Peoria officials have approved a nearly $7.3 million redevelopment of historic storefronts along the 500 block of Main Street, pairing new restaurants with a planned boutique hotel. The city also agreed to sell a nearby surface parking lot to the developers, a move intended to support the project and help advance the long-dormant Madison Theatre’s revival.
Key takeaways
- The City Council unanimously approved the redevelopment agreement for 500-516 Main Street.
- Plans call for three dining concepts and a 24-room boutique hotel.
- The city will sell a nearby parking lot to the developers for $800,000.
- Public reimbursements are capped at $1.68 million, or about 21% of the total investment.
Main Street storefronts set for major renovation
The project will renovate the commercial storefronts in the historic Madison Theatre building. Developers Gerald Ritterbusch and Jeff Giebelhausen described the work as an important first step toward restoring the theater itself, which has remained dormant for years.
The $7.26 million project is expected to bring new activity to a prominent section of downtown. Proposed uses include an expanded Hoops Pizza & Pub, a restaurant featuring a traditional Midwest menu, and a higher-end coffee, wine and dining venue with deli and bakery offerings.
Boutique hotel planned for second floor
The redevelopment also calls for converting the building’s second floor into a 24-guest-room boutique hotel. Developers said the hotel would be the first boutique lodging operation in the Peoria metropolitan area and would complement the restaurants and the broader effort to revive the Madison Theatre property.
The plans include improvements to sidewalks surrounding the building, including upgrades to make them compliant with the Americans with Disabilities Act.
City parking lot sale supports development
As part of a related agreement, Peoria will sell a surface parking lot at the west corner of Madison Avenue and Hamilton Boulevard to the developers for $800,000. The lot sits across from the theater and is viewed as essential to serving future hotel guests and visitors.
The city currently leases the property from the Illinois Department of Transportation. The sale is expected to be completed after that lease expires next June. In the meantime, the city will coordinate with the developers so construction vehicles can use the lot, and the developers have indicated they may improve it before the project is finished.
Tax incentives tied to new investment
The entire project cost is considered eligible for tax increment financing. The additional property tax generated by the redevelopment is estimated at $1.76 million, while the developers requested $1.45 million in TIF reimbursement.
The agreement also provides reimbursement for 1% of three Business Development District taxes collected from retailers, service businesses and hotel operators through 2031. Reimbursements for the full project are capped at $1.68 million, according to the city.
City officials characterized the incentives as a relatively modest share of the total investment. Developers, meanwhile, say the combination of renovated storefronts, new lodging and improved parking could help make the Madison Theatre’s eventual restoration more feasible.
