The East Peoria City Council took several more step Tuesday night toward making a Riverfront TIF district a reality.
The council approved three ordinances: accepting the results of a feasibility study, locking in the current values of the included properties, and officially defining the boundaries of the East Peoria Riverfront Redevelopment Project Area.
A TIF, or tax increment financing district, is a development tool used by local governments to incentivize improvements in a specific area. The TIF locks in the property value for 23 years, with an optional 13-year extension. Increased tax value generated during that time can be redirected to further projects in the district.
“That’s the part that the city is able to capture and then use to refinance the infrastructure and other projects in the TIF,” said city attorney Scott Brunton.
Brunton also pointed out the feasibility study showed the designated area along the northwestern stretch of Illinois 116 fits many of the criteria for creating a TIF district.
“We also note the majority of the building structures on those properties are over 35 years of age. That’s another qualifying factor that is taken into consideration,” said Brunton. “There’s no residential properties in any portion of these properties, which is also a factor to note.”
The properties covered include the Par-A-Dice Hotel and Casino, Federal Logistics, Hagerty Steel, United Facilities and the former Burger Barge restaurant. The move comes as the City of Peoria explores the possibility of a new land-based casino, in the wake of Par-A-Dice operators Boyd Gaming announcing plans to expand.
An intergovernmental agreement between Peoria and East Peoria from the 1990’s requires a land-based casino to be located in Peoria, if Boyd decides to end use of a riverboat.
“Essentially, no growth or redevelopment has occurred in this area for several decades now,” said Brunton. “Which is why it’s being targeted for this new TIF district as well, as essentially, but for putting this TIF district in place, we don’t expect much redevelopment to occur in this corridor.”
The city council will make a final decision on the proposed TIF district at its March 4 meeting.
Council approves pre-annexation of Bloomington Road development
The East Peoria City Council also approved a pre-annexation agreement for a new residential development just outside the city’s southeastern limits.
Developers Underham LLC plan to develop seven residential lots on vacant land near 2518 Bloomington Road. City staff say the nearest lot is 1,000 feet from the closest parcel of land within city limits. It’s also 2,400 feet from the nearest water main.
Under the terms of the pre-annexation agreement, East Peoria can consider annexation if city limits expand to the edges of the development during a 20-year period.
Ordinances approving the pre-annexation agreement and finalizing the plat of land for development passed the council unanimously. This decision followed a public hearing on the pre-annexation agreement held at the start of the meeting. Only one person spoke and did not share any concerns about the project.
