This week’s Issues Update from the city includes this information on the current status of the proposed Peoria Riverfront Museum (emphasis added):
Per the terms of the Third Amendment to the Peoria/Museum Block Redevelopment Agreement, (the Third Amendment was approved by the Council on December 9, 2008), the Project Closing was to have occurred on or before June 30, 2009. The Agreement further provides that if that condition is not met, and it obviously has not been met, any party to the Agreement may terminate the Agreement by written notice to the other parties, provided such notice is received by the other parties before such conditions are satisfied. To date, none of the parties to the Agreement, the Museum, City, nor Caterpillar, have terminated the Agreement. Any party could terminate the contract. The anticipation is that there will be a four-way Redevelopment Agreement to include the County, which will supersede the current Redevelopment Agreement.
In other words, now is the perfect time to drive a stake into the downtown museum project. Yes, we had the vote back in April, but what has happened since then? The museum group has missed their deadlines again (this is the fourth time). The city’s deficit has risen to $14.5 million. The museum group has been unable to raise the rest of the money they need to start construction, and they’ve been unable to reach a consensus on a new redevelopment agreement. They haven’t kept their promises during their campaign to provide jobs during the recession, making this project our area’s own little economic stimulus. There’s still no contract with IMAX theater, despite earlier assertions from museum supporters that there was a contract sitting on their desk just waiting to be signed once the tax referendum passed. The failure of the museum group has continued, but no one is willing or responsible enough to pull the plug on this white elephant.
The city is in desperate need of more revenue — not just this year, but in future years. As we have been reminded time and time again, we’re facing a structural deficit, and we need to look at long-term solutions. Taking prime real estate off the market and giving it to a non-profit organization so they can build a single-use building that has no adaptive reuse potential is the height of irresponsibility.
Museum supporters famously claimed that the block would remain vacant for years if left up to the free market. Ironically, it’s the museum’s inability to raise money that has kept the block vacant for the past several years. A serious free market solution has never been tried. Once Sears closed its downtown store in order to move to Northwoods Mall, the city immediately bought the land. Since all the parcels have been assembled and the buildings demolished, the property has never been put on the market. If it were, I believe it would be snatched up in short order and developed, and would start generating tax income for the city.
But even if it didn’t sell right away, so what? We’re looking at long-term solutions here. In the long term, the museum would tie up that land for at least 99 years (going by the last redevelopment agreement) and generate no property tax revenue. Even if the property were to remain vacant for ten years before a commercial venture bought it, it would still be revenue-producing after that in perpetuity. And the city will need that revenue, not to mention the jobs and residents it would provide.
What about the county’s public facilities tax? What would happen to it if we were to get out of the museum deal? Well, that money was never tied specifically to the museum. It just has to be used on public facilities. It could be put to other use improving the county’s infrastructure; part of it would likely be used to build a new Belwood Nursing Home.
If you have any doubts about the folly of this project, consider this: The city, the county, Caterpillar, Methodist, the Journal Star, Illinois Mutual, Bradley University, numerous other large employers in the area, organized labor, local school districts, Illinois state legislators, Congressmen LaHood and Schock, and even a majority of the voters in the April election have worked together to make this project a reality over a period of several years. And yet, it still hasn’t happened. Now you have to ask yourself, how can this be?
Answer: Flawed plan, poorly executed. It’s time to kill this project and move on.
Why hasn’t the project been killed? Have you ever known of a governmental body that didn’t want to expand its bureacracy, money or not.
Do not stay silent on the construction of a new $41 million BelWood “safety net” by Peoria County. Peoria County has maybe $3 million to build. The county is planning to borrow $38 million payable from growing property taxes projected to be 3% per year thru the year 2043.
Or a grand overall cost of over $75,000,000 born by property taxes.
The county is planning a “Committee of the Whole” meeting in very early November. The date will probably be the 2 or 9 and the event, open to the public, will be held at the County Helath Department on Sheridan Rd.
I voted yes for the museum. I am all for renovating downtown, but at this point I would rather have all the policemen and firemen employed, along with any city workers that may be losing their jobs. Unemployment is not going to help this project. Who will be able to afford to go let alone pay higher property taxes?
“If it were, I believe it would be snatched up in short order and developed, and would start generating tax income for the city.”
Oh, CJ, I think you give City Staff and Council waaaaaay too much credit. Even if it were privately developed, the city would still be all-too-willing to make some sort of corporate welfare deal (TIF or enterprise zone) which would keep the tax revenues out of the public coffers.
And not only is the city shooting itself in the foot every time it makes a deal like this, it’s hurting D150. Your post from May 5 of this year, “2009 Worst Timing Award: Craig Hullinger” outlines everything in black and white. Last year, D150 didn’t receive $3,027,801.91 in property tax revenue as a direct result of TIF districts; this doesn’t include the “museum” or the new hotel development.
At what point will somebody besides Gary Sandberg wake up and realize just how little sense this project makes? Who is willing to get up and say he (or she) made a mistake and will work to correct it, for the good of the city?
Who else has the guts to say ENOUGH!?
Ames — The museum block is already in a TIF, and any other incentives the city would want to give could be accomplished through the selling price of the land, either as a whole or parceled out. But I get your point. They probably would get talked into giving a developer the land for free and giving them $40 million on top of it. All the developer has to do is say the magic words: “I’ll take my project across the river!”
CJ,
I completely agree with you. I voted against this project and still have absolutely no conviction that it will bring any revenue or jobs to the city.
Many Peoria elite believe we need this museum.
But Peoria itself is beautiful, historic, magnificent living museum. We are the oldest community in the state. We have natural beauty. We have amazing history (note Lincoln’s speech recently commemorated). We have awesome architecture – old and new. We have a bustling community full of life and energy.
We are.
CJ: Agreed! The tax should not be levied! I really am amazed an elected official will raise his/her arm to support the US Constitution as an office holder and then completely ignore … at least this section …. “and secure the Blessings of Liberty to ourselves and our Posterity…”
How can incurring debt for wants and not needs secure liberty for ourselves and our posterity when debt is bondage?
Please do not make reference that the Feds and State are leading the way and Peoria is only following in the same footsteps …. going broke … Houston we have a problem …
Annual debt service
1970 = $ 474,440
2006 = 18,553,279
Population
1970 = 126,963
2006 = 112,936
Meanwhile our city has annexed many acres to bring in revenue while extending more city services to a larger sprawled area as the city core deteriorates.
Priorities! Please remember we the people are the solution.
CJ thank God that after the great Chicago fire in 1870 early Chicago-ans didn’t posess your dooms-day oh whoa is me the sky is falling attitude. What would Chicago be now if they did?
“Museum Supporter” — the Great Chicago Fire happened in 1871, not 1870. After the fire was extinguished, commercial development rebuilt the city and still generates tax revenue for the city today. Thank goodness they didn’t look at the ashes and say, “Gee, no one will ever want to redevelop this land. We’d better put a museum on it!”
“the Great Chicago Fire happened in 1871, not 1870” – That sure bolsters your argument. What would Chicago be without the Museum of Science and Industry, the Field Museum, the Lincoln Park Zoo? Hell have you seen the giant bean in Milennium Park?
Oh, I am giggling now. Can you imagine how the bloggers would go wild if the Peoria City Council announced they were preparing to build a giant bean on the court house lawn? I can’t stop laughing!
Could we please have a bean where that dang restaurant on stilts is located?
I pledge the first $100 towards the building of the bean! Anyone?
“Museum Supporter” — I’m chuckling that you thought the Great Chicago Fire was relevant in the first place.
Bean! Bean! Bean! Bean!
I think someone has been drinking tonight.
Nah. I wish. Partially having fun & partially making a point.
Museum Supporter,
Chicago was built by railroads, meatpacking, grain merchandising and processing, steel, food processing and other industry, not museums. Because of the city’s superior rail and air transportation it was tapped as corporate headquarters for numerous large firms. If you took out the museums, the city would still prosper.
Just a little bit of history… The museums in Downtown Chicago have nothing to do with the Chicago Fire. They were built for other purposes to be used for the World’s Columbian Exposition in 1893 .
The museums moved into the vacant buildings long after the event ended.
So, have you seen the giant bean?
I presume you mean the Cloud Gate. I’ve only seen pictures of it. Here’s an interesting bit of info about it from Wikipedia, though (emphasis added):
Why not put the museum in the soon to be closed (though it shouldn’t be and why aren’t there millions of people protesting) Woodruff HS?
Plenty of room, large auditorium, gym and outside field to put tractors in, more parking area than downtown, lots of rooms for exhibits and classes, kitchen and cafeteria to sell food to the masses, 5 minutes to downtown and I-74, swimming pool for a replica of the Illinois River Valley, etc.
And since Dist 150 has no plans for it, this week, they could sell it to the city for $1.00.
And you could put your giant bean on the Sears lot.
I wonder where all the museum supporters are now?
This blog was full of comments on a daily basis on what a great thing this was going to be for this city, now suddenly MIA.
JW,
The idea of locating the museum in a pre-existing downtown building had been suggested by a number of concerned citizens prior to the vote. As a matter of fact, a number of excellent suggestions were routinely ignored by the Museum Group as they went ahead with THEIR plans. Now……………….
I am trying to find out if I have the authority to officially “kill this museum project.” It may sound childish, but I can’t wait to say “I told you so!”
CJ, you have never been so right as you are with facts on the museum revealing that the emperor has no clothes–in this instance the museum clique. Their highbrow sense of community allows them to rationalize ramroding this project through as the end justifies the means. They have played fast and loose with facts and schemed in secret. The museum clique has never been transparent in their dealings. Their current plea “oh we’ve come too far to drop it now,” is just one more link in their chain of deceit. They will be back at the public trough soon for more dough.
Thanks for continuing to shine a light on this mess.
The development of the tax suppported sectors of Chicago came after the capitalistic growth created the taxes that support the non-tax paying entities. Plus the capitalistic systems created the thousands of philanthropists that support the arts in Chicago.
We have many people who have thrived on the capitalistic system in Peoria. There were evidently not enough of them who felt strongly about the museum or the money would be now raised. Instead, they are waiting for more government handouts.
Seems like a lot of people like putting the cart before the horse and revel in their blogastics.