Beautiful Downtown Peoria

Beautiful Downtown Peoria

Wednesday, November 19, 2008

HIZ TIF and BDD Adopted




HOSPITALITY IMPROVEMENT ZONE - CITY OF PEORIA, ILLINOIS

Tax Increment Financing District (TIF) and Business Development District (BDD)

The City Council of Peoria adopted the Hospitality Improvement Zone (HIZ) Tax Increment Financing District (TIF) on October 28, 2008. The City Council adopted the Business Development District (BDD) on November 11, 2008. Both of these districts will last for 23 years. The map above shows the BDD. The TIF is slightly smaller, omitting the Civic Center property south of Monroe.

The City of Peoria is making a concerted effort to assist downtown hotels and other businesses to improve. The City has a great downtown and Civic Center, but more and improved hotel rooms are needed to support larger conferences and conventions.

The City has created a Tax Increment Financing (TIF) District and a Business Development District (BDD). The TIF will capture new property taxes generated by improvements to the hotels, and put some of the increased property taxes back to the hotels to help pay for the improvements. The BDD permits an up to 1% Sales and an up to 1% Hotel tax to be established. The City would refund these tax revenues back to the hotels to help fund their improvements.

The City encourages all hotels to plan for improved facilities. A great first impression of the City is vital in securing new investment. Our downtown is beautiful, overlooking the Illinois River and wooded bluffs. Improved hotels, restaurants, and retail will help improve our image, and increase the number of people visiting our community.

More info at:
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Friday, October 10, 2008

Public Hearings


Public Hearings are Scheduled on the proposed Hospitality Improvement Zone (HIZ), to include a:


Tax Increment Financing District (TIF)

and a Business Development District (BDD).


The Hearings will be held before the City Council on Tuesday 14 October 2008 after 6:15 pm.


There will be a second public hearing on the BDD on 28 October 2008 before the City Council after 6:15 pm.


Interested citizens are encouraged to send their comments and suggestions to me at Hullingerc@gmail.com.  


We will add comments received to the public record.

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Monday, September 15, 2008

HIZ & BDD Schedule Update

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Work continues on the development of the of the Hospitality Improvement Zone (HIZ) Tax Increment Financing District (TIF) and the Business Development District (BDD). We have completed the property survey work, and both plans have been completed and are on file for public review at the Economic Development office at 505 NE Monroe.
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Based on our survey work, research, and plan, the consultant and City staff have found that the district is qualified for both the TIF and BDD under Illinois State law. Both the TIF and BDD would assist HIZ area businesses reinvest and improve their properties, enhancing the hospitality industry.
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The JRB met on September 11, 2008 to consider the TIF. They met a second time on September 29, 2008 at 09:00 at City Hall. The taxing bodies voted unanimously that the area was eligible for the TIF.
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The BDD is scheduled for two public hearings before City Council on 14 and 28 October 2008.
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The TIF is scheduled for consideration at a public hearing on 14 october 2008 before the city council.
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Both the TIF and BDD are scheduled for City Council consideration for approval on the 28 October 2008.
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Info and schedule of future meetings and actions are on the blog below.


Contact Craig Hullinger or Bobby Gray at the City Economic Development office if you have any questions or concerns.

309 494 8640 hullingerc@gmail.com

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HIZ TIF and BDD - Executive summary

Hospitality Improvement Zone (HIZ)
Tax Increment Financing (TIF) District
Business Development District (BDD)
Executive Summary

The map below shows the area to be included in the Proposed Hospitality Improvement Zone (HIZ) Tax Increment Fiancing (TIF) District. The proposed Business Development District (BDD) covers the same area plus the Civic Center area to the southwest of the map.



The City of Peoria is considering the creation of a Tax Increment Financing District (TIF) and a Business Development District (BDD) in downtown Peoria. The purpose of these Districts is to help the Hospitality industry improve, bringing more investment, vitality, tax base, and jobs to downtown Peoria.

TIF INTRODUCTION – PROJECT AREA

The proposed Hospitality Improvement Zone TIF is irregular in shape and is generally bounded by Main, Monroe, Fayette, Adams, Hamilton, Madison, Fulton, Monroe, William Kumpf and M.L. King Drive. The Project Area is approximately 26 acres in size and contains a total of 49 tax parcels. Approximately 6 acres of land are dedicated to streets, alleys and other public rights-of-way, leaving 20 acres of net land area, which is classified as improved property.

The BDD is slightly larger then the TIF. It includes the Civic Center property to the south of the TIF.

TIF ELIGIBILITY

The Project Area is being designated using the criteria for an improved “conservation area.” In order to be designated as a conservation area, 50% or more of the buildings in the Project Area must be 35 years of age or older.

The Project Area contains 32 buildings, 27 of which meet the age threshold, representing 84% of all buildings. The eligibility analysis to determine whether the Project Area qualifies for designation under the TIF statute included the following tasks:

Exterior survey of the condition and use of each building

Field survey of environmental conditions involving parking facilities, public infrastructure, site access and general property maintenance

Analysis of existing land uses and their relationships

Comparison of surveyed buildings to zoning regulations

Analysis of current platting, building size and layout

Review of previously prepared plans, studies, inspection reports and other data

Analysis of real estate assessment data



Exterior building condition and site conditions surveys of the Project Area were undertaken on June 24-25, 2008. At least 3 factors of 13 factors that are defined in the TIF Act must be meaningfully present and reasonably distributed with respect to improved property.

Six factors meet this requirement with respect to the proposed Hospitality Improvement Zone TIF. These factors include:

Obsolescence – evidenced by the age of structures, deferred maintenance, inadequate provision for service and off-street loading, and vacancies, especially on upper floors, that reflect economic and functional obsolescence.

Deterioration – with respect to private property, including site improvements buildings, and maintenance with respect to windows, doors, fascia and other trim elements that are beyond normal repair. Most tax parcels exhibit deterioration with respect to site improvements and buildings. Deteriorated public infrastructure, including alleys, sidewalks, and street pavement is also found throughout the Project Area. Deterioration was identified with respect to 84% of all tax parcels and 59% of buildings.

Inadequate utilities – due to the age and capacity of utilities and the lack of separated sanitary and storm sewers. The City is under an EPA mandate to develop a plan the reduce pollutant discharges from the existing combined sewer system. The central water system is old and electric service is also in poor condition. Utility upgrades will be needed to support new development in the Project Area.

Excessive land coverage or overcrowding of community facilities – with closely spaced, multi-story buildings that are obsolete and deteriorating, inadequate provisions for off-street loading. During the field survey of building and site conditions, numerous instances of delivery trucks off-loading supplies from public streets were observed.

Lack of community planning – illustrated by parcels that are generally of inadequate shape and size to meet contemporary development standards, and uses (such as adult entertainment and the work-release facility) that are incompatible with the desired image of the area as a convention and meeting center anchored by the Civic Center and major, high-quality hotels. The current land use pattern evolved under a planning philosophy that is no longer considered desirable in Peoria. In particular, the emphasis on large surface parking lots to serve various commercial and civic land uses consistent with planning philosophy common from the 1950’s through the 1980’s. This approach has given way to an emphasis on compact mixed use development that energizes activity at the street level and the use of parking structures, as articulated in the Heart of Peoria Plan.

Lagging or declining EAV – the EAV of the Project Area has declined in two of the last five years and lagged that of the City for two other years, meeting the statutory test for the presence of this factor.

In addition three other factors are present to a more limited extent. These factors support designation of the area as a Tax Increment Finance District, but were not used to establish eligibility of the Project Area for TIF designation. These factors are:

Excessive vacancies (13 of the 32 buildings, 41%, were either fully or partially vacant. These vacancies contribute to the image of decline and disinvestment and serve as an impediment to attracting new private investment.

Presence of structures below minimum code standards (affecting only three buildings – the theater, Amvets and parking deck – based on the presence of significant deterioration or limitations on use of upper floors related to life safety issues)

Deleterious land use or layout (affecting only the block in the northwest portion of the Study Area, where an overcrowded car repair shop and used car lot conflict with the commercial/residential mixed use character of the remainder of the block).

REDEVELOPMENT PLAN

The Plan seeks to encourage redevelopment and repositioning of the Project Area as a vibrant regional conference center that provides adequate hotel facilities to support the Civic Center and other hospitality-oriented businesses. The Plan is intended to improve Peoria’s ability to compete as a regional conference center by expanding and upgrading hotel facilities. The Plan recognizes that new investment in hotel, commercial and mixed-use property is needed to improve and revitalize the Project Area.

Redevelopment projects to be undertaken in the Project Area are intended to:

Rehabilitate existing hotels and commercial buildings in the Project Area;

Encourage development of new hotel facilities;

Encourage redevelopment of large surface parking lots into appropriate commercial and mixed use development; and

Provide public and private infrastructure, open space, streetscape improvements and other amenities to support private investment.



The Plan seeks to:

Make the downtown a viable business, tourism and entertainment center;

Provide an economic environment that supports existing and new businesses;

Make Peoria aesthetically desirable;

Provide safe and efficient infrastructure and utilities;

Provide for the orderly transition from obsolete uses to economically sustainable land development patterns;

Create an attractive environment that encourages new hotel and other hospitality-oriented uses;

Increase the Project Area’s tax base;

Encourage redevelopment of parcels that are underutilized and vacant;

Reduce or eliminate deleterious conditions within the Project Area; and

Improve public facilities and amenities.


Public intervention is needed to achieve the City’s development objectives for the Project Area, prevent the Project Area’s decline and encourage private investment. Revitalization of the Project Area will take time and cannot be accomplished without creation of public/private partnerships.

Despite investments made by the Pere Marquette, Mark Twain and Holiday Inn over the past decade in an effort to bring their facilities closer to the expectations of the current hotel market and investments by other commercial property owners, the taxable value of the Project Area as consistently lagged the economic growth of the rest of Peoria. Between 2002 and 2007, the taxable growth for all of Peoria averaged 6.2% annually, compared with 2.0% for the Project Area.

Repositioning the Project Area to make it a more competitive urban place will require significant new public and private investment.

LAND USE PLAN

The land use plan is intended to serve as a guide for future land use improvements and developments within the Project Area. The land use designation for the Project Area is Hospitality Mixed Use. The intent is to develop a vibrant mix of hospitality-oriented facilities that are integrated into the broader fabric of the downtown land use pattern. Within this framework, residential, commercial and institutional uses are appropriate complimentary uses. These uses are consistent with the redevelopment goals of the TIF plan, Peoria’s Comprehensive Plan and the Heart of Peoria Plan.

HOUSING IMPACT STUDY

The Project Area includes 4 buildings with residential units, 63 of which are inhabited. One mixed use building is vacant. Two other mixed use buildings contain units that are occupied by households. The final building is the DOC work-release facility with 26 dormitory-style rooms that can accommodate up to 200 inmates. Under U.S. Census definitions, the work-release facility is classified as “group quarters” and residents are not considered to be households.

FINANCIAL IMPACT ON TAXING DISTRICTS

Increased service demands for most taxing districts are expected to be moderate because they are already serving the Project Area. Upon completion of the Plan and Project, all taxing districts will share the benefits of a substantially improved tax base. To the degree that taxing districts experience increased costs as a result of implementation of the Plan, the City may enter into agreements with the affected taxing district in accordance with the provisions of the Act.

BUDGET

Over the 23 year life of the TIF, incremental property tax revenues are expected to be generated from new private development in the Project Area. These new property tax revenues may be available to support a variety of eligible redevelopment activities including infrastructure improvements, streetscape enhancement, rehabilitation and other eligible activities. The 2007 EAV of the Project Area is approximately $12,250,600. By tax year 2032, following substantial completion of development of the Hospitality Improvement Zone TIF Redevelopment Project, the EAV of the Project Area is estimated to be approximately $136 million.

BUSINESS DEVELOPMENT DISTRICT (BDD)

The BDD is a separate district. it covers the same area as the proposed TIF, and also the remainder of the Civic Center property to the southwest of the District. The BDD allows the City to enact an up to 1% sales tax on hotels and businesses. The money would be used to help hotels and businesses improve their properties. Citizens who wish to know more about the plan are invited to review a copy of the complete plan at the Economic Development Office.


FURTHER PUBLIC REVIEW

Citizens who wish to know more about the plan are invited to review a copy of the complete plan at the City Clerk office, or at the Economic Development Office temporarily located at 505 E. Monroe Street, Peoria, Illinois. You can also send comments or questions to Craighullinger@gmail.com, or call at 309 494 8640.

Notice of Public Hearing

City of Peoria Illinois, Peoria County, Illinois

Proposed Approval of HOSPITALITY IMPROVEMENT ZONE

BUSINESS DISTRICT DEVELOPMENT PLAN

Notice is hereby given that on the 30th Day of September , 2008 at 6:15 P.M. at City Hall, Room 400, Peoria, Illoinois, and on the 14h day of October, 2008, at 6:15 P.M. at City Hall, Room 400, Peoria, Illinois, public hearings will be held to consider the approval of the development plan (the “Development Plan”) for and the designation of the Hospitality Improvement Zone Business District (the Business District) of the City. The Business Development District consists of the territory legally described as follows:

The approximate street location of the Business District is as follows:

Commencing at the corner of Kumpf Blvd. and Main St., said point being the intersection of the easterly line of W.M. Kumpf Blvd. and the southwesterly line of Main St.; thence southeasterly along the southwesterly line of Main St. a distance of 111 feet to the Point of Beginning of the tract to be described; thence southeasterly along said southwesterly line of Main St. to the intersection of the southwesterly line of Main St. and the southeasterly line of Monroe St.; thence northeasterly across main to the intersection of the northeasterly line of Main St. and the southeasterly line of Monroe St.; thence southeasterly along the northeasterly line of Main St. to the intersection with the northwesterly line of an alley in block 16 of the Original Town of Peoria; thence northeasterly along said northwesterly line of the alley to a point on the southwesterly line of Hamilton Blvd.; thence northwesterly along the southwesterly line of Hamilton Blvd. to the southeasterly line of Monroe St.; thence northeasterly along said southeasterly line to a point that is 94 feet southwesterly from the southwesterly line of Fayette St.; thence northwesterly and parallel with Fayette St. a distance of 171 feet to the southeasterly line of the alley in block 37 of Hale’s Addition; thence northeasterly along said alley line a distance of 94 feet to the southwesterly line of Fayette St.; thence southeasterly along the southwesterly line of Fayette to the northwesterly line of Adams St.; thence southwesterly along said northwesterly line to the centerline of a vacated alley in block 9 of the Original Town of Peoria; thence northwesterly along said centerline to the northwesterly line of Jefferson Ave.; thence southwesterly along the northwesterly line of Jefferson Ave. to the northeasterly line of Hamilton Blvd.; thence northwesterly along said northeasterly line to the northwesterly line of Madison Ave.; thence southwesterly along said northwesterly line to a point that is 230 feet southwesterly from the southwesterly line of Main St.; thence northwesterly and parallel with Main St. a distance of 171 feet to the southeasterly line of an alley in block 17 of the Original Town of Peoria; thence southwesterly along said southeasterly line to the southwesterly line of Fulton St.; thence southeasterly on said southwesterly line to a point that is 383.94 northwesterly from the northwesterly line of Jefferson Ave.; thence southwesterly and parallel with Jefferson Ave. a distance of 132 feet; thence southeasterly and parallel with Fulton St. a distance of 210 feet; thence northeasterly and parallel with Jefferson Ave. a distance of 132 feet to the southwesterly line of Fulton St.; thence southeasterly along said southwesterly line to the northwesterly line of Jefferson Ave.; thence southwesterly along the northwesterly line of Jefferson Ave. to the easterly line of Kumpf Blvd.; thence northerly along the easterly line of Kumpf Blvd. to the southerly line of M.L. King Dr.; thence easterly along the southerly line of M.L. King Dr. to a point that is 100 feet southwesterly from the southwesterly line of Main St; thence southeasterly and parallel with Main St. a distance of 111 feet; thence northeasterly and parallel with M.L. King Dr. a distance of 100 feet to the Point of Beginning.

There will be considered at the hearing approval of the Business District Development Plan. The proposed Development Plan is on file and available for public inspection at the office of the City Clerk at City Hall, Room 401, Peoria, Illinois 61602. Pursuant to the proposed Development Plan the City proposes to have the right to exercise the use of eminent domain; To acquire, manage, convey or otherwise dispose of property in accordance with the development or redevelopment plan; To apply for and accept capital grants and loans from the United States and the State of Illinois, or any instrumentality of the United States or the State, for business district development or redevelopment; To borrow funds as deemed necessary for the purpose of business district development and redevelopment; To enter into contracts with any public or private agency or person; To sell, lease, trade or improve real property; To employ such persons as may be necessary for the planning, administration and implementation of business district plans; To expend public funds as necessary for the planning, execution and implementation of business district plans; To establish by ordinance or resolution procedures for the planning, execution and implementation of business district plans; To create a Business District Development and Redevelopment Commission to act as an agent for the municipality; To impose a retailers’ occupation tax and a service occupation tax in the business district to pay for business district project costs as set forth in the business district plan approved by the municipality; To impose a hotel operators’ occupation tax to pay for the business district project costs as set forth in the business district plan approved by the municipality; and to issue obligations to be secured by the business district tax allocation fund described in Section 11-74.3-6 of the Act.

Prior to the date of the hearing, interested persons may submit written comments to the City, to the attention of the City Clerk, City Hall, 419 Fulton Street, Room 401, Peoria, Illinois 61602.
At the hearing, all interested persons may file written objections with the City Clerk and may be heard orally with respect to any issues regarding the approval of the proposed Development Plan.

The hearing may be adjourned by the Mayor and City Council of the City without further notice other than a motion to be entered upon the minutes of the hearing fixing the time and place of the subsequent hearing.

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__ City Clerk
__ City Peoria
__ Peoria County, Illinois

Notice of Public Hearing HIZ TIF

City of Peoria, Illinois, Peoria County, Illinois

Proposed Approval of HOSPITALITY IMPROVEMENT ZONE TIF
Redevelopment Project Area

Notice is hereby given that on the 14h day of October, 2008, at 6:15 P.M. at City Hall, Room 400, Peoria, Illinois, a public hearing will be held to consider the approval of the redevelopment plan (the “Redevelopment Plan”) and project (the “Project”) for and the designation of the Hospitality Improvement Zone TIF Redevelopment Project Area of the City (the “Redevelopment Project Area”) and the adoption of tax increment allocation financing therefore.

The Redevelopment Project Area consists of the territory legally described as follows:
The approximate street location of the Redevelopment Project Area is as follows:
Commencing at the corner of Kumpf Blvd. and Main St., said point being the intersection of the easterly line of W.M. Kumpf Blvd. and the southwesterly line of Main St.; thence southeasterly along the southwesterly line of Main St. a distance of 111 feet to the Point of Beginning of the tract to be described; thence southeasterly along said southwesterly line of Main St. to the intersection of the southwesterly line of Main St. and the southeasterly line of Monroe St.; thence northeasterly across main to the intersection of the northeasterly line of Main St. and the southeasterly line of Monroe St.; thence southeasterly along the northeasterly line of Main St. to the intersection with the northwesterly line of an alley in block 16 of the Original Town of Peoria; thence northeasterly along said northwesterly line of the alley to a point on the southwesterly line of Hamilton Blvd.; thence northwesterly along the southwesterly line of Hamilton Blvd. to the southeasterly line of Monroe St.; thence northeasterly along said southeasterly line to a point that is 94 feet southwesterly from the southwesterly line of Fayette St.; thence northwesterly and parallel with Fayette St. a distance of 171 feet to the southeasterly line of the alley in block 37 of Hale’s Addition; thence northeasterly along said alley line a distance of 94 feet to the southwesterly line of Fayette St.; thence southeasterly along the southwesterly line of Fayette to the northwesterly line of Adams St.; thence southwesterly along said northwesterly line to the centerline of a vacated alley in block 9 of the Original Town of Peoria; thence northwesterly along said centerline to the northwesterly line of Jefferson Ave.; thence southwesterly along the northwesterly line of Jefferson Ave. to the northeasterly line of Hamilton Blvd.; thence northwesterly along said northeasterly line to the northwesterly line of Madison Ave.; thence southwesterly along said northwesterly line to a point that is 230 feet southwesterly from the southwesterly line of Main St.; thence northwesterly and parallel with Main St. a distance of 171 feet to the southeasterly line of an alley in block 17 of the Original Town of Peoria; thence southwesterly along said southeasterly line to the northeasterly line of Fulton St.; thence northwesterly along the northeasterly line of Fulton St. to the northwesterly line of Monroe St.; thence southwesterly along the northwesterly line of Monroe to the westerly line of Kumpf Blvd.; thence northerly along the easterly line of Kumpf Blvd. to the southerly line of M.L. King Dr.; thence easterly along the southerly line of M.L. King Dr. to a point that is 100 feet southwesterly from the southwesterly line of Main St; thence southeasterly and parallel with Main St. a distance of 111 feet; thence northeasterly and parallel with M.L. King Dr. a distance of 100 feet to the Point of Beginning.

There will be considered at the hearing approval of the Redevelopment Plan and Project and designation of the Redevelopment Project Area and the adoption of tax increment allocation financing therefore. The proposed Redevelopment Plan is on file and available for public inspection at the office of the City Clerk at City Hall, Room 401, Peoria, Illinois 61602. Pursuant to the proposed Redevelopment Plan and Project the City proposes to facilitate redevelopment of the Redevelopment Project Area by incurring or reimbursing eligible redevelopment project costs, which may include, but shall not be limited to, studies, surveys, professional fees, property assembly costs, construction of public improvements and facilities, building and fixture rehabilitation, reconstruction, renovation and repair, financing costs and interest costs, all as authorized under the Tax Increment Allocation Redevelopment Act, as amended.


The Redevelopment Plan and Project proposes to provide assistance for residential and commercial facilities by paying or reimbursing costs related to site assembly, analysis, professional services and administrative activities, public improvements and facilities, including streetscape enhancements, water and sewer improvements, street lighting and landscaping, the execution of one or more redevelopment agreements, and the payment of financing and interest costs.

Prior to the date of the hearing, each taxing district having property in the proposed Redevelopment Project Area and the Illinois Department of Commerce and Community Affairs may submit written comments to the City, to the attention of the City Clerk, City Hall, 419 Fulton Street, Room 401, Peoria, Illinois 61602.

There is hereby convened a joint review board to consider the proposed approval of the Hospitality Improvement Zone TIF Redevelopment Plan and Project, designation of the Redevelopment Project Area and adoption of tax increment allocation financing therefore. The joint review board shall consist of a representative selected by each community college district, local school district, park district, library district, township, sanitary district, regional airport authority, transit district and county that will have authority to directly levy taxes on the property within the Redevelopment Project Area at the time the proposed Redevelopment Plan and Project is approved, a representative selected by the City, and a public member. The first meeting of said Joint Review Board shall be held at 3:00 P.M. on the 11th day of September, 2008, at City Hall, 419 Fulton Street, Room 112, Peoria, Illinois 61602.

At the hearing, all interested persons or affected taxing districts may file written objections with the City Clerk and may be heard orally with respect to any issues regarding the approval of the proposed Redevelopment Plan and Project, designation of the Redevelopment Project Area, and adoption of tax increment allocation financing therefore.

The hearing may be adjourned by the Mayor and City Council of the City without further notice other than a motion to be entered upon the minutes of the hearing fixing the time and place of the subsequent hearing.

/s/ *
__ City Clerk
__ City of Peoria
__ Peoria County, Illinois



Tuesday, June 10, 2008

HIZ & BDD Schedule

The City Council has authorized that the required consulting studies be performed to support the creation of the Hospitality Improvement Zone (HIZ) Tax Increment Financing District (TIF) and the Business Development District (BDD). We have completed the Property survey work, and the first draft of the studies are underway. Based on our survey work, we believe the district is qualified for both the TIF and BDD will both be qualified under State law.

We estimate that the HIZ & BDD will be ready for a public hearing before City Council on the 2nd Tuesday in October, and for their consideration for approval on the 4th Tuesday in October 2008. Info and schedule of future meetings and actions are on the blog below.


Friday, May 23, 2008

Agenda Date Requested: May 27, 2008

Action Requested: requests City Council

AUTHORIZES THE CITY MANAGER TO ENTER INTO AN AGREEMENT WITH CAMIROS, LTD IN THE AMOUNT OF $12,000 TO CONDUCT A TAX INCREMENT FINANCING (TIF) ELIGIBILITY STUDY AND A BUSINESS DEVELOPMENT DISTRICT (BDD) ELIGIBILITY STUDY FOR THE PROPOSED HOSPITALITY IMPROVEMENT ZONE (HIZ). THE ACTUAL BOUNDARY OF THE TIF, BDD AND THE REDEVELOPMENT PLAN WILL BE DETERMINED AS PART OF THE STUDY.

Background: The Peoria Civic Center has completed a major expansion. The Center now contains over 110,000 square feet of exhibit space, 27,000 square feet of meeting space, and 18,000 square feet of pre-function space.

In 2002, the Civic Center Authority hired Johnson Consulting to analyze the Center’s master plan. In the consultant’s experience and opinion, hotels physically attached to Convention Centers in northern climates are much more successful than hotels that are not attached. According to the study, downtown Peoria needs more hotel rooms, a view shared by the Peoria Area Convention and Visitors Bureau. The Peoria Civic Center Authority indicates that a number of potential conventions have not selected Peoria because of the lack of an adequate number of rooms.

Improved downtown hotels are desirable to support the Civic Center, and to match the quality of hotels provided by our competitors. Improved civic, entertainment, restaurant, and retail services are needed.

In 2006, the Civic Center and the City retained HVS, a quality hospitality industry consultant. The study documented the need for more and better hotels to support the Civic Center. It also documented the fact that the downtown hotels continue to struggle, with relatively low occupancy.

In 2007, a study by a Six-Sigma Black Belt further examined the need for more hotel rooms to increase economic activity in the City Center.

Downtown Peoria faces serious competition from other conference and convention centers. The addition of the Lincoln Museum has greatly enhanced Springfield’s attractiveness for conferences. Normal is completing a major new conference center and hotel with substantial governmental assistance. The Embassy Suites is near completion in East Peoria, and received substantial TIF assistance. Tinley Park built their center with substantial governmental assistance, and is preparing a major expansion. Four new hotels are underway or planned near Grand Prairie. These hotels are a welcome economic addition to the City, but will also further challenge downtown business.

On January 8, 2008, the City Council authorized the Director of Economic Development to meet with downtown hoteliers and other property owners to investigate possible methods to assist in the development of Peoria’s downtown. Staff met with all of the interested parties and taxing bodies to discuss the establishment of a Hospitality Improvement Zone (HIZ) that could have a variety of incentives to assist the businesses located within the zone. Over 15 presentations were made and the Initiative received broad community support for a Tax Increment Financing District (TIF) and a Business Development District (BDD).


Hospitality Improvement Zone (HIZ) Presentations Made to Date

City Council
Downtown Hotel Owners
Downtown Property Owners
Sanitary District
Peoria County
Peoria Township
Detweiller Trust
Planning Commission
Heart of Peoria Commission
PACVB
PCC
Library
Various citizens and developers
City staff
Mass Transit District
EDC
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Requested Meetings

Economic Development Stakeholders
Chamber of Commerce May 27, 2008
Chamber of Commerce June 5, 2008
District 150 - Will schedule after agreement on previous TIF's is complete
Park District - No presentation needed, letter was enough
ICC - Requested but not placed on agenda

More Info on www.peoriaed.blogspot.com
under Hospitality Improvement Zone

Tax Increment Financing (TIF):


BUT For the TIF Incentive, the development of the Hospitality Improvement Zone Project Area cannot proceed.

In order to use the tax increment financing technique, a municipality must first establish that the proposed redevelopment project area meets the statutory criteria for designation as a “blighted area” or a “conservation area”, a redevelopment plan must then be prepared which describes the development or redevelopment program intended to be undertaken to reduce or eliminate those conditions which qualified the redevelopment project area as a “blighted area” or “conservation area,” or combination thereof, and thereby enhance the tax bases of the taxing districts which extend into the redevelopment project area. The statutory requirements are set out at 65 ILCS 5/11-74.4-3, et seq.

Business Development District (BDD):

If the corporate authorities of a municipality desire to impose a tax by ordinance pursuant to subsection (12) or (13) of Section 11-74.3-3, the following additional procedures shall apply to the designation of the business district and the approval of the business district development or redevelopment plan:

(1) The corporate authorities of the municipality shall hold public hearings at least one week prior to designation of the business district and approval of the business district development or redevelopment plan.

(2) The area proposed to be designated as a business district must be contiguous and must include only parcels of real property directly and substantially benefited by the proposed business district development or redevelopment plan.

(3) The corporate authorities of the municipality shall make a formal finding of the following: (i) the business district is a blighted area that, by reason of the predominance of defective or inadequate street layout, unsanitary or unsafe conditions, deterioration of site improvements, improper subdivision or obsolete platting, or the existence of conditions which endanger life or property by fire or other causes, or any combination of those factors, retards the provision of housing accommodations or constitutes an economic or social liability or a menace to the public health, safety, morals, or welfare in its present condition and use; and (ii) the business district on the whole has not been subject to HB0826 Enrolled LRB093 05628 WGH 05721 b Public Act 093-1053 growth and development through investment by private enterprises or would not reasonably be anticipated to be developed or redeveloped without the adoption of the business district development or redevelopment plan.

(4) The proposed business district development or redevelopment plan shall set forth in writing: (i) a specific description of the proposed boundaries of the district, including a map illustrating the boundaries; (ii) a general description of each project proposed to be undertaken within the business district, including a description of the approximate location of each project; (iii) the name of the proposed business district; (iv) the estimated business district project costs; (v) the anticipated source of funds to pay business district project costs; (vi) the anticipated type and terms of any obligations to be issued; and (vii) the rate of any tax to be imposed pursuant to subsection (12) or (13) of Section 11-74.3-3 and the period of time for which the tax shall be imposed.

The Economic Development Department is requesting that the City Council approve the selection of Camiros, Ltd as the TIF/BDD consultant to conduct the Eligibility Study and write the Redevelopment Plan. The Eligibility Study will determine whether a portion of the City to be known as the Hospitality Improvement Zone qualifies for designation as a Business Development District under the provisions contained in the Act. If the Project Area so qualified, develop a redevelopment plan for the HIZ in accordance with the requirements of the Act.

RFP RESPONSE FROM CONSULTANTS:

An eligibility study is required to establish a TIF/BDD. The process requires 90 days, and requires a public hearing, culminating in adoption by the City Council. The following are the cost of the proposals from the consultants to prepare the TIF/BDD studies:

Camiros Ltd $ 12,000
Duff & Phelps $ 39,500
McKenna Development Strategies $ 42,000
Development & Municipal Initiatives, LLC $ 42,500
Kane McKenna $ 55,000 Plus travel

Staff recommends that the Council approve Camiros, Ltd, at a cost of $12,000 to conduct the study. They have the substantial experience for the best price. The bid cost are substantially lower because the Department of Economic Development has done and will continue to do a substantial portion of the work, including the development of the TIF/ BDD area maps, GIS work, assistance in field work, mailings, etc. In addition, Camiros conducted the Eagle View and Warehouse District Eligibility Study, resulting in the creation of the TIF’s. Their work was very good.

Financial Impact: If the TIF and BDD are approved the City anticipates existing hotels will use the incentives to upgrade and improve their facilities. New hotel operators may also develop within the HIZ area. The BDD permits an additional Sales and/or H tax to be levied on businesses within the BDD. The TIF captures new property tax increment, which, subject to Council approval, can be used to incent redevelopment and/or build needed infrastructure.

NEIGHBORHOOD CONCERNS: The businesses and residents of downtown Peoria have ask for assistance in the redevelopment of blighted commercial areas.

Impact if Approved: Redevelopment and new commercial development will be encouraged, which would revitalize business and stabilize the surrounding area.

Impact if Denied: If the HIZ TIF/BDD is not created the area will remain as it is at present,

Alternatives: None.

EEO Certification Number: 02614

RELATIONSHIP TO THE COMPREHENSIVE PLAN: The development of the HIZ TIF/BDD is consistent with the Comprehensive Plan.
VISION: WE HAVE A HEALTHY, THRIVING ECONOMY.
GOAL: A. Provide an economic environment that supports existing and new businesses.








Friday, May 9, 2008

TIF and BDD RFP Request

Request For Proposals - City of Peoria, Illinois
Tax Increment Financing (TIF) and Business Development District (BDD) Consulting Services Proposals Due Monday May 19, 2008 at 09:00 am

Introduction

The City of Peoria, Illinois seeks the services of a consultant to establish a Tax Increment Financing District (TIF) and Business Development District (BDD) for the proposed Hospitality Improvement Zone (HIZ) as shown on the map below.

Background

Peoria has a population of 118,000; it is the second largest metropolitan area in Illinois, and boasts the second most densely developed downtown. The proposed HIZ is adjacent to the Central Business District, and near the Illinois River, O’Brien Baseball Stadium, Caterpillar’s Corporate Headquarters, two major hospitals, the proposed Riverfront Museum and Caterpillar Visitors’ Center. The Peoria Civic Center is located within the proposed HIZ, hosting 574 event days with 765,000 patrons in fiscal year 2007.


Scope Of Work

The TIF Consultant will develop all required studies and reporst to establish the designation for the HIZ area as TIF and a BDD in accordance with Illinois State Statutes.

The scope should include but is not limited to:

Conduct Required Field Surveys

· Condition and use of each building
· Number, location and occupancy status of any residential units within the Study Area;
· Location of vacant sites and vacant buildings; and
· Evaluation of site conditions including roadways, lighting, parking facilities, landscaping, fences walls and general property maintenance.

Conduct Tax and Assessment Research

· Evaluate the equalized assessed value (EAV) of the Study Area

Examine City Records and Development Standards

· Evaluate existing land use, current zoning ordinances and current zoning map

TIF and BDD Designation

· Prepare the TIF and BDD redevelopment plans; and
· Assist City staff with notices, meetings and required approvals.

City Staff Will Provide Substantial Assistance

· Detailed GIS maps of the Study Area are on line at www.peoriagis.com;
· Six years of EAV for all properties in electronic format;
· Assistance in developing the Plan and Eligibility Study
· Transport consultant to study area;
· Help develop/conduct existing land use and property condition survey;
· Manage public meeting notices i.e. public hearings and Joint Review Board meetings; and
· Manage public hearings
· City staff will handle all required mailings to property owners and taxing bodies.

Statement of Qualifications and Experience
All statements of Qualifications and Experience must include, but not be limited to, the following information and documentation (Brevity is appreciated):
· A transmittal letter which states the respondent’s desire to perform the required services;

· Estimated costs should be a fixed price with expenses;

· Name, size and brief description of the firm, and their background, size, projects, scope and nature of service; including the same information for any proposed sub-consultants. If sub-consultants are anticipated, describe the role proposed for each firm or consultant involved in the project, and the approximate percentage of work assigned to each;

· A brief summary of any specialized experience, qualifications or unique capabilities applicable to this project that you feel is important to the success of the project.

· Number of TIF and BDD districts that your firm has established over the past 3 years.

· Estimated time schedule for the project, broken down into major milestones and capacity to proceed immediately and without delay. The estimated timeframe for the development of the TIF/BDD studies is June – October 2008;

· Representation that the candidate firm and consulting team will conform to and comply with the City of Peoria’s Equal Employment Opportunity requirements (Exhibit A).

Submission Requirements

Please submit by email; all submissions, declinations and questions should be directed to:

Craig Hullinger, AICP
Department of Economic Development
Peoria City Hall
419 Fulton Street, Suite 402
Peoria, IL 61602
(309) 494-8640
(309) 494-8650 fax
Email: hullingerc@gmail.com

Proposals Due: Monday May 19, 2008 by 9:00 am. Any costs incurred by candidate firms or consulting teams in preparing submitted Statement of Qualifications are the sole responsibility of the respondent. PDF copies of Statement of Qualifications can be emailed but must be followed up with hard copies. A City staff review committee will evaluate all proposals. The committee may consist of members of the following Departments: Public Works, Economic Development, Planning and Growth Management. Final recommendations will be made to the City Council. Final authorization to enter into a contract can only be made by City Council; and until that occurs, there are no commitments by the City.

Price

Submit a proposal with prices for”

TIF Alone BDD Alone Both Projects together

RFQ Timetable
(Dates of Finalist selection and Finalist meetings are approximate)

RFQs Advertised: May 11 & 15, 2008
Proposals are due: May 19, 2008
Consultant selected: May 20, 2008
Request City Council Approval May 27, 2008

Exhibit A

EEO CONTRACT COMPLIANCE CLAUSE

It is hereby declared to be the public policy of the City of Peoria, that it will not execute a contract for goods and/or services with any individual, business enterprise, supplier/vendor; maintain a financial relationship with any financial institution; or use the services of any labor organization or member thereof found to be in violation of the provisions of the City Code for the City of Peoria, Chapter 17, Article III, Division 4, Section 17-118.

This clause covers contractors, vendors, suppliers, borrowers and/or recipients of city resources, purchasers and/or developers of city owned property, and any other individuals or entities providing goods and/or services to the City of Peoria; and are hereinafter referred to as “Contractor”.

If any Contractor conducting business with the City of Peoria fails to comply with the fair employment and affirmative action provisions of Chapter 17, Article III, Division 4 of the City Code (hereinafter Chapter 17), the city, at its option, may do any or all of the following:

(1) Cancel, terminate, or suspend the contract in whole or in part;

(2) Declare the contractor ineligible for further contracts for one calendar year;

(3) The Fair Employment and Housing Commission (hereinafter FEHC), in accordance with its rules and regulations, shall have the power to impose a penalty upon any Contractor failing to comply with Chapter 17 in an amount not less than $50.00; nor more than as provided in Chapter 1, Section 1-5 of the municipal code, for each day that the Contractor fails to comply, upon a specific finding of such violation. The FEHC may order a Contractor found guilty of failure to comply with the provisions of Chapter 17 to pay all or a portion of the legal costs incurred by the city as a result of prosecution of such violations. Penalties assessed under this clause may be recovered from the Contractor by setoff against unpaid portion of the contract price; and

(4) Such other sanctions as may be imposed by the FEHC pursuant to the provisions of Chapter 17 and other applicable ordinance provisions of the City Code.

During the performance of this contract, the Contractor agrees:

(a) That it will not discriminate against any employee or applicant for employment because of race, color, religion, sex, sexual harassment, ancestry, national origin, place of birth, age, or a physical and/or mental disability which would not interfere with the efficient performance of the job in question. The contractor/vendor will take affirmative action to comply with the provisions of Peoria City Code, Chapter 17 and will require any subcontractor to submit to the City of Peoria a written commitment to comply with this division. The Contractor will distribute copies of this commitment to all persons who participate in recruitment, screening, referral, and selection of job applicants, prospective job applicants, members, or prospective contractors.

“The Contractor agrees that the provision of Chapter 17, of the City Code of the City of Peoria is hereby incorporated by reference, as if set out verbatim.”

(b) That it will examine each one of its workforce job classifications to determine if minorities and/or females are underutilized; and it will take appropriate affirmative action steps to rectify such identified underutilization.

(c) That if it hires additional employees in order to perform this contract or any portion thereof, it will determine the availability of minority and females in the area(s) from which it may reasonably recruit; and every good faith effort will be made in its selection process to minimize or eliminate identified areas of minority and/or female underutilization for each job classification for which there are employment opportunities.

(d) That during the performance of this contract, the Contractor will maintain its “eligibility” status to conduct business with the City of Peoria under the provisions of the EEO certification registration program.

(e) That in all solicitations or advertisements for employees placed by it or on its behalf, it will state that all applicants will be afforded equal opportunity without discrimination because of race, color, sex, religion, national origin, age, or physical and/or mental disability.

(f) That it will send to each labor organization or representative of workers with which it has or is bound by a collective bargaining agreement or understanding, a notice advising such labor organization or representative of the Contractor’s obligations under Chapter 17. If any such labor organization or representative fails or refuses to cooperate with the Contractor in its efforts to comply with Chapter 17, the Contractor will promptly so notify the Equal Opportunity Office (hereinafter EOO) and/or the FEHC for the City of Peoria.

(g) That it will submit reports as required and furnish all relevant information as may from time to time be requested by the EOO and/or the FEHC.

(h) That it will permit access to all relevant books, records, accounts and work sites by EOO staff members for purposes of investigation to ascertain compliance with Chapter 17.

(i) That it will include verbatim or by reference the provisions of Section 17-120 of Chapter 17 so that such provisions will be binding in the same manner as with other provisions of this contract. The Contractor will be liable for compliance with applicable provisions of this clause by all its subcontractors; and further, it will promptly notify the EOO and/or FEHC in the event any subcontractor fails or refuses to comply therewith. In addition, no Contractor will utilize any subcontractor declared by the EOO and/or FEHC to be non-responsive and therefore, ineligible for contracts or subcontracts with the City of Peoria.

(j) That during the performance of this contract, the Contractor agrees: that it will have written sexual harassment policies that shall include, at a minimum, the following information: (i) the illegality of sexual harassment; (ii) the definition of sexual harassment under state law; (iii) a description of sexual harassment utilizing examples; (iv) the contractor’s internal complaint process including penalties; (v) the legal recourse, investigative and complaint process available through the Illinois Department of Human Rights and the Human Rights Commission; (vi) directions on how to contact the Department of Human Rights and the Commission; and (vii) protection against retaliation as provided by Section 6-101 of the Act (Public Act 87-1257). A copy of the policies shall be provided to the Illinois Department of Human Rights or the City of Peoria upon request.

(k) That during the performance of this contract, the Contractor agrees that it does not and will not maintain or provide for their employees, any segregated facilities at any of their establishments, or permit employees to perform their services at any location under its control where segregated facilities are maintained.

As used in this document, the term “segregated facilities” means any waiting rooms, work areas, rest rooms and wash rooms, and other storage or dressing areas, parking lots, drinking fountains, recreation or entertainment areas, transportation, housing facilities provided for employees which are segregated by explicit directive or are in fact segregated on the basis of race, religion, color, national origin, because of habit, local custom, or otherwise.

More info on our blog at www.peoriaed.blogspot.com
Contact Craig Hullinger at hullingerc@gmail.com if you need more information.

Wednesday, March 19, 2008

Hospitality Improvement Zone (HIZ) TIF



The cities of Tinley Park, East Peoria, and Normal have developed

high quality conference centers and hotels which draw business

from Peoria. Springfield’s attractiveness has been greatly enhanced

by the Lincoln Museum. These improved competitors all received

substantial assistance from government, and will draw business

from downtown Peoria.


Our downtown hotels and other hospitality industry business

struggle to compete with these quality new developments.

The City can choose to compete or not to compete. The

proposed Hospitality Improvement Zone would assist existing

and new businesses invest, improve, and expand.


City Council has directed staff to present the potential HIZ TIF

to our sister governments and civic associations, and request

their input and direction.

Thank you for your consideration. We appreciate your viewpoint.

Send comments or questions to Craighullinger@gmail.com

309 643 0482 More info at www.Peoriaed.blogspot.com

_______________________________

Hospitality Improvement Zone (HIZ) Presentations Made

as of March 26, 2008

City Council

Downtown Hotel Owners

Downtown Property Owners

Sanitary District

Peoria County

Peoria Township

Detweiller Trust

Planning Commission

Heart of Peoria Commission

PACVB

PCC

Library

Various citizens and developers

City staff

_________________________________________________

Requested Meeting

ICC

Mass Transit District

Chamber of Commerce June 5, 2008

Economic Development Stakeholders

EDC

District 150 - Will schedule after agreement on previous TIF's is complete

Park District - No presentation needed, letter was enough

More Info on www.peoriaed.blogspot.com

under Hospitality Improvement Zone

Friday, February 15, 2008

HIZ Update

Staff have discussed the potential Hospitality Improvement Zone with downtown area businesses. The first meeting was held with Hotel owners and developers at the Peoria Civic Center on January 24, 2008. All property owners and business owners located with the HIZ map and within two blocks of the HIZ were invited to a second meeting was held on February 13, 2008 at 2:00 pm on the 4th floor of the City Hall. Several other informal meetings were held, and short presentations were made to the PACVB and PCC Boards.

The consensus of opinion was that a Tax Increment Financing District would be needed to help downtown hotels and business compete with the high quality hotel conference centers developed in East Peoria, Normal, Springfield, and Tinley Park. All of these cities provided substantial economic development assistance for their conference/convention centers.

Staff will meet with all the other taxing bodies to present the case for the TIF to the other taxing bodies, and then report back to the City Council.

Please send comments or questions to Craighullinger@gmail.com

Wednesday, January 23, 2008

Hospitality Improvement Zone


The City Council Authorized City Staff to meet with downtown hotels and other property owners to investigate possible methods to assist downtown on January 22, 2008.


Background: The Peoria Civic Center has completed a major expansion. The Center now contains over 110,000 square feet of exhibit space, 27,000 square feet of meeting space, and 18,000 square feet of
pre-function space.

In 2002, the Civic Center Authority hired Johnson Consulting to analyze the Center’s master plan. In the consultant’s experience and opinion, hotels physically attached to Convention Centers in northern climates are much more successful than hotels that are not attached. According to the study, downtown Peoria needs more hotel rooms, a view shared by the Peoria Area Convention and Visitors Bureau. The Peoria Civic Center Authority indicates that a number of potential conventions have not selected Peoria because of the lack of an adequate number of rooms.

Improved downtown hotels are desirable to support the Civic Center, and to match the quality of hotels provided by our competitors. Improved civic, entertainment, restaurant, and retail services are needed.

In 2006 the Civic Center and the City retained
HVS, a quality hospitality industry consultant. The study documented the need for more and better hotels to support the Civic Center. It also documented the fact that the downtown hotels continue to struggle, with relatively low occupancy. In 2007 a study by a Six Sigma Black Belt further examined the need for more hotel rooms to increase economic activity in the City Center.

Downtown Peoria faces competition from other conference and convention centers in the
regioin. The addition of the Lincoln Museum has greatly enhanced Springfield’s attractiveness for conferences. Normal is completing a major new conference center and hotel with substantial governmental assistance. The Embassy Suites has opened in East Peoria, and received substantial TIF assistance. Tinley Park built their center with substantial governmental assistance, and are preparing a major expansion. Four new hotels are underway or planned near Grand Prairie without any assistance. These hotels are a welcome economic addition to the City, but will also further challenge downtown business.

The City of Peoria continues to search for ways to assist our downtown business compete with these new challenges. Possible ways to assist downtown business include the formation of a Hospitality Improvement Zone (
HIZ), with these possible programs

Enterprise Zone (sales tax on materials & 5 year property tax abatement, already in place)

Historic Tax Credits for buildings older than 1936. (The year is a federal requirement)

Creation of a Tax Increment Financing (up to 23 year property tax incentive)

Business District Development and Redevelopment District (new sales or hotel tax)

Special voluntary
HRA Tax to be used for capital improvements

Special Service Assessment for capital and infrastructure improvements

City or Civic Center supported capital expenditures

New
Fa├žade Improvement Program

RECOMMENDATION: Authorize staff to meet with downtown business, citizens, and governments to investigate possible methods to help our downtown compete.

Financial Impact: None at present. There may be impact, depending on steps that the Council may choose to pursue after completion of the meetings.

NEIGHBORHOOD CONCERNS: Not known, but will be investigated as part of the meetings..

Impact if Approved: Staff will meet with representatives of downtown business and report back to the City Council.

Impact if Denied: No staff action will be taken.

Alternatives: None.

EEO Certification Number: N/A.

RELATIONSHIP TO THE COMPREHENSIVE PLAN: Downtown improvements are consistent with the Comprehensive Plan.

VISION: WE HAVE A HEALTHY, THRIVING ECONOMY.

GOAL: A. Provide an economic environment that supports existing and new businesses

About Me

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City Planner, Colonel, Marine Corps Reserve Retired, Vietnam Vet, married to Beth Ruyle