ACTION REQUESTED:
Title
Communication from the City Manager and Finance Director/Comptroller with a Request to ADOPT an ORDINANCE Providing for the Issuance of $9,291,000.00 GENERAL OBLIGATION BONDS, Series 2022A, of the City of Peoria, Peoria County, Illinois, for the Purpose of Financing Road and Parking Lot Improvements in the Warehouse District TIF, Providing for the Levy and Collection of a Direct Annual Tax Sufficient to Pay the Principal and Interest on said Bonds, and Authorizing the Sale of said Bonds to the Purchaser Thereof.
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BACKGROUND: As part of the 2022-2023 Biennial Budget staff recommended the purchase of land for the redevelopment into a surface parking lot as well as complete needed public improvements for the surrounding businesses. The estimated costs of the project are below:
|
TOTAL PROJECT COST for DEPOT STREET |
|
|
|
|
|
Roadway Construction |
$1,900,000.00 |
|
Parking Lot Construction |
$3,800,000.00 |
|
Land Acquisition |
$1,691,000.00 |
|
Phase 2 Engineering |
$685,000.00 |
|
Phase 3 Engineering |
$685,000.00 |
|
Other |
$30,000.00 |
|
Ameren underground |
$500,000.00 |
|
|
|
|
Total City Project cost |
$9,291,000.00 |
Staff have worked with Morton Community Bank on the direct placement of the General Obligation Bonds for this project. The authority granted in this Ordinance for the Designated Officials to sell bonds without any further authorization or direction from Council. Anticipated closing on the bonds is March 31st. The future principal and interest payments will be paid using increment from the Warehouse District TIF. Staff is working on establishing a special assessment that will cover approximately $875,000 of the project costs.
FINANCIAL IMPACT: Issuance of debt for this project will commit approximately $700,000 annual in TIF increment to pay the debt service.
NEIGHBORHOOD CONCERNS: The construction of the surface lot as well as the public improvements are a needed amenity in the Warehouse District.
IMPACT IF APPROVED: The Depot Street project will move forward and commit $700,000 in TIF increment annually.
IMPACT IF DENIED: The Warehouse District TIF does not have the reserves required to complete this project on a cash basis. Other revenue sources would need to be found to cover the costs.
ALTERNATIVES: N/A
EEO CERTIFICATION NUMBER: N/A
WHICH OF THE GOALS IDENTIFIED IN THE COUNCIL’S 2017 - 2032 STRATEGIC PLAN DOES THIS RECOMMENDATION ADVANCE?
1. Financially Sound City
2. Grow Peoria
3. Choose an item.
WHICH CRITICAL SUCCESS FACTOR(S) FROM THE COMPREHENSIVE PLAN DOES THIS RECOMMENDATION IMPLEMENT?
1. Invest in our infrastructure and transportation.
2. Have an efficient government.
3. Choose an item.
DEPARTMENT: Finance