Customers at Peoria’s Glen Hollow Shopping Center will soon face a 1% increase in sales tax, a measure approved by the City Council to fund redevelopment efforts. The designation of Glen Hollow as a Business Development District aims to revitalize the area, improve infrastructure, and combat vacant storefronts.
Key Takeaways
- A 1% retailer’s occupation and service occupation tax will be imposed within the Glen Hollow Business District.
- Revenue generated will be used for infrastructure improvements, lighting, and road maintenance in the area.
- The initiative seeks to address the deterioration of the shopping center and attract new businesses.
- The tax increase is set to take effect on July 1.
Revitalization Efforts Underway
The Peoria City Council voted to establish the Glen Hollow Business District, despite opposition from two council members. The primary goal is to counteract the ongoing deterioration of the shopping center, enhance its infrastructure, and reduce the number of empty storefronts. Assistant City Manager Kimberly Richardson explained that the collected funds will be reinvested into the area’s infrastructure, including lighting and city-owned roads, to ensure proper maintenance and prevent further decline.
Addressing Vacancies and Attracting Business
The departure of Best Buy earlier this year left a significant vacant space in Glen Hollow, prompting discussions about how to best utilize the large parcel. Property owners have been collaborating with the city to find solutions for attracting new businesses. However, cost has been identified as a major hurdle in bringing new retailers to the area.
Council Debate and Concerns
Council members Alex Carmona and John Kelly expressed strong opposition to the new tax. Kelly voiced concerns that the measure could incentivize property owners to neglect their properties, expecting taxpayer funds to cover maintenance. Carmona argued that the burden of property upkeep should fall on the owners and advocated for stricter policies to ensure accountability and fair treatment for all businesses, not just large chains.
Carmona’s motion to defer the vote failed, as delaying the decision would have jeopardized the city’s ability to establish the district within the current year’s window. Council member Zach Oyler supported the district’s creation, suggesting that Peoria has lost potential retail businesses, such as Dillards and Von Maur, due to a lack of competitive incentives. He emphasized the need for the city to actively compete for businesses to retain tax revenue and provide desired amenities for residents.
Council member Tim Riggenbach, initially hesitant about such districts, now views them as essential economic tools in the challenging retail landscape. He believes that dictating business needs to owners is counterproductive.
Future Plans
The Glen Hollow development district and its associated sales tax increase will become effective on July 1. The council is also considering a similar special service area designation for the Westlake Shopping Center, with a public hearing scheduled for February 24.
