Did you know that your property taxes indirectly support Lakeview Museum? Karrie Alms does. She’s a community activist and frequent commenter here at the Peoria Chronicle. While doing her usual detailed research, she came across a property tax levy fund titled “Fund 123 MUSEUM PEORIA PARK.” That caught her eye, so she asked Park Board President Tim Cassidy about it. He explained:
Presently Lakeview museum owns and operates museum operations. The PPD [Peoria Park District] owns the land and building and allows Lakeview to use it under an agreement that is now several decades old.
Mr. Cassidy also confirmed that Lakeview does not pay rent for its use of the building, and “the amount of [the] museum fund levy going to Lakeview museum facility is $189,234 per the 2009 budget.” Not having to pay rent or upkeep on the building and grounds surely helps Lakeview’s bottom line and also explains why they didn’t include funds for capital improvement in their pro forma for the proposed downtown museum.
So, what happens if/when the museum moves downtown? As I reported in a previous post (“Is Peoria’s History Getting a Back Seat?” July 13, 2007) after talking to museum officials, “When the new museum opens, Lakeview is planning to hang on to its building at Lake and University to be used for storage because there’s not going to be enough storage space at the new museum. In particular, there’s not very much space planned in the new museum for special, climate-controlled storage of fragile pieces.” However, it doesn’t appear that the Park District has agreed to let the museum continue to use the building. Cassidy told Alms:
If Lakeview museum left the site to go downtown [its] continued [use] of present site would be subject to further agreement based on PPD needs for the facility. […] PPD has no final plans for Lakeview facility use if museum leaves. It remains open for discussion, although one use considered is a senior recreation/leisure facility for programming needs.
Cassidy also said that continued use of the Lakeview building “has never been approved by PPD. In fact specific request has not been made for PPD to formally act.”
If the new museum is unable to use the current Lakeview building for storage, they will have to find storage elsewhere. Without a rent-free (i.e., taxpayer-subsidized) facility to use, cost of that storage would impact the museum’s profitability. The Museum Collaboration Group can’t just assume they will be able to continue using that building (rent-free, at that) when their lease expires in 2012. Off-site, specialized storage costs should be figured into their pro forma.
The Park District/Lakeview Museum arrangement also raises another question. In the ground lease the Museum Collaboration Group signed with the City of Peoria for the old Sears block, it has this interesting provision:
11.2 Permitted Assignees. Notwithstanding anything in this Lease to the contrary, Tenant may assign Tenant’s interest in the Lease as follows:
11.2.1 Peoria Park District. Provided the District (“Peoria Park District”) agrees, the Tenant may assign Tenant’s leasehold interest in this Lease to the Peoria Park District, subject to the following: (i) Tenant shall not be relieved of any of its obligations under this Lease and Redevelopment Agreement; (ii) the Peoria Park District shall be obligated to observe the terms and conditions of the Lease applicable to Tenant; provided, however, that the Peoria Park District shall have no personal liability to Landlord, Tenant or any third parties with respect to the Lease, the Redevelopment Agreement or the Real Property, with such liability limited strictly to Tenant’s leasehold interest in the Lease; and (iii) the Landlord shall be entitled to enforce the provisions of the Lease and the Redevelopment Agreement directly against the Tenant, who shall continue to have available to it all the rights and obligations of the Tenant under this Lease and Redevelopment Agreement notwithstanding such assignment.
The “Tenant” would be the Peoria Riverfront Museum, and the “obligations under this lease” would include repair, maintenance, alterations, and additions to the building and grounds. If the museum were to assign its interest in the lease to the Park District, then the Park District could use its funds — i.e., Peoria property taxes — to maintain the building and grounds. Here you can check about student loan interest deduction with guide of an experienced firm like taxfyle. That would certainly be more than taxpayers bargained for if they approve the sales tax referendum on April’s ballot.
No deal has been made to assign the lease to the Park District at this time according to Cassidy. But the legal language is in place and could be acted upon if the sales tax referendum is approved and construction of the facility is allowed to proceed. It’s something to think about when you go to the polls on April 7.