ACTION REQUESTED:
Title
Communication from the City Manager with a Request to ADOPT the Following:
A. An ORDINANCE Establishing the STERLING AVENUE/ROCKWOOD ROAD SPECIAL SERVICE AREA in the City of Peoria, Illinois; and,
B. An ORDINANCE LEVYING A SALES TAX for the Sterling Avenue/Rockwood Road Special Service Area. (Fourth District)
Body
BACKGROUND: On September 12, 2017, the City Council began the process of considering the creation of a Special Service Area (SSA) for property at the intersection of Sterling and Lake that would become the site of a Portillo's restaurant. That night, the Council adopted an ordinance that set a public hearing for November 14, 2017. The ordinance also outlined the structure of the potential agreement. Willie Torcia and WCT Properties, the petitioner, was requesting the levying of an additional 1% sale tax for 30 years. The proceeds would be used to rebate Mr. Torcia for $1.3 million in costs associated with the development.
Over the past two months, the City has worked with Mr. Torcia to reach a compromise that leads to the successful establishment of a Portillo's restaurant at this location. The attached ordinances (1) establish the SSA and (2) levy the additional sales tax starting January 1, 2018. The ordinances reference the SSA Agreement, which spells out the structure of the incentive:
1. The SSA will levy an additional sales tax of 1% on this property only.
2. The SSA will end on the earlier of its 15 year anniversary (December 31, 2032) or when a total of $650,000 has been rebated.
3. The SSA will end should Mr. Torcia sell the property.
4. The SSA only gets established if the Portillo's gets built.
5. The City shall retain 2% of any revenue collected to serve as a management fee.
Portillo's is a high-volume restaurant that is predicted to do between $6 million and $8 million in sales per year. At the conservative end of that range, the SSA sales tax would generate $60,000. When the 2% management fee of $1...
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