City of Peoria - File #: 21-231

• File #: 21-231
• Version: 1
• Name: OSF HQ RDA - 1st Amendment
• Type: Ordinance
• Status: Adopted
• File created: 7/14/2021
• In control: City Council
• On agenda: 7/27/2021
• Final action: 7/27/2021
• Title: Communication from the City Manager with a Request for the Following: A. ADOPT an ORDINANCE Amending the City of Peoria 2021 REVISED ANNUAL BUDGET Relating to the Use of the Central Business District TIF Fund Balance to Reimburse OSF HEALTHCARE SYSTEM and 124 ADAMS PROPERTY HOLDINGS, LLC up to $1.25 Million for Public Improvements to the Corners of FULTON STREET, and ADAMS STREET, and WASHINGTON STREET; and, B. APPROVE the FIRST AMENDMENT to the REVISED REDEVELOPMENT AGREEMENT and PARKING DECK LEASE with OSF HEALTHCARE SYSTEM and 124 SW ADAMS PROPERTY HOLDING, LLC.
• Indexes: Goal 1 - Financially Sound City , Goal 3 - Beautiful Peoria, Goal 4 - Grow Peoria, Grow employers and jobs., Invest in our infrastructure and transportation, Reinvest in neighborhoods
• Related files: 20-283, 19-135, 19-279

Date	Ver.	Action By	Action	Result
7/27/2021	1	City Council	adopted	Pass
7/27/2021	1	City Council	approved	Pass

ACTION REQUESTED:
Title
Communication from the City Manager with a Request for the Following:

A. ADOPT an ORDINANCE Amending the City of Peoria 2021 REVISED ANNUAL BUDGET Relating to the Use of the Central Business District TIF Fund Balance to Reimburse OSF HEALTHCARE SYSTEM and 124 ADAMS PROPERTY HOLDINGS, LLC up to $1.25 Million for Public Improvements to the Corners of FULTON STREET, and ADAMS STREET, and WASHINGTON STREET; and,

B. APPROVE the FIRST AMENDMENT to the REVISED REDEVELOPMENT AGREEMENT and PARKING DECK LEASE with OSF HEALTHCARE SYSTEM and 124 SW ADAMS PROPERTY HOLDING, LLC.

Body
BACKGROUND: On August 27, 2019, the City of Peoria approved a revised redevelopment agreement with OSF Healthcare Systems (OSF).

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 created 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...