Beautiful Downtown Peoria

Beautiful Downtown Peoria

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
_________________________________________________
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.

About Me

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