More than just sales taxes may support museum

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.

75 thoughts on “More than just sales taxes may support museum”

  1. diane wrote:

    “On the other hand, my brain has a difficult if not impossible task of reconciling building a museum at the same time the very same people that are pushing for the museum project are endorsing closing some of our schools.”

    well, they are two separate and distinct groups and issues.

    the schools have a sustainability problem on the operations side that can only be fixed by increased property taxation or increased state aid.

    the museum has a projections problem that can only be fixed by communicating the underlying assumptions and being open with the thought process behind their development.

    both have economic impacts in the future. the museum’s influence on economic activity is what was presented by the BU group the other day. the effect of school district’s on local economies is a little more nebulous.

  2. sorry,

    “the schools have a sustainability problem on the operations side that can only be fixed by increased property taxation or increased state aid.”

    or a material restructuring on the expense side…or a combination.

    WHOOPS!

  3. Dang good thing you caught that ed, cause I was just getting ready to wallop you upside the head.

    You also failed to mention that some of our problems could be resolved with an increase in enrollment.. or have we just totally thrown in the towel on that one?

  4. The mueseum proponents will be organized with their spin. Museum opponents must fight back against this spin or have the museum pass.

  5. Ed wrote:

    “both have economic impacts in the future. the museum’s influence on economic activity is what was presented by the BU group the other day. the effect of school district’s on local economies is a little more nebulous.”

    The “economic impact” of the museum is PURE speculation based on questionable data.

    Diane,
    Do you have any stats on what potential home buyers look for when considering a home [in a specific area]? You know, location, location, location…? I am willing to bet the quality of education [schools, etc], plays an important role in home-buying decisions…? Local job market? Access to services?

  6. “You also failed to mention that some of our problems could be resolved with an increase in enrollment.. or have we just totally thrown in the towel on that one?”

    Sorry to have failed. It’s my parent’s fault.

    Enrollment is an interesting issue. From what I read, most around here position education quality as the reason enrollment is down, but isn’t there also some birth and labor market statistics to consider as well.

    When the district was at it’s apex, what was different. Have globalization sent jobs and their families away? My point is I don’t think it’s all white flight, I don’t think it’s all education quality, it’s a mix of things.

    On your second point, of course its speculative. Whether the data is questionable or not is what I’m trying to figure out. Widmer gives some good data, but even there it’s hard to tell. In the end, it’s all guessing.

  7. NV, Of course all of that. Additionally, most buyers have a fairly good idea of where they want to live before they even step foot into my office… including those who have never been here before! How? Because often the people that are recruiting them tell them where they will want to live!

  8. ed says: “Have globalization sent jobs and their families away? ”

    ed, if that were the case, you would expect enrollment to be down at neighboring school districts as well, but as we know, that is not the case.

  9. Globalization, which created outsourcing and ended the factory system as we knew it in Caterpillar’s heyday, may not have sent families away, but it certainly took away jobs–particularly those requiring only a high school diploma away–and that has hurt District 150 tremendously. In the 1970s, kids stayed in school with the dream of working at Cat–that dream ended.

  10. Ed, Ed, Ed, – I so love to read what you have to say, probably because I agree with most of it, but. . . you really are off base if you do not believe the educational offerings and student population of District 150 is driving down enrollment and eroding the housing market in Peoria.

    Diane rightly has to be carefully with the words she chooses but she states “most buyers have a fairly good idea of where they want to live before they even step foot into my office.” Why do you think that is?

    I have lived in and out of Peoria on several occasions with other families and when being transferred back to the area, I can tell you that families with children do not entertain for a moment moving to District 150 and a glazed look comes over them when I try to convince them otherwise.

    Another related issue is resale value. Even those that do not have children and would like to take advantage of living in some of the charming neighborhoods that Peoria has to offer, still purchase a home in the corn fields because they know when it is time to sell and move again, they will be able to move their house quickly if it sits in one of the better school districts which surround Peoria.

  11. so how do you explain all the people that live within district 150? You make it sound as if no one is buying or selling houses or choosing to live within 150 with or without kids. Which houses are sitting on the market longer right now, $300,000 cornfield houses or $125,00 house in town?
    NOT EVERYONE LIVES IN A CORNFIELD.

  12. PF, of course families reside within District 150. Don’t be silly. Is that to suggest that any amount of families is good enough? Would you not agree that we can, in fact MUST, improve enrollment stats?

  13. frustrated

    understood. i’m thinking its one of a few factors. whether its a primary driver or not i simply don’t know.

    i do believe population is down, ~180k from ~200k and all i was saying is i doubt all of that is due to one fiddy.

  14. Ed and Diane:

    I know of a dozen or more families that moved to Peoria within the last year — none to Peoria School District #150

    For my friends and acquaintances, I believe the condition of 150 is the primary driver in not purchasing a home in Peoria. They are middle income families, with good students, and highly involved parents and so it is a loss for the Peoria schools, and so the cycle continues for District 150.

    Just reading the exchanges in the Peoria Chronicle about District 150’s financial condition, management, student population, etc. – what would cause a family to opt into this mess????

  15. Frustrated,

    “Just reading the exchanges in the Peoria Chronicle about District 150’s financial condition, management, student population, etc. – what would cause a family to opt into this mess????”

    – WHY A BRAND NEW MUSEUM OF COURSE!!!!!!!!!

  16. “Just reading the exchanges in the Peoria Chronicle about District 150’s financial condition, management, student population, etc. – what would cause a family to opt into this mess????”

    because it is good to show love.

    i actually fit into your demographic. we moved in a little less than a year ago, read the blogs, know full well the limitations of the district and bought south of forrest hill. we have three kids in the district, know their schools’ test scores, are engaged in the classroom, and support the schools our kids go to financially above what our taxes provide for. we pay for classroom expenses other kids’ families can’t afford, stuff like crayons, books, qpples, etc. Not so we can get pats on the back, but because schools are communities and we believe in helping others achieve as well as our own. our kids get good grades and are learning. we spend, on average, an hour or so a day outside the classroom with them, we invite classmates over to our home. my wife goes into my daughter’s pre-school (sterling) once a week for three hours to help out. we stand up for our kids if there is a problem, but also let them know they need to work through problems as well. what kind of example would we be setting if we avoided the problem? we also want out children exposed to diversity. it wasn’t that long ago that the town we moved from had signs at the city limits posted which notified black people they needed to be out by dusk.

    we do this because we believe it will make a difference. think if there were a bunch of folks just like us!

    the question for us isn’t why move into this mess, but how can we help fix it.

  17. and, yes, i realize i am a naive optimist. i choose to hope rather than be cynical, act rather than receive, and try rather than cry.

  18. Ed: Yes, you are the perfect solution to the problems of District 150. Unfortunately, the majority of parents like yourself choose to buy their homes north of Forrest Hill. I do not blame them (and I have relatives who have done the same) because they do have the right to choose the best route for their own children. However, infusing our schools with families like yours is District 150’s only hope. District 150, also, has to do its part to encourage families like yours by paying a bit more attention to what is happening in the schools south of Forrest Hill.
    What I have also discovered is that taxpayers who do not have children do not see any reason to involve themselves in Peoria’s educational problems. I have seen that in West Peoria. People just don’t care what 150 does–or they think it’s a hopeless cause.

  19. Sharon, more than one of us has been told if we don’t agree with the policies of D150 then we should just leave. In fact, some believe that is exactly what they want so they can do damn well as they please.

  20. Diane, I don’t know if I can be that cynical. Personally, I believe the administration really believes that what they are doing is best for young people. Also, I think they make many decisions looking only at the bottom line–and I don’t know the solution to that problem. For instance, the bottom line might require closing a high school, but such a decision could well be very harmful to District 150 and its students. I disagree with their educational philosophies, not their motives. Has any board member or administrator made a statement to you or anyone you know to that effect (that you should just move)? Also, I think that some of the problems are close to insurmountable without a tremendous societal change that 150 simply cannot create. For instance, I believe that many decision-makers believe that being kind to students by letting them get by with bad behavior is a way to save those young people–a way to keep them in school. I really believe that this permissive attitude is extremely harmful to the very young people they are trying to help–and certainly harmful to the other students.

  21. Diane & Sharon:

    I have never been personally told to go jump in the lake by the District, but a friend of mine has. He lives south of Forest Hill between Sheridan and Knoxville, so his children attended Thomas Jefferson, right? He is an educated and energetic guy, a real leader, who wanted to get parents more involved and raise the bar. He was told to back off. Now his children attend the Catholic school in the area, (he’s not Catholic). Very sad.

  22. Ed, Diane, Sharon – Great insights. Ed, you and your wife have the right idea, but as Sharon points out, not too many others do (the families I referred to) and thus the downward spiral.

    Sharon writes “the majority of parents like yourself choose to buy their homes north of Forrest Hill.” I am afraid even that does not get the job done anymore.

    Like Ed, when I moved to the District, I was optimistic and felt my choice not to follow the pact to the hinder lands surrounding Peoria was the right decision. It was after I arrived that my name “frustrated” came to be.

    When I selected Kellar as the primary school for my children, the District poverty rate was reported to be at 60%, now it is reported at 70% plus. In 2002, Kellar Primary stats on the ISAT were just slightly below Dunlap and with Kellar reporting a much higher low income level, I was impressed. By 2006, when my last child left Kellar, I was not. The gap between the ISAT scores between Kellar and Dunlap widened by 10% and I felt the makeup of the school was changing.

    I urged the Kellar principal to push for the development of a gifted pull out program, given that on average 20 children out of the 60 selected to attend Washington Gifted each year are from Kellar and many more from the school are tested and on the top of the wait list. I also urged the principal, after a before –school Spanish class proved hugely popular, that Spanish should be added to the curriculum as a competitive “hook” to attract new families to the District. Just what do you think came of those suggestions? Kellar is a gem of a school, but could be enhanced further to really attract new families to the District, and yet. . . the District shows no interest.

    I cannot say I have any regrets that I decided on District 150, as my aim was to have my children attend Washington Gifted and it proved to be all I hoped it would be and more. It offered a challenging curriculum, a environment with a low tolerance for misdeeds, a take charge principal, and a friendly mix of involved students, staff, and parents. Oh, that’s right, Ms. Ross, proposes to cut that to save budget dollars.

    It is really hard not to become disenchanted, Ed. Just wait!

  23. “It is really hard not to become disenchanted, Ed. Just wait!”

    well, i am known for both endurance and stubbornness. sterling’s been failing the kids in science for at least four years now, should I go to Angela Stockman, the school’s principal and inquire as to how she is going to improve that particular metric? nah, i’ll just make sure my kids are doing their part to get better.

    we do what we can.

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