The pressure is mounting on the Peoria City Council. Now State Senator David Koehler has weighed in with a letter supporting developer Gary Matthews:
Letter from Sen. KoehlerHere’s the text of the letter:
I am respectfully asking you to reconsider all available options so that we may see the Downtown Marriott Hotel Project agreement with EM Properlies, Ltd. move forward. Given the hard work carried out by you, the City of Peoria, EM Properties, Mike Everett and the West Central IL Building and Construction Trades, it would be a real setback if we were not able to move forward with this job creating and economic growth project at this time.
Further, if the project is abandoned now, we would be leaving behind valuable and hard won tax credits procured through the Illinois General Assembly. Just to clarify, if the tax credits are not used by the current developer, we would have to go back through the time consuming legislative process to have a new bill passed before they would be available to any other developer.
In the interest of downtown economic development and job creation, I hope that we can find a way to resume the Marriott Hotel Project. Again, I ask for your reconsideration of all available options to keep this project.
My take: I wonder if Sen. Koehler has sent any similar letters to developer Gary Matthews over the past two and a half years. You know, letters expressing the importance of this project and putting pressure on him to get started on it; letters explaining that the tax credits can only be used by him and that they will be lost if he fails to fulfill his agreement with the City. And about those “hard won tax credits” — are those the one that Governor Pat Quinn agreed to sign after Mr. Matthews contributed $10,000 to his campaign? Hard won, indeed. Was the point of that legislation to force the City to fulfill a contract with a developer whether or not he performs?
Also, is what Sen. Koehler said really true? According to Public Act 096-0933, “For tax years beginning on or after January 1, 2010 and ending on or before December 31, 2015, a taxpayer who qualifies for a credit under the Historic Preservation Tax Credit Pilot Program Act is entitled to a credit against the taxes imposed under subsections (a) and (b) of Section 201 of this Act as provided in that Act.” And just who is a qualified taxpayer? It’s “the owner of the qualified historic structure or any other person who may qualify for the federal rehabilitation credit allowed by Section 47 of the federal Internal Revenue Code.” And finally, what is a “qualified historic structure”? “‘Qualified historic structure’ means a hotel that is located in the City of Peoria and that is defined as a certified historic structure under Section 47 (c)(3) of the federal Internal Revenue Code.” That pretty much means the Pere Marquette.
So from a plain reading of the law, it appears that the historic tax credits are limited to the Pere Marquette, but not limited to Gary Matthews as the developer. The current owners of the Pere Marquette, for instance, could get these tax credits, it would appear. The only other limitation in the law has to do with timing — the credit can only be taken during tax years prior to 2016. Could there be other restrictions? Certainly. I’ve heard anecdotally that there is some sort of application process, and that the window of opportunity for applying is now closed. But I have not been able to find a citation to such a provision so far.
But why question him? Let’s assume he’s right, and we’ll lose these tax credits. What are we losing? Nothing. This is like the person who thinks that, if they don’t buy a $5 box of Cheerios so they can use their 50-cents-off coupon, they will be “losing” fifty cents. In fact, they could just not buy the box of Cheerios and not spend $4.50. We’re not losing the tax credits; we’re not spending $37 million that we don’t have and may never be able to recoup. Furthermore, Gov. Quinn signed into law River Edge Redevelopment historic tax credits which the City could use toward redevelopment of the Pere if it’s included in the redevelopment zone.
Bottom line, with all due respect to Sen. Koehler, the City of Peoria needs to look out for the best interests of its taxpayers, and cancelling this project is the way to do it. I know there are a lot of good-hearted investors that only want what’s best for Peoria, and I applaud them for their efforts. But there is no reason to put any more faith in the developer, and with the economy’s continuing weakness, there is even less reason than in 2008 to believe this project will ever be profitable. Not all investments work out, and the government can’t afford to keep bailing out bad investments.
The Wonderful Development must die.
Koehler loves to spend tax money. He’s one of those who voted for the unpopular income tax increase back in January. Yes, you have him to thank for less money in your paycheck. Also, as CJ reported earlier, he goes way back with Matthews. The Council needs to tell Koehler to butt out, Matthews to take a hike, and encourage private redevelopment of the Pere!
As I said before I’ll say again: Never under estimate the power of the dark side of the force.
This whole project was decided last weekend at someone’s house. Conrad is right. Koehler needs to butt out and Matthews needs to take a hike.
Wasn’t Koehler one of the puppets on Kukla, Fran and Ollie?
Any time there is a controversy, there is Koehlers homely mug trying to jump in and save the day. What an attention whore. He needs to butt the hell out. Isn’t he the one that was on the picket line for the Illini Bluffs teachers and then offered to be a mediator? What a joke he is. The guy thinks way to highly of himself. He should seriously go back to baking bread. Maybe the city council should start telling him how to run his district. Here’s a suggestion – Hey Koehler – how about you stop BANKRUPTING us? The dude never met a taxpayer he didn’t want to fleece. He’ll get trounced in the upcoming election and good riddance- then the taxpayers can go back to leaving their doors unlocked at night.
Is anyone really surprised? Really?
http://widmer-peoria-watch.blogspot.com/2010/02/senator-dave-koehler-big-spender-of.html
His concern has nothing to do with Gary Matthews. He couldn’t care less about the guy. His concern has everything to do with union jobs; prior to going to Springfiled, he was the director of PALM. It’s all about the election folks.
There are a growing number of Peorians who are getting more and more impatient the spending in the city of Peoria. Dave Koehler is going out of his way to discourage these Peorians from voting for him.
This has nothing to do with Matthews – and everything to do with Koehler’s upcoming campaign. It was Koehler who introduced the historic tax credit legislation (with Jehan Gordan) for what originally was meant for the warehouse district. A cluster f in the process and bill ended up as a pilot program for “a hotel in Peoria” – Pere Marquette. Don’t ya tink dat Koehler be sweatin bullets if hotel deal be dead? …. Everything about this hotel deal going forward is about political positioning for the fallout. Mayor, City Council, Senator, House rep….
Matthews is just collateral damage.
http://www.pjstar.com/news/x227168452/Urich-Tax-credit-could-be-shifted
but wait…at last the chicken comes home to roost….the only reason the hotel project would die without Spain jumpin in front of the media to talk about how crucial and critical this hotel is…would be….(drum roll)……moving the financing to the warehouse district…..
Quinn is laying off over 1900 workers and closing mental health facilities, but had no problems dumping millions in the ware house district. note: soon to be unemployed workers….city of Peoria would rather fund this project than help out those in society that truly need public assistance. perhaps there can be a homeless shelter in the new district.
Just gotta love all the special legislation that our elected officials bring just to and for Peoria …. NOT! These special favors are putting us into the poor house while the basics are neglected. Please stop! No more favors!
then Rep. Aaron Schock with SB2477 which re-authorized the PBC to be able to bond out for schools for D150 — that cost taxpayers tens of millions in the note and then the tens of millions more in bond interest ……
then Patrick Urich, then Peoria County Administrator attempting and failing the first go around in the state legislature, then receiving taxpayer feedback via a taxpayer funded survey that he said could not be ignored (talk is cheap) with 60-65% of taxpayers surveyed being opposed to a sales tax to fund the museum project, then going back to Springfield to persuade local state legislators to get the legislation changed to allow for a 1/4 cent sales tax to include museums and nursing homes …..
then local state legislators got the historic tax credits only for the Pere and now …. only for this developer, Mr. Matthews …..
what gives … oh, the same old, same old …..insanity.
In all the years, almost eighteen years, I cannot recall one time (although there may be examples) of a high profile project that has missed deadlines that the COP has not kept on life support until the project goes forward, gets built and then economically underperforms and the taxpayer is left holding the bag … think Midtown, the Gateway Building, the Park District with the Riverplex and the list goes on … however, not one time did the COP pull the plug and give notice …..
what gives this time? what is the back story which prompts the COP to have an escape plan? Another developer waiting to take over? Like Phil Harvey …. the rest of the story…….
checking for details: Exactly …. Peoria seems to want to have bread and circus while those who are least able to take care of themselves can be scattered to the four winds left to some horrible life …. just makes you want to _________ fill in the blank to many adjectives to list. Such a sad state of affairs at all levels, city, county, state and national :(.
With the State in dire need of funds and the city of Peoria in dire need what are we losing if we don’t go forward with this hotel project? Nothing, absolutely nothing. Peoria is never going to be the big convention city that the powers that be are trying to make it. Let Peoria be Peoria. We are wasting money on all these dress up projects that are never going to break even let alone bring in a profit. We are NOT Chicago. We are NOT Atlanta. We are not a big city like Las Vegas where they have dozens of conventions going on all at the same time. Get this hotel monkey off our backs while we have the chance. The only thing we are going to lose is a load of debt we cannot afford. Let those tax credits go to something far more beneficial to our State.
Interesting …
Koehler needs this as a campaign issue for his run for Congress. If the hotel goes through, he can say he single handedly saved those jobs.
…yet one more reason they should dump it.
too late, PNC Bank has had enough… filed foreclosure.
http://www.pjstar.com/business/x462614077/Hotel-Pere-Marquette-in-foreclosure
Perhaps Matthews can make the deal work if he does a short sale, let’s say for $37 mm less??? that would be a win win for everybody! (ooops, the note is only 6 million, never mind…)
Good to hear PNC Bank N.A. will soon become a hotel owner in Peoria. Get out your check books folks… (Gary Matthews… are you listening?) This will be going on the auction block for MUCH MUCH less than the 100+ million the new wonderful project was going to cost.
This is the market force to which every knee will bow, despite the cursing tongues – the lender, so long as there is no federal state or city bailout.
CJ: I am left wondering if this whole project was not in fact and attempt to bail out the Pere Marquette. So along with looking at the Mathews to Koehler contributions, look to Bill Carters connections, the Pere investors, and who on the Peoria City Council received contributions to such.
My understanding….and this goes back years…….is that Caterpillar HQ always had something to do with the Pere and that CAT room bookings were a significant percentage of the corporate business that kept the Pere afloat. And because we’ve seen this linkage to other tax payer funded projects i.e. RecPlex, and Cat getting what Cat wants……well, I’ve raised the issue, now let people like Sandberg and Widmere go back into their walking archives and fill in the facts to support the theory.
Yet again Mr. Khoeler is just being a shill for the Construction Trade Unions. The Unions Can just taste the overpriced wage package they will get given the state financed subsidys for the project.
I can assure you that if this Developer needed to use more fairly price non-Union labor to make the project work that Mr. Koehler would drop his support instantly.