Tag Archives: City of Peoria

City Council, City of Peoria, Peoria Journal Star

“Save the Journal Star” news conference Monday

18 Comments

From a press release:

FOR IMMEDIATE RELEASE

PEORIA MAYOR JIM ARDIS AND OTHERS TO CALL FOR FAIR NEGOTIATIONS AT THE JOURNAL STAR DURING 9 A.M. NEWS CONFERENCE MONDAY, APRIL 9, AT PEORIA CITY HALL

It’s time to save the Journal Star.

As downstate Illinois’ largest newspaper, the Journal Star continues to be highly profitable. However, New York-based owner GateHouse Media continues to push for the slashings of jobs and salaries of the people who write, create and deliver the paper.

Why? GateHouse recently lavished a $800,000 bonus on CEO Michael Reed, who makes a salary of $500,000 a year. Further plump bonuses to other executives pushed the total to far over $1 million.

While GateHouse continues to try to slash the Journal Star, readers might ask questions. How does a smaller local staff make for a better local paper? How do continued cuts at the newspaper make for a better value for readers?

We ask the same questions. We are Peoria Unit 86 of the United Media Guild, which represents those targeted employees. We want only reasonable contract negotiations and a fair settlement. We just want to do our jobs as Peoria’s public watchdog.

Please join us at 9 a.m. Monday, April 9, in front of Peoria City Hall, 419 Fulton Street. Mayor Jim Ardis will present a letter signed by the City Council urging GateHouse to reach a fair settlement with the Guild.

We also will present a similar letter from the head pastors of two of the largest churches in Peoria – who requested to meet with Journal Star publisher Ken Mauser, but were denied – urging justice and moral fairness in ongoing contract negotiations.

In other Journal Star news, Managing Editor John Plevka is leaving the paper to head up the student newspaper at ISU.

City Council, City of Peoria

Congratulations to the City Council

17 Comments

I just want to congratulate the Peoria City Council on accomplishing something I really thought was impossible. According to the Journal Star, the Council has managed to find a deadline that Gary Matthews was able to meet. This is no small feat. It only took three and a half years, three redevelopment agreements, and five or six deadline extensions, but through persistence, perseverance, and a political will unrivaled by any other effort the council has made, they have succeeded in foisting this folly on the taxpayers.

I sincerely wish they would put this much effort, determination, and tax money toward the things they should be doing: enforcing law and order, maintaining existing infrastructure, and making Peoria a safe and beautiful place to live for those who actually, you know, live here, and pay taxes that increasingly go toward baubles that hang on our deteriorating civic structure.

No doubt, I ask too much.

City of Peoria

How high, how long before changes are made?

19 Comments

Here are some random thoughts about gas prices and the future of the City of Peoria that I wanted to throw out there for your consideration.

Gas prices are now $4.09 per gallon in Peoria. It’s not a record high, but it’s getting close.

Have the higher gas prices changed how much you drive? Do you consciously try to make fewer trips, or shorter trips in the car? I do. If it hasn’t made any difference to you yet, how high would gas prices need to go–or how long would they have to stay high–to force you to rethink your driving habits? Or to perhaps buy a more fuel-efficient car?

Or what about more drastic actions? How high would gas have to get before you decided to move closer to where you work? Or closer to where you shop for groceries?

In fact, how long before the demand for more efficient, mixed-use, compact neighborhoods rises enough to change residential development patterns in Peoria?

The fact is, the City of Peoria should be thinking about changing their development patterns right now. Well, yesterday, really. As you watch the digital numbers rise at blazing speed at the gas pump these days, have you ever thought about the tremendous cost of high gas prices to the City? All those police cars, fire trucks, city buses, school buses, snow plows, code enforcers, road maintenance vehicles, ambulances, garbage trucks, etc.? You know all those costs get passed on to you in the form of taxes and (ahem) “fees.”

And how about those infrastructure costs? The cost to maintain all the roads and bridges and, where they exist, sidewalks gets higher and higher per capita the bigger be get without growing in population. Yet instead of maintaining the streets we have and seeking to increase density there, we’re instead spending millions (in a combination of state, federal, and local money) to build an extension to Pioneer Parkway and an extension to Orange Prairie Road.

A 50-plus-square-mile sprawling city of 130,000 residents is only sustainable as long as gas is cheap and abundant and the population growth is proportionate to land area growth. It’s a fact that population growth has not kept up with our land growth. Now if gas ceases to be cheap and abundant, our city is really going to be in a world of hurt, as it is almost completely reliant on motor transportation.

The City supposedly has a sustainability commission. They were established in 2008, and a website went up in 2009. Have you ever heard anything about them since then? Has the City Council solicited their input on any of the road projects that have come before them? Has the Planning Commission solicited their opinion on any of the retail or residential developments that have come before them? Has the Planning & Growth Department solicited their opinion on any changes they’ve made recently to the Land Development Code or Zoning ordinance?

My guess is the Sustainability Commission gets about as much respect and consideration as the now-defunct Heart of Peoria Commission did. It’s there for window dressing.

The time is now to start planning for a sustainable city. The built environment doesn’t change overnight. It changes little by little, over many years. Let’s get serious and start planning–and becoming–a sustainable future for our City now.

City Council, City of Peoria

The latest line drawn by the City

5 Comments

The Journal Star recently published the following quote regarding the Wonderful Development:

“The developer doesn’t need a reminder from the council of the hard deadline in place,” Mayor Jim Ardis said. “He knows he has to deal with any obstacles and put us in a position to close by the end of the month. That won’t change.”

Did you see that? This latest deadline is different than all the previous deadlines. This one is a hard deadline. We really mean business this time! No more of those phony deadlines of the past three and a half years! This is a hard deadline. Do you hear me, Mr. Matthews? HARD!

It is to laugh. Does anyone really believe this? It’s like that old Bugs Bunny cartoon:

City Council, City of Peoria

Chronicle prediction comes true

56 Comments

Back in January, when the Peoria City Council agreed to extend the Wonderful Development deadline until the end of February, I predicted that “Long about February 21, you can reasonably expect the council agenda to include another deadline extension.” Well, it’s February 22, and guess what? The council agenda for next Tuesday includes a request to extend the deadline until the end of March now.

I feel confident in predicting that, if this is approved, the new deadline won’t be met either. At the end of March will be another deadline extension request. This may happen every month in perpetuity, or at least as long as the majority of this council is allowed to remain in office, and Gary Matthews is never held to a real deadline.

Just for those council people who are unaware of the definition of “deadline,” here it is: “The time by which something must be finished or submitted; the latest time for finishing something.” That’s not how the Council has been defining it, obviously.

City Council, City of Peoria

How many different funding sources can we tap for the Wonderful Development?

19 Comments

The City Council is poised to add another funding source to the downtown hotel project next Tuesday. Keep in mind the funding sources already tapped for this project:

  • HIZ TIF (10/28/2008) — First, they created the Hospitality Improvement Zone TIF (tax increment financing) district. This happened in October 2008 while the mayor and council were still telling the public there was no hotel project being proposed. It was designed primarily as an economic incentive for the Wonderful Development.
  • HIZ BDD (11/10/2008) — Following close on the heels of the TIF was the HIZ Business District Development (BDD) Plan. BDDs are like TIFs except that, whereas TIFs use property tax money, BDDs use sales taxes. In March 2009, under this BDD, the council established an extra 1% sales tax within the BDD boundaries to be used for “capital improvements related to new or existing hotels.”
  • General Obligation Bonds (pending) — These bonds, which have been approved for various amounts between 2008 and 2011 but have not been sold yet, will supposedly be paid back by the project via property taxes plus the HIZ TIF increment and BDD sales tax explained above. However, since they’re general obligation bonds and not revenue bonds, that means that the full faith and credit of the City of Peoria is backing them. In other words, if the project doesn’t pay for itself, the City’s general fund has to pony up the money. That’s money that we need for police, fire, public works, etc. It’s also the fund that has been bailing out the failed Midtown Plaza TIF.
  • Post Employment Benefits Reserve (11/1/2011) — Under the terms of the latest (i.e. third) redevelopment agreement, the City of Peoria will loan the developer (Mr. Matthews) $7 million for 25 years at 7% interest (but the first two years will be interest-free) because he couldn’t get all the private financing he needed. What is the way of finding the right lender? Where is the City getting this money to loan? From the Post Employment Benefits Reserve, an underfunded pot of money set aside to pay health benefit obligations to future retirees.

One more thing about those general obligation bonds: they’re supposed to be for $29 million, but the City would actually have to issue bonds for $32.5 million. Why? Because the money is needed for construction, but during construction the property is not generating any income to make bond payments. So between the time the bonds are issued and when payments start, the interest that’s accrued gets added to the principal. It’s called “capitalized interest,” and if you’ve had student loans, you’re probably familiar with it.

The City has found a way not to capitalize the interest on those bonds. They’ve found another pot of money they can use to make the bond payments during construction. Where did they find it? In the Southtown TIF District. Since the Southtown TIF is adjacent to the HIZ TIF, money can be siphoned off transferred between them for allowable expenses. Financing is an allowable expense in this case.

Southtown is the City’s very first TIF district, established in 1978. TIFs are only supposed to last 23 years, but in 2001 the Council extended it another 12 years, so it’s not due to expire until 2013 now. But the City could retire the TIF sooner. I mean, since they have such a surplus of money in that TIF, they could just end it now and let that money be divvied up proportionally among the affected taxing bodies, including District 150 and Peoria County.

But instead, the City is going to take part of that money and not even use it to improve infrastructure in Southtown or add any value to Southtown. They’re going to use it to make bond payments on an ill-advised hotel project in downtown Peoria — a behemoth that already has three other public funding sources.

This plan will do one thing, though. It will give the council the opportunity to pretend they’re fiscally responsible. “Look at what we’re doing,” they’ll say. “We’re saving $3.5 million!” It’s like going to McDonald’s and ordering a Big Mac, french fries, apple pie… and a diet Coke. “See? I’m watching my weight! I’m drinking a diet Coke!”

I suppose it’s better than nothing.

City Council, City of Peoria

Wonderful Development deadline to be extended yet again

19 Comments

You’ll never guess what’s on the City Council agenda for next Tuesday, 24 January 2012. It’s a request to extend the deadline on the downtown hotel project yet again. Yes. “Time is of the essence,” Councilman Spain breathlessly implored in December 2008 when this erstwhile clandestine project was first revealed to the public, be sure you lean to use social media to get sales. Now, three-plus years and as many redevelopment agreements later, we’re told “it would be a rush to have all the documents agreed upon by January 31.” Indeed.

So the new “deadline” is going to be February 29. But don’t hold your breath. The council request not-so-subtly implies that even that may not be enough time. “Even with a February 29 deadline,” it concludes, “there is much work to be accomplished before our financial advisor can be directed to move forward with marketing the bonds.” Long about February 21, you can reasonably expect the council agenda to include another deadline extension.

One wonders why the council doesn’t save itself some time and just set the deadline for a more realistic timeframe … like the fifth of never, for instance. Or the year 3000. Because it’s quite clear that the council has no intention of ever enforcing any deadline at all. The deadlines have all been a farce — a pallid attempt to convince Peoria citizens that the Council is being a good steward of the public’s money.

City Council, City of Peoria

Peoria to put retiree funds at risk for hotel

66 Comments

The City Council is voting on a revised redevelopment plan tonight for the undead Wonderful Development. This new plan not only gives the developer $29 million, but also loans him an additional $7 million because he couldn’t get all the private financing he needed.

So the question is, where is this $7 million coming from? I mean, did you know that the City had $7 million sitting around in a pot somewhere? Well, they do … in a retiree benefits fund. According to the council communication: “the City will provide the developer with a 25-year $7 million loan (the ‘Project Loan’) at 7% interest from the City’s Post Employment Benefits Reserve.”

The City is required to keep this Post Employment Benefits Reserve by an accounting regulation known as GASB 45. The idea is that the City should be socking away money now for the health benefits they are obligated to pay in the future to retirees. Of course, the City doesn’t fully fund the reserve. They can’t afford it. So they’re listing an increasingly large unfunded liability on their balance sheet each year.

Now, to make matters worse, they’re going to take what money they do have in reserve and loan it to Gary Matthews to build a hotel downtown — at no interest for the first two years or so, then at 7% interest after that. But here’s the kicker: this loan would be in the third position for repayment. In other words, if the project were to go bankrupt, the banks would get paid back first, then the owners of Big Al’s (who are loaning Matthews money as well), then the City. The City’s loan is subordinate to two other creditors, so the odds of the City getting paid back in the event of default are nil.

Of course, this is just the latest injustice regarding this deal. There still is going to be a $29 million gift to the developer, courtesy of your future tax money. This publicly-subsidized hotel will be competing with other private hotels downtown, giving it quite a competitive advantage. Meanwhile, our taxes (or “fees,” if it makes you feel better) are going up and the City is going deeper in debt, even as our city faces serious public safety issues and its infrastructure deteriorates.

Peoria, your tax dollars are being misused. Does anyone care? Anyone? If the Occupy Wall Street supporters really don’t like money being taken from the 99% and given to the 1%, they should be against this deal. If the Tea Party supporters really don’t like bigger government and support the free market, they should be against this deal. Where are they? Where are you? Rome is burning while you’re fiddling.ikoni

City Council, City of Peoria

Our money is burning a hole in the City Council’s pocket

43 Comments

I wasn’t able to attend the City Council meeting tonight, but I heard it on WCBU. The big news is, of course, that they voted 8-3 (Sandberg, Weaver, and Akeson voting “no”) to rescind (rather than ratify) the City Manager’s letter of cancellation of the hotel redevelopment agreement. So, the project lives on as the Council just can’t pass up a chance to throw $37 million of your tax money down a hole. If you were putting together a soundtrack for the executive session, I don’t think you could do any better than including the Genesis song “Tonight, Tonight, Tonight”:

Here are some of the lyrics that are particularly poignant:

I got some money in my pocket, about ready to burn
I don’t remember where I got it, I gotta get it to you
So please answer the phone ‘cos I keep calling
But you’re never home, what am I gonna do?

Tonight, tonight, tonight, oh, I’m gonna make it right
Tonight, tonight, tonight, oh

You keep telling me I’ve got everything
You say I’ve got everything I want
You keep telling me you’re gonna help me
You’re gonna help me but you don’t

But now I’m in too deep, you see it’s got me
So that I just can’t sleep, oh get me out of here
Please get me out of here, just help me, I’ll do anything
Anything if you’ll just help get me out of here

City of Peoria, Peoria County, State Legislation, State of Illinois

Smoking prohibited

6 Comments

This week’s Word on the Street column reports that the City and County have been doing smoking ban stings lately: “The county performed 203 compliance checks and wrote 45 tickets. The city performed 123 checks and wrote eight tickets.” And, “The effort was funded by a [$15,000] grant the Peoria City/County Health Department received from the state Department of Public Health.”

Meanwhile, there’s a new documentary miniseries premiering in October on PBS about Prohibition. Promotional material for the new film by Ken Burns describes the Prohibition era: “The culmination of nearly a century of activism, Prohibition was intended to improve, even to ennoble, the lives of all Americans, to protect individuals, families, and society at large from the devastating effects of alcohol abuse…. Prohibition turned law-abiding citizens into criminals, made a mockery of the justice system … permitted government officials to bend and sometimes even break the law, and fostered cynicism and hypocrisy that corroded the social contract all across the country…. The film raises vital questions that are as relevant today as they were 100 years ago – about means and ends, individual rights and responsibilities, the proper role of government and finally, who is — and who is not — a real American.”

File the modern, popular smoking bans under the heading, “History Repeating Itself.”