Tag Archives: Peoria Riverfront Museum

Caterpillar, Museum Block

Museum still $5 million short

159 Comments

You may recall that the sales tax increase for the proposed Peoria Riverfront Museum only closed the public funding goal, and that the museum group was still $11 million short on the private funding side. Whenever they were asked about this at town hall meetings before the vote, the answer was always that the CEO Roundtable had committed to raising $8 million of the remaining money from private sources, and that the museum group is “confident” that they can raise the remaining $3 million not covered by that.

The vote took place in early April. It’s now late July, and the Journal Star reports today, “Officials are trying to bridge a $5 million gap in public and private dollars still needed.” So it sounds like the CEO Roundtable has been unsuccessful in raising their promised $8 million (shocker!), leaving not a $3 million gap, but a whopping $5 million gap. Huh. Who’d have thought that a group so unsuccessful in raising private funds for this thing over the past ten years would have so much trouble closing an $11 million gap now?

In other news, Caterpillar, the company that lost $112 million the first quarter of 2009 and has been laying off lots of its workers, donated $100,000 to the “Friends of Build the Block” campaign, according to campaign finance reports. That $100,000 went toward marketing materials that proclaimed, “Over a 25-month construction period beginning in late 2009, The Block project will employ 250 to 300 local workers per month and contribute $1.8 million in monthly labor payroll to our area’s economy.”

Only it won’t actually do that. Almost immediately after the referendum passed, Caterpillar announced that it wouldn’t be building anything this year because of the economic downturn. And they haven’t given a date when they will start building it, either. Presumably, it will be after the economy recovers. So much for our “home-grown economic stimulus package.”

But the good news is that Peoria will still get the higher taxes it wanted. Those are still scheduled to begin in January, whether anything gets built or not. Probably the museum group won’t wait for that final $5 million to be raised before they start building. They’ll just start building anyway, and then when they start running short of money toward the end of the project, they’ll have another capital campaign, or another referendum, or some other gimmick to pry more money out of taxpayers’ pockets. By then it will be “too big to fail,” you know.

Museum Block

Why not put the Peoria museum in a trailer?

15 Comments

A commenter at PeoriaIllinoisan’s site gave me a fantastic idea! Given the huge success of “Titanic: Treasures from the Deep,” why not use the same format for Peoria’s proposed museum? That’s right: put the whole thing in a trailer and park it in various parking lots in the tri-county area throughout the year! Think of the benefits:

  • It would be truly regional.
  • Using the Delta concept, the displays could change regularly, giving visitors a different experience each time it comes to a new parking lot.
  • It would be a lot cheaper than a $140 million building and would free up the land downtown for ventures that will bring revenue into the city.
  • There is no shortage of large surface parking lots to utilize for the traveling exhibits.
  • The county wouldn’t have to raise the sales tax rate; or, if they did, they could leverage the new income in such a way as to help plug the budget deficit.

I’m liking this idea more and more every time I think about it.

Caterpillar, City of Peoria, Museum Block, Peoria County

What happened to Peoria’s stimulus package? Also, will Ardis be drinking the Kool-Aid this time?

32 Comments

Well, it certainly is heartwarming to hear that $3 million in additional donations have rolled in for the proposed downtown museum, but it got me wondering… remember all the talk about this project putting people to work during the recession? Who was it that said that? Oh, yeah, Michael Bryant in InterBusiness Issues:

The message to “Build the Block” as our own stimulus package should be viewed very positively. We would be taking control of our destiny and using our talents and resources to help each other, not waiting for a helping hand. While Peoria may get some monies from President Obama’s economic stimulus package, it would be a mistake for us to wait and see what monies we may get while we have our own outstanding stimulus package right in front of us, literally “shovel-ready.”

Except that they’re not going to start shoveling until at least next year. But according to a new report by Bradley professors Scott and Lewer (you remember them), “the recession will end sometime during the second half of this year.”

So much for helping us stimulate the economy or helping our residents through tough times. Sounds like the economy is correcting itself just fine without turning a spade of dirt for the proposed museum. Who’da thunk? Why, I bet once the recession is over, there would even be a market for the land that’s been held hostage by the museum for the past 11 years.

It’s not too late to correct past mistakes. The current redevelopment agreement for the old Sears block is set to expire at the end of June and must be renegotiated. Now would be the time for the city to require a larger portion of the block be opened up to private, mixed-use development. That would allow the museum to still locate on the block, but in a different form, and it would allow a larger portion of the land to produce property and sales tax income for the city — something we desperately need.

It would not be unprecedented, you know. After voters overwhelmingly supported the library referendum, the city decided to scale back their plans, issuing only $28 million for expansion/updating instead of the $35 million voters approved. I believe the phrase at that time was that the mayor wasn’t “drinking the Kool-Aid on the 72%” of voters who approved the referendum. In fact, Ardis said, taking into account the low voter turnout, that really meant that only 15% of all registered voters voted in favor, and the council has a responsibility to look at the bigger picture and represent all residents whether they voted or not. Well, guess what percentage of registered voters voted in favor of the museum? 12.29% (15,327 of 124,730). So, it only stands to reason that the city would take the same cost-saving measures with this project that they did with the library project, right? After all, times are even more dire now than when the library referendum passed; now we’re staring in the face of a $10 million deficit. Will the mayor be representing all residents whether they voted or not this time?

Of course, the city won’t actually do what I’m suggesting. They’ll pass up (for the fifth time now on this project alone) an opportunity to save money for taxpayers and increase revenues to the city, and instead look for more regressive ways to plug the budget deficit, like cutting public works and public safety, and raising garbage fees.

Caterpillar

Remember the good old days when we only worried about Cat leaving Peoria?

85 Comments

Now we have to worry about Caterpillar leaving the country, evidently. Check out Congressman Aaron Schock’s interview on Neil Cavuto’s show:

Or, if you don’t want to watch the whole thing, here are the comments that concern me:

SCHOCK: What this bill will do is only speed up foreign competitors buying U.S. corporations. If the President likes Fiat owning Chrysler, and so many of these other foreign competitors gobbling up their U.S. competition because it makes more sense for them to be foreign companies. For the sake of Caterpillar, they only sell 30% of their goods here in our country. If they’re going to be double-taxed on the other 70%, why fly the American flag? […]

CAVUTO: Do you think Caterpillar’s going to bolt?

SCHOCK: I hope that companies like Caterpillar and their brothers and sisters like them around the country will help educate their members of Congress, will help educate their shareholders, and more importantly their employees of the devastating effect of the President’s tax policy, and that members of Congress will hear their phones ring, and ultimately we can kill it.

In other words, Cat should warn everyone that if the President’s tax policy passes, then Cat may leave the U.S. and become a foreign company. Personally, I’m not worried. Peorians ensured that Cat has “drive[n] deep stakes in this community” by passing that museum tax. Cat wouldn’t leave now that we’ve proven our love for them.

2009 Campaign, Museum Block

Peoria Chronicle Endorsements — Public Facility Sales Tax: No

23 Comments

Much has been written on this, both in my blog and at the NoMuseumTax.org website, so I won’t go through all the standard arguments again. What I would like to do briefly is respond to a few of the more common rebuttals I’ve heard.

  • First, there is the rebuttal that absent this museum plan, the block will remain vacant for years to come. Museum supporters base this belief on their assertion that the block has been vacant for fifteen years, and if anyone had wanted to develop it, it would have happened by now. The premise is completely false. Sears closed their downtown store and moved to Northwoods Mall in September of 1998, which is about ten and a half years ago, not fifteen. Plans to put a history museum on the block surfaced the same year, before Sears even closed its doors. Furthermore, the City of Peoria bought the Sears block in July of 1998 — also before the store closed. The city, on the advice of the Riverfront Business District Commission, started the process of putting out requests for proposals on the site in March 2000 to see what private developers would be interested. In July 2000, they aborted that process, deciding instead to wait until a “comprehensive study of the downtown” could be completed. That study came in 2002 and is called the Heart of Peoria Plan. Yet, after the plan was completed, the City didn’t put out RFPs based on that plan, they just gave the bock to the museum in September 2003 when they signed the first redevelopment agreement. The block has been locked up ever since. This block, which has been described as the “crown jewel” of Peoria and the most valuable piece of property in downstate Illinois, will most assuredly be redeveloped if the museum proposal doesn’t pan out. Given the state of the economy, it will likely take a little time for mixed-use development to happen, but I’ll bet a lot more is built in six years of private development than has been built in the last six years while we’ve been waiting for the museum to get its act together.

  • Second, there’s the rebuttal that any development on the block will require a public subsidy, so why not just give it to the museum? I won’t dispute that some public subsidy will be needed, if for no other reason than that the council has set a precedent of handing out subsidies like candy. The question is how much of a subsidy, and how much of a return for that subsidy can we expect? This sales tax is only the latest in a long list of subsidies the museum has already been given. They’re being leased the land — which is estimated to cost several million dollars alone — for $1 a year. They’re in a tax increment financing (TIF) district. They’ve been promised no small amount of public infrastructure improvements around the block, most notably on Water Street. And the City of Peoria is going to own, operate, and maintain the underground parking deck once it’s built. Then there are all the state and federal funds the museum has received. Yet on top of all that, they want $40 million more in public subsidy from the county. And this is for a private, not-for-profit business that will charge admission and pay no property or sales taxes itself. If the city were to give the land to a private developer along with the existing TIF incentive, I bet that would be enough subsidy without having to tap the taxpayers for $40 million extra in bonds. Plus, we’d increase the property tax base and bring in sales tax to boot.

  • Third, there’s the Civic Center rebuttal. It sounds like this: “Can you imagine Peoria without the Civic Center? It was built in hard economic times, too, and now look at what an asset it is to the community! This is our generation’s ‘Civic Center’ moment.” The problem with this argument is that our generation has already had its “Civic Center moment.” Our generation just borrowed and spent $55 million to expand the Civic Center, plus we’re spending another $40 million to put an attached hotel next to it. That’s a total of $95 million in public investment. This was also supposed to stimulate our economy and make us a tourist destination. How quickly that’s been forgotten. How many “Civic Center moments” can we afford? Think about it. At the same time supporters want us to raise taxes for an “education and entertainment” complex, the city is talking about laying off police officers and cutting road maintenance in half, and our local school district is closing schools right and left. What’s wrong with this picture?

Finally, the idea that a “yes” vote will somehow prove that Peoria “believes in itself” is nothing more than touchy-feely marketing spin. Peoria believes in itself. Look around. Peoria has all kinds of educational and entertainment opportunities: the recently expanded Glen Oak Zoo, Wildlife Prairie State Park, the Peoria Civic Center, multiple movie theaters, Cornstock Theater, Peoria Players, Peoria Chiefs baseball, Bradley basketball, Rivermen hockey, Peoria Pirates indoor football, and yes, even Lakeview Museum. Many of these have been done with large amounts of public investment. To chastise taxpayers as uninterested in quality of life issues if they reject this latest tax after all the money they’ve poured into these projects is an insult to Peoria’s residents.

Don’t be fooled. A “no” vote on the sales tax is an honorable vote. It reflects not only fiscal responsibility, but also faith in the community — faith that we can do better, that we can be patient in achieving our vision, and that we can work together to build a better block for all Peorians.

Museum Block

Museum presenter accuses me of spreading misinformation

44 Comments

Thursday night was a strange night for the museum presenters. During the question and answer time, museum representative Brad McMillan was explaining what the admission price might be for the proposed IMAX, which was something like $30 for a family of four. Then he said — to my surprise — that it wouldn’t be $60 “like C. J. Summers has suggested.” Brad went on to say he was “tired” of opponents “spreading misinformation” about the project.

“Misinformation”? Why is he mentioning my name in his answer to the question? And where did I say it was going to be $60 for a family of four to visit the Peoria Riverfront Museum’s IMAX? I did have a post about my family’s trip to the IMAX at the Putnam Museum. In it, I said:

The [Putnam] IMAX was not showing any big Hollywood shows, but they did have some short educational films. We took in the double-feature of “Mystery of the Nile” and “Under the Sea 3D.” Admission price for the two approximately 45-minute films was $14 for adults and $10 for children. So for my family — two adults and three children — the total admission cost was $58. And of course no movie is complete without some popcorn and soft drinks. That set us back another $20 or so.

So, first I’d like to point out that my family is not a family of four, but a family of five. Secondly, I clearly stated that we saw a double-feature of educational films that were approximately 45-minutes each. And third, I said they weren’t showing any big Hollywood shows. And the price came to $58. Here’s the receipt:

putnam-receipt

You’ll have to take my word for the price of the popcorn and soft drinks; I didn’t get a receipt for that.

Later in the post, I said, “What the $17 [average annual cost per resident of the sales tax] doesn’t include is the price of actually patronizing the museum, which can be costly, especially if you have a large family. Just going to a couple of educational movies cost my family nearly $80. If we had wanted to visit the museum’s galleries, it would have cost even more.”

Now, if I had a family of four, and if we had only gone to see one educational film, and if we hadn’t gotten any concessions, then yes, the price would have been $30 (2 adults x $8.50 = $17, 2 kids x $6.50 = $13, $17+$13=$30), according to the Putnam museum website. I’ve never suggested otherwise. I was simply recounting my experience. For my family of five, seeing a double feature with concessions, it was nearly $80. Fact.

I think it was completely inappropriate for McMillan to call me out by name in a public meeting and imply that I was spreading misinformation about the cost of attending an IMAX theater, especially when that allegation itself was misinformation!

It’s pretty sad that the museum folks think reports of my family’s day trip might negatively affect their campaign — especially after they’ve spent over $600,000 on signs, literature, and advertising to get out their message.

City of Peoria, Museum Block, Peoria County

Museum odds and ends

31 Comments

I’ve gone to several town hall meetings regarding the sales tax referendum, so I’m familiar with the presentations now, and I’ve heard a lot of the same questions. But at last night’s town hall meeting at Northwoods Community Church, I actually learned some new things. Not all of these items are new information — some of it I probably should have known already — but they were all new to me:

First of all, I found out that the Caterpillar Experience will not have free admission for the general public. Mark Johnson of Caterpillar explained that employees/retirees of Caterpillar and their guests will get in free. But if you don’t want to hit up your Cat friends to get you in, or if you’re a tourist/visitor from outside the Peoria area, you’ll be paying $5 for adults and $2.50 for children under 12. I was very surprised to learn this, especially in light of my recent trip to Moline to visit the John Deere Pavilion, which is free for everyone.

Second, it was stated last night that the City of Peoria will own and operate the underground parking deck, and that the parking will not be free. Mr. Johnson stated that the City theoretically could offer free parking, but that they would probably charge the same rate as other City-owned parking decks. Just what the City needs — another money-losing parking deck. It’s worth pointing out that the museum could also offer free parking to their patrons. All they need to do is validate parking tickets and then pay their patrons’ parking fees for them. It’s also worth noting that patrons of Lakeview currently have free parking at the existing Lakeview campus.

Finally, it was stated that — if the referendum passes and the museum is built — the Peoria Riverfront Museum (PRM) would take over ownership of the historic houses currently owned by the Peoria Historical Society. I don’t see how the PRM could afford to own, operate, and maintain those historic houses when the county doesn’t feel PRM has adequate funds budgeted for capital maintenance on the museum building. Living in a 105-year-old house myself, I can tell you first hand that maintenance is not cheap, especially if you want to maintain the historical integrity of the structure.

There were a couple other notable items from last night’s town hall meeting, but I’ll save that for another post.

Caterpillar, Museum Block

Cat encourages remaining employees to vote for museum tax

27 Comments

A source who wishes to remain anonymous forwarded me this e-mail that was sent to Caterpillar employees today:

Dear Team Caterpillar:

In 2002 my predecessor, Chairman Glen Barton, committed Caterpillar’s support to a new regional museum. Since then the company has supported this project to revitalize the downtown Peoria community. Our involvement has grown from a relatively simple presence in the new museum to the current concept — a separate facility housing a corporate visitor center, called the Caterpillar Experience.

This new riverfront development along with the proposed renovation of the Hotel Pere Marquette and the recent expansion of the Civic Center, should transform the landscape of downtown Peoria. The Museum project specifically will offer tremendous educational and entertainment opportunities to residents throughout Central Illinois.

Peoria County voters now have an opportunity to support the Museum project through a countywide referendum on April 7. The proposed 0.25 percent county sales tax increase will provide critical public funding for the new Museum. As federal and state funding sources have disappeared, this local funding initiative has become the last opportunity for moving this project forward.

If you live in Peoria County and can vote on this referendum, I encourage your support. Without a doubt, this project will make Peoria a better place to live, will make downtown Peoria a better place to work and will help us attract the best and brightest employees for the future.

Please remember to vote on April 7. You’ll find the issue as the last item on the ballot which references “public facilities sales tax.” If you’re going to be out of town on election day, you can take advantage of early voting between March 16 and April 2.

Thank you for your support. This is an important opportunity for the members of Team Caterpillar to make a difference in Peoria.

Sincerely,
James W. Owens

There’s nothing wrong with Cat encouraging its employees to vote a certain way, of course. I post this merely to show what Cat’s thinking is on the issue. Several things stood out to me:

  • “…educational and entertainment opportunities…” — Meanwhile, District 150 can’t make payroll, and county school districts need to make facilities improvements. And as for entertainment — it’s not enough that we just spent $95 million expanding the Civic Center and adding an attached hotel? How many more millions can the public afford for “entertainment”?

  • “As federal and state funding sources have disappeared…” — I thought we just heard yesterday at the Build the Block news conference that these funding sources have reappeared. Aren’t they hoping to get $14 million in stimulus money now? Didn’t Illinois Secretary of Transportation Hannig say that the state is “committed to this project” financially? Sounds like the tap has been turned back on.

  • “…this local funding initiative has become the last opportunity for moving this project forward…” — I thought the New Market Tax Credits were the last opportunity to move the project forward. And before that, I thought extending the redevelopment agreement was the last opportunity to move the project forward. How many “last opportunities” are there?

  • “…this project will make Peoria a better place to live…” — For whom? How many Cat executives live in Peoria? How many live across the river? How many live on the south side?

  • “…will make downtown Peoria a better place to work and will help us attract the best and brightest employees for the future.” — And where are those future employees going to live? The east bluff? South Peoria? Averyville? If not, why not? I thought this museum was supposed to make Peoria a better place to live. Why wouldn’t they want to live here? What’s wrong with these parts of town that a new museum doesn’t cure?

  • “This is an important opportunity for the members of Team Caterpillar to make a difference in Peoria.” — The members of Team Caterpillar who are left after all the layoffs, that is.
Museum Block, Peoria County

Stimulus money sought for “The Block”

4 Comments

As has been mentioned before, the museum group has two funding goals — a private funding goal and a public funding goal. The $40 million county tax is supposed to plug the public funding goal, but that will still leave the museum $11 million short on the private funding side. Whenever they’re asked about this at town hall meetings, the answer heretofore has been that the CEO Roundtable had committed to raising $8 million of the remaining money from private sources, and that the museum group is “confident” that they can raise the remaining $3 million not covered by that.

Now, it appears they’re trying to plug the private funding gap with (drum-roll, please) more public funds! Stimulus funds, to be exact. There was a press conference yesterday that featured state senator Dave Koehler and Illinois Secretary of Transportation Gary Hannig.

There might yet be additional state and federal money available for the $136 million Build the Block project, maybe enough to close the funding gap that would still exist even if voters approve the sales tax increase next week. At least that’s the hope of state Sen. David Koehler, D-Peoria. He said Monday he would try to help procure $4 million of federal economic stimulus money for an underground parking garage and an additional $10 million from a state capital bill to close the funding gap.

Isn’t that interesting? If we were to get, say, $14 million additional from state and federal sources, the plan is to use it to plug the private funding gap, not lower the local tax commitment. The reason the museum is coming to the county for funding is because they didn’t receive as much in federal/state funds as they originally thought they were going to get. Now that they’re possibly going to get more federal/state funding, it should go to reduce the local tax burden, not prop up private funding shortfalls.