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 NORTHWOODS MALL.
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. Currently, the City has designated 5.7 square miles in the PUEZ and has 4.3 square miles remaining for additional properties. The Peoria Urban Enterprise Zone became active on January 1, 2016.
Since the PUEZ inception, City staff has processed expansions of the City of Peoria’s existing PUEZ boundaries to include properties scheduled for development and/or identified by staff as areas that would benefit from additional incentives. For the past several years, it has been policy to first seek permission from Council to pursue expansions prior to beginning the formal process.
In reviewing the current boundaries, and considering development opportunities, staff is requesting permission to add Northwoods Mall to the PUEZ. Northwoods Mall is an anchor property within the Sterling/War Memorial Corridor that serves as the retail heart of Peoria and the region. The property has significant development opportunities:
• There has been interest from a national developer in the former site of the JC Penney Automotive Center, an outlot on the Sterling Avenue side of Northwoods Mall. The existing building has been vacant for nearly a decade and previous attempts to develop the site have failed. The cost of developing the site is challenging due to the demolition of the existing structure and any environmental remediation required because of the former automotive use.
• Last year Macy’s closed its store and put the 180,000 square foot building on the market for sale. Last month, Washington Prime Group, the entity that owns the main section of Northwoods Mall, purchased the Macy’s facility and is actively looking to recruit tenants.
• The unused parking lot area at the southern edge of the property could be a prime location for new construction.
A map of the proposed Zone is attached. It shows the current Zone boundaries in purple and proposed additions in red (total of four parcels). This request would add 51.3 acres to the Enterprise Zone, or about 0.08 square miles. Adding the proposed property in the PUEZ increases the City of Peoria’s boundaries to 5.8 square miles with 4.2 square miles remaining. An online version of the current Peoria Urban Enterprise Zone is available at <http://gis.peoriacounty.org/InformationGallery/PublicGallery/>.
FINANCIAL IMPACT: The map amendment for the Peoria Urban Enterprise Zone is intended to spur investment in development and create new jobs. By including this property 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 weeks.
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.
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