Six items involving TIF agreements were on the Pekin City Council's meeting agenda Monday. Three passed. Two failed. One agreement was extended for a year because of unexpected project delays.
The two TIF funding requests turned down by the council were for the Sud Family for the next phase of its redevelopment of the Sud Building at 111 N. Sixth St., and for SNH Investments to subsidize rent costs for SkillsUSA Illinois' relocated state headquarters at 2815 Court St.
The council voted unanimously to reject the Sud Family proposal, which included as much as $2.8 million in TIF funding and a $200,000 forgivable loan. To receive the funding, at least eight full-time jobs per year for 10 years needed to be added at the location.
The SUD Family previously received $200,000 in TIF funding from the city paid out over the 2021-22 and 2022-23 fiscal years for other improvements to the building.
Mayor Pro-Tem Karen Hohimer said she's all for supporting businesses, but expressed concerns about the amount of funding already granted to the Sud Building project, and the additional funding in the request.
SNH Investments would have received $140,000 in TIF and Business Development District funds with the following conditions:
- The property must be occupied by SkillsUSA Illinois for at least 10 years.
- The property must be owned by SNH Investments for at least 10 years.
- SkillsUSA Illinois or the Youth Workforce Development Foundation (SkillsUSA Illinois' foundation) must add 10 full-time employees based in Pekin within two years.
- SNH Investments could not request exemptions to real estate taxes for at least 10 years.
SNH Investments is owned by SkillsUSA Executive Director and Youth Workforce Development Foundation CEO Eric Hill and Chris Swingle.
Josh Wray, the city's economic development director, said the conditions were placed in SNH Investments' TIF and BDD agreement to provide protection for the city that the facility will be used by SkillsUSA Illinois.
The vote to reject the SNH Investments' request was 6-1, with Dave Nutter voting yes.
The three TIF funding agreements approved Monday by the council were $49,885 for Olivia's Playhouse at 341 Court St.; $50,000 for the Speck Corp., developer of the Derby Station at 805 Derby St.; and $10,115 for American Senior Living at 1112 Court St.
The vote for Olivia's Playhouse was 6-1, with Rick Hilst dissenting, and 4-3 for Derby Station and American Senior Living, with Hilst, Nutter and Lloyd Orrick voting no.
The extension was granted to a request for $55,000 in TIF funding for Terri and Baylee Gambetti for improvements at 437 Court St., the former Instant Replay Sports Bar. The funding was originally approved in August 2023. The vote for the extension was 6-1, with Hilst casting the no vote.
In a TIF district, annual increases in property tax revenue are placed in a fund that can be used for economic development or public improvement projects in the district.
No forgiveness: solid waste fund still owes $2.7 million to the general fund
A proposal to forgive $2.7 million the solid waste fund owes the city's general fund failed Monday.
The money is owed because the general fund was used to cover purchases and payrolls that should have been covered by the solid waste fund over the past 10 years, but the solid waste fund was short on cash.
"That's $2.7 million that couldn't be used for other projects like roads because it went to the solid waste fund," said finance consultant Bob Grogan.
Council member Dave Nutter said he thought about $1 million was owned to the general fund by the solid waste fund.
"I almost fell over when I saw it was $2.7 million," Nutter said.
Nutter and council member Rick Hilst asked that the budget amendment be placed on the council meeting agenda Monday.
"I'm glad now that we know what is owed," Nutter said. "I appreciate Bob (Grogan) taking the deep dive to get the number out in the open."
The budget amendment proposal passed 4-3, but a two-thirds majority was needed. The no votes were cast by John Abel, Mayor Pro-Tem Karen Hohimer and Mayor Mary Burress.
Firm hired to do surveying and plat work so the city can annex the Lutticken property
In other action Monday, the council approved:
- Hiring Mohr & Kerr Engineering and Land Surveying of Peoria to do a plat of survey, legal description and a plat of annexation for the 1,000-acre Lutticken property purchased recently by the city for $14 million. The city needs to annex the property. City staff will meet with Mohr & Kerr representatives to put together a contract, including cost, which is expected to be about $50,000. The Lutticken property will connect Veterans Drive to I-474 and be sold for residential and commercial development. A plat of survey is a map that shows an area that has been surveyed by a licensed land surveyor. The approval vote was 5-2. Rick Hilst and Dave Nutter cast the no votes.
- A policy that allows city staff to sell city-owned non-residential property for less than it's worth if staff believes the purchaser's development will benefit the city through property tax, sales tax, etc., and give the city a positive return on investment in five years or less. The approval vote was 6-1, with Lloyd Orrick casting the no vote.
- Getting rid of the land covenants in the Riverway Business Park and the Riverway Business Park Review Committee, which was charged with enforcing the covenants. Josh Wray, the city's economic development director, said the committee was inactive and added an extra ineffective layer of red tape that obstructed development. Riverway Business Park is a 440-acre corporate/industrial park south of Koch Street between Illinois Route 29 and Fifth Street. The city is the largest landowner at 44%. The approval vote was unanimous.
- A special use request by Mark Goddard to open a used car sales business with an outdoor sales space at 1218 N. Eighth St. The request was approved as part of the consent agenda, which passed 6-1. Hilst voted no.
- Allocating $17,695 in motor fuel tax funds to pay for the city's membership in the Tri-County Regional Planning Commission. The approval vote was unanimous.
Should liquor sales be allowed at gas stations?
A proposal to allow gas stations to sell liquor was pulled off the council agenda Monday by a unanimous vote.
It isn't known if the ordinance amendment will be on a future council agenda. Previous councils rejected the idea of liquor sales at gas stations several times.
