The City of Peoria is hoping to facilitate a large scale residential development by acquiring the nearly 70-acre Exposition Gardens property on Northmoor Road.
During a 2½-hour meeting Tuesday, the city council voted 9-2 in favor of a two-part action authorizing a real estate purchase agreement and a budget amendment for the $1.125 million sale price.
“What we’re doing here is executing the ability for the City of Peoria to show a vision for residential real estate in the future,” said council member Zach Oyler, noting the potential for tax base growth from as many as 150 market rate single-family homes.
“While in many cases, I wouldn’t advocate for the city to involve government funding in what could be private development, this is an opportunity to have an actual city vision and execute that vision.”
Funding for the purchase ultimately comes from a $2 million line-item appropriation to Peoria’s Land Bank included in the State of Illinois budget for the 2026 fiscal year.
The purchase of Expo Gardens gives the city control over the largest developable parcel for residential growth within Peoria Public Schools District 150, adjacent to Richwoods High School and Northmoor Primary School.
“This is a rare opportunity to address the city’s housing shortage in a significant way, 70 acres of contiguous land,” said Mayor Rita Ali. “It’s a rare opportunity to increase our annual property tax revenues for both the city, the county and our Peoria public school district.”
The agreement makes the $1.125 million payable to Morton Community Bank to fully satisfy the property mortgage. It also calls for releasing the city’s lean of more than $450,000 on the property for unpaid stormwater utility fees and penalties. Had the council declined the sale, Expo Gardens would’ve been subject to foreclosure.
Council members Denis Cyr and Alex Carmona cast the votes against both actions to move forward with the purchase. Cyr alluded the city’s recent acknowledgement that the combined sewer overflow projects will cost at least $200 million more than initially expected.
“The timing of this transaction is so bad,” said Cyr, who sought a two-week deferral to allow the city to complete due diligence and determine the property’s actual value. “I don’t know anybody in this room tonight would buy anything without an appraisal, minimum.”
Cyr’s deferral motion failed with only additional support from Carmona and John Kelly.
City attorney Patrick Hayes noted that Morton Community Bank had already agreed to move its closing deadline from June 30 to mid-July to accommodate the city, and a delay could jeopardize that deadline.
“It’s very unlikely that a commercial appraisal is going to be ascertained with a two-week deferral,” said Oyler. “Nothing in this circumstance is going to change other than putting the potential of our ability to close on this at risk as a whole.”
A portion of the agreement with the Expo Gardens board allows for the venue operators to lease the site from the city for a nominal fee and continue operations through at least September 2026, followed by a month-to-month lease.
“When we were dealing with the Exposition Gardens board, the discussion around their ability to continue to operate until the property was developed was initiated by the board’s representative,” said Hayes. “We tried to develop some parameters that made sense to the city, but also gave us a free hand to develop the property.”
While that $2 million from the Illinois Department of Economic Opportunity would be directed to cover the cost of buying Expo Gardens, those state funds have not yet been allocated.
The action approved by the council included a short-term loan, without interest, from the city’s Other Post Employment Benefit [OPEB] fund to complete the purchase as Peoria awaits its land bank allocation from the state. When that happens, those funds will be deposited into the general fund and then repay the OPEB loan.
Finance director Kyle Cratty noted the OPEB fund’s current balance is around $34 million, and it is not at all tied to any of the city’s public service pension obligations.
District 4 council member Andre Allen noted an Expo Gardens residential development would also neighbor several other city districts.
“We’re not looking to be the long term landlord; we’re not looking to be the developer,” said Allen. “But we are looking to be in the driver’s seat to ensure that the right development goes there.”
City manager Patrick Urich said he anticipated the city would start soliciting development proposals for the property within 60 days of closing the sale. He said it likely would take 5-8 months to select a redeveloper.
Carmona said he was initially opposed to buying the property, then started to reconsider his position upon learning of the state funding.
“But at the end of the day, government intervention in the private sector is typically not a good idea, and we have plenty of examples as to it not working – not just here, but in history and all over the country,” he said.
Kelly voiced cautious optimism in agreeing with colleagues about the project’s potential.
“Just because we’ve got the land, it doesn’t mean we’ve got the deal,” said Kelly, advocating for development incentives. “I’m in favor of heading toward the most ambitious ideas that we have, but we’ve got to do this right.”
In voicing their support for the acquisition, Tim Riggenbach viewed it as a “prudent investment” and in line with the mission statement for the city’s land bank, while Bernice Gordon-Young called it a “gold mine” when considering the city’s need for housing and limited potential for land acquisition.
“Opportunities like this don’t come every day, and it’s just a blessing that as we encountered this opportunity,” said Ali. “We shouldn’t let it go; we shouldn’t pass it by.”
LULA hotel shelter extension
As discussed during last week’s special policy session, the council unanimously approved a $64,000 reimbursement to cover expenses for a one-month extension of LULA Peoria’s temporary pop-up shelter for unhoused individuals.
“LULA and the motel guests will never be able to express our deep gratitude for providing a safe place to sleep, eat and try to navigate services and resources, for giving our guests a chance to experience human dignity that they haven’t felt in literally years,” said Kshe Bernard, the nonprofit organization’s co-founder.
Community Development Director Joe Dulin said more than 100 different individuals stayed at the hotel shelter since it began operating in January, with a maximum of around 70 at any one time. He said there are currently 46 people still there.
“But the very good news is, hopefully by June 30, that number will be down to about anywhere between 22 and 30 individuals, and even some of them within that first week of July will also be housed,” said Dulin, noting 17 other individuals are not expected to secure a housing option before the end of the extension on July 31.
“We may be able to whittle that number down, but the reality is those 17 likely all have additional barriers and need permanent supportive housing support,” he said.
Bernard said beyond those 17 people, she estimated closer to 50 people still will be living on the streets at the end of the extension.
“We are willing to continue to work with those folks that have been deemed unhouseable, because we don’t believe people are unhouseable. We just believe they need more support,” she said.
Nearly all of the council members commended LULA for its work in arranging the hotel shelter, while noting the city will need to do more to address homelessness.
“We must not forget that there aren’t just 17 people out here who are unhoused, and so when you hear that number – yes, they’re going down, but it really is a revolving invisible door when it comes to the unsheltered,” said Gordon-Young.
“I just want to make sure that we’re looking at the entire picture, and when we’re talking about permanent solutions, or at least long-term solutions, making sure that we’re at least creating a space where we can come to the table.”
Dulin noted that the funding for the one-month extension would come from repurposed American Rescue Plan Act funding specifically targeted in the city’s budget for addressing homelessness.
Empire Lounge liquor license
The council was expected to vote on a recommended denial of a site application of a liquor license for the Empire Lounge in the Wardcliffe Shopping Center.
Owners of the establishment notified the city earlier Tuesday that it was withdrawing its request. The business previously had been denied three times.
Last July, a split council denied the venue's most recent request for site approval, in part because alcohol was served at a private event held prior to occupancy approval.
Earlier this month, the liquor commission voted 2-1 in its denial recommendation. Representatives of the Wardcliffe Neighborhood Association and Forest Hill Homeowners Association expressed opposition to on-site consumption at the lounge.
A site application for liquor license at Jonah’s 101 Oyster Bar on Knoxville Avenue was approved as part of the consent agenda.
Other actions
Additional items approved on the consent agenda include:
- a settlement agreement accepting approximately $324,000 from United Fellowship Ministries to end a dispute over outstanding demolition costs of the church building on Saratoga Street following a 2023 roof collapse;
- accepting a low bid of $902,535 from JC Dillion for stormwater outfall repairs, along with a 10% for contingencies for a total cost of $992,790;
- a one-year renewal of existing property and commercial auto insurance coverages from Liberty Mutual in an amount not to exceed $673,191;
- agreeing to a contract of $117,580 with Resource Management Associates to administer police department sergeant and lieutenant promotional exams;
- purchasing 57 ballistic vests and accessories from Galls for $98,610;
- and, a total of 52 appointments to various boards, commissions and committees.
Under new business, council member Denise Jackson asked the staff to see if it can arrange a discussion with Kroger regarding its decision to close its Sterling Avenue grocery store.
