ACTION REQUESTED:
Title
Communication from the City Manager with a Request to APPROVE the Commencement of the Process to Expand the Boundaries of the PEORIA URBAN ENTERPRISE ZONE to Include PARKWOOD COMMONS (formerly known as PIERSON HILLS), S. WESTERN AVE., AND BUTTERNUT BAKERY on LINCOLN ST. (Council Districts 1 and 2)
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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 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 properties.
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 Village of Bartonville, Village of Bellevue, and the Village of 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.
Since the PUEZ inception, City staff has received requests to expand the City of Peoria’s existing PUEZ boundaries to include properties scheduled for development and/or identified as staff areas that would benefit from additional incentives. For the past several years, it has been staff policy to first seek permission from Council to pursue expansions prior to beginning the formal process.
Following are proposed properties to be added to the PUEZ.
1. PARKWOOD COMMONS, 1720 N. Great Oak Rd.
The City of Peoria received the attached request from Wallick-Hendy Development Company and Upgrade Development Corporation to add Parkway Commons (1720 N. Great Oak Road, formerly known as Pierson Hills apartments) to the Peoria Urban Enterprise Zone as part of a major redevelopment project. The proposed project includes the rehabilitation of existing Project Based Section 8 multi-family housing consisting of 100 units. Anticipated project costs are approximately $15 million dollars and scheduled to begin in early 2017. The project is scheduled to go before the Planning and Zoning Commission in early November.
2. WESTERN AVE., 200-1200 Block S. Western
Western Ave. is poised to be an active business corridor in South Peoria with the recent new developments of Dollar General, Family Dollar, and Save-A-Lot, as well as a planned street reconstruction project in 2018. Adding the S. Western Ave. corridor to the PUEZ will further incentivize redevelopment.
3. BUTTERNUT BAKERY, 1511 W. Lincoln Ave.
The Butternut Bakery and adjoining properties have been vacant since Butternut’s closing in 2013. There is interest to redevelop the properties into a light manufacturing facility and provide neighborhood jobs. Including the property in the PUEZ will enhance the efforts to attract investors to the site.
A map of the proposed Zone is attached. It shows the current Zone boundaries in purple and proposed additions in red. (Note: the strips that connect different parts of the Zone cannot be seen on the map.) Adding all the proposed properties in the PUEZ increases the City of Peoria’s boundaries by .09 square miles bringing the total designated miles to 5.70 square miles with 4.3 square miles remaining. An online version of the current Peoria Urban Enterprise Zone is available at <http://gis.peoriacounty.org/InformationGallery/PublicGallery/>.
Below is a chart that details the effects of adding each proposed request to the PUEZ.
|
|
ADDED PROPERTIES |
CURRENT PUEZ SQ. MILES |
ADDED SQ. MILES |
TOTAL SQ. MILES UTILIZED |
SQ. MILES REMAINING |
|
1. |
PARKWOOD COMMONS |
5.61 |
.03 |
5.64 |
4.36 |
|
2. |
S. WESTERN |
5.61 |
.05 |
5.66 |
4.34 |
|
3. |
BUTTERNUT FACTORY |
5.61 |
.01 |
6.11 |
4.38 |
|
|
TOTAL REQUESTS |
5.61 |
.09 |
5.70 |
4.30 |
|
|
|
|
|
|
|
FINANCIAL IMPACT: The map amendment for the Peoria Urban Enterprise Zone will include over $20 million in potential development and create new jobs. By including these developments in the Enterprise Zone, projects would be eligible to receive Enterprise Zone benefits, including sales tax exemption on building materials and partial property tax abatement.
NEIGHBORHOOD CONCERNS: The process for formally expanding an Enterprise Zone includes a public hearing that will be held in the next few months.
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, City of West Peoria City Council, Village of Bartonville, Village of Bellevue, and the Village of Mapleton prior to being sent to the State for final approval. Those other municipalities are reviewing the PUEZ boundaries within their communities to see if any adjustments need to be made. Any adjustments by other communities do not impact the City of Peoria’s total allotment but will be part of the same application for expansion to the State.
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