City of Peoria - File #: 22-296

• File #: 22-296
• Version: 1
• Type: Ordinance
• Status: Adopted
• File created: 8/18/2022
• In control: City Council
• On agenda: 8/23/2022
• Final action: 8/23/2022
• Title: Communication from the City Manager and Interim Corporation Counsel with a Request for the Following: A. ADOPT an ORDINANCE Amending the City of Peoria 2022 REVISED ANNUAL BUDGET Relating to the Use of the Central Business TIF Fund Balance to Reimburse OSF HEALTHCARE SYSTEM and 124 ADAMS PROPERTY HOLDINGS, LLC up to $1,500,000.00 for Public Improvements to the Corners of FULTON STREET, ADAMS STREET, and WASHINGTON STREET; and, B. APPROVE the SECOND AMENDMENT to the Revised REDEVELOPMENT AGREEMENT and PARKING DECK LEASE with OSF HEALTHCARE SYSTEM and 124 ADAMS PROPERTY HOLDINGS, LLC.

Date	Ver.	Action By	Action	Result
8/23/2022	1	City Council	adopted	Pass
8/23/2022	1	City Council	approved	Pass

ACTION REQUESTED:
Title
Communication from the City Manager and Interim Corporation Counsel with a Request for the Following:

A. ADOPT an ORDINANCE Amending the City of Peoria 2022 REVISED ANNUAL BUDGET Relating to the Use of the Central Business TIF Fund Balance to Reimburse OSF HEALTHCARE SYSTEM and 124 ADAMS PROPERTY HOLDINGS, LLC up to $1,500,000.00 for Public Improvements to the Corners of FULTON STREET, ADAMS STREET, and WASHINGTON STREET; and,

B. APPROVE the SECOND AMENDMENT to the Revised REDEVELOPMENT AGREEMENT and PARKING DECK LEASE with OSF HEALTHCARE SYSTEM and 124 ADAMS PROPERTY HOLDINGS, LLC.

Body
BACKGROUND:
On August 27, 2019, the City of Peoria approved a Revised Redevelopment Agreement with OSF Healthcare Systems (OSF). OSF and Caterpillar formed 124 SW Adams, LLC to redevelop the Block and Kuhl department store building, originally built in 1905 into the OSF Ministry Headquarters. The cost of the Project was approximately $127 million. The OSF Ministry Headquarters consists of collaborative administrative office space housing medical professionals, financial and legal professionals, as well as C-suite officers, among others. In total, it is anticipated that approximately 700 OSF employees will occupy and utilize the former Block and Kuhl Building to provide support services for OSF Healthcare professionals and outpatient centers throughout the Midwest.

The Project also includes site amenities that benefit not only the OSF Mission Partners but the Downtown public. The former Caterpillar Merchandise Center has been renovated into a Great Harvest Bread Company with a public facing coffee shop. The former A&P grocery store at the corner of Washington and Fulton will be renovated into a public facing steakhouse called Saffron Social. Redevelopment of the former Block and Kuhl Building has created more than 300 construction jobs. It is anticipated that OSF Mission Partners will provide an impact of over $2 million per year to Downt...