A pair of action items connected to redevelopment projects in Peoria’s Warehouse District will be up for a vote at Tuesday’s city council meeting, including a move to facilitate renovation of the historic former International Harvester buildings.
Developers are hoping to turn the two vacant structures in the 1300 block of SW Washington Street into mixed-use properties.
However, city manager Patrick Urich notes the project is not yet at the point of seeking a redevelopment agreement because litigation over a construction contract dispute is pending in Peoria County Circuit Court.
The action item before the council as part of the consent agenda would authorize an “inducement resolution” declaring the city’s intention to move forward with the $14 million project after the legal matter is resolved.
“This is just basically saying that if they’ve incurred any costs prior to the adoption of the redevelopment agreement, they would be eligible for reimbursement,” said Urich.
According to the agenda item memo, the proposal calls for the five-story structure originally built in 1914 to be turned into 25 residential units, while the former truck dealership built in 1925 would be converted into about 15,000 square feet of commercial space for lease.
“They’re looking at some mixed-use development that would have some light assembly, commercial property, or commercial/industrial, along with the apartments,” said Urich, adding there’s no timetable for when a full redevelopment proposal may be submitted.
Both existing buildings are listed on the National Register of Historic Places.
The project is estimated to generate close to $3.9 million in property tax increment over the life of the area’s existing TIF.
A second action item also on the consent agenda modifies an existing agreement with Oculus Development for two properties in the 800 block of SW Washington. The change supersedes that agreement and divides the project into two separate redevelopment agreements with an entity named Realty Partners Master Tenant for financing purposes.
The 800 Realty Masters Tenant property proposes 90 residential units, while the 801 property has 78 apartments.
“Combined, it’s almost couple hundred apartment units that we’re looking at between the two buildings, so that’s a very positive development,” said Urich. “Again, it’s more of trying to meet that demand of residential needs in the Warehouse District, and continue to build on the success that we’ve seen so far.”
The city will be responsible for demolishing the existing buildings on the properties. The agreement also would allow the developers to construct parking lots on city-owned lots, subject to approval by the Development Review Board.
Construction is expected to be completed by the end of 2026.
