ACTION REQUESTED:
Title
Communication from the City Manager and Assistant City Manager with a Request to DEFER Until JANUARY 26, 2021, the Following:
A. ADOPT an ORDINANCE Amending the City of Peoria 2020 - 2021 BIENNIAL BUDGET Relating to the USE of SOUTH VILLAGE TIF FUND BALANCE to PURCHASE Property at 210 S WESTERN AVE in the Amount of $550,000.00; and
B. APPROVE the PURCHASE of Real Property Located at 210 S WESTERN AVE for Five Hundred Fifty Thousand Dollars ($550,000.00) from the SOUTH VILLAGE TIF.
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BACKGROUND:
The City of Peoria was awarded a $5 million grant for a “south side fire station and community center.” In light of this funding, the former Aldi’s location was proposed by staff because it has been a successful, central location for a number of community events, and it is a property in danger of becoming blight.
This property was privately purchased circa June 2016 for $1,055,000 and had $250,000 in improvements which included electrical, HVAC and building interior. The property and building were leased in June of 2016. However, the tenant has since left the location and the lease is no longer being paid. The lot is 260’x285’ and the building has 12,486 SF that is leasable. Nearby buildings include a Dollar General and older housing.
This property is in the Peoria Urban Enterprise Zone, a Federal Opportunity Zone, and the South Village TIF and is still at significant risk of becoming a blighted and/or abandoned property. There is no known alternative party interested in the property.
We are not proposing any significant immediate alteration of the property (except critical maintenance needs). And have developed an initial draft of a plan for needs assessment and community engagement prior to final investment in the property and delivery of a sustainable operations model.
This site has been a successful community venue in the past. In partnership with Southside Community United for Change, Intangible Mindz LLC, and the Greater Peoria Economic Development Council, the city of Peoria held a series of farmers markets based on the Southside to increase fresh, healthy food access in the Southside and engage neighborhood voices in the process. The Market operated on Saturdays, from August 22nd through October 10th, from 10:00 AM - 2:00 PM. In addition to fresh food vendors, OSF, St. Francis Medical Center, Peoria City/County Health Department, Heartland Healthcare, and other institutional and healthcare providers offered services, recipes, and health activities. Other non-produce vendors will offer a variety of goods and products for purchase.
FINANCIAL IMPACT: Once grant funding comes in from the state we would proceed with the alternations and repay any additional debt incurred for emergency / critical maintenance and reimburse the South Village TIF balance. We currently expect the total budget for the site to be $2 M (the remainder left after building the new Fire Station 4).
NEIGHBORHOOD CONCERNS: The use of this building as a community center will remove the risk of blight in a major building on this thoroughfare.
IMPACT IF APPROVED: A vibrant community center can have a positive impact on several needs within a community including youth needs, family support, public meeting space, senior support and more.
IMPACT IF DENIED: We may lose our ability to use this location for city events and have less and less stable programming in this area of the city. And we will have to look for an alternate location. It is unlikely that we will find a similar space for the same price as the replacement cost of this building is roughly estimated at over $2M.
ALTERNATIVES: We have not yet identified any readily available buildings with comparable quality and flexibility of structure.
EEO CERTIFICATION NUMBER: n/a
WHICH OF THE GOALS IDENTIFIED IN THE COUNCIL’S 2017 - 2032 STRATEGIC PLAN DOES THIS RECOMMENDATION ADVANCE?
1. Grow Peoria
2. Safe Peoria
WHICH CRITICAL SUCCESS FACTOR(S) FROM THE COMPREHENSIVE PLAN DOES THIS RECOMMENDATION IMPLEMENT?
1. Reinvest in neighborhoods.
2. Support sustainability.
DEPARTMENT: City Manager's Office