  • John Vespa was not endorsed by the Journal Star to succeed his brother as the 10th Judicial Circuit judge. The reason they give for passing him over is that “Vespa fell below the 65 passing grade” on something called the bar poll “and is ‘not recommended.'” They say the bar poll (where responses are anonymous) is “controversial,” but they evidently believe it. Not surprisingly, the Vespa campaign begs to differ. They report: “To understand the relevance of the bar poll … it is important to look at … the number of people participating. There are 911 lawyers in the Circuit that are eligible to participate in the poll, according to the ARDC website. Of those 911, there were only 152 that registered an opinion. (16.3%) The majority of those 152 felt John met the requirements of the office. Of course John would expect to have some legitimate detractors, particularly given the fact that half of his practice is devoted to criminal defense. In fact, it would be troubling if he did not. (All of his opponents practice for the most part, civil law only).” As the Journal Star would say, “Voters can make of that what they will.”
  • One of my readers recently told me about this site called “How We Drive” — and specifically, this post on “Parking Availability Bias.” Very cool site full of interesting information.
  • The “religious group” that the city is considering to operate the public access channels on Comcast’s cable system is called GPS-TV, and is located in Washington, Illinois. Here’s their website.
  • You can download a transcript (PDF format) of Mayor Ardis’s State of the City address here. Of course, the biggest announcement of the speech was this: “I have spoken at some length with County Board Chairman Tom O’Neill and we are prepared to put together a group that will be charged with exploring the opportunity to move Peoria City?County towards combined municipal government.” It will be interesting to see what recommendations that group makes in the future. Will it just be combining certain functions, or a total UNIGOV proposal?

Liveblogging the Peoria City Council 1/26/2010

Good evening, and welcome to Council Chambers at Peoria City Hall. Once again, I’ll be liveblogging the meeting tonight. If you’re following live, please remember to refresh this post frequently as I’ll be updating it throughout the meeting. All council members and the Mayor are present tonight. A hyperlinked copy of the agenda is available here.

It’s 6:26 and the City Clerk is reading the consent agenda:

Continue reading Liveblogging the Peoria City Council 1/26/2010

Irving crusades for three-second transitions

Councilman Dan Irving (5th District) is leading the charge for a change to the city’s electronic sign ordinance. So far, no one with the city is on his side. The Zoning Commission voted against it. City staff is recommending denial. Still, Irving is still planning to bring it to a vote on the council floor Tuesday night, hoping that his council colleagues will see things his way.

How does he see things? Well, right now, the sign ordinance requires that electronic message boards change their images instantaneously instead of scrolling, fading, or dissolving. According to the council communication, he wants to change the ordinance so that such gradual transitions are allowed as long as the transition lasts no longer than three seconds. This, he says, will “promote Peoria’s business-friendly atmosphere” and “provide additional marketing of products in this challenging economic environment.”

In his testimony before the Zoning Commission, Mr. Irving stated what led him to ask for this change, which was summarized in the meeting minutes this way:

Council Member Dan Irving . . . commented that the intent of the Ordinance is that these electronic signs are popping up all over the City. He stated that a business owner who has purchased one of these signs, who was not aware of the Ordinance, had approached him and wanted to utilize the technology on his sign. He commented that he does not have the answer regarding these signs and stated there is a much bigger issue because most of the signs that keep popping up are not in compliance.

I personally like Dan Irving, and in fact I even endorsed him for election to the council. But this is a ridiculously ill-conceived council request. Let me count the ways:

  1. First of all, when you look out over Peoria and consider its challenges, is the dissolve rate on electronic signs really the one you want to spend a lot of energy and political capital attacking? Is this really the hill you want to die on?
  2. How, pray tell, does a three-second dissolve, fade, or scroll between marketing messages “provide additional marketing of products”? Answer: it doesn’t. This supposed benefit is empty rhetoric.
  3. “Requests for signs with non-static transitions shall be considered on a case-by-case basis and through approval of a Special Permit. Standards for consideration will include the location of the proposed sign, traffic volumes, and traffic speeds.” So, in order to get this coveted three seconds of cross-fading time, a business has to apply for a special use permit, which starts into motion a whole chain of events including: setting a public hearing date, mailing a notice of the hearing date to all properties within 250 feet of the subject property, review of the application by the Site Plan Review board, holding a public hearing, deliberation and decision by the Zoning Commission, and finally approval or denial by the city council. In addition, it appears the city staff would also need to conduct a traffic count and speed study of some sort as that information is one of the standards for consideration. I fail to see how this is in either the business’s or the city’s best interests. It will cost the city money in staff time, and it will be more trouble than it’s worth for businesses. What business owner is going to go through all that for a three-second dissolve rate?
  4. Non-compliance with the code is not, in itself, a compelling reason to change the code. If signs that keep “popping up” are not compliant, they should be brought into compliance through code enforcement, not sanctioned.

When Irving originally proposed having the Zoning Commission consider this idea, I asked him what changes he wanted to see. He told me via e-mail toward the beginning of December that “more and more businesses are putting up these electronic signs and then finding out they cannot use them because of our electronic sign ordinance” which requires static images that last at least ten seconds and change instantaneously. He continued, “Proctor Hospital has one of these [electronic signs] and it was allowed an exception or variance to our current ordinance. It is like watching a movie when you go past. I am looking to allow these types of signs in commercial area where there is no residential present and where the changing or fading of the image would not create a traffic risk.”

This sounds to me like he was favoring no restrictions on how often the images change on signs in certain areas (they could be “like watching a movie”), which is quite a different scenario than what is now being proposed. One wonders if the businesses who contacted Irving will be satisfied with such a scaled-back response to their request for unfettered use of electronic signs.

If I were Dan Irving, I would either withdraw the item or table it. It looks like a lose-lose situation all the way around.

City reaches agreement with Comcast

The City of Peoria’s cable franchise agreement with Comcast expired in 2006, and ever since then the City has been trying to negotiate a new agreement. Along the way, they have passed numerous temporary extensions and held a few public forums where residents could express their feelings about Comcast’s cable service.

Now the city has finally reached an agreement. One big change: it’s term is significantly shorter at five years (previous franchise agreements were for twenty). The shorter term means that “after two years, the renewal process will begin again.”

The proposed franchise agreement has another significant change: Comcast will cease providing a studio and equipment for public access programming, something the cable operator has done since its inception. Instead, that responsibility will fall to the city, who is apparently planning to outsource it to an unnamed “religious group” that is reportedly “ready to step in and run the public access channels” for reasons unknown. One can only speculate as to what effect this will have on public access programming.

Getting rid of public access responsibility is not unique to Comcast’s dealings in Peoria. Just last month, Springfield’s city council voted to take over their public access channel, “Access 4,” after Comcast ceased programming it. The State Journal-Register reports that “Comcast must provide three channels for public, educational and governmental access programming,” but the franchise agreement “doesn’t require Comcast to operate the channels.” The reason? “Comcast is doing what they have to do to cut back,” Springfield Mayor Tim Davlin was quoted as saying. In Peoria, they have already laid off George Bean, “manager of Peoria’s public access channel for almost 20 years.”

2010 Homicide #1: Stabbing at Adams and Wayne

From the Journal Star:

A 38-year-old Peoria woman was pronounced dead at 6:45 p.m. at OSF Saint Francis Medical Center after she was found about 45 minutes earlier next to a vehicle parked in the 800 block of Northeast Adams Street near Wayne Street.

Police said the victim, who suffered multiple stab wounds to her upper body and arms, was unresponsive when they arrived.

Police are calling it a domestic disturbance, and there’s a suspect already in custody.