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Fate of East Peoria riverboat casino casts shadow over Kahl’s State of the City address

East Peoria Mayor John Kahl stands at a podium as he delivers his annual State of the City address at the Par-A-Dice Hotel Casino.
Joe Deacon
/
WCBU
East Peoria Mayor John Kahl stands at a podium as he delivers his annual State of the City address at the Par-A-Dice Hotel Casino.

East Peoria Mayor John Kahl shared an optimistic vision for the city’s next few years Friday, albeit while speaking at a venue with an uncertain future.

Kahl delivered his annual State of the City address from the banquet room at the Par-A-Dice Hotel Casino, steps away from the riverboat gambling attraction that parent Boyd Gaming is looking to replace.

He told the audience at the East Peoria Chamber of Commerce event that the city values its business community.

“The reason why we thrive today [is] we're there to support you,” said Kahl. “We're not there to tell you what to do, how to do your job, where you have to be. That's your decision to make. I'll respect that decision. We'll support you, end of story.”

Boyd has expressed intentions to upgrade the 30-year-old Par-A-Dice with a new, $100 million “entertainment destination” that could begin construction as soon as next year. However, a long-standing intergovernmental agreement between East Peoria and Peoria requires any land-based casino operation to be located within Peoria city limits.

“Boyd, whatever their decision is, they take in front of the [Illinois] Gaming Board and they approve it. So that's their decision to make,” Kahl reiterated to reporters after his speech. “I made myself clear to Boyd, a couple years back when all this kind of kicked up, if you will, what East Peoria’s position is, and we've had a great partnership with them.

“I'd like to think that speaks volumes. No different, I feel strongly they probably appreciate all that we've done for them, too. But really, I don't have any further comment. Let Peoria keep running their mouth on whatever they hope to do or hope to see; I can't speak for them.”

Kahl’s stance remained unchanged from last summer, when he sent emails to Peoria Mayor Rita Ali expressing displeasure about her city’s attempts to lure Boyd’s local casino to the opposite side of the Illinois River.

While those emails suggested the change could permanently strain the relationship between the municipalities, Kahl said Friday he doesn’t want that to happen.

“I can't speak for them, I don't know how they feel about us. But for six years as mayor of East Peoria, I've made a point to be a regional guy. That will continue,” he said. “We need Peoria to be strong to lift this entire region.

“I can't focus on Peoria; I’ve got to focus on East Peoria. I’ve brought up the Heart of Illinois Mayors’ Association; those guys know how I'm wired. It's really about all of us working together to lift everybody up, and I think my actions have demonstrated that.”

Kahl acknowledged that if Boyd opted to upgrade the current riverboat and casino complex, the company would be eligible for benefits from the new Riverfront tax increment financing [TIF] district that is on track for final approval at Tuesday’s city council meeting.

“Boyd could take advantage of it, whether it's improving where we're standing today or not. They're one of how many beneficiaries of the new TIF district,” he said. “This TIF was a vision that was always part of revamping East Peoria, and it just kind of fell by the wayside.

“You’ve got to build the infrastructure. You can't just go and say to folks, ‘hey, why don't you locate your business to East Peoria? Hey, there's a nice plot of land out there.’ If the infrastructure isn't there, you can't take to the table the benefits of locating your business in the community. So this thing really need to be front and center.”

Kahl noted another property that could benefit from the Riverfront TIF is the existing Hampton Inn at the casino complex. That hotel is looking at a rebranding, with groundbreaking for construction of a new Hampton Inn along the riverfront near Granite City slated for April.

“My hope is the company that currently owns that property, even though they're losing that [Hampton] flag, will rebrand it, reinvest, and the TIF incentives are available to them to do that,” said Kahl.

During his speech, Kahl highlighted a proposed 2025-26 fiscal year budget showing 2.2% growth in revenue, progress on the Blutowne mixed-use development under construction next to city hall, and plans for a Central Street Crossing multi-functional entertainment district.

“We're strong financially, and just with all the things that we have going on. We're just going to continue what we've been doing for the last decade, really is to continue seeking growth,” he said. “Not just growth, but maintaining what we have too. That's also critical, I think, to finding a healthy balance, keeping your community moving forward.”

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