The other day, I was reading in the Journal Star about former mayor Bud Grieves’ plan to publicly unveil his all-hotels-connect-to-the-Civic-Center idea, and this just jumped out at me:
City Manager Scott Moore said the city is looking to do its own market study on Grieves’ plan, a similar process the city took in 2008 when Matthews of EM Properties Ltd. pitched the $102 million Marriott project.
The city did a market study on the “Wonderful Development”? Really? I don’t remember any council action authorizing funding for that. I immediately sent a Freedom of Information Act request to see this market study of which the City Manager spoke. Here’s the response I received:
Thank you for your inquiry regarding a “market study on Gary Matthews’ hotel plan.” No official market study of Mr. Matthews hotel plan in 2008 was conducted. [emphasis added] Over the past few years, the City has worked with HVS – a global hospitality services consulting firm – to determine the feasibility and reasonableness of a variety of hotel projects. Their largest work for the City was conducted in 2006-7 in support of a plan to build a Hilton at the corner of Kumpf and Jefferson. HVS was involved in the discussion regarding the December 2008 Matthews plan, but never produced any written analysis. They provided us with advice and counsel on the scope and need for the project and the parameters of the Redevelopment Agreement. Their involvement included a series of phone calls with City staff, representatives of EM Properties and our respective attorneys.
So, as it turns out, there was no market study. No independent analysis of Matthews’ plans. There are references to a feasibility study that took place before the recession started. This is evidently what the City of Peoria calls “due diligence.” And this is the process they’re going to use on Grieves’ plan as well.
I suppose we should be grateful that the City didn’t spend money on doing its own market study, since they’ve been known to ignore them anyway and just go with the developers’ promises, like they did with MidTown Plaza. That certainly turned out well; I’m glad we’re doing the same thing again, and with higher stakes.
Are we blind as a community? Any council person who supports this project going forward needs to be voted out next year. I do not mind investing in the community but to do so without any policy to help mitigate risks is reckless. We have witnessed a financial crisis over the past 1 1/2 yrs where financial institutions had many loans go bad. While we have criticized these companies, the fact is they all had specific policies in place before they lent money and they still had defaults. The banks don’t want to touch this deal. Hello? Isn’t it scary that we have city leaders doing the same thing with our money without any similar policies? Vote them out!
Where’s the outrage? I realize there is a lot of apathy out there, as well as a general feeling that it is already a done deal. However, it is more important than ever to voice your concerns to members of the City Council about this. I don’t want to see another penny of tax money go towards this project. If it is to be done,it ought to be done privately. I’ll go on record as asking the Council to end taxpayer involvement in this project. I hope eveyone who posts on this blog will take the time to email the Council about this.
Peorians are like abused spouses, Conrad. They just continue to accept that they deserve the mistreatment they get. Anyone who thinks differently moves out. And as I recall they did a “market study” of the infamous museum, with hyped-numbers and so forth, so it said what they wanted it to say.
Be carefull everyone…..
Next thing you know Al will accuse you all of “…working for a tax exempt shelter of hatred, and government..,” whatever that means….
I do spend time being critical of Schock, but I will vote against any politician – Republican, Democrat, Green Party, Communist Party, etc- that supports projects like the hotel, museum, etc, that make absolutely no business/economic sense.
What ‘power,’ if you will, exists that makes these politicians -federal, state, city, and county- cave into [what should be] their better judgement?
A majority referendum?
Diane,
I believe you are correct….
A MAJORITY of the citizens of Peoria City/County approve of District 150’s issues and problems. A majority approve of the cities ‘less-than-poor’ financial condition, the loss of how many millions of tax dollars on risky development schemes, yet ANOTHER homicide…..
The majority approved of a museum-tax, based on a development plan that has since morphed into something completely unrecognizable from the ‘original.’ Wonder what the ‘majority’ thinks now?
I am sure the majority would have approved of the $3,000 [plus] spent on a trip to D.C. by city/county reps, when Schock, Durbin & Co. turn around and show up in Peoria the next day………
There was a study done on the so called Grieves plan. I did it 15 years ago when that plan was first put before the city council,with close to 0 support.I had some blue prints, but when I retired I lost track.But I have talked to the HI to check if a copy was still there.The new plan is really and old plan but with a new name. Good Day
CJ: What was the cost of these hotel ‘telephone’ consulting conversations provided by HVS?
Hey that type of “due diligence” the city conducted sounds exactly like the kind of due diligence that thousands and thousands of now broke investors conducted in the late 1990’s with internet stocks, Enron, Worldcom, Tyco, etc. Please place you head between your knees and brace for a another crash.