ACTION REQUESTED:
Title
Communication from the City Manager with a Request to APPROVE the Following:
A. An Amendment the PEORIA URBAN ENTERPRISE ZONE DESIGNATING ORDINANCE to Include Additional Vacant Land at JUNCTION CITY SHOPPING CENTER and the GATEWAY AT RIVER CITY Development on ROMEO B. GARRET AVENUE; and
B. An Amendment to the PEORIA URBAN ENTERPRISE ZONE INTERGOVERNMENTAL AGREEMENT to Include Additional Vacant Land at JUNCTION CITY SHOPPING CENTER and the GATEWAY AT RIVER CITY Development on ROMEO B. GARRET AVENUE.
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BACKGROUND: In December 2014, the City of Peoria, Peoria County, Village of Peoria Heights and the City of West Peoria submitted an application for a multi-jurisdictional Enterprise Zone. The new Enterprise Zone, named the Peoria Urban Enterprise Zone, was approved and certified by the State of Illinois. The Peoria Urban Enterprise Zone became active on January 1, 2016.
When submitting the application for the Peoria Urban Enterprise Zone in December 2014, Council approved a map nearly identical to the current map. However, two parcels will missed when drawing the new map. These two parcels are the location of the Gateway at River City Development. The Gateway at River City is a $21 million supportive living facility. The development is under construction but will continue construction through the end of the year and will utilize the sales tax exemption on building materials.
Criterion Development has plans to build a four-story upscale senior living housing facility at the former site of American Pi Restaurant. The former restaurant has been demolished for the future project. City Council passed an amendment to the existing Junction City Shopping Center Special Use to permit the construction of the facility. The new housing facility is expected to be a $10 million project creating 75 jobs. Due to the development challenges, the project would greatly benefit from the benefits of the Enterprise Zone.
At its January 12, 2016 meeting, the City Council unanimously approved a request for City staff to proceed with an amendment to the Peoria Urban Enterprise Zone to reflect these two small changes (a total of 5.44 acres, or .0085 square miles, is being added to the Zone). The next step, requested in this action, is to officially amend the designating ordinance and intergovernmental agreement to reflect these changes.
FINANCIAL IMPACT: The map amendment for the Peoria Urban Enterprise Zone includes over $30 million in developments and over 100 new jobs. By including these developments in the Enterprise Zone, both projects would receive Enterprise Zone benefits, which include sales tax exemption on building materials and property tax abatement.
NEIGHBORHOOD CONCERNS: Both of these projects were approved by the Planning & Zoning Commission and City Council. Additionally, a public hearing specific to the map change was held on January 29, 2016 with no objection being voiced.
IMPACT IF APPROVED: The designating ordinance and intergovernmental agreement would be amended to add four additional parcels. After approval from Peoria County Board, Village of Peoria Heights Board and the City of West Peoria City Council, an application will be sent to the Illinois Department of Commerce and Economic Opportunity for approval.
IMPACT IF DENIED: The designating ordinance and intergovernmental agreement will not be amended and staff will not proceed with the application to amend the Peoria Urban Enterprise Zone boundaries.
ALTERNATIVES: None
EEO CERTIFICATION NUMBER: N/A
WHICH OF THE GOALS IDENTIFIED IN THE COUNCIL’S 2014 - 2029 STRATEGIC PLAN DOES THIS RECOMMENDATION ADVANCE?
1. Grow Peoria: Businesses, Jobs, and Population
WHICH CRITICAL SUCCESS FACTOR(S) FROM THE COMPREHENSIVE PLAN DOES THIS RECOMMENDATION IMPLEMENT?
1. Grow employers and jobs.
DEPARTMENT: City Manager's Office