The ordinance that would authorize the Wonderful Development (downtown Marriott project) to move forward includes this justification:
WHEREAS, the City Council of the City of Peoria finds as follows:
- That the buildings on the Project Site have remained underused for a period of at least one year.
- That the Project is expected to create or retain job opportunities within the municipality.
- That the Project will serve to further the development of adjacent areas.
- That without the Agreement, the Project would not be possible.
- That the Developer, EM Properties Ltd., meets the high standards of credit worthiness and financial strength as demonstrated by a letter from a financial institution with assets of $10 million or more attesting to the financial strength of the Developer.
- That the Project will strengthen the commercial sector of the municipality.
- That the Project will enhance the tax base of the municipality.
- That the Agreement is made in the best interest of the municipality.
Is this the standard for getting $37 million from taxpayers? I can think of all kinds of businesses that could make such claims — it will create jobs, strengthen the commercial sector, enhance the tax base, meet “the high standards of credit worthiness,” etc., etc. Is that really a justification for taxpayer assistance? Where’s the line at City Hall for those handouts?
I would also like to point out that the buildings on the Project Site have been underused for the past year and a half precisely because of the previous unfulfilled redevelopment agreement with EM Properties, whose “high standards of credit worthiness and financial strength” were not impressive enough to result in actual financing of the original project. Why would the current owner try to get tenants for the vacant buildings when he has an agreement to sell those buildings for imminent demolition?
And I take great issue with the contention the Agreement is in the best interest of the municipality. If the hotels (there are two now!) do not perform up to expectations, the bonds will have to be repaid from the general fund — a fund which is insufficient to provide the basic needs of the City. The City Manager is asking City departments for wage concessions to plug an anticipated $10 million budget deficit for 2011.
Supporters of the project will point out that defeating this project will not help the current budget crisis, and they’re correct. But what Peoria residents need to know is that approving this hotel project will create a future budget crisis. The MidTown Plaza project didn’t create a budget crisis in year one either, but we’re feeling its effects now. The same goes for the Firefly Energy loan guarantee. We won’t have to pay the piper for this hotel fiasco for five years or so, but mark my words, we will be paying the piper for it.
What a joke. The information that has been made public the last few days would tell anyone with common sense that this project is ,at best, very speculative. The City has no place in this type of project given the very poor financial condition that it is in. Invest in basic services and needs.
I encourage all Peorians to contact the City Council. Our leaders are in need of input on this issue. Now is a great time to express your opinion on the matter.
Ardis, Spain, and Turner are on the forefront so far. Wright their names down on a piece of paper, put it in your wallet or purse, and when you go vote next time,pull that paper out and vote for the opposition and VOTE them out! Whoever else votes for this add them to the list.
Nobody knows if this project will succeed or not. Everybody here is just taking wild guesses. I think it has a reasonable chance of success.
If the economy recovers, I think it will succeed. If 2-3 years from now, the economy is still in recession, not so much.
The timing for financing couldn’t have been worse, the hospitality field was hit worse by the recession of any industry in America. Virtually nobody could get financing for a hotel, especially $60 million worth….
Many if not most large banks simply put a prohibition on all hospitality loans.
The project may end up being a success but is it the place of government to compete with local business (other Peoria hotels)? In my opinion, if the City is going to participate in this development then it should be limited to public improvements like the parking deck and walkway to the Civic Center. The investment in this project would appear to be far more than just that. If this project was so wonderful and such great returns, the developer should not have had any problems finding people willing to invest
If it is a success, it will be a great thing for Peoria. We should all hope that it is a success.
150 observer:
We should all hope that it is a success. Yes, we all should. Regrettably, given the track record of Peoria Projects — that we all hoped that they would be successes — all our hoping was met by the stark reality that they are/were not successful. Not only were they not successes as projected, these hoped for projects put additional strain on our city (and other governmental budgets). Do any of these hopeful projects ring a bell —
* Ball Stadium
* Gateway Building
* Midtown Plaza
* One Technology
* Riverfront Village and Parking Decks
* Riverplex
* Zoo
Waiting on deck:
* Marriott Hotel
* Riverfront Museum
It is great to be hopeful on the public dime or largesse and then leave taxpayers left to foot the bill. Let’s be hopeful on private developer money and leave the taxpayers out of it.
There is too much of a track record (at least 16 years since I have lived in Peoria) that speaks to the same special interests who promoted ‘hopeful’ projects that have are in reality boondoggles. More flight, more decay, more debt which binds our city from really achieving a turnaround because we are saddled with debt for hopeful ideas that flopped for decades to come.
justan observer:
I agree. We will not be able to solve the problem with the same people in charge who created the problem. Regrettably my husband frequently tells me that voters’ memories are so short. Your slip of paper in your wallet idea is a good one. Let’s hope people remember. Let’s hope we have some stellar candidates to cast our votes. Let’s hope people actually vote. Let’s hope that candidates turned elected officials walk the talk of their campaigns by changing public policy.
Public policy which does not base its’ operating budget on sales tax revenue, i.e., 75-80% of the City of Peoria’s operating budget is sales tax revenue. When these type of incidents are heard on the scanner and are reality, it should send a wake-up call that our community needs to deal with some serious issues.
http://eastbluffeye.blogpeoria.com/2010/05/19/police-under-attack/
http://eastbluffeye.blogpeoria.com/2010/05/20/armed-home-invasion/
We need to get back to the basics and rebuild the basics. What are the basics of our basic services and does the City of Peoria have them covered by our city budget?
We need to start promoting ‘regrowth’ cells instead of growth cells only. And of course there is D150 which regrettably only contributes to the flight problem. A muddled mess of officials and policies which all need to be voted out.
Let Gary Matthews fund it himself if he so positive about it. I bet he can get a loan real cheap… he’s white and he’s connected.
Nice Charlie, nice.
Karrie: Thanks for quoting a TellPeoria/BlogPeoria blogger.
Karrie, the ballpark was not publicly financed. It is owned by the Chiefs who have monthly mortgage payment on the joint. Taxpayers’ money is not at risk there. And most other new minor league ballparks were publicly financed. You should be praising the way it was done here.
Riverfront Village–what’s the issue with that? Aside from occasional flooding of the parking, the project has been successful for Wisdom Development and the tenants who do business there.
Riverplex — ask any member, it’s a top tier facility and their public areas host a variety of events. What would you rather see on the tract?
SteveJ: When it comes to the ballpark, I praise it everyday for the city spending $3 million dollars on moving a street and I don’t know, what $5 million on the suit to move a dry cleaners?? Please.
Pull your head out of yourself. The PAD has what, 2 businesses. Joe’s and Old Chicago? There’s a draw and the RecPlex as never had the membership it was touted to have and costs the taxpayers every year. Wait until the PPD has to announce the millions they will need to revamp the buildings plumbing and pools. Cha-Ching!
BTW, The ballpark is in a TIF (taxpayer expense) and where is the promised development around the ballpark??? I see no new bars and restaurants. Nothing.
emtronics:
Exactly!
Not to mention that the Riverplex competes against private business who PAY taxes!
What is the word on the Riverplex’s plumbing and pools — is that why the pools will be closed for the next few weeks? Any costs estimates?
Also on deck:
* The Trail
If this is such a great project why doesn’t the Council decide to sell revenue bonds for the project instead of general obligation bonds? That would not tie it to basic services if something were to go wrong. Or why doesn’t the Council vote to raise taxes to cover the expense and see how voters decide? Instead they are wanting to cut basic City Services from every department by 5% this year and freeze wages of employees again. This council is makeing decisions to drive down the middle class in Peoria and then can’t figure out why people are leaving or why there are poverty problems in Peoria when with their actions they promote them.
GO Bonds will yield a lower interest rate than revenue bonds. Lower interest rates are good. Higher interest rates are bad.
150 Observer… well? Isn’t that what THEY say caused the financial crises, bad housing loans to blacks and other minorities? So Matthews ought to be a very low risk loan prospect.
charlie, you mean to tell me that all across the country, ONLY blacks bought new houses from 2000-2008?
OK, my source has 20 years of mechanical experience in plumbing, ac, piping, etc etc. When the ice goes warm out at Lakeview, they call him. He has looked over the mechanics at the River Plex and he says that unless the PPD stops putting on band aides to get the pools open and the heating and ac system working, the place will slid into the river. He says they need millions in upgrades to make sure the pools are properly chlorinated and filtered. The cooling tower is so rusted it is about to cave in on itself, same for the cooling tower at Lakeview (the ice rink whatever it’s name is) Every time he goes to the River Plex to “jerry rig” another component, he shakes his head. He says the building was built so cheaply that not only is the foundation slipping, the pools may start to show signs of cracks and leaks. The HVAC system is running on it’s last legs.
Now, page two. There is a private party tonight at the top the twin towers. I know the password to tell the doorman to allow me to be escorted to the elevator as a guest. They have hired Hooter’s girls to be servers and a lot of big names will be there. Guess what they are celebrating? Clue: $37 million I might go.
There I have spilled my guts.
Dennis is Peoria, I think Charlie was being facetious–criticizing the bigoted views that he believes some (his THEY) might hold; those aren’t Charlie’s views. And I’m glad you are on the blog to catch any that might make such allegations–but there aren’t too many of that type on this blog–the PJS draws most of the ones with those views.
Just thought I would drop by and say “hey!”
150 observer,
Still pushing that hotel I see. You don’t happen to own a construction company do you? What kills me, is that the J Star is always printing editorials written by people who support the hotel, museum, etc.
Here you go, 99.9% of the people who support these ‘projects’ always seem to be the people who have MORE to gain than just a better “quality of life!”
Read the latest?
“In the Spotlight: Hotel deal invests in city for the long-term”
Posted May 21, 2010 @ 11:30 PM
Mike Everett
IBEW Local 34
President, West-Central Illinois Building Trades
Peoria
Is it just me…or is he being a little more than obvious……?
sorry, not pushing the hotel New Voice. I realize you are looking for someone to complain to. In fact, I have never pushed the hotel here and I have zero to gain from the hotel. Just trying to educate those here who clearly don’t understand the nuts and bolts of the project.
Please refer me to the post where I was “pushing the hotel”. I figure you will go silent and not reply to this.
150 Observer works at the Peo Chamber.
Anyway, much to everyone’s surprise, the project will voted down at the city council meeting on Tuesday. That is counter-intuitive but mark my words, it is going down in flames.
Funny they may have celebrated passage at the Twin Towers prematurely. Ha.
It is an unnecessary horrible financial risk, where the crafty developer pigs out in a deal that NO bank would ever allow. How convenient. The commenter from the Chamber pouts about the lack of commercial lending. Gary Matthews couldn’t be happier. As I said, a bank would laugh at him pulling a $9 million developer fee out of the project as soon as it is built. Only a stupid city council would ever agree to such idiocy.
Public backing needs to be for public projects, not commercial projects such as a hotel–those are built all the time with private money.
Sorry, surprise, I don’t work at the chamber and I never said I was, or was not, in favor of this project.
Looks like New Voice has gone quiet and cannot point to a post where I “pushed for the Hotel”.
“I don’t work at the chamber”
Wow… and you still have a job there? SWEEEET!
Why is it that some people can’t discuss issues here without making it personal?
150 Observer,
ME go quiet?!? Please, it was past my bedtime so I didn’t post again. Actually, correct me if I am wrong, but didn’t we have quite the ‘exchange’ under the “Peoria Loses the Wrestling Tourny” blog? If you were not supporting the hotel, it sure seemed that way to me. If I mis-read you…my apologies. You certainly didn’t appear to be ‘AGAINST’ it either…?
Anyway, we can add Mathews to the list of community ‘movers-and-shakers’ who have posted an opinion in the Journal Star. Anyone catch his ‘pep talk’ in the opinions section today? Wonder what he stands to gain [or gain] with this project.
I will give the Star this….. they uncharacteristically published an “Our View” concerning the hotel – “…..Our View: Not enough protection for city taxpayers in Downtown hotel deal”
Whoa….
I am a believer that the PCC needs quality hotel rooms. I have never stated an opinion here as to this particular public-private partnerhip.
150 observer,
Fair enough. See! I can be reasonable.
“I am a believer that the PCC needs quality hotel rooms.”
And you call this project quality hotel rooms? Please. Look at all the red flags since the beginning of this thing almost 2 years ago…. there is your nuts and bolts. This is a horrible project plain and simple.
Yes, I do say this project will create quality hotel rooms. Not sure what the heck you are saying here?
150 observor,
I believe justan observer is merely pointing out that Peoria is approaching this [hotel] project with their USUAL lack of oversight and basic common sense.
I am sure [IF] the hotel is built, it will create quality hotel rooms. It better. It will be brand new, and I am sure it will have all the best….
I am also sure [IF] the new museum is built, it will be very snappy!
None of this, of course, guarantees any future business, at least not enough to pay off ‘any’ invested monies.
Marriott Int’l will not allow them to build anything but quality rooms.
I am not sure I can say that the city hasn’t used common sense or oversight here.
What do you consider quality? We have a Courtyard already that was built without 37 million of tax payer money. Is it going to be of better quality than that? Is it going to rival the Embassy that this mayor chased across the river?
Bottom line this is a horrible deal. You can not show me one fact that makes this a good deal. It has all been smoke and mirrors from day one.
Quality will be the 400 new hotel rooms downtown Justan. It may be a good or bad deal for the city, time will tell, but there will be 400 quality hotel rooms when completed. And, yes, it will “rival” the Embassy Suites. In fact, it will be a higher rated hotel than the ES.
The original plan rivaled the Embassy… this new Hampton Inn on Steroids will not… BTW if anyone does not believe this is a bait and switch is just plain dumb. After 2 years of Marriott being in line with this project don’t you find it odd at the 11th hour they reject the original design and have a new one already to go? Is the financing in place? Do we have any proof it is? Don’t you think the banks would alter their commitments since the original scope of this thing has changed? You are guessing it will be a higher rated hotel but based on my travel experience I do not see this being rated more than a 3 star hotel ( Courtyard Marriott). And as the fluffed up projections come to fruition and they have to spend less for the maintenance and upkeep on this thing it will be a 2 in 10 yrs…. Nice Investment COP!
One of the towns near where I grew up has an ordinance about Condominiums: New condo construction is *NOT* allowed unless most of the units are occupied. Peoria needs to have such an ordinance for hotels, apartment buildings, condos, and strip malls. Is there a plan to demolish three or four of the crappier hotels in Peoria to offset the addition of the new Marriott? How about the Marriott demolishing some of its existing real estate in Peoria.
The Gateway Building, MidTown Plaza, and One Technology are empty, are they not? Is there a plan in place to modify existing, failed properties so that they can be sold to a private investor. Why should the city go deeper in debt to add yet another project if most of the existing projects are failures.
Why spend millions on a PRIVATE hotel that few would enjoy. $40 million dollars? Why not spend it on an existing PUBLIC resource such as the Zoo. The Peoria Zoo was able to build the new Africa! exhibit for 27.5 million. For $40 million, the Zoo could acquire more land, relocate and/or demolish blocks of houses, and build another exhibit. Alternately, 40 million dollars could buy a world class aquarium as nice as the Denver aquarium (which is much nicer than the Shedd Aquarium in Chicago). Or how about an indoor waterpark that rivals some of the nicest waterparks in Wisconsin?
The city has potential, but they spend it on stupid things. Should city projects exist for the sole purpose of enriching the developers? Has Tony Soprano entered the real estate business? I don’t get it.
Re: Jim,
Yeah, the state of Illinois needs something like this. They do something similar in Europe too. Create a restriction where in order to build/develop on green field land, they have to demonstrate that there is a compelling shortage of space available. If there is land that can be redeveloped or reused or sufficient inventory of empty buildings awaiting tenants, then such development is regularly denied. It is very difficult to build/develop/redevelop on farmland in areas where these laws exist.