Pekin Owner Rejects $50,000 Grant as Council Reopens TIF Funding

By September 16, 2026 3 min read
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Mary Teresa Lohman has declined a $50,000 city grant intended to renovate her vacant commercial building in downtown Pekin. The decision follows the City Council’s reduction of an initially proposed $100,000 award. The move frees up $50,000 for another applicant while the council also approved a new police contract and several technology and infrastructure purchases.

Key takeaways

  • Lohman will not proceed with plans for the building at 343 Court Street after the grant was reduced.
  • The City Council rescinded the TIF agreement, making $50,000 available in the next grant round.
  • Pekin police employees approved a four-year contract with annual raises.
  • The council also funded park surveillance improvements, traffic-signal repairs and street-sweeper equipment.

The decisions were made during the Pekin City Council’s Monday meeting and affect downtown redevelopment, public safety and municipal operations.

Commercial grant is declined

Lohman’s building, which most recently housed DUI Countermeasures, has been vacant. Her original proposal called for renovations and the addition of living spaces on the upper floor. The project also included new water service and fire-suppression infrastructure.

In July, the council preliminarily approved a $100,000 tax increment financing, or TIF, grant. During its final vote in August, however, the council approved only $50,000 for renovations. That amount represented the maximum grant awarded among the six applications approved in that round.

According to Economic Development Director Josh Wray, Lohman determined the reduced award would not provide enough funding to move forward. The council formally rescinded the TIF agreement Monday.

Additional TIF money becomes available

The cancellation leaves another $50,000 available for the next round of competitive commercial building improvement grants. Applications are due Friday, giving local businesses an opportunity to seek funding for eligible renovation projects.

The TIF program is designed to support improvements to commercial properties and encourage investment in Pekin’s business districts.

Police contract approved through 2030

The council unanimously approved a new four-year contract covering Pekin police officers, sergeants and detectives. The agreement with the approximately 50-member Pekin Police Benevolent Labor Committee had already been ratified by union members.

The contract provides a 4% salary increase in the first year, followed by 3.5% increases in each of the next three years. Because the contract began May 1, union members will receive retroactive pay. The agreement runs through April 30, 2030.

City Manager John Dossey said city management and the police bargaining unit have maintained a positive working relationship.

Technology and infrastructure projects move ahead

The council also approved several purchases and agreements:

  • A nearly $31,130 agreement with Bluebird Fiber for improved feeds to surveillance cameras at two pocket parks and synchronous data service at the wastewater treatment facility.
  • A one-year, nearly $28,650 renewal with SHI International for around-the-clock maintenance and subscription support for 83 network devices.
  • A budget amendment reflecting slightly more than $38,000 in insurance reimbursement for traffic signals damaged by lightning at Court Street and Stadium Drive.
  • About $18,100 for a new sweeper head and motors for the city’s 2018 TYMCO street sweeper.

The upgraded park camera connections are intended to give police clearer video as the city responds to increased vandalism at the pocket parks.

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B. Stewart
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B. Stewart

A contributor to ProsperPeoria.Com — your community resource for connecting people and businesses for success in Peoria, Illinois.

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