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East Peoria Mayor Kahl addresses possibility of casino relocation: ‘I’ve not moved from my stance’

East Peoria Mayor John Kahl responds to interview questions in front of the WCBU banner in the station's master studio.
Joe Deacon
/
WCBU
East Peoria Mayor John Kahl answers interview questions in the WCBU master studio.

East Peoria has been home to the Par-A-Dice hotel and riverboat casino on the Illinois River for more than 30 years.

With owner Boyd Gaming preparing plans for a new gambling facility, Peoria city leaders have taken steps to make sure any land-based casino is located within their city’s boundaries, in accordance with a long-standing intergovernmental agreement and updated state gaming law.

But what does this mean for East Peoria? Mayor John Kahl says he made his disappointment clear over the summer in emails with Peoria Mayor Rita Ali over what he sees as an effort to force a business to relocate.

“It’s kind of old news, from my perspective,” Kahl said in an interview with WCBU. “I’ve pretty much laid out what my position is in those email exchanges between two mayors, and I’ve not moved from my stance at all. And out of respect for Boyd, I really don’t care to entertain what Peoria has going on.”

At its final meeting of the calendar year, the Peoria City Council approved the hiring of a financial adviser and outside legal counsel for the purpose of pursuing a land-based casino development project with Boyd.

Kahl says since he became mayor 5½ years ago, he’s made a point of building strong rapport with the leaders of surrounding communities. But the Par-A-Dice situation has strained relationships.

“I think, as a region, we have an obligation, too, as mayors, to lift the region, and my hope was to establish a good working relationship with Mayor Ali on this side of the river,” Kahl said. “Up until this year, I felt like we had a pretty good trusting relationship, and I don’t feel (that) so much today.

“I’m not going to get bogged down in their issues; let them sort that out, that’s on them. East Peoria will continue to move forward.”

The existing intergovernmental agreement has Peoria and East Peoria splitting tax revenue from the riverboat evenly. If the casino moved across the river, Kahl says East Peoria would be proactive to address any shortfall.

“We’ve not sat back and sat idle on anything. I look at the transformation throughout the last 40-50 years in East Peoria, and it’s amazing,” Kahl said. “We don’t get hunkered down in what other communities are doing.

“Especially as elected officials, our job is to focus on East Peoria, continue to grow smartly, and take care of our citizens and improve the quality of life there.”

Kahl says East Peoria has been able to use tax increment financing, or TIF districts, to the city’s advantage in fostering economic growth and redevelopment. He says creation of a new Riverfront TIF will advance that effort.

“This is something that’s been discussed for, oh my goodness, well over a decade as part of East Peoria’s plans to continue its growth,” Kahl said. “Now that we’ve recently announced the Hampton Inn construction down on the riverfront next to Granite City, that was always part of a redevelopment plan.

“So now we’re going to have that all complete (and) the next focus would be this next corridor, and tie that together.”

Kahl says the city’s $13 million agreement with Frontier Hospitality to build the new Hampton Inn will coincide with a change at the current Hampton Inn location at the casino complex.

“That property is being rebranded, and my understanding is it’s for sale,” Kahl said. “It’ll be another brand yet to be determined, and that’s up to the owners and whatever they have worked out with the hotel brands.

“That being said, the Hampton Inn has done extremely well, and coming from a hospitality background, that’s one of the premier brands. East Peoria has been fortunate to have that brand in East Peoria, and our focus is to ensure that we have it moving forward.”

Kahl says East Peoria’s growth has allowed the city to keep its property tax levy “rate equivalent” for the past 30 years. He says the three townships where East Peoria is located have seen property values increase about 23% in the past three years.

Kahl says by holding the tax levy dollar amount steady at $5.9 million, it decreases the tax rate, providing a measure of relief when Illinois’ property taxes are the second-highest in the country.

“I think it’s incumbent on the taxing bodies to take a look at that,” he said. “Our folks, they deserve property tax relief and we’re hoping to set a positive example by coming out of the blocks by holding the dollar amount the same.”

Kahl says the bulk of East Peoria’s property tax revenue covers pension obligations, while the city relies on sales tax to pay for most of their services.

Joe Deacon is a reporter at WCBU and WGLT. Contact Joe at jdeacon@ilstu.edu.