Tuesday night, Dr. David Kinney from District 150 presented a plan to mitigate the negative impact of a TIF by sharing some of the revenue with the school district. I mentioned in my live blog that he had distributed a PowerPoint handout to the council members; here is a copy of that handout:
Will the City approve this proposal? My sources say yes.
Tonight is the first City Council meeting of 2011. After proclamations and a “business showcase” presentation from Northwoods Mall, the City will hear from anyone who wants to talk about the proposed East Village TIF. Although it isn’t on the agenda, there has been speculation that the Council will also discuss the City’s ordinance covering grand opening displays tonight, probably under New Business.
It’s standing room only tonight in Council chambers. It looks like all the council members are here (except Jacob, of course).
Tonight’s agenda with supporting documentation can be viewed here. I’ve reprinted it below and will be updating this post throughout the evening, so refresh your browser regularly if you following along live:
PETITIONS, REMONSTRANCES & COMMUNICATIONS – CITY OF PEORIA
Mayor Ardis asks for unanimous consent to move the Litter presentation to the beginning of the meeting.
New Business: ITEM NO. 1 PRESENTATION by DIANA HALL Regarding LITTER CAMPAIGN.
There will be a meeting Saturday, January 22, in City Council chambers, 9-11 a.m., to gather ideas on how to deal with the litter problem in the City. She wants to “talk trash,” she says humorously. There will be coffee and donuts. Very short presentation. No questions.
Back to the regular agenda order:
ITEM NO. 1 PUBLIC HEARING Regarding the PROPOSED DESIGNATION of the EAST VILLAGE GROWTH CELL (EVGC) TIF REDEVELOPMENT PROJECT AREA.
There are four letters from concerned citizens that were distributed to council members before the meeting. Ardis reminds everyone the council will not be voting on the TIF tonight; this is just a public hearing. Sandberg says Item J on the consent agenda will be discussed and voted on, and it does regard the East Village TIF.
Before the public is heard from, the City wants to make a short presentation. Bobby Gray from Economic Development and a representative from Teska and Associates are giving a brief overview of the project to date. The guy from Teska is actually giving the bulk of the presentation. Proposed TIF area includes 653 acres and 2,532 parcels — a very large area. He’s basically giving a summary of their report, which you can read here. They found the East Village area is “blighted,” and thus eligible for TIF designation, because of deterioration, code violations, age of structures, inadequate utilities (this includes streets, sidewalks, curbs/gutters, street lights, etc.), excessive vacancies (16% residential, 25% business), and decline or minimal marginal increase in the EAV over the last five years (only grown about 2%). He lists the goal and objectives of the Growth Cell Plan, reviews the Future Land Use Plan, etc., all of which you can read about in the report (too much to retype here). Current EAV is $49,626,980. Anticipated EAV upon the completion (i.e., in 23 years) of anticipated redevelopment projects is in excess of $96,000,000. He admits that this is “optimistic.” He presents a TIF budget (in the aforementioned report). The total TIF budget (“total Estimated Project Costs”) is $95 million. Also in the budget, “Developer Interest Costs” with the amount “TBD.” Hmmm….
Teska also did a housing study to see if, hypothetically, residents needed to be relocated (i.e., if the City wanted to acquire property through eminent domain and neighbors would have to move), are there similar houses elsewhere where they could move. Answer: Yes.
Now, at long last, the floor is open:
Public hearing is now closed, and the council chambers are emptying rapidly. It looks like most of the SRO crowd was here for the public hearing. That’s encouraging to see. Bobby Gray encourages those leaving to fill out an “interested party” form so they can be notified of future meetings regarding this proposed TIF.
ITEM NO. 2 CONSIDERATION OF CONSENT AGENDA ITEMS BY OMNIBUS VOTE, for the City of Peoria, with Recommendations as Outlined:
A. NOTICE OF LAWSUIT Filed on Behalf of OSF HEALTHCARE SYSTEM, an Illinois Not For Profit Corporation, d/b/a SAINT FRANCIS MEDICAL CENTER Regarding a Complaint Against DAVID P. BROWN, JR., the City of Peoria, and Peoria County Claiming Between December 1, 2009, through December 4, 2009, with Request to Receive for Information and Refer to the Legal Department.
B. Communication from the Interim City Manager and Inspections Director Requesting Acceptance of the BID for DEMOLITION of 2204 S.W. ADAMS STREET from the LOWEST BIDDER, RIVER CITY DEMOLITION, in the Amount of $49,850.00.
C. Communication from the Interim City Manager and Director of Public Works Requesting Approval of an EMERGENCY REPAIR to a 1998 CATERPILLAR 938G END LOADER (Unit #228) by ALTORFER CATERPILLAR, INC., in an Amount Not to Exceed $22,889.84.
D. Communication from the Interim City Manager and Director of Public Works Requesting Approval of the 2011 ENGINEERING SERVICES CONTRACT with FOTH INFRASTRUCTURE & ENVIRONMENT, LLC for the PEORIA CITY/COUNTY LANDFILL, in the Amount of $369,000.00, as Recommended by the Peoria City/County Landfill Committee.
E. Communication from the Interim City Manager and Corporation Counsel Requesting Approval of an INTERGOVERNMENTAL AGREEMENT Between the CITY OF PEORIA, DUNLAP COMMUNITY UNIT SCHOOL DISTRICT NO. 323, and RB INVESTMENTS I, LLC, and Requesting Authorization for the Interim City Manager to Execute the Documents.
F. Communication from the Interim City Manager and Director of Planning and Growth Management with Request to Concur with the Recommendation from the Planning Commission and Staff to Adopt an ORDINANCE Approving the MULTI-FAMILY PLAN for Property Addressed as 2604, 2605, 2626 and 2629 N. LAVALLE COURT; 3604 and 3630 W. MARENGO DRIVE; and 3620 W. VERONA COURT, with Conditions.
G. Communication from the Interim City Manager and Corporation Counsel Requesting Adoption of an ORDINANCE Amending CHAPTER 3 of the Code of the City of Peoria Pertaining to Site Approval Application Filing Fee, Amending CHAPTER 5 of the Code of the City of Peoria Pertaining to a Fee for Filing a Petition for Rehearing, and Amending CHAPTER 13 of the Code of the City of Peoria Pertaining to Fees for Filing Liens and an Increase in the Costs to Settle Violations for Littering.
H. Communication from the Interim City Manager and Corporation Counsel Requesting Approval of a SITE APPLICATION for a CLASS G (Restaurant, Beer & Wine Only) LIQUOR LICENSE at 1219 WEST MAIN STREET, with Recommendation from the Liquor Commission to Approve.
I. Communication from the Interim City Manager and Corporation Counsel Requesting Approval of SITE APPLICATIONS for CLASS C-1 (Packaged Liquor) LIQUOR LICENSES at 2515 N. KNOXVILLE and 3524 N. UNIVERSITY, with Recommendation from the Liquor Commission to Approve.
J. Communication from the Interim City Manager Requesting to Receive and File a WRITTEN REPORT Passed by the Joint Review Board on December 27, 2010, Agreeing that the EAST VILLAGE GROWTH CELL (EVGC) TIF REDEVELOPMENT PROJECT AREA Satisfies the ELIGIBILITY CRITERIA for a “BLIGHTED AREA.”
K. REPORT of the CITY TREASURER PATRICK A. NICHTING for the MONTH of NOVEMBER 2010, with Request to Receive and File.
The following items were removed from the consent agenda by the indicated councilman: D, G, J (Sandberg), and C (Irving). The rest of the items passed unanimously.
Sandberg questions how the JRB came up with their findings. He cites the brevity of the meetings and lack of supporting documentation as reasons he’s skeptical of their conclusions. “This whole process is on a fast track to a conclusion […] there is no independent assessment.” “If this is a blighted area, then let’s just call everything a blighted area except for the growth area out north.” Ardis says this is only a motion to receive an file minutes and the JRB’s action. Says the issues Sandberg is bringing up are not germane to the issue. Riggenbach moves to approve, seconded by Van Auken. Passes 9-1 (Sandberg).
ITEM NO. 3 Communication from the Interim City Manager and Corporation Counsel Requesting Council to Take Action Pertaining to a SITE APPLICATION for a CLASS C (Packaged Liquor Store) LIQUOR LICENSE at 9915 N. KNOXVILLE, SUITES I & J, with Recommendation from the Liquor Commission to DENY.
Irving moves to withdraw application at request of the petitioner.
UNFINISHED BUSINESS
(10-299) Communication from the Acting City Manager and Assistant Director of Planning and Growth Management with Request to Concur with the Recommendation from Staff to Adopt an ORDINANCE Granting a SPECIAL USE in a Class R2 (Single Family Residential) District for a SCHOOL for the ARTS for Property Located at 5211 N. BIG HOLLOW ROAD, and with No Recommendation from the Zoning Commission Due to a Tie Vote.
Spears says the neighbors are generally in favor, but want the building set back as far as possible and allow parking in the front yard. The special use is only for this school of the arts, and if it changes at any time, it would have to come back to the council. Spears/Van Auken move to approve. Sandberg says parking along the side will not work as proposed. Also says the west elevation is 110-foot blank wall that faces the nearest single-family home. That home happens to be the home of the petitioner at this time. But no one but the petitioner, Sandberg says, would want to live next to such a structure. “Don’t allow him to aim low,” because we’re setting precedent for future special uses. It’s too much building for the lot, he says. Motion passes 9-1 (Sandberg).
NEW BUSINESS
PRESENTATIONITEM NO. 1 PRESENTATION by DIANA HALL Regarding LITTER CAMPAIGN. (Moved to start of meeting)
PETITIONS, REMONSTRANCES & COMMUNICATIONS – TOWN OF THE CITY OF PEORIA
ITEM NO. 1 Communication from the Town Attorney Requesting Adoption of a RESOLUTION that Creates the Right of Any Person to ADDRESS the TOWN BOARD of TRUSTEES at any MEETING of the TOWN BOARD of TRUSTEES of the Town of the City of Peoria Consistent with the State Statute and Adopting RULES Consistent with Those Previously Adopted by the City Council.
Irving moves to approve as outlined, seconded by Spain. No discussion. Motion passes unanimously.
CITIZENS’ OPPORTUNITY TO ADDRESS THE CITY COUNCIL
Savino Sierra, LaVetta Ricca, and Jessie McGowan addressed the council.
EXECUTIVE SESSION
ADJOURNMENT
And the council will go into executive session to talk about possibly hiring Patrick Urich… or at least, that’s the rumor. What we know for sure is that they’re going into executive session. Goodnight everyone!
Craig Hullinger has written a blog post about the necessity of providing incentives to rebuild a city’s downtown/older neighborhoods. Hullinger used to be the Economic Development Director for the City of Peoria until he retired in 2009. Since that time, the City has not hired a replacement; instead, Economic Development personnel report directly to the City Manager du jour. Hullinger is a very nice guy and has said some kind things about my blog; nevertheless, we have some disagreements on economic development theory.
“If an older city does not lead the redevelopment of its older central city, it will continue to decline,” Hullinger says. “[A] decision not to incent redevelopment is a decision to give up on your older areas…. [I]ncentives are required to rebuild downtown. Developers go where they are certain they can develop and get a great return. Redevelopment is much more costly and high risk then greenfield development. We have to equalize these costs through incentives if we want private sector renewal.”
What’s missing from this argument? It doesn’t specify what he means by “incentives.” An incentive is “any factor (financial or non-financial) that enables or motivates a particular course of action, or counts as a reason for preferring one choice to the alternatives.” If this is what we mean by “incentives,” then Hullinger and I do not disagree. I believe cities do need to invest in their older neighborhoods and to incentivize redevelopment where necessary.
The point of disagreement is over the kind of investments and incentives that should be made.
Let’s look at a specific example of the kind of incentives to which I object. Hullinger talks about equalizing costs of redevelopment with greenfield development. One of the tools to accomplish this is something called an “enterprise zone.” Its very purpose is to help cities revitalize their older central cities by providing sales tax breaks on building materials or a partial property tax abatement. The City of Peoria’s enterprise zone looks like this:
Notice where these incentives are predominantly going? Along the riverfront, and far north Peoria. Question: When the same incentives are given to greenfield sites as the central city, what effectiveness do they have? Answer: None. If anyone in the city can receive Enterprise Zone status, it’s no longer an incentive to locate in the central city. It loses all effectiveness, and becomes nothing more than developer welfare — a perk for the well-connected, like Firefly Energy, which you can see received EZ status on the map above (the thin red line that snakes down Detweiller Drive and Route 29 to the old Foster and Gallagher site). EZ status was even used as an annexation tool to keep a pizza place from moving out of the City — a pizza place that had already received an incentive from the City in the form of a business development loan.
When you eviscerate your economic development tools like this, it leads to an arms-race for more extravagant incentives to draw people to the central city. And that needlessly costs the taxpayers more money. We need to maximize the effectiveness of our economic development tools, and that means (among other things) using them where they’re needed, and not using them where they’re not needed.
And under no circumstances should we give a $9 million fee to a private developer to build a private hotel for his private profit. That’s not economic development. It’s pure, unadulterated developer welfare — welfare we can’t afford.
By now, you’re all aware of Old Chicago’s big announcement about their location atop Riverfront Village: they’re closing for the winter. The story was covered by WMBD-AM and the Journal Star. From WMBD:
Old Chicago along Peoria’s riverfront is closed until April 4th, according to CFO Dale Paulsen. Paulsen says it’s best for the riverfront restaurant to open on a seasonal basis until there’s a lure of more customers to the area.
This decision has raised a number of questions in my mind.
First, why are they waiting until April to reopen? Isn’t March Madness one of the busiest times of the year downtown? Why would a pizza restaurant want to miss a time when 20,000 people a day — most of them young kids who presumably would like pizza — descend on Peoria’s Civic Center? They’re going to open up right after this large event?
Second, what impact is this going to have on the City financially? We’re already losing money on this due to a non-profit organization moving into the old Damon’s instead of a tax-paying restaurant or other retailer, plus we’re having to replace the defective stairs at taxpayer expense, even though that should have been the developer’s responsibility. Now we’re going to lose sales tax and HRA revenue for three months, too? What implications does this have on repayment of the bonds used to build Riverfront Village?
Third, they really expect the museum to be their salvation? If they won’t open the doors when 20,000 people a day are downtown (March Madness), why would a supposed 1,000 people a day (predicted by the museum group) be worth their while? And if museum patrons wouldn’t park in Riverfront Village’s lot and walk across the street to see the museum due to fears of safety, weather conditions, or whatever reasons were given for requiring an attached parking deck, wouldn’t the reverse also be true?
Fourth, I thought Riverfront Village was built to lure people to the riverfront. Now Old Chicago is wanting customers to be lured by something else? Doesn’t this point to a fundamental failure of the Riverfront Village plan? Former Mayor Jim Maloof was quoted by the Journal Star in 1995 as saying, “The entire community is going to be thrilled when they see the magnitude of this project and what it is going to do for our downtown.” Fifteen years later, what has it done for our downtown, exactly?
Today at 3:00, the Joint Review Board (JRB) approved the East Village Growth Cell (EVGC) TIF unanimously with no discussion. Dr. David Kinney, representing Peoria Public Schools District 150, voted “present.” The meeting lasted three minutes. A presentation on the EVGC TIF was given to the JRB at the last meeting on December 10, but according to the minutes of that meeting, there was “a desire to continue discussion between Peoria Public School District 150 and the City of Peoria[;] therefore, a motion to defer was requested.”
Any further discussion that took place apparently happened in private, because no public discussion was held. I asked Dr. Kinney afterward what message District 150 was wanting to send by voting “present” instead of coming out for or against the TIF. He replied that TIF districts are generally not good for school districts, and a residential TIF in particular is a “double whammy.” Nevertheless, the district wants to maintain a positive relationship with the City and try to work out an agreement where the school district can share in the TIF revenue.
Present at the meeting in addition to Kinney were Robert Gates (District 150 legal counsel), Stan Browning (Sanitary District), Jim Scroggins (Finance Director, City of Peoria), Patrick Nichting (Treasurer, City of Peoria), Scott Sorrel (Peoria County), Tim Riggenbach (3rd District, City Council Representative), Bobby Gray and Stephanie Doss (both Economic Development, City of Peoria).
Joint Review Board members who were absent included Debbie Ritschel (General Manager of the Civic Center, but officially representing the general public on the JRB), John Stokowski (Greater Peoria Mass Transit/CityLink), Edward Szynaka (Peoria Public Library), and Glen Olson (Airport Authority). These members were also absent from the previous JRB meeting on December 10.
According to the City of Peoria website, “The Joint Review Board (JRB) is made up of one representative from each taxing authority affected by a TIF (i.e. school district, park district, etc.) The JRB also includes at least one member of the general public. The JRB must meet at least annually to review the progress of each TIF. Also, before a TIF is created, the JRB must review the plan for redevelopment for the area.”
There was no other business discussed at today’s meeting, and no citizens addressed the board. No date was set for the next JRB meeting.
Hat tip: Martin Palmer for alerting me that this meeting was taking place today.
As a candidate for City Council, I received an expected questionnaire from the Peoria Area Chamber PAC, except that it’s not the Peoria Area Chamber PAC anymore. It’s the Business PAC of Central Illinois, or “Biz PAC” for short. The letter explains that they are “no longer a subsidiary organization of the Chamber,” but rather “an independent business focused political action committee.” According to the Peoria Area Chamber of Commerce’s website, the change was effective November 1:
[T]he Chamber and the Peoria Area Chamber PAC are ready for change. Both organizations’ boards have made the decision that it is time for the PAC to stand on its own. We believe this strategy is advantageous for both. The Chamber can focus its political efforts on its issue advocacy work. The PAC can focus its efforts on candidates and issues important to the business community even if those candidates or issues are outside the sphere of the Chamber.
Effective November 1, 2010, the Peoria Area Chamber PAC will no longer be an affiliate of the Peoria Area Chamber of Commerce or The Heartland Partnership. The PAC will stand on its own under the name Business PAC of Central Illinois. All governance connections between the two organizations have been eliminated. The Business PAC of Central Illinois, as other organizations have done with various members of the Heartland Partnership family, has contracted with the Chamber to provide administrative services that include staff support, meeting space, etc.
The committee members listed on the Biz PAC’s stationery are: Tom Landon (Chairman), Henry Vicary (1st VP), Diana Hall (2nd VP), Julie Russell (Treasurer), Tim Moore (Secretary), Tim Bertschy, Dr. Andy Chiou, James Gilkesson, and Jay Harms. Biz PAC’s mission is, “Dedicated to electing pro-business candidates in races of local importance.” And just what do they consider a “pro-business” candidate, you may ask? The Chamber’s website indicates it would be someone “who support[s] the business community, stands[s] for growth and believe[s] in good government.”
News came yesterday that the federal government will be paying for ten of our police officers for the next three years. Nevertheless, Peoria will still be losing three officers, as 13 positions were cut from the 2011 budget. Peoria can’t afford them because it’s too busy spending its money on civic centers, hotels, risky start-up businesses, and other non-essential, losing propositions, as well as giving away its assets to other tax-collecting public bodies.
The good news is that Peoria will get to keep 10 of its police officers who would otherwise get cut. The bad news is that the entire nation is now paying for the City’s poor fiscal management. What’s another $2.7 million to the federal government? They’re only in debt by $13.8 trillion or so. Big whoop.
There’s an article in today’s Journal Star I just couldn’t let pass without comment.
City officials including Mayor Jim Ardis have … expressed some of their frustrations with other taxing bodies in Peoria — namely Peoria Public Schools District 150 — for increasing its property tax rate while the city avoids similar hikes despite increasing political pressure to do so.
Reporter John Sharp did a good job of covering what I’m about to say, but I just want to emphasize it: The City didn’t raise property taxes because it raised taxes on our natural gas bills. The mayor and city council members can crow all they want about how they didn’t raise our property taxes (and District 150 did), but the truth is that the City will be taking more money out of our pockets next year than District 150.
According to this report, “Under the projected rate next year [for District 150], the owner of a $100,000 home would expect to pay about $1,640, excluding any Homestead exemptions or increase in assessed valuation, an approximately $13 increase [emphasis added] above this year under the same determinations.” In contrast, the natural gas tax is “a 3.5 percent tax on gross receipts resulting in about $33 to $34 more [emphasis added] for the typical residential user each year.” So the average homeowner will only be paying $13 more next year to District 150, but $33 to $34 more to the City of Peoria, albeit by different means. The total dollar increases are also significantly different: the City’s natural gas tax raises $2.2 million in revenue, whereas District 150’s increase raises up to $900,000 in additional revenue.
Furthermore, guess who else gets to pay the natural gas tax? That’s right — District 150! So the council has raised taxes on the school district, and is now complaining that the school district is raising property taxes. To a certain extent, the City is really raising property taxes by proxy. District 150 doesn’t have the ability to tax natural gas, garbage, water, liquor, etc., like the City does. When their costs increase, they have to go to the property owners to get more revenue.
Keeping these facts in mind, consider these outrageous statements from City officials quoted in the article:
“It doesn’t seem like there has been a lot of consideration from the other taxing bodies to continue to (not) increase their portion (of the property tax).” [Mayor Ardis]
“We’re on the edges of a tax revolt in this country…. The bottom line is we have to live within our means. If we have to afford less government, we have to put less government in place.” [Eric Turner]
This from two members of the council who voted to spend $55 million on expanding the Civic Center, spend $37 million to build a hotel (including a $9 million developers fee), give away the $10 million Sears block for $1, give away the $2.8 million Kellar Branch for $1 (and indirectly cost the taxpayers $1.25 million for its acquisition by the Park District), back a $3.3 million loan to now-defunct Firefly Energy (resulting in over $1 million owed by the City)… need I go on?
“If you are a citizen of Peoria and open your tax bill each year, you will see your taxes have been increased year after year…. I do think it’s important we continue on the city side to hold our property taxes away from an increase.” [Ryan Spain]
Apparently, all other taxes are okay to raise. Fees on our water bills, taxes on our Ameren bills, sales taxes downtown, the continuation of HRA taxes to pay for the overbuilt Civic Center — these apparently don’t have any affect on citizens. As long as we “hold our property taxes away from an increase,” then the quality of life here is golden!
A word to the wise: Council members in glass houses shouldn’t throw stones.
The Peoria City Council will be meeting tonight (Tuesday, Dec. 14) to approve the final 2011 budget and dispose of other regular business. Here’s the agenda. You can hear the meeting on 89.9 FM (WCBU) tonight at 6:15 p.m., either on the radio or live-streamed over the Internet. The meeting will also be broadcast on Comcast Cable channel 22. Past meetings can be viewed online here.
I’m going to take the City of Peoria’s advice and stay home today. I recommend all my readers do the same. Here’s last night’s press release from the City:
The City of Peoria is under a blizzard alert which is expected to commence overnight, and last through the day on Sunday. Due to the impending weather, we ask that you stay at home.
We are experiencing icy road conditions and City crews are currently salting primary streets. If you need to be out, please take precautions and include a winter survival kit including blankets in your vehicles. Should you encounter problems, we encourage you to stay with your vehicle.
And here’s today’s update:
City crews are maintaining Primary streets by plowing and treating hills with salt. Considering the wind speeds expected during the day today along with dropping temperatures, sand/salt treatments will have little to no effect. The streets are snow covered with ice forming on the pavement. Blizzard conditions are expected to continue during the day. Citizens should not travel. If traveling is necessary motorists should reduce speeds and allow extra time to stop.
Have a happy snow day!