The owner of a business on Washington's downtown square will get a six-figure payout from the city as a reimbursement for unexpected costs, and the city will spend another $25,000 to repair drainage issues caused by the construction of a neighboring restaurant.
Marlene Miller, a renowned sculptor who owns the property at 114 Walnut Street next to the new Tangled Roots Craft Beer & Kitchen, will receive about $115,700 after the Washington City Council authorized the payment during a special meeting last week.
Miller's building was damaged during the restaurant's construction. She sought the funding from the city after unsuccessful efforts to collect from developer CL Red to cover the damages, repairs, rent loss and legal fees.
This week, the city stepped up again to help repair drainage issues near Miller's building caused by the construction. The council on Monday approved a not-to-exceed contract of $25,000 with Stark Excavating of Bloomington to determine the extent of the repairs and do them.
The work includes the removal and replacement of a sidewalk above an area drain and downspout pipe that have issues.
The city reimbursed the Washington Historical Society more than $27,700 in 2024 for similar building issues caused by the restaurant's construction.
The WHS is another Tangled Roots neighbor. It owns the building at 128 Washington Square. Tangled Roots, which opened last year, is at 140 Washington Square.
A meeting between Miller, city officials and a lawyer has been scheduled for June 15 to discuss the logistics of the $115,700 payment and possible legal action against CL Red if the developer does not contribute to the payment.
Dominick Lanzito, a senior partner with a law firm in Lisle, will join City Administrator Jeff Fiegenschuh and alderpersons Bobby Martin III and Mike McIntyre in attending the meeting.
Fiegenschuh was the city administrator in Rochelle before coming to Washington late last year. Lanzito is the city attorney in Rochelle.
Washington Plaza boost?
The creation of a Business Development District [BDD] that would provide funding for economic development efforts in the long-struggling Washington Plaza shopping center will be studied for eligibility by a consultant.
The council approved hiring Jacob & Klein/The Economic Development Group of Peru for $26,600 plus reimbursable costs of no more than $2,500 unless approved by the council.
Revenue from a proposed 0.25% sales tax on general merchandise sales excluding food, drugs and vehicles from brick-and-mortar retailers and on-line vendors in the BBD — which also includes several retailers across Washington Road from the plaza — could be used within the BDD.
Site preparation and acquisition, professional services, public infrastructure improvements, economic development initiatives, building rehabilitation and new building construction are among the possible uses of the increased tax revenue.
"The purpose of a BDD is to improve a blighted area," said Fiegenschuh.
If the BDD sales tax is implemented, the total sales tax in the district would increase to 9.25% and generate between $30,000 and $35,000 annually in additional revenue.
Martin, chair of the city's Economic Development Commission, said business owners in the proposed BBD are in favor of creating the district.
"We've talked to most of the owners, and they're all for this," he said. "Everyone that we've talked to is all for it."
Other possible BBD areas, including U.S. Business Route 24 from Georgetown Road to Muller Road, will be studied by Jacob & Klein.
In an unrelated note, Mayor Lilija Stevens announced this week she'll hold her next monthly "Let's Talk Washington" discussion from 3-4 p.m. June 24 at the Sunnyland Branch of the Washington District Library in Washington Plaza.
Cannabis dispensary update
City staff held a kickoff meeting with Key Cannabis employees following the council's 5-3 decision last month to approve a special use so a cannabis dispensary can be built on Centennial Drive.
Jon Oliphant, the city's planning and development director, told the council construction of the dispensary is tentatively scheduled to begin in early July with completion around mid-October, weather permitting.
New office spaces
Among other actions taken by the council:
- Appropriate office space at the Washington Police Station for the new second deputy chief and at City Hall for the mayor will be created after council approved separate construction contracts with respective lone bidders Mid-Illini Companies and P.J. Hoerr for not-to-exceed amounts of about $45,500 and $27,400, respectively. Mid-Illini and P.J. Hoerr are both based in Peoria.
- The council approved having road pavement and sidewalk condition inventories performed by Ohio-based Transmap for about $58,360. City Engineer Dennis Carr said the work will help the Washington make informed and cost-effective decisions in its roadway maintenance program and help the city understand the scope and cost of sidewalk improvements.
- MGT Impact Solutions of Florida was approved to do a classification and compensation study for non-union city employees for $17,000. Fiegenschuh said MGT did similar studies when he was the city administrator in Rantoul and Rochelle and "administration and elected officials were pleased with the process."
- Millennia Professional Services of Morton was approved to provide construction inspection services for 2026 capital projects for a not-to-exceed cost of approximately $660,000.
- Low bidder Stark Excavating of Bloomington was awarded a $1.5 million contract to improve storm sewers in an area bounded by Adams Street to the north, Walnut Street to the south, Church Street to the west and Cedar Street to the east.
- The council approved the purchase of a new Caterpillar backhoe for nearly $137,000, minus a $60,000 trade-in for a 2021 John Deere backhoe used for loading load road salt that is showing signs of wear.
- Fiegenschuh was appointed to the Five Points Washington board, replacing Alderperson John Blundy as the city's representative. Work commitments made it difficult for Blundy to attend board meetings. Also, Cynthia Jeffords was appointed to the Glendale Cemetery board of managers, replacing longtime board member Carol Moss.
