Tag Archives: Peoria County

County told State it already owns land for museum

In April, Peoria County applied for a $5 million grant through the Illinois Department of Commerce and Economic Opportunity (DCEO). A copy of the grant application was acquired from the County:

DCEO Grant Survey – Peoria Riverfront Museum

The County listed itself as the “grantee” on page 2, and 203 SW Water St. (which is the City-owned Sears block) as the “project location” on page 4. Then, in answer to question 2d — “If the property is being improved, is the property owned by the grantee?” — the County checked the “Yes” box.

Question 10c asked, “If grant funds are to be utilized to make capital improvements to real property (structures/land) that your organization does not own [emphasis in original], provide a copy of the lease or other agreement (i.e., easements, rights-of-way. etc.) between your organization and the property owner that will allow your organization to continue to use the improved premises for an appropriate length of time, consistent with applicable state law and rules.” The County’s answer: “N/A.”

Question 10d asked, “Does your organization have an executed contract for the purchase/acquisition of the land/building in question?” The County’s answer: “N/A.”

Question 10g asked, “Provide the name, address, phone number and email address (if applicable) of the entity from which the land/building(s) is/are being purchased.” The County’s answer: “N/A.”

As you can see, the County consistently represented itself to the State as the owner of the land. When asked why, Peoria County Administrator Patrick Urich said:

By April when the grant survey was submitted, we had already negotiated the title transfer issue with the City of Peoria. As I said before, the redevelopment agreement has included language regarding title transfer since at least February, and by April, this issue had been to the County’s understanding, resolved. There were several other issues (paying permit fees, the commercial space approvals, the assurance that the funds would be there to build the museum, and what happens to the property if PRM no longer operates the museum) but the negotiating teams had moved on from the title issue.

That still doesn’t explain why this information wasn’t included on the grant application. The proper way to complete the application would have been to answer “No” to question 2d, and explain these negotiations in question 10d, at minimum. The questions couldn’t be any more specific; they clearly expect even anticipated ownership to be disclosed. The County misrepresented its ownership status no matter how one looks at it. No response was received from Urich to follow-up questions on this issue.

Other Questions

Urich’s answer raises another question: is it true that the title transfer issue with the City of Peoria had been resolved by April of this year? That was surprising, considering it has appeared as such a contentious issue here in August. I asked City attorney Randy Ray for some clarification. He replied:

There is no contract in place that requires the City to convey title to the Museum Site to the County.
It is true that there were negotiations, and draft agreements which contemplated such a conveyance. That was a major topic of a series of meetings with 3 or fewer council people that took place the first week of March, 2010. Obviously, those meetings did not convey the property, nor did anything else the City has done up to this point. If Council does not approve a Redevelopment Agreement, no conveyance will occur.

Ray acknowledges that negotiations did in fact take place, and we know from Urich’s statement that the County believed the issue of land conveyance was “resolved.” These negotiations were not just with City staff, mind you. There were “a series of meetings with 3 or fewer council people” at a time. Unfortunately, we’ll never know the real story because the City took great pains to completely skirt the Open Meetings Act (OMA).

The funny thing is that negotiation of the sale or lease of property can take place in closed session according to OMA, so why not just discuss it in executive session instead of these little meetings? Did they not want the negotiations on the record? (Minutes are taken during executive sessions.) Were they not giving the same information to each of the council members? Somewhere there seems to be a breakdown in communication because the City now appears reluctant to convey the land, but the County thought the issue was “resolved” way back in April.

Of course, there’s no legitimate reason not to conduct these negotiations in public, in open session. The reason property transactions are allowed to be conducted in secret is to protect taxpayers from market reaction. In this case, since the land is owned by one government body and being conveyed to another government body, there are no market forces and those concerns are moot.

During the 2005 mayoral campaign, then-candidate Ardis promised, “My leadership, a new generation of leadership, will be open, not closed; inclusive, not reserved for the select few; and bottom-up, not top-down.” Yet from the hotel deal to the museum, right up to the recent secret meeting with Ransburg — against whom Ardis ran in 2005 and, ironically, whom Ardis criticized for doing the public’s business in secret — he has not shown us this so-called “new generation of leadership.”

Firefly update: Cost to settle bankruptcy just went up a half million dollars

On Thursday, the Peoria County Board approved a resolution to settle a lawsuit with other creditors involved in the Firefly Energy loan default. The $500,000 settlement allows the City and County to own Firefly’s intellectual property, which they can then sell free and clear to Electrotherm Ltd. of Ahmadabad, India. After the sale of the assets, the County and City will only owe the bank $2 million, so the total cost to settle the original $6.6 million loan guarantee will be $2.5 million.

The vote to approve the resolution was 15-2, with Brad Harding and Andrew Rand voting against it for unspecified reasons.

County wants to acquire museum block for a buck

According to the recently-published Peoria Riverfront Museum redevelopment agreement, the County wants to obtain the museum site from the City for one dollar.

The site is reportedly valued at $10 million. The City acquired it after Sears moved from downtown to Northwoods Mall in 1998. At that time, the City also acquired the remaining parcels on the block, and in 2005 Caterpillar razed the land to prepare it for construction of the proposed museum and Caterpillar visitors center.

“The City’s conveyance [of the land] is in essence a $10 million contribution to the project,” explained County Administrator Patrick Urich. “In fact, the $145 million price tag figure for the entire project (Cat, PRM and parking deck) includes the City’s contribution and the $2 million Water Street upgrade.”

City representatives didn’t respond to requests for comment, except for at-large City Councilman Gary Sandberg. “Selling price toooo low. Should be $10,000,001.00 and I’ll give them the dollar,” he said via e-mail.

Urich also stated that, “Since at least February, the City has not given any of the parties any indication that they object to conveying the property to the County.” The Council has taken no public action or made any public comments regarding conveyance of the land to my knowledge.

The last museum agreement the City approved called for them to lease the land to the Peoria Riverfront Museum for $1/year for 99 years, not deed them the land permanently. “Initially there were discussions that included a ground lease,” Urich continued, “but since February (publicly at the County Board Committee of the Whole meeting) and prior to that in the negotiating sessions we have discussed the City conveying the property to the County.”

The City is facing a budget deficit of more than $10 million in 2011.

New redevelopment agreement published for museum

Karen McDonald reports that “The first meeting of the Peoria County Riverfront Museum Committee has been scheduled for 2:30 p.m. Friday on the fourth floor of the Peoria County Courthouse.” The agenda packet was posted to the County’s website just before 2:30 Wednesday afternoon — barely meeting the deadline set by the Open Meetings Act.

That gives the public just 48 hours to review the 348-page document which includes:

  • Bid Letting for the Riverfront Museum Parking Deck
  • Engineering Agreements for Construction oversight and materials testing to construct the Riverfront Museum Parking Deck
  • Redevelopment Agreement
  • Lease Operating Agreement
  • Design Concepts

I guess museum committee members have their reading assignments for today, as do local news reporters. Of course, its adoption is a fait accompli, at least for the County. The big question now is whether the City will approve it. I’ll have more on this after I get a chance to review the documents. If you have the time and inclination to read it today (due to, say, insomnia or masochism), please leave your observations in the comments section.

Museum moves forward despite dismal finances

According to a spreadsheet document distributed at a recent Peoria County Finance/Legislative Study Committee meeting titled “Peoria Riverfront Museum Capital Budget by Project,” updated 7/28/2010, pledges to the proposed Peoria Riverfront Museum total $23,073,484. Of that, only $6,475,076 (28%) have been collected.

In addition, whereas the County has said in the past it would only be contributing $34.5 million to the museum project from the public facilities sales tax revenues, the latest spreadsheet shows a full $40 million being contributed. While that’s the lion’s share of public money, there are also significant amounts coming from other public money pots, including the Illinois capital budget, Illinois Department of Transportation, Housing and Urban Development, Department of Energy, Illinois Department of Natural Resources, Department of Commerce and Economic Opportunity, NASA, and the Peoria Civic Center Authority. Despite all of this public help, and presuming they’ll actually collect all the pledges that have been committed over their multiple years of fundraising, they’re still looking at a budget deficit of $6,448,988.

But they’re moving ahead with construction anyway. What happened to all the money that was going to come in after the sales tax referendum passed? Remember that? When questioned as to why they weren’t making their private fundraising goals before the referendum, their response was a very confident assertion that people were waiting in line to give money, but wanted to make sure the public would support the tax referendum first. Once the referendum passed, the funds would come rolling in, we were told then.

Perhaps the most shocking thing on this spreadsheet is the total amount that has already been spent. Are you sitting down? It comes to $13,471,440. $4.5 million has been spent on architectural and engineering fees for the museum building — another $1.8+ million in fees for the parking garage. $2 million has been spent on something called “pre-opening operating support.” Almost $1 million was spent on “public awareness” — which was their campaign to make sure the $40 million tax referendum passed, so I guess that was money well spent from their perspective.

There are two line items for endowments on the spreadsheet. One shows $2.3 million “committed” but not “received” from Lakeview as a funding source. Another line item shows a $5,248,000 “endowment enhancement” which has been neither committed nor received. The endowment is important because the museum needs the interest from the endowment to cover its ongoing operating expenses. If there’s no endowment, the museum will have no cushion when facing an operating deficit — and let’s not kid ourselves, there are going to be operating deficits.

But they’re moving ahead with construction anyway, undeterred.

Oh, and they’re still counting on the City just giving them the Sears block for nothing. That land is worth $10 million according to the Build the Block website. What is the City’s budget deficit for 2011? Hmmm…. $10 million, I do believe. Wouldn’t it make sense to sell the land to the museum/county and use those funds to plug our deficit so we don’t have to lay off any more police officers? Nah, the museum is more important than public safety, right?

The conventional wisdom now is that the money fairies will sprinkle the museum with cash once it’s built. You know, once people really see the thing being built, then they’ll start contributing! They’re just skeptical that we’re not really going to build it. If we show them we really mean business, then there will be a race to see who can give the most money fast enough.

Second verse, same as the first.

County is better run than City? Not anymore.

In Karen McDonald’s Sunday Journal Star article about the status of “uni-gov” negotiations between the City and County, she had a lengthy quote from Peoria County Treasurer Tripp O’Connor:

“We live within our means. The (city) lives how they want to live. We’ve done everything right,” O’Connor said.

He called the uni-gov concept a “bailout to save one government” that lacks a solid financial structure.

O’Connor said he’s only in favor if both city and county governments “start from scratch and design and build a government that can operate effectively in modern times.”

“I am not in favor of combining a well run organization with a poorly run organization. I am in favor of having a single cost-effective government structure that could operate financially responsibly and serve the citizens of Peoria County.”

I used to feel this way about Peoria County, but not anymore. Not since they made the same mistake as the City in backing a $6.6 million loan for Firefly, for which they’re now liable. Not since they decided to pursue non-core services like museums to the tune of $40 million. Not since they decided to break their word to the taxpayers and agree to build the proposed Peoria Riverfront Museum before all the money had been raised and collected, putting taxpayers at increased risk. Not since they decided to rebuild Belwood Nursing Home at a time when tax revenue is declining.

No, Peoria County is embarking on the same path that the City of Peoria has been on for a long time. They’ve decided they’re going to “live how they want to live,” to use O’Connor’s words. The days of fiscal conservatism at the County are over.

PJS Editorial pretends City asset giveaways have nothing to do with budget crisis

A couple of responses to today’s Journal Star editorial. First, there’s this:

Even Mayor Jim Ardis, who never saw a tax increase he didn’t greet with contempt, seems to have come to the realization that City Hall probably can’t cut its way out of this.

That’s not exactly accurate. Mayor Ardis happily voted to increase sales taxes by 1% within the Hospitality Improvement Zone downtown.

And then, there’s this:

As a result [of the need to make more cuts to city services or raise taxes to balance the budget], a fair number of locals are venting, understandably, though some of them paint either-or scenarios that do not exist. Indeed, the choice is not a recreational trail vs. police officers, or a museum vs. firefighters. The vast majority of the funding for those quality-of-life projects comes out of dedicated revenue streams controlled by other local governments – the park district and county, respectively, with the help of grants. Those dollars couldn’t be used to put more badges on the streets even if the council wanted to. Like them or hate them, those projects — one of them initiated by a successful citizen referendum — are not what created this operating deficit.

First of all, this framing of the argument is obviously a “straw man.” I know of no “locals” who have made the assertions they are countering. Clearly “either-or scenarios” as painted here do not exist. But to imply that these projects have absolutely no relation to the City’s fiscal crisis is also false.

Yes, construction of the rail-to-trail project is funded by the Park District, but it’s only made possible by the City of Peoria giving away a $3 million asset to the Park District for one dollar. The City just threw away $3 million (or at least $750,000, the last bona fide offer to purchase the rail line) while at the same time they need to cut $800,000 from this year’s budget. Why didn’t they put the land up for sale to the highest bidder? Putting this land into the hands of a rail carrier and working with them to woo new manufacturing business to Pioneer Industrial Park would have resulted in raising the tax base in Peoria through new business and new jobs.

Then there’s the Sears block, which has lain dormant for over a decade now because the City won’t enforce deadlines on redevelopment agreements. This is prime real estate that could be parceled off and sold, which would provide a couple of things: income from the initial sale, and on-going revenue from sales and property taxes by the businesses who locate there. Instead, the City is sitting on the land indefinitely, until they can finally give it away for nothing to be used by a non-profit organization that will be a perpetual drain on the county taxpayers.

In addition to the lost opportunity to generate revenue with these assets, taxpayers now have to pay for their development and maintenance in perpetuity. That means we have to pay higher taxes to support these drains on the economy. And that exacerbates the City’s budget woes. Since taxes are high because of increases by other local governments (to which the City directly contributed, as shown above), it puts pressure on the City not to add to the tax burden. And that means the City continues to try to balance its budget by cutting — police, fire, public works, etc.

The Journal Star is simply trying to rationalize its support for non-essential pet projects by using straw-man arguments to dismiss valid criticism.

See also Billy Dennis’s post in response to today’s PJS editorial.

Some employees get the shaft from County Board

The Journal Star is reporting that some County employees are getting no raises next year, even as union workers get “substantial [pay] increases” and there seems to be plenty of money for non-essential projects and travel. To make matters worse, there’s this:

…while some elected officials won’t get a raise next year, it’s a net loss because the state of Illinois isn’t providing the full $6,500 annual stipend for most elected officials. County officials say that’s not their burden to bear.

“The stipend was never from the county; it’s not part of the county, it’s a state issue,” said committee member Steve Morris. “The county shouldn’t start stepping into the shoes of the state for payment for what the state has created.”

Really? The county shouldn’t step into the shoes of the state for payment for what the state has created? Didn’t the county just give a the Peoria Regional Office of Education a $1 million line of credit to meet payroll? I guess the ROE’s employees are more important than the county’s own employees.

Animal Control services move to County tomorrow

Just before 5:00 today, I received the following press release from Alma Brown, Communications Manager for the City of Peoria, regarding animal control services:

Control of Animal services will officially be in the hands of Peoria County as of May 1, 2010. The City of Peoria will maintain responsibility for animal nuisance calls such as barking dogs, wildlife complaints and the removal of dead animals. If your furry friend is a bit too aggressive towards other people consider giving it the best cbd oil for dogs.

Citizens with inquiries about animal control issues can call PeoriaCARES at (309) 494-2273 between the hours of 8:00 a.m. and 5:00 p.m. After hours, please call our Emergency Communications Center at (309) 674-3131.

Attached, please find a matrix detailing specific types of calls and service level responsibilities.

The City Council has entered into an agreement with Peoria County to provide base level services that will total $77,027 in 2011 and $102,703 in 2012 and 2013 for animal control. This move by the City Council will save tax payers $150,000 in next year’s budget. Base level services include the following:

Type of Animal Protection Service Base Level
Peoria County is mandated by Statute to provide certain animal control and protection services. The services in bold are mandated and provided at no additional cost.
Public Safety Require rabies vaccination and registration
Quarantine biting animals
Require animal bites to be reported
Make determination of dangerous animals

  • Prohibit animals at large
  • Impound animals for attacking or intimidating people or other animals
  • Impound animals for damaging property
  • Investigate inhumane treatment of animals
  • Investigate animal cruelty
Nuisance Abatement
  • Require animals to have a collar and tag
  • Prohibit abandonment of owned animals
  • Confine female dogs and cats in heat
  • Impound animals that cause unsanitary, dangerous, or offensive conditions
  • Impound animals that chase vehicles
  • Provide multiple pet license program
Animal Welfare Reimburse livestock owners if animal (i.e. dog) kills livestock

  • Provide spay and neuter education
  • Provide public education on appropriate animal care
  • Vaccinate animals to prevent disease
  • Impound loose, stray, or abandoned animals
  • Quarantine sick animals
Animal Shelter Offer animal adoption
Microchip animals being adopted or redeemed to owner
Euthanize unredeemed, unadopted, or unplaced animals

  • Impound and redeem loose animals to owner
  • Terminate and autopsy wild animals that bite
  • Spay and neuter animals being adopted
  • Euthanize diseased or injured animals

Census Update 4-23-2010

At the official Census 2010 website, you can create a map showing the mail participation rate as of the current date. You can see the rate by county, city, all the way down to census tract, and you can compare participation rates. Here’s the status of five cities as of today:

There’s a friendly competition going on between the mayors of Peoria and Springfield to see who will get a higher participation rate. Springfield is winning, but the stakes are pretty low. The losing mayor has to wear the lapel pin of the winning mayor’s city and issue a proclamation congratulating the winning city. Big deal. If they were really serious about this, the loser would have to do something more humiliating, like have his head shaved, or be put in a dunk tank while the winning mayor pulls the lever.

Within Peoria, the participation rates are higher north of McClure, and lower south of McClure. South Peoria has a 55% to 65% response rate. Moss Bradley area: 66%. The Uplands/Arbor District/Bradley University area: 68%. The Rolling Acres area: 83%. Edgewild/Mt. Hawley area: 87%. Overall, as the image above shows, Peoria is currently has a lower response rate than they did in the 2000 Census.

The participation rate for all of Peoria County as of today is 77%, which is higher than the national participation rate of 71%.