ACTION REQUESTED:
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Communication from the City Manager with a Request for the Following:
A. ADOPT an ORDINANCE Approving the LEWIS HOUSE LLC REDEVELOPMENT AGREEMENT (1st District); and
B. ADOPT an ORDINANCE Amending the City of Peoria 2016/2017 BIENNIAL BUDGET Relating to the Use of South Village Growth Cell TIF Funds to be Transferred to the East Village Growth Cell TIF Fund for the Lewis House LLC Development Agreement.
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BACKGROUND: Conn Hospitality Group of Springfield, IL (doing business as Lewis House, LLC) has plans to invest approximately $3.2 million to renovate 321 NE Madison into an "Obed & Isaac's," a combination microbrewery, restaurant and tavern. This will be the second "Obed & Issac's" location in Illinois; their first location is a very popular and successful business in downtown Springfield.
The property was built as 2nd Presbyterian Church but has more recently been referred to as the "Cornerstone Building." Its most recent use was as a banquet facility. The building is a contributing structure in the Northside National Historic District. The project includes the complete renovation of the church sanctuary into a 200-seat restaurant and tavern; construction of a 15-barrel brewhouse behind the building; and construction of an outdoor dining area and bocce ball courts. The budget for the renovation alone is nearly $1.6 million. In addition to the capital investment, Conn Hospitality expects to employ at least 80 full time equivalents and have an annual payroll in excess of $2 million.
The project is financed through a mix of sources, including a conventional bank loan of $2.7 million and $300,000 in private equity. City staff have review the project financials and there is still a gap of about $200,000. To close this gap, the City has worked with Conn Hospitality to provide an advance of $200,000 against future property tax increment rebate. The attached Redevelopment Agreement outlines a process by which the...
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