Peoria once again is turning to tax increment financing [TIF] as a way to attract developers and spur growth in parts of the city where redevelopment is needed.
The city council approved the creation of two new TIF Districts during Tuesday’s 80-minute meeting, one focused on Northwoods Mall and the surrounding area and the other centered on the downtown Adams-Liberty block anchored by the city-owned PNC Bank Building.
“Tax increment financing is a tool that is used as a way for us to have redevelopment occur in areas that typically are not able to generate enough interest from the private sector for redevelopment,” said Assistant City Manager Kimberly Richardson.
Richardson explained that many properties in the vicinity of Northwoods Mall and along Brandywine Drive where development may be possible is in need of infrastructure improvements. She said the TIF would help offset those expenses.
The Adams-Liberty TIF aims to facilitate a mixed-use commercial and residential project in the PNC Bank Building, also called the Tower on Adams, and adjacent properties that the city purchased in 2024 for $1.75 million.
Richardson said the ultimate goal is to see the developments assisted by the TIFs raise property values in the city, thereby generating more revenue for Peoria.
“One of our core objectives is to grow Peoria, and to grow Peoria, that means we have an EAV [equalized assessed value] that’s increasing,” said council member Tim Riggenbach, voicing wholehearted support for the new TIFs. “The higher the EAV grows across the city, that means potentially — I’m not promising this — we could actually lower the property tax rate at some point.
“So I think it’s really disingenuous for us to think that a high EAV is a bad thing. That’s our goal, is to see our properties worth more than ever before, and this is not, in any way, shape or form, a tax increase.”
The ordinances establishing both TIFs were originally on the consent agenda, but were pulled for discussion. Both were approved on 11-1 votes; Alex Carmona was the only council member opposed.
“I have some objections to TIFs in general, I guess, especially in a very highly taxed environment like we live in right now,” said Carmona. “Overall, if it works out well, the payment of property taxes that you will have to make is going to be much bigger than it was before.”
Council member John Kelly also raised concerns about the effectiveness of TIFs, before ultimately voting in favor.
“TIFs are a special deal for a special area, and I think they’re done with the best of intentions; I’m not saying that there’s any evil here. But we do not work on our whole community,” said Kelly. “These kinds of things, I think, are a mixed bag. I’m just not a fan.”
City Manager Patrick Urich said negotiations are in progress with a developer regarding the desired PNC Bank Building redevelopment. He said it seems the poor condition of the parking deck will render it unsalvageable, and a new parking deck may need to be built at a cost of $4 million.
He said part of the ongoing negotiations include getting the city reimbursed for its expenses during its ownership of the properties.
In other business
The agenda for Tuesday’s meeting did not have any regular or new business, but two other items were approved on the consent agenda.
The first item saw Peoria agree to a three-year contract renewal with Ersi, Inc., for maintenance and support of the city’s Global Information Systems [GIS] platform, with an annual cost of $90,300.
The council also approved an amendment to the development code, adjusting requirements for street walls in form districts. The proposal was discussed on a first reading during the Jan. 29 meeting.
The changes include removing requirements for masonry columns, 2-foot brick bases, while adding a minimum of 80% openness for metal walls.
The council ended the meeting in an executive session. Members were expected to discuss pending litigation and possible next steps related to the Par-A-Dice Hotel Casino redevelopment plans.
