The City of Peoria is buying three prominent properties that make up the bulk of one downtown block with the intent of seeking a developer to take advantage of federal and state historic tax credits.
“From the city's perspective, this is an important block. It's an important block that we ensure that we have the right developers come in with the financial capabilities to make this work,” city manager Patrick Urich said before the City Council voted to approve the $1.75 million purchase of the Tower on Adams complex from Cullinan Properties, with two dissents.
The three Tower on Adams properties consist of the PNC Bank Building at 301 SW Adams St., the Creve Coeur Building at 304 SW Jefferson Ave., and the adjoining parking deck.
Council member Andre Allen said Peoria needed to seize on a “unique opportunity” to buy the former Commercial National Bank building.
“When you talk about a core building that bridges the Central Business District as well as the Warehouse District together, it has so much potential,” said Allen. “I really think that it also demonstrates the seriousness that we are having towards our downtown and wanting to be in the driver's seat.”
The council also approved amending the city’s budget to provide a $180,000 loan from the general fund to buy the properties and put $50,000 toward due diligence costs. The general fund loan would be repaid from Warehouse District TIF revenue.
Cullinan bought the two buildings and parking deck in May from a New York-based firm for $1.25 million.
“I had high hopes of what the current owners were going to do in developing this structure, and I'm disappointed that we're in a situation where we have to end up buying this complex and moving forward with it,” said council member Zach Oyler, who also chairs the independent Downtown Development Corporation.
“But I do think that it's a necessity that we do so. With its proximity to the (Peoria) Civic Center and its location in the Central Business District, it's a critical block for downtown.”
Council member John Kelly moved to table the two agenda items related to the sale, but did not receive a second. Kelly said it would be prudent for the city to do the due diligence prior to agreeing to any purchase.
“We are rushing and rushing and rushing forward and giving the seller a half-million dollars for things that are said to have happened. Well, let's see what the current owner has done with the properties that's worth a half a million dollars,” said Kelly, who was joined by council member Denis Cyr in voting against the purchase.
“In my humble opinion, I truly believe that this transaction really belongs in the private sector, not the public sector,” said Cyr. “If I cannot explain my vote to my family or my constituents, I just cannot support it, and this is the case.”
While Kelly seemed troubled by Cullinan’s $500,000 profit from the sale after a mere four months, others showed less concern about the city’s purchase price.
“If you had told me three months ago that we had the opportunity to purchase this parcel for $1.8 million, I'd say, ‘you're kidding me,’ right?” said council member Tim Riggenbach. “The fact that somebody originally purchased it for less doesn't diminish the value that we're getting today.”
Mayor Rita Ali stressed optimism over the development possibilities, and suggested the city hold some type of open house to show the properties off to potential investors. Urich said the staff would be open to that idea.
“We really don't have to look very far to see in the Central Business District, we have some challenges with under-capitalized developers,” he said. “So I think that's something that we need to certainly look at and make sure that we're vetting to find the right developer to come in here.”
In response to constituent concerns brought forth by council member Denise Jackson, Urich said buying the properties is not in any way similar to Peoria’s troubled investment in the Pere Marquette Hotel.
“We did not own the properties around the Pere Marquette, but we were asked at that time to contribute significant amounts of money to develop them,” he said. “This deal, in this instance, we're acquiring these properties at a price that I believe is very reasonable and very fair, that will afford us the opportunity to find a developer with the financial means to make this development successful.”
Urich said the city would have 30 days to perform its due diligence, targeting Oct. 25 as a likely closing date.
Mall entertainment venue gets OK
A new family entertainment business called Tilted 10 is on track to replace the Round 1 venue at Northwoods Mall.
Kevin Jordan, the senior vice president of operations for Tilted 10’s Texas-based parent company Nickels & Dimes Inc., said the facility would feature bowling, black-light miniature golf, bumper cars, and carnival and video games.
“What we do is family entertainment. One thing that we saw with Round 1, they were open until 2 a.m. We won't be open till 2 a.m.; we'll be midnight on Friday and Saturday, 10 o'clock on the other weeknights,” said Jordan.
The council voted unanimously to approve a site application for a liquor license with on-site consumption at the location.
Outdoor amusement park delayed
Plans for a seasonal amusement park on the city’s northwestern edge will remain on hold for two weeks.
At Allen’s request, the council deferred a vote on developer Mark Lawson’s proposal to bring paved go-kart tracks, batting cages and mini-golf courses to a 13.5-acre property at the intersection of Orange Prairie Road and Grange Hall Road.
“There has been some concerns brought forth to myself and the petitioner,” Allen said in asking to push the votes to the Oct. 8 meeting. “In between now and then, I'm going to convene with the petitioner and some of the residents in the area, and see if we can reach some compromise.”
Lawson initially pursued a similar development in 2017. The new plan required the city to annex 4.5 acres in addition to the nine acres that were initially incorporated for the first attempt.
The Planning and Zoning Commission recommended the project earlier this month, despite hearing concerns from neighbors over increased noise and traffic.
In another annexation matter, the council voted to bring the Illinois Department of Transportation’s Peoria West Operations Yard near Edwards into city limits. Additionally, the city and IDOT entered an intergovernmental agreement regarding an abatement of storm water utility fees and the property was rezoned.
The moves will facilitate connecting the Greater Peoria Sanitary District sewer infrastructure with the Pringle Technologies and Haven On The Farm businesses on the north side of U.S. Route 150.
Public hearings held at the beginning of the meeting on both annexation proposals did not draw any comments.
