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Communication from the City Manager with a Request to ADOPT an ORDINANCE Amending the City of Peoria 2018-2019 BIENNIAL BUDGET Relating to the Use of the Eagle View TIF District Fund Balance for the Redevelopment of 3540 to 3560 SW ADAMS (TABOR PROPERTY), in the Amount of $40,000.00. (Council District 1)
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BACKGROUND: The City owns commercial/industrial property from 3540 to 3560 SW Adams and is seeking to prepare it for sale and redevelopment. The property (a.k.a. Tabor), consists of five parcels covering 5.4 acres on I-2 zoned land with two buildings-a 10,000 sf warehouse/office, and a 1,750 sf retail/office building. Both buildings are in disrepair and without working utilities. An Environmental Phase I and II have been completed showing soil and ground water contamination. The property is within the Peoria Urban Enterprise Zone and Eagle View TIF District. The properties were purchased to improve the City’s Southern Gateway appearance starting with the purchase of an auto salvage yard in 2013, a former gas station in 2014, and a tattoo parlor in 2015. A request for proposal was published to sell the Tabor sight but no responses were received due to the unknown amount and cost of contamination.
A budget has been prepared in the amount of $40,000 to better prepare the property for sale and redevelopment. This would include a) removal of existing debris from the lot and buildings, b) establish a maintenance fund for property upkeep, c) prepare site remediation plans with a future developer/s, and d) conduct an appraisal.
Based on several quotes the immediate need for debris removal is estimated at $10,000. A maintenance fund of $10,000 is estimated to provide upkeep as needed (future debris removal, secure/board-up the building, remove brush, change locks, etc). Of critical importance are funds to conduct environmental remediation studies with a future developer, estimated at $15,000. This would include one or two Remediation Action Plan/s (RAP) and Remediation Action Completion Report (RCAR). The RAP would determine the scope of work required to remediate the site based on the developer’s future use and site plan, and also assist in determine the cost for site remediation. The RCAR would be submitted to the IL-EPA once the site remediation is complete. An appraisal prior to the sale of the property may also be needed and estimated at $5,000. The end goal for the developer is to obtain a No Further Remediation Letter from the IL-EPA. This will demonstrate the property is free of environmental liability, has a justifiable market value, and be used as collateral for a bank loan.
FINANCIAL IMPACT: If approved, the City would allocate $40,000 of the Eagle View TIF Fund Balance to prepare the Tabor property for sale and redevelopment.
NEIGHBORHOOD CONCERNS: No neighborhood groups were contacted regarding the project.
IMPACT IF APPROVED: The funds will be used immediately to clear the debris, maintain the property, and moved forward with a developer to prepare a Remediation Action Plan for potential sale.
IMPACT IF DENIED: The site would remain dormant, debris would not be removed, and eventually both buildings would need to be demolished if not maintained and prepared for redevelopment.
ALTERNATIVES: None
EEO CERTIFICATION NUMBER: To Be Issued prior to Contract Work being performed