Peoria city officials are exploring a plan to extend and modify business incentives for the Westlake Shopping Center. The proposed changes aim to secure new leases and boost the center’s occupancy and revenue. This initiative involves extending the Westlake Special Service Area’s duration by 15 years and slightly increasing its supplemental sales tax rate.
Key Takeaways
- Proposed extension of the Westlake Special Service Area by 15 years, through 2055.
- An increase in the supplemental sales tax rate from 0.25% to 1%.
- The changes are intended to finalize pending lease agreements and improve occupancy.
- The tax increase is described as minimal, with a 25-cent charge on a $100 purchase.
- The move aims to align Westlake’s incentives with other commercial areas in Peoria.
Westlake Shopping Center’s Path to Recovery
Attorney Bob Hall, representing the Westlake Shopping Center, presented the proposal to the Peoria City Council, highlighting the challenges shopping centers face in managing vacancies and adapting to change. He noted that the center has secured a lease with a national sporting goods retailer and is in negotiations for another. The anticipated reopening of Guitar Center, following a water line issue, is also expected to contribute significantly to the center’s near-full occupancy.
Hall emphasized that these developments, coupled with the proposed incentive adjustments, will enhance revenues for both the shopping center and the city. He drew a parallel to the recently adopted Northwoods Mall tax increment financing (TIF) district, suggesting the quarter-percent tax increase would place Westlake on a similar footing with other incentivized commercial areas in Peoria.
Tax Implications and Procedural Steps
Regarding the tax increase, Hall clarified that for a $100 purchase, consumers would see an additional charge of only 25 cents. He argued that this impact is not substantial and would bring Westlake’s commercial Special Service Areas (SSAs) into parity with others in Peoria, including the Glen Hollow business district.
City Attorney Patrick Hayes mentioned the standard 60-day waiting period after a public hearing before ordinances can be passed. However, he noted that property owner waivers have been granted in the past to expedite this process, and they anticipate a similar waiver from Westlake, given the urgency to finalize lease agreements. The council is expected to vote on these changes at their March 10 meeting.
Hall also reflected positively on the existing Westlake Special Service Area, which has been in place since 2010, citing it as a successful example of collaboration between the city and property owners.
Other City Council Business
In other matters, the council deferred a vote on a package liquor sales application for the King Zone grocery store on Knoxville Avenue until March 24. Council member Alex Carmona requested the deferral to allow the business more time to make improvements and present a plan of operation, despite the liquor commission’s recommendation for denial.
The council also approved a procedural step to allow the city to reimburse its general fund for future project expenditures, enabling the finance department to monitor the bond market for more favorable conditions. Additionally, $100,000 was approved for the sole-source purchase of Econolite Traffic Cabinets to ensure service continuity for the public works department.
Items approved under the consent agenda included:
- A contract up to $350,000 with JIMAX for annual landscape stewardship and maintenance.
- A six-year extension of fiber networking and video services from i3 Broadband.
- An update to city code increasing tobacco retail licenses from 13 to 14.
- Permission for additional open fencing on Peoria Civic Center property.
- A special use request for an elderly housing facility on North Bigelow Street.
