ACTION REQUESTED:
Title
Communication from the City Manager with a Request to ADOPT an ORDINANCE to Amend the DESIGNATING ORDINANCE and INTERGOVERNMENTAL AGREEMENT for the PEORIA URBAN ENTERPRISE ZONE.
Body
BACKGROUND: 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 (PUEZ), was approved in the summer of 2015 and certified by the State of Illinois in December 2015 and includes a total of 15 square miles. The City of Peoria’s maximum allowable miles in the PUEZ is 10 square miles. The City has designated 5.61 square miles in the PUEZ and has 4.39 square miles remaining for additional parcels.
The Peoria Urban Enterprise Zone became active on January 1, 2016. On June 14, 2016 City Council approved a proposed amendment to the PUEZ requested by Peoria County to include the Villages of Bartonville, Bellevue, and Mapleton. Subsequently, all participating jurisdictions in the PUEZ and the State of Illinois approved the proposed PUEZ amendment. From the amendment, Peoria County's 4.55 square mile cap was reduced to provide square miles to the new units of government. The City of Peoria's designated PUEZ square miles were unaffected by the amendment.
On October 25, 2016 City Council approved staff to commence the process to add new property to the PUEZ: Parkwood Commons (1720 N. Great Oak Rd., also known as Pierson Hills), Western Ave (200-1200 S. Western), and the Butternut Bakery (1511 W. Lincoln Ave.). The additional parcels total .09 square miles and increases the City of Peoria’s PUEZ boundaries to 5.71 square miles. The City of Peoria has 4.3 square miles remaining for additional parcels.
Attached is the Peoria Urban Enterprise Zone Amending Ordinance that includes the addition of the proposed parcels as well as some changes to Peoria Heights’ boundaries. Given the complexity of amending the Enterprise Zone ordinance, the participating jurisdictions also agreed to the following additional changes to the overall PUEZ program:
• Reduce sales tax exemption threshold from $7,500 to $5,000.
• Reduce the Zone Management Organization Membership from 11 members to 9 members to include representatives from each participating local government and two private members.
• 10% of all PUEZ sales tax exemption administration fees collected shall be paid to the PUEZ Administrator organization to offset costs associated with administering the PUEZ program.
• Clarifying language and renumbering of sections as needed.
FINANCIAL IMPACT: The ordinance and map amendment for the Peoria Urban Enterprise Zone will include over $20 million in developments and new jobs. By including these developments in the Peoria Urban Enterprise Zone, projects would be eligible to receive Enterprise Zone benefits, including sales tax exemption on building materials and property tax abatement. Additionally, 10% of any fees collected for sales tax exemptions will be paid to the PUEZ Administrator (currently Peoria County).
NEIGHBORHOOD CONCERNS: N/A
IMPACT IF APPROVED: All participating jurisdictions must approve the ordinance that amends the PUEZ. Assuming 100% approval, including by the City Council, the proposed amendment will be included in the application to the State of Illinois.
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