From today’s Word on the Street column in the Journal Star:
The mayor, meanwhile, said the hotel project – which has yet to begin – could be finalized by the Fourth of July. He said Marriott representatives were in Peoria a couple of weeks ago. He said progress is being made toward demolition work on the existing parking deck and the businesses attached to Big Al’s later this summer.
The City Council has to vote on changes to the redevelopment agreement, which are likely to take place in July.
That quote, of course, is about the downtown hotel project that City Attorney Randy Ray dubbed a “wonderful development” during the time the city was suppressing public information about it. It was rushed through the council in December 2008 with only one business day of public disclosure. The information was released on a Friday afternoon, and the council voted for it the following Monday evening. The timing was so crucial, they couldn’t wait a couple of weeks, or one week, or even a few days extra. It had to be passed that night — December 15, 2008 — or else the whole project would have fallen apart.
Interim City Manager Henry Holling (during his first interim appointment) explained, according to the council minutes, “although the proposed development would not be completed until 2012, the timing of the project was critical because convention and meeting planners were making decisions for events three to four years from now.” Councilman Spain said, “time was of the essence.” Mayor Ardis said, “as soon as the Agreement was signed, the hotel could begin booking events
as many events were booked two to three years in advance.” It was all so … urgent.
And now it’s Monday, May 2, 2011, and nothing — zero, zip, nada — has happened to the site. The original deadlines were never met, so the developer, Gary Matthews, returned to the city council on May 25, 2010 — nearly a year ago — to get those deadlines extended and make some major changes to the design and scope of the project. The council obliged.
One of those new deadlines, from section 3.1 of the agreement: “The Redeveloper shall commence construction of the Project not later than one (1) year from the date of the execution of this Agreement….”
That means construction is supposed to commence before the end of this month. But now Word on the Street tells us the Mayor says the project won’t be finalized until July. And Matthews will be coming back to the council for more changes to the redevelopment agreement.
That’s right. The Mayor has essentially announced that the second agreement’s deadlines will also not be met. Instead, a third redevelopment agreement will have to be drawn up and approved this July, more than two and a half years after that time-critical first vote.
One wonders why the council ever bothers writing deadlines into these agreements when they are never, ever enforced.
Deja vu ala PRM? … perhaps they will start the demolition et al prior to the signing of the new redevelopment agreement….
and yet, Spain was re-elected. The primary push behind this project. Further questions need to be asked. How much did HP net from this deal? Wouldn’t this project and subsequent vote be an enormous conflict of interest? How does this project come in line with campain literature about “fiscal responsibility” and with “integrity”
Spain actually voted against it the second time, which is funny because Matthews asked for less money the second time. In Dec 2008, he asked for $39.3 million, but only (only?) $37 million in May 2010. Maybe if Matthews asks for more taxpayer money this July, he’ll win Spain’s vote again.
Can anyone name a city supported project that was not extended? Why have deadlines? This project needs to expire. Wonder how the “new” council will vote on this come July.
I suspect that financing continues to be an issue.
Extensions are fine if for valid reasons. The collapse of the credit markets in the great recession–especially in the hospitality area–made the first extension completely understandable. Extensions moving forward need to be closely scrutinized, IMO.
Maybe the collapse of credit markets in hospitality was for valid reasons such as over supply (or reduced demand) of product or poorly funded (lack of owner equity participation) projects.
If this project can’t find financing (or raise additional private capital) then maybe everyone should step back and look at it again and try to figure out if it is viable or just a dream?
All the news about this project has been is how it will always be ready to move forward in a few months yet all we ever seem to hear is excuses to why it has not moved forward. I respect that this is to some extent a private project but with this much public financial support it should be a little more open.
Well said, anp. I think the City Council needs to re-evaluate their commitment to this project. If it is not going to fly, then they need to put it down.
Hopefully Chuck Weaver, with his business background, will scrutinize these sweet deals with developers. Yes, yes, I know that he is a developer himself, but that’s my whole point. Weaver, probably better than anyone on the council, understands how developers negotiate these sweet deals with municipalities. I truly believe that Chuck will look out for the taxpayers’ interest when it comes to funding private projects. After all, he didn’t run for City Council because he needs the money or business connections – the guy is already loaded. Neither is he an egomaniac – like Sandberg. I believe Chuck’s heart is into making Peoria a better place to live.
William Moss, I agree on Chuck Weaver. I do not know him, but have always heard good things about him. I think he has a chance to be an excellent council person.
What do they call it? “Institutional inertia”?
I belive Spain voted yes the 2nd time too. Montenlogo, Jacobs, Irving, and GS were the NOs
Matthews got less but also reduced the number of rooms.
One– You’re right. I was thinking of Montelongo. Sorry. Here’s the official May 25, 2010, vote from the council minutes:
Cj you owe Spain an apology. Accusing him of being responsible with tax dollars and all…