ACTION REQUESTED:
Title
Communication from the City Manager with a Request to Commence the Process to Expand the Boundaries of the PEORIA URBAN ENTERPRISE ZONE to Include Additional Vacant Land at JUNCTION CITY SHOPPING CENTER and the GATEWAY AT RIVER CITY DEVELOPMENT on ROMEO B. GARRETT AVENUE.
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BACKGROUND: The City of Peoria’s Enterprise Zone will expire on June 30, 2016. In December 2014, the City of Peoria, Peoria County, Village of Peoria Heights and the City of West Peoria submitted a joint application to the State of Illinois for a new multi-jurisdictional Enterprise Zone. The new Enterprise Zone, named the Peoria Urban Enterprise Zone, was approved in the summer of 2015 and certified by the State of Illinois in December 2015. The Peoria Urban Enterprise Zone became active on January 1, 2016. The two zones will run concurrently through June 30, 2016. On July 1, 2016, the Peoria Urban Enterprise Zone will be the only active Enterprise Zone in the City of Peoria.
When submitting the application for the Peoria Urban Enterprise Zone in December 2014, Council approved a map nearly identical to the map of the previous Enterprise Zone. However, two parcels were not included when drawing the new map. These two parcels are the location of the Gateway at River City development on RB Garrett Avenue in Southtown. 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.
In addition to the Gateway at River City project, Criterion Development has requested the former American Pi Restaurant property be included in the Enterprise Zone. Criterion Development will build a four-story upscale senior living housing facility on the property. The former restaurant building has been demolished for the project. The new senior 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 Enterprise Zone.
Currently, the City of Peoria has 5.6 square miles of property in the Enterprise Zone. A map of the City of Peoria Enterprise Zone (expiring 6/30/16) is attached. An online version of the Peoria Urban Enterprise Zone (in place now and running for 15 years) is available at <http://gis.peoriacounty.org/InformationGallery/PublicGallery/>. Through the ordinance with the other participating Enterprise Zone jurisdictions, the City of Peoria has a cap of 10 square miles to include in the Enterprise Zone. Staff plans to bring a larger map amendment to the City Council later in 2016. At that time, the entire map of the Enterprise Zone will be evaluated to determine if any properties can be removed from the Zone. Also, commercial corridors currently not in the Enterprise Zone will be reviewed to determine if the properties would benefit from being in the Zone. This smaller amendment is commencing now due to timing constraints with the expiration of the old Enterprise Zone.
FINANCIAL IMPACT: The map amendment for the Peoria Urban Enterprise Zone will include over $30 million in developments and over 100 new jobs. By including these developments in the Enterprise Zone, both projects would be eligible to receive Enterprise Zone benefits, including 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.
IMPACT IF APPROVED: City staff will begin the application to amend the Peoria Urban Enterprise Zone boundaries. An amendment to the Enterprise Zone Ordinance must be approved by the Peoria City Council, Peoria County Board, Village of Peoria Heights Board of Trustees, and City of West Peoria City Council. These entities have agreed to not withhold their approval for requests. Peoria County is also processing a map amendment.
IMPACT IF DENIED: 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