East Peoria Mayor John Kahl says he’s committed to making sure the city maintains a welcoming atmosphere for businesses.
Kahl says that’s a big reason behind the move to establish a new tax increment financing (TIF) district along the Illinois River in hopes of facilitating more development projects.
“I call it visionary leadership. I look at TIF districts (creating) Town Centre I, Town Centre II,” said Kahl, referencing the shopping centers at the intersection of Main and Washington streets. “Back in the day, when I grew up in East Peoria, you had the old-style, four corners, and a lot of those buildings were dilapidated and some were vacant.
“TIFs were created to bring future development. You look at that, and as we go through time: the Levee District, you look at Embassy Suites and Bass Pro (Shops), things like that. I don’t know that without a TIF, that you would have that type of development.”
The proposed area for what would be East Peoria’s fourth TIF district is east of Interstate 74 and along Illinois Route 116. Kahl says plans to have these properties developed have been in the works for a long time.
“Years ago – and I can’t tell you how many; it was well before I served on this council, which I’ve been there for nine years now – they had like a public working session where they talked about the need to bring that Bass Pro property and line it through either Altorfer (Lane), or have a connector up on 116,” he said.
“So there’s always been plans in place to do a future development, tying in that Bass Pro (area) as we swing that development around, going along the riverfront.”
Kahl says East Peoria is not quite done with development in the downtown area, and future plans call for projects down Center Street. He says the creation of a Riverfront TIF serves as an initial step towards seeking future projects.
“We’re in the process of drafting what’s called a master redevelopment plan, and it will identify the properties,” he said. “People will see it literally will be a connector to the Bass Pro, and it would incorporate all those properties along the riverfront, to include the dilapidated properties that we’re hoping to have future development.”
The new TIF would also include the Par-A-Dice Hotel and Casino location. The Nevada-based Boyd Gaming Corporation owns and operates the riverboat casino, and the company intends to submit plans for a modernized gaming facility to the Illinois Gaming Board by mid-March of 2026.
Kahl says he doesn’t have any indication what those plans might be.
“Boyd could take advantage of a TIF no different than any other business that would fall within that,” he said. “Our hope here is to make public improvements – whether it’s roadways, water, sewer – that’s kind of necessary to propel future development along that entire corridor.”
Terms of a more than 30-year-old intergovernmental agreement call for any land-based casino operations in the region to be built in the city of Peoria. Kahl says much has changed since then, particularly with the State of Illinois now allowing video gambling outside of casino settings.
“When you look at that agreement, if they want to stand on that agreement, you’d better read every word in there. An intergovernmental agreement is between two public bodies; it’s not between a public body in a private business,” Kahl said.
“Par-A-Dice has been a fixture for 30 some years in East Peoria, and Boyd’s been great to both the Peoria and East Peoria side. I think what a lot of people don’t understand is Peoria gets half the revenue – you know, I sign a check every month. They get half of the revenue that’s generated by that boat.”
Kahl says the Par-A-Dice is among many East Peoria attractions that brings business to the entire region.
“Aside from restaurants and everything else, I think a lot of people tend to forget what we’ve done in East Peoria. We’ve made a huge investment, not just in the Levee District, but EastSide sports complex,” he said. “I think people underestimate how many people we bring to town through events held up there. That’s why this council has been so supportive of reinvestment in our facilities.”
Kahl says the casino site, like any location on the river, is a key piece of property to consider as part of the long term comprehensive plan. He says public input is critical to how that plan is shaped.
“What we’ve seen in the results so far: A lot more mixed-use development, meaning commercial and residential components along that riverfront. We have a marina that sits north of there as well, which has condos,” Kahl said.
“That’s where this master redevelopment plan would come into play, because you would outline kind of what your vision is and what you hope to see there.”
Kahl says if the riverboat casino did leave East Peoria, he’d respect Boyd’s decision.
“When they’re going to make that decision, I don’t know. I’m sure they’ll let us all know when they do,” he said.
