ACTION REQUESTED:
Title
Communication from the City Manager with a Request for a DISCUSSION on Funding Additional Capital for the PEORIA CIVIC CENTER.
Body
BACKGROUND: City staff has been exploring options to assist the Peoria Civic Center with their capital needs along with the $25 million capital grant from the State of Illinois. The Civic Center has $47 million of unmet capital needs as identified by their Capital Committee. The $25 million state grant is making significant headway in addressing these unmet needs, but items such as the ice plant were not prioritized by the Civic Center Authority. The Civic Center Authority has also made an additional request of our legislators for more capital grants. The Peoria Civic Center Authority does not have the ability to levy taxes, so they are reliant upon program revenues from the Civic Center and Hotel Restaurant and Amusement Taxes to fund operations and capital. In fact, the original construction bonds and the 2007 expansion were funded with HRA-backed bonds. Currently, there are six years remaining on the 2007 expansion bonds. That debt service is as follows:
1/1/24
$6,504,050.00
1/1/25
$7,020,200.00
1/1/26
$6,489,400.00
1/1/27
$6,046,250.00
1/1/28
$7,012,250.00
1/1/29
$7,711,750.00
Hotel Restaurant and Amusement Tax collections have been affected by the pandemic, but have rebounded significantly for the past 2 years:
2016
$10,048,128.20
2017
$9,684,652.14
2018
$10,626,907.05
2019
$11,195,955.27
2020
$7,732,158.29
2021
$9,344,072.72
2022
$10,631,686.20
The cascade of funds for HRA tax dollars is complicated and funds several items. The order in which HRA Tax dollars are distributed is as follows:
1. Debt Service for the Civic Center Expansion bonds ($6-$7 million annually);
2. One-third of the 3% Amusement Tax proceeds distributed back to the City to fund operations (approximately $430,000 per year);
3. Debt Service on the Pere Marquette Hotel ...
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