ACTION REQUESTED:
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Communication from the City Manager with a Request to ADOPT an ORDINANCE Proposing the Creation of a STERLING AVENUE/ROCKWOOD ROAD SPECIAL SERVICE AREA in the City of Peoria, Illinois and Providing for a Public Hearing and Other Procedures in Connection Therewith. (Council District 4)
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BACKGROUND: The City of Peoria has received a request from William Torchia to consider the creation of a Special Service Area (SSA) for his property along Sterling Avenue. A map of the proposed area is attached. The SSA would impose an additional one percent (1%) sales tax on qualifying goods sold within the boundaries. The revenue generated from the SSA tax would be rebated to Mr. Torchia to reimburse him for the $1.3 million in costs to acquire and prepare the site for construction. Mr. Torchia has secured a commitment from Portillo's to construct a new 9,000 square foot, 200 seat restaurant on the property.
The attached ordinance is the first step in creating an SSA and only sets the date of the public hearing for the November 14, 2017 City Council meeting. By law, the public hearing must be set by ordinance and that public hearing cannot be sooner than 60 days from the passage of the ordinance. At the November 14, 2017 meeting, in addition to conducting the public hearing, the City Council will be asked to adopt the ordinance creating the SSA and the agreement that will govern the SSA. The increased sales tax rate will go into effect on January 1, 2018 though the Portillo's restaurant is not expected to be open until the spring of 2018.
FINANCIAL IMPACT: The ordinance merely sets the public hearing for the proposed SSA. If the SSA is created, it would increase the sales tax rate for that property by 1.0% with all proceeds being rebated to the property owner. Portillo's is expected to generate significant revenue to the City through sales and restaurant taxes as well as employ over 100 people.
NEIGHBORHOOD CONCERNS: The November 1...
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