You’d think it was the biggest thing to hit Illinois since Caterpillar decided to locate their world headquarters here. A large chain store — Bass Pro Shops — is going to open a location in East Peoria by the river next year. Not many details are available about the deal, but the Journal Star article does say this:
The store will be about 145,000 square feet – almost twice the size of the Kohl’s department store on Main Street – and take up just more than 20 acres of the 35-acre site. It will produce about 300 full-time jobs when completed, and at least another 200 full-time workers will be hired during construction…. [T]he deal between the city and Bass Pro Shops is unusual in that East Peoria will own the land, building, parking lot and road leading to the store. Bass Pro Shops will be the tenant.
The city will issue $40 million in bonds to pay for the project, which will be paid off through sales and hotel/motel taxes. Further details about the deal will be released at upcoming council meetings.
Readers of my blog will not be surprised that I don’t get all excited about big box stores. According to glassdoor.com, most local jobs at Bass Pro Stores are in the $8-$12/hr. range, or about $17,000 to $25,000 per year. These aren’t what one would call “living wage” jobs. The construction jobs will be good, but temporary.
Of more interest to me is the City of East Peoria’s development plan, since it will undoubtedly be used as a benchmark for future City of Peoria projects, unfortunately. While the amount — $40 million — is the same, it’s really not the same deal as Peoria’s downtown hotel plan. Peoria is giving the $40 million to a private developer who will then own the whole block and be responsible for the maintenance of all the structures; furthermore the property will be on the property tax rolls. East Peoria, in contrast, will own the Bass Pro Shops building and grounds, making Bass Pro merely a tenant, meaning they will get no property tax revenue on those twenty acres. So East Peoria is now in the land development business, evidently. I wonder if East Peoria will be charging its tenant any rent. It appears they won’t, since the paper says the bonds will be paid off with taxes.
On the plus side, Bass Pro Shops actually has a track record of drawing in a lot of local and regional customers, unlike the current hotel and museum market. So sales tax revenue is more likely to go up. Most of that additional sales tax revenue will come from East Peoria, but Peoria will get some spillover, which is good.
I believe that EP collects a 2% municipal sales tax so if you look at $40 million amortized over 20 years (not sure what term the bonds will be) that is about $3.2 million in debt service (5% interet rate which is probably high) which means the store would have to do $160,000,000 in sales tax to cover debt service – this does not account for any revenue from hotel or motel taxes. It will be interesting to see how the traffic issues will be resolved.
Heck, this may be worse than the Peoria Marriott deal. $40 mil vs $37 mil, no rent, no property taxes. Ugh.
I’m not at all excited about the latest addition to East Peoria’s big box sandbox. It won’t add new jobs; just take away from established businesses. I’d really like to see local economic development efforts that actually attract real jobs to the area and help increase our overall tax-paying population. I’d really be excited about that.
you guys will some how find fault with everything that is proposed. I guess if there is something you agree with you just don’t write about it cause who would want to read that?
All boats rise in high tide.
Bass Pro Shops are a tourist draw. This new store will probably get people to the Peoria area from all over central Illinois and probably eastern Iowa as well. BPS might be in East Peoria, but out-of-towners won’t care what side of the river they eat on, they sleep on, etc.
If East Peoria wants more big box stores, hey, let them have it. Ideally, I’d like to see two things come out of BPS (and, by proxy, Downtown2010):
1) East Peoria focuses on big-box retail. Once Wal-Mart moves out (and they will, average age of a Wal-Mart store is under 20 years before they move), level the building actually organize a cohesive site plan for that area. Bass Pro Shops picked a very scenic location, but it’ll be a pain in the butt to get to. (From what I’ve read, access will be provided with a road that runs parallel to I-74 on the north side, connecting IL 116 and Altorfer Drive to the site, and access from EP’s Riverfront Park under the Murray Baker Bridge.) I have ideas in my mind… but I’m no land developer (yet).
2) Downtown Peoria focuses on residential, service industries and entertainment rather than retail. Peoria should focus downtown development on multi-use buildings, more live/work spaces that tries to attract the young professional demographic. There is a small but noteworthy group of young professionals who work downtown but end up living out in northern and western Peoria’s sprawling apartment complexes. Affordable rental housing for young professionals will encourage new development and redevelopment of downtown. Young professionals generally don’t have kids, so they don’t have to worry about D150’s woes. East Peoria’s retail district is walkable from downtown (a long walk over the Bob Michel, but walkable regardless), but local services (dry cleaners, pharmacies, grocery stores, evening take-out restaurants) are sorely lacking downtown. If you want an anchor for that young professional market, try to lure in Ikea, as so many PJStar posters have suggested. (The old Cohen’s Furniture building would be an ideal spot for such a store, centrally located not far from I-74.)
But alas, that will never happen, because there’s too much of an us vs. them mentality around here, and no central planning agency with enough clout to coordinate such a plan (Tri-County, I’m looking at you). Instead every opportunity down here turns into a p*ssing contest between Peoria and EP (and admittedly EP tends to win), with Peoria opting instead to find new ways to whittle the money away (Kellar Branch, Museum, new hotels in a recession…).
But I digress. Good for East Peoria, and good for Peoria. Any positive growth along the riverfront is good news for both communities, and the region as a whole.
I’m sure glad it’s not a perfect world. What else would we have to do if not to complain. One thing I’ve learned in life, there is good and bad in everyhting. Personally, I would rather see Bass Pro Shops here, than not, from an overall view. And, it’s going to happen no matter what we all think. So we’ll just have to wait, see and observe, unless we move to Galesburg.
As someone who runs a small retail store of about 5,000 sq ft and pays $3,700 per month rent, plus property and sales tax, I wonder how this is capitalism at all. A few more of us will fold for how can we compete with those who are able to land such sweetheart deals, and our tax base will be lost. Not to worry East Peoria can claim bragging rights for getting a BPS like getting a corporation to move into a $40,000,000 building free of charge is such a great thing. Way to go EP you really showed them all.
We’re getting a world class retailer which will be a regional tourism draw, and unlike the Riverfront Museum that is costing Peoria County citizens $40 mil, this actually WILL attract tourists.
This is a good thing.
I am not against this development and actually think it will perform much better than the hotel or the museum. I think it is very proactive for East Peoria and will end up being a profitable venture for the City unlike the hotel (city) or museum (county).
Sorry. I can’t get excited about a Bass Pro Shop. But now if this was a Whole Foods…
What you all call big box stores, like a Wal-Mart or a Kohls for example has me confused. While Brass Pro is a huge store, if one calls it a box store then they are the king of box stores. Their stores usually have ponds, indoor waterfalls, aquariums, art displays, displays of the local culture (like a museum) which makes this more than a “box Store”. Now I’ll admit I wish it was on this side of the river but then it would probably be out on 91 and not built on land within the older parts of Peoria. That makes it close to downtown and yes I agree spill over will have people at Hooters and Joe’s and hopefully at our hotels. But, this will be a slap in the face to the new museum downtown as I don’t think our museum will be as a big a draw as a Bass pro Shop. Sad but I fear true. Whether or not Bass Pro is a tenant or owns the land, taxpayers in EP really aren’t giving them anything anyway. This place is to be built on the old CILCO coal fields which was pretty much given to EP anyway wasn’t it? It’s not like it was prime real estate in downtown Peoria like they give away here. Also, so what? The jobs pay is $8 to $12. Still jobs and really, how much does it cost to live in a mobile home anyway? And, EP will have a classy place to buy their ammo.
A riverfront museum in East Peoria… how awesome! Bass Pro Shops is the savior of the Tri-County area!
You think the TIFS, the trail, the downtown hotel are rip-offs, C.J.? This one has ’em beat by MILES. No rent… no taxes for the schools, library, etc., and MAYBE Bass Pro will stay there for 10 years… maybe not. What’s not to love, right? Here’s a clue — for those against governments grabbing their ankles for businesses, this one should have y’all turning burgundy.
I doubt BPS would generate enough traffic to justify this, but it looks like there may be room to extend Riverfront Drive north of I-74. Of course, that would require another flyover ramp (eastbound I-74 to northbound Riverfront Drive), a sharp curve to avoid the Farm Creek Channel and some awfully creative new alignments for three other ramps 🙂
I agree with ANP and Emtronics. As chain stores go, it is pretty 1st Class, and will appeal to lot of people, more so then a museum (very sad). I would think one of the reason E.P. structured the deal in this manner is that it wants to remain in control of prime riverfront property.
C.J. – you must have a job. A lot of people in the area do not. I think 200 full-time jobs at $17,000-$25,000 sounds outstanding and will offer employment to many who have a “skill set” that does not allow them to qualify for jobs paying more. I agree that “living wage” job growth is still what the Central Illinois area should focus its efforts on, BUT . . . in order to garner a top job in this day and age, an individual must present themselves as a trained and educated candidate. There are many living in the Peoria area that do not fall in this category, but still need employment.
It isn’t too late for Peorians might get in on the action by subsidizing my new concept: ‘Flying Asian Carp Pro Shop.’
One thing that the Bass Pro Shop signals to me is that there is a possibility that the recession is in recession. A major retailer like this is not going to open a new shop if they think they are going to lose money. They are pretty sharp and this is a good sign for the area. Maybe those jobs they are offering are of a small wage nature but its better than no wages at all. Better than the food stamp line or losing your house or car. If two in the family are working that’s about $50,000 a year income and with good budgeting you should be able to make it on that until something better comes along. Work is work, money is money and stability in your life is important. Let’s give this new project a big welcome and hope that many more follow it to the area. This could be the first ray of sunshine on our economy in a long long time.
Well, it took about 24 hours, but I knew it was only a matter of time before someone insisted that “it’s better than nothing.” This business should fit right in with Peoria’s culture:
Peoria Chronicle — where the perfect* is always the enemy of the good.
*”Perfect” is solely and exclusively defined by CJ Summers and those who agree with him.
Sud, I agree. Disagree with CJ and feel the wrath. In this case, better than nothing IS better than nothing. Sometimes it is the right thing to say; It’s better than nothing. Of course those that have decent wage jobs can point to this project and say those jobs aren’t worth it because they are $7 to $12 and hour. Yep, Tell that to people who have to decide if they want heat and lights or dinner this month. If I lost my decent wage job, I’d apply for two of those jobs at BPS. It’s better than nothing.
Normally I agree with CJ’s stance on “better than nothing”. But in this case I don’t. Having a job is better than nothing at this point in our recession. As I said above perhaps this is the beginning of more coming in. Thank you gentlemen for agreeing with me.
I think the most important question, and one that no one has asked yet, is why are they not looking at a Peoria location?
I suppose its rather rhetorical because most people can figure that out on their own. Bass Pro Shops are a serious tourist draw, as is the Par-a-dice, as is the myriad of restaurants along 74.
The problem with CJ, and those chosen to represent Peoria, is that they don’t understand that the prime real estate is not the river, its 74. People stop in East Peoria for food because they can see it from the highway. About the only thing you can see from the highway on the Peoria side is OSF, Methodist and a bunch of old buildings (except for CAT headquarters). Most passers-by aren’t looking for a hospital, they want something to eat and a neat place to visit.
This line of thinking, which is an obvious cancer in Peoria, is called over fixation on unimportant trivial matters. The zoning laws, TIFS, highfalutin museums, various tax districts, and other bureaucratic garbage. People in Peoria, your politicians, and those that support this line of thinking, are over thinking your city out of existence. Heck, the only way Peoria can keep anyone in the City is to annex them from the north. You know how well that has worked for City services.
I am sorry CJ, as you know, I normally agree with you. However, when it comes to city planning, your ideas are not practical, and you are willing to avoid a good thing, just to make a point. That is very dangerous thinking in a City that is already tipping on the brink of disaster.
“Disagree with CJ and feel the wrath”
What planet are you on, Emtronics?
Hey CJ, couldn’t that be copyright infringment? Lol!
While this is a great deal for BPS, the City of EP will also win. The real estate in the new downtown (EP 2010) was in need of something to kick start development and this will provide it. Drive along Camp Street and imagine what it will look like in 5 years, very different than it does today. The riverfront area will get additional roads and other improvements, the old Cat property will have new commercial/retail/hotels and maybe some residential. I have never been to a BPS but if you believe what has been reported that 2 to 3 million people visit BPS (2 million is an average of more than 5000 each day of the year) the economic benefit will be huge for surrounding restaurants, gas stations, etc.
People have commented that the schools will not win in this situation but this is not true since the schools in EP share in a portion of the sales tax revenue due to an agreement with the city. The property is in a TIF so the real estate tax revenue to the schools will remain the same as before (which I assume was very little). The sales tax money has been used for capital projects which will allow for additional building improvements that are needed at both the grade school and high school.
The residents of EP will also benefit from the additional revenue to the City as funds will be available for public works projects that are not being funded currently. Our roads are in need of improvement, we need additional fire and police assets, etc and this will provide funding to assist with that.
The project will probably not generate lots of living wage jobs but if you compare it to either the museum or hotel projects in Peoria, how many living wage jobs are being produced by either of those projects?
Drive over the bridge and look at the area to the north where BPS will be. It is not an attractive site today and this will be a great improvement to that area, to EP and to our region.
“Having a job is better than nothing at this point in our recession.”
Which is just what the businesses are counting on you thinking. They can withhold benefits, vacations, overtime… anything they want because there are plenty of people NEEDING work and few people hiring.
Sometimes it is better to just stop playing their game. Sometimes, Nothing is better than something less than fair. It was boycotts and strikes that gave us the fair practices we enjoy now when the economy is healthy and businesses are “generous” to their human resources… these corporations have been given BILLIONS of dollars in cash, tax incentives, and exemptions…
Go work TWO jobs or three… as Bush XLIII said, “Uniquely American”.
Yes, I disagreed with C.J. once and he and two goons from the Presbyterian church came over and broke my kneecaps.
😉
Wrath as in words. Christ lighten up people and by the way “Knockin Knees” I am on planet Earth at 40.74N 89.61W to be exact. Why didn’t you ask what planet “Sud” the same question? BTW, poster “anp” said it the best so far. Anyone here not seeing this deal as a win win for EP and even the entire area is either blind or on our city council where they couldn’t find a great deal if it was labeled and laid in their lap.
Oops. Wait, isn’t that how they found the hotel deal and museum?
About 2 years ago, the City of East Peoria gave the same land to a Bloomington developer, Central Illinios Properties, who won the bid to build upscale condos on the site. This is what lead to the proposal form Peoria city staff to recommend the same type of condos North of the Riverplex.
Question:
-Did E.P. have to pay to get the land back from the developer?
CJ, Did you see today’s Dilbert cartoon?
http://www.dilbert.com/
(If you click on the link on a different day, go back to May 18)
I find it difficult to get excited about any place that sells stink bait, even though I realize Jeff Foxworthy would nod approvingly…