ACTION REQUESTED:
Title
Communication from the City Manager with a Request to APPROVE a REDEVELOPMENT AGREEMENT and PARKING DECK LEASE with OSF HEALTHCARE SYSTEM and 124 SW ADAMS PROPERTY HOLDING, LLC.
Body
BACKGROUND: OSF Healthcare Systems (OSF) and Caterpillar have formed 124 SW Adams LLC to redevelop the Block and Kuhl department store building, built in 1905, into the OSF Ministry Headquarters. The estimated cost of the project is $127 million The OSF Ministry Headquarters will consist of collaborative administrative office space housing medical professionals, attorneys, financial professionals, and C-suite officers, among others. In total, approximately 700 OSF Mission Partners (employees) will occupy and utilize the former Block and Kuhl Building to provide support services for OSF HealthCare hospitals and outpatient centers throughout the Midwest. The Project will also include site amenities to benefit OSF Mission Partners and the Downtown public. The former Caterpillar Merchandise Center will be programmed with a public facing coffee shop. The former A&P grocery store at the corner of Washington and Fulton will be programmed with a public facing restaurant. Redevelopment of the former Block and Kuhl Building will create more than 300 construction jobs. It is anticipated that OSF Mission Partners will provide an impact of $2 million per year to Downtown Peoria through increased economic activity. Construction of the project will commence in 2019. OSF Healthcare plans to complete construction of the project by December 31, 2022.
The balance of the above block is owned by the OSF Healthcare, but is not the subject of the attached Redevelopment Agreement. However, there will be ongoing negotiations between the City and OSF Healthcare regarding a mixed use development on the balance of the block to be completed within the next 3-5 years.
In addition, OSF has agreed to purchase the LD Building located in the 300 block of Adams Street from Caterp...
Click here for full text