A number of agreements regarding the proposed Peoria Riverfront Museum were passed by the Peoria County Board on Thursday. They passed nearly unanimously, with only board members Merle Widmer and Brad Harding voting nay.

The six agenda items pertaining to the museum included an ordinance and five resolutions:

1. An ordinance for the issuance of $41,600,000 debt to cover construction expenses for the museum
2. A resolutions approving the museum “facilities design concept”
3. A resolution approving a $5,040,000 bid from Williams Brothers Construction to building the museum parking deck
4. A resolution approving engineering agreements with PSA-Dewberry and Whitney & Associates for “construction oversight and material testing” for the project
5. A resolution approving the museum redevelopment agreement
6. A resolution approving a Capital Facility Development, Lease and Operating Agreement

Dave Ransburg and Ryan Beasley (the chair and vice chair of the Peoria Riverfront Museum, respectively) gave presentations on behalf of the Peoria Riverfront Museum. Ransburg stated that this will be the “greatest building built in Peoria since the Civic Center.” He also gave a brief history of how we got to this point, stressing that thousands of hours and millions of dollars have already been spent on this project.

Beasley gave a lengthy presentation, including an update on the IMAX situation. He stated that “it has always been our plan” to deliver a “giant screen” theater with a 70′ x 52′ screen capable of showing 2D and 3D digital, ultra-high definition movies. While that may well have always been their plan, they’ve told the public in no uncertain terms they would be building an IMAX theater, specifically. It’s well documented, even on their own “Build the Block” website.

Beasley went on to say that the museum is “a mission-driven organization,” and that the theater has to fit with their mission, which is “to inspire lifelong learning for ALL, connecting art, history, science and achievement through collections, exhibitions and programs.” In order to do that, the museum has three “negotiating terms”: control over programming, technology, and exclusivity. The biggest obstacle is control over programming. The museum wants to show “classic” (i.e., educational) films during the day and second-run movies on evenings and weekends. That has been IMAX’s traditional model. However, IMAX is apparently interested in seeing their theaters run more first-run movies — what they call “day and date DMR” movies — that would require multiple showings for the first two or three weeks the movie is out. “DMR” is IMAX’s proprietary large-screen film process. The museum’s concern is that agreeing to “day and date DMR” would be more profitable, but violate their mission. They’re also concerned about being required to show some films that are R-rated or otherwise not family-friendly.

The “next steps” for the museum are:

1. To “continue preferred IMAX path” — that is, they’re going to continue negotiating with IMAX. Board member Merle Widmer asked about an e-mail one of his constituents received that indicated IMAX “does not have a client interested in opening an IMAX theatre in Peoria.” Beasley stated that was not surprising, given that IMAX received an inquiry from the general public about their “internal operations” — he would expect them to either give no answer, or to answer in the negative. He assured Widmer that he could provide proof of on-going negotiations with IMAX on IMAX letterhead. Media inquiries to IMAX by the Peoria Chronicle have gone unanswered.
2. To “continue to evaluate alternative options,” none of which have “the brand power of IMAX,” he admitted.
3. To “communicate progress and direction” to everyone, including the County Board and the general public.

There was another speaker (didn’t catch his name, sorry) who provided an overview of the building and grounds. There will be three “free-standing” signs (they looked like monument signs in the illustration) that would be lighted. Also, on the large blank walls of the museum, there will be humongous banners that can be used for decoration and/or to advertise the movie(s) playing at the “giant screen” theater. The only entrances are the main entrance off of Washington street and the elevator entrance from the parking garage. Thus, most of the area around the museum will be dead space (i.e., there will be no meaningful pedestrian activity outside).

County Administrator Patrick Urich explained that the cost of the project (including the parking deck) has risen from $83.4 million in April 2009, to $87.1 million in February 2010, to $92,198,731 this month. He then went on to talk about various “protections” that are built in to the agreements. For instance, there is $4.3 million in construction contingencies that will not be spent if the bids come in on budget and there are no change orders. There are also fundraising requirements built into the development and lease agreement with the museum: they have to raise $2.5 million by October 2011 and another $2.5 million by October 2012. If they don’t reach this target, then they have to reduce their capital or operating budgets “consistent with the shortfall from the goal.”

This is a marked departure from assurances the County gave to voters before the April 2009 referendum that no construction would start until the money was raised. In the July 9, 2009 Regular County Board Meeting minutes, it states explicitly, “Mr. Urich replied that currently the commitment for private funding is $8,000,000.00. If the funding is not there on the private side, the project will not go forward.” And later in the same meeting, “Mr. Urich has made it clear that ground will not be broken, even for the parking deck, until there is $8,000,000.00 in private funds to cover the gap.” Now, this has been replaced with toothless requirements that money be raised during construction.

Against all evidence to the contrary, everyone seems to be very confident in the museum’s ability to raise additional funds. When asked in a follow-up question about the stall in fundraising, Beasley said that “it’s not as simple as passing the referendum and then the money flows in,” although they did receive some additional funding (he declined to specify how much). Of course, this is exactly what the museum group assured us would happen before the referendum. Then, the only thing holding up donations was the referendum. But now people “want to see shovels in the ground” before they give more money, so we need to start building to get more funds, Beasley said. The target continues to move.

Several board members stated that the agreements weren’t “perfect,” but that they were “very good.” Several board members also stated that they had reservations and concerns about the plans, but not enough to vote against going forward. And there were a lot of self-congratulatory speeches all around as the final votes were taken.

An interesting item is on the agenda for the Peoria County Board Rules Committee this coming Thursday evening:

ISSUE:
Establishment of Museum Standing Committee of the County Board and temporary Museum Building Committee

BACKGROUND/DISCUSSION:
In the initial Capital Lease and Operating Agreement (posted on the County website in February 2010) between the County and the Peoria Riverfront Museum (PRM), it was determined that the County would construct the parking deck and the PRM Board would construct the museum and the perimeter improvements. The following changes to the County Board Rules of Order would establish a standing committee of the County Board to oversee construction of the PRM and leasing of the PRM site and create a temporary Museum Construction Committee to oversee construction of the PRM building.

The Museum Standing Committee would be comprised of County Board Members. The general duties of the Museum Standing Committee would be to: a) make recommendations to the County Board for awarding contracts for the construction of the PRM; b) approve all change orders for the construction of the PRM of less than $250,000 additional cost; c) exercise general oversight of the PRM building and grounds; d) review and comment upon those items provided in the Lease and Operating Agreement with PRM; e) initiate all actions of the County exercising powers under the Lease and Operating Agreement; and f) review all actions of the Museum Construction Committee.

The Museum Construction Committee would be comprised of individuals selected by the Peoria County Board Chairman from the County Board, the PRM Board of Directors, county staff, and/or other citizens with building and construction experience. The Museum Construction Committee is a temporary committee that shall automatically dissolve upon the opening day of the Peoria Riverfront Museum. The general duties of the temporary Museum Construction Committee include: a) approve all change orders for the construction of the Peoria Riverfront Museum of less than $100,000 additional cost; b) Exercise general oversight of the construction of the Peoria Riverfront Museum Project; and c) report regularly to the Museum Committee regarding the progress of construction.

The advantages of the County managing the construction are numerous: a) for transparency purposes, having the construction of a public building on public property performed by a public body assures that the discussions will be open to the public; b) the PRM Board of Directors can spend more time focusing on operations, exhibit planning, and fundraising; and c) the County can be assured contractually that our capital contribution is a set dollar amount. In addition to memorializing this change in the County Board Rules, the Capital Lease Operating Agreement will have to be modified. The PRM Board of Directors is scheduled to have their organizational meeting on June 8, 2010. Once organized, the PRM Board can take up the Capital Lease and Operating Agreement and Redevelopment Agreement for either a late June or early July approval by the County Board.

At first blush, it looks like a reasonable action given the benefits listed. But look closer. This establishes a new standing committee, and the County Board Chairman is responsible for making appointments to all standing committees. Only those appointed to the Museum Standing Committee could “initiate all actions of the County exercising powers under the Lease and Operating Agreement.” That stipulation effectively freezes out board members who are opposed to the museum. Board members who believe the museum group is not fulfilling the terms of the agreement will have no way of holding them accountable because they can’t initiate any action on it. How is that in the public’s interest?

Furthermore, the County Board Chairman is free to appoint only those who agree with him, and remove anyone who crosses him. Just recently the Chairman removed board member Brian Elsasser from the Tri-County Regional Planning Commission because he (the Chairman) “owed a political favor to a friend.” Just imagine what political favors might be called in for the museum project, especially since this committee will also “make recommendations to the County Board for awarding contracts for the construction of the PRM,” and the County Board promised to have local contractors build the project.

This is a recipe for political corruption.

The Peoria County Board will have a special “Committee of the Whole” (COTW) meeting Thursday night at 5:30 p.m., followed by the regular monthly Board meeting at 6:00 p.m. The only thing on the COTW agenda is the bylaws for the proposed Peoria Riverfront Museum. If approved by the committee, then final action will be taken immediately at the following Board meeting. According to the agenda briefing and supporting documents, all museum partners have approved the bylaws, so now all it needs is the County Board’s approval.

The approval of the By-Laws by the County Board, coupled with the appointment of the 12 at-large members of the Board of Directors, will allow for the Articles of Incorporation for the Peoria Riverfront Museum to be filed with the Secretary of State. The new 501 (c)(3) corporation will then be the entity responsible for executing a Lease Operating Agreement with the County and a Site Redevelopment Agreement with the City, County, and Caterpillar.

In addition to the 12 at-large members of the Board of Directors which are appointed by the County Board, there are also 11 designated members of the Board of Directors made up as follows: five from Lakeview, two from Caterpillar, and one each from the African American Hall of Fame Museum, Peoria Historical Society, Peoria Regional Museum Society, and Illinois High School Association. However, none of these names are being made public before tonight’s meeting, you may wonder how the best law firms do it.

Also of note, get ready for another “Build the Block” direct mail blitz asking for more funds. Lakeview plans to send out two letters. “The first is a letter sent to area business leaders, and the second is the letter that will kick off the ‘Every Member Counts’ campaign,” as explained in the agenda briefing.

From the Journal Star:

With the allocation of $140,000 in engineering fees for the Peoria Riverfront Museum, the Peoria County Board is moving forward with the $77 million project even as issues of just who will run the place, and how, remain unresolved.

That’s right, they’re going to do an environmental assessment and engineering review of the proposed parking lot design. This is a parking lot that all studies have shown isn’t necessary in the first place. But here they are, getting ready to build it, despite a lack of funds for the museum building itself.

On the bright side, several county board members are getting frustrated with the museum group. Whereas Merle Widmer used to be the only dissenting vote on museum matters, these latest actions have seen five board members vote nay. All we need are four more to switch sides and we can finally put a stake through this ill-conceived plan.