The developer of one acre of vacant land off Court Street in front of Menards in one of Pekin's busiest commercial areas will receive an estimated $2 million in sales tax rebates from the city to help pay for development costs.
The Pekin City Council approved the tax increment financing [TIF] and business development district [BDD] re-development agreement with Peoria-based JPG Commercial this week.
The agreement calls for costs like land acquisition [not including the city property that was sold to JPG for $100,000], professional fees, utilities extension, public improvements, site preparation and 30% of interest to be reimbursed to JPG.
Two or three retail stores are planned for the property, with the first opening next year, according to Josh Wray, the city's economic development director.
Reimbursements equal to 75% of city sales taxes generated by the businesses on the property in the prior calendar year will be paid to JPG.
The city sales taxes are the 1% municipal sales tax, 1.75% home rule sales tax, 1% BDD sales tax and 2% food and beverage tax.
JPG predicts the stores will generate $3.5 million in taxable sales annually, which equates to about $201,250 in city sales taxes and about $151,000 in sales tax rebates for JPG.
Using those figures, the agreement would end a little more than 13 years after the businesses start generating sales taxes.
"This project will bring new economic activity and jobs to the community, and about $50,000 in new annual sales tax revenue and about $26,250 annually in additional real estate taxes to the city," Wray said.
JPG will spend about $1.3 million to relocate the stormwater pond on the property across Court Street.
The council vote for the agreement was 6-1, with Rick Hilst voting "no."
Jake Fletcher voted for the agreement after saying he's glad possible traffic issues caused by the development will be addressed.
Fire department ladder truck repair cost: About $100,000
Also at this week's meeting, the council approved:
• Spending up to $100,000 in insurance reimbursements for repairs for the Pekin Fire Department's 2014 Alexis ladder truck that was involved in an accident Aug. 11. The city has received nearly $75,000 in insurance money so far based on an initial cost estimate for repairs by Truck Centers of Morton, minus the $500 deductible.
• The police department's annual contract with Lexipol for "state-specific law updates, policy creation, policy manual archives, digital policy acknowledgement and daily training bulletins," said Pekin police chief Seth Ranney. "It's imperative in today's ever-changing policing world to have the most up-to-date policies in place to insulate Pekin from litigation stemming from a failure to properly train officers." Cost of the contract is about $17,440.
• Sending an acknowledgement to the Illinois Department of Transportation that the city has the paperwork in place to receive up to $565,000 in motor fuel tax money for general maintenance — like electricity costs for street lights and signals and purchasing road salt — during the 2025-26 fiscal year.
• The renewal of a 10-year lease agreement with the Illinois Department of Natural Resources for a parcel of land in the Pekin Lake State Fish and Wildlife Area that's being used for the Jane Street storm water discharge pump. The annual cost of the lease is $250.
