The Peoria City Council has officially established two new Tax Increment Financing (TIF) districts, signaling a renewed commitment to using this economic development tool to attract private investment and foster growth. These districts are strategically located in areas identified as needing redevelopment, aiming to boost property values and ultimately increase the city’s revenue.
Key Takeaways
- Two new TIF districts were approved by the Peoria City Council.
- One district focuses on the Northwoods Mall area, while the other targets the downtown Adams-Liberty block.
- The goal is to incentivize private sector redevelopment in areas requiring infrastructure improvements or facing challenges in attracting investment.
- Supporters believe TIFs can lead to increased Equalized Assessed Value (EAV), potentially allowing for lower property tax rates in the future.
- Some council members expressed reservations about TIFs, citing concerns about the current tax environment and their impact on the broader community.
New TIF Districts Aim to Revitalize Key Areas
Peoria is embracing Tax Increment Financing (TIF) as a strategy to encourage development in specific parts of the city. The City Council recently greenlit the creation of two new TIF districts. One is centered around the Northwoods Mall and its surrounding vicinity, an area identified as needing infrastructure upgrades to support potential development. The second district is focused on the downtown Adams-Liberty block, which includes the city-owned PNC Bank Building, also known as the Tower on Adams.
Assistant City Manager Kimberly Richardson explained that TIFs are designed to facilitate redevelopment in areas that might not otherwise attract sufficient private sector interest. By using TIFs, the city can help offset the costs associated with necessary infrastructure improvements, making these areas more appealing to developers.
Downtown Redevelopment Plans and Economic Goals
The Adams-Liberty TIF district is specifically intended to support a mixed-use project, incorporating both commercial and residential components, within the PNC Bank Building and adjacent properties. The city acquired these properties in 2024 for $1.75 million. The overarching objective, according to Richardson, is to see the developments spurred by these TIFs lead to an increase in Peoria’s property values and, consequently, generate more tax revenue for the city.
Council member Tim Riggenbach voiced strong support, emphasizing that growing Peoria’s Equalized Assessed Value (EAV) is a core objective. He suggested that a higher EAV could eventually lead to a reduction in property tax rates, countering the notion that a high EAV is detrimental. He clarified that TIFs are not a tax increase but a mechanism to enhance property worth.
Council Deliberations and Dissenting Voices
While both TIF ordinances were ultimately approved with an 11-1 vote, they were pulled from the consent agenda for discussion. Council member Alex Carmona was the sole dissenter, expressing general objections to TIFs, particularly within the current high-tax environment. He argued that while TIFs might lead to higher property values, the eventual property tax payments would be significantly larger than before.
Council member John Kelly also shared concerns about the overall effectiveness of TIFs, describing them as "special deals for special areas" that do not necessarily benefit the entire community. Despite his reservations, he ultimately voted in favor.
City Manager Patrick Urich indicated that negotiations are underway with a developer for the PNC Bank Building project. He noted that the existing parking deck is likely beyond repair and may require a new structure costing approximately $4 million. Part of the ongoing discussions also involve seeking reimbursement for the city’s expenses incurred during its ownership of the properties.
Other Council Business
In addition to the TIF district approvals, the council also renewed a three-year contract with Ersi, Inc., for the maintenance and support of the city’s Global Information Systems (GIS) platform, at an annual cost of $90,300. An amendment to the development code concerning street wall requirements in form districts was also approved. This amendment adjusts previous requirements, such as removing the need for masonry columns and two-foot brick bases, while introducing a minimum 80% openness for metal walls.
The meeting concluded with an executive session, where discussions were expected to cover pending litigation and potential next steps related to the Par-A-Dice Hotel Casino redevelopment plans.
