ACTION REQUESTED:
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Communication from the City Manager with a Request to Adopt an ORDINANCE Amending the SPECIAL SERVICE AREA AGREEMENT between the City of Peoria and WESTLAKE SHOPPING CENTER, LLC (District 4).
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BACKGROUND: The owner of the Westlake Shopping Center has requested an amendment to an agreement that established a Special Service Area that covers the entire shopping center. The current agreement levies an additional property tax that was used to finance the construction of certain parking lot improvements. The developer wishes to provide the same arrangements in order for him to continue parking lot improvements for the remainder of the property at a cost estimated at $2,000,000.
To make these improvements, the developer is asking to change the previous financing mechanism. While the additional property tax levy would remain, it would be abated by proceeds from an additional sales tax. Customers at retail and restaurant establishments within the complex would pay an additional 0.75% sales tax. The proceeds from this additional tax, combined with any property tax revenues that would still be needed to cover debt service, would be used to repay the developer's original and new loans from Morton Community Bank. Any proceeds from the SSA sales tax that would be in excess of the amount needed to cover debt service will be used by the developer for costs and expenses related to capital improvements and maintenance of the complex's common areas.
An ordinance levying the additional sales tax is included as a separate item on the Council agenda.
FINANCIAL IMPACT: There is no financial impact to the City which is essentially acting as a conduit. The amended agreement provides that the City can charge a reasonable administrative fee to cover costs.
NEIGHBORHOOD CONCERNS: A public hearing on this topic was held as an earlier agenda item of this City Council meeting (June 24, 2014). The idea was also discussed at a cons...
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