Peoria Mayor Rita Ali says the planned Phoenix Manor development could become a major catalyst for revitalizing the city’s South Side. The $29 million project would provide permanent supportive housing, add a community health clinic and help restore population needed to sustain neighborhood businesses and services.
Key takeaways
- Phoenix Manor would create 48 supportive-housing units at the former Harrison School site.
- The project is a partnership between Phoenix Community Development Services and OSF HealthCare.
- Ali says additional housing is essential to rebuilding the South Side’s population and commercial base.
- Other priorities include affordable housing, Main Street improvements, riverfront development and an industrial park.
The project received initial approval from the Peoria City Council and is planned for Krause Avenue. It would serve families experiencing homelessness, with OSF HealthCare intending to operate a community health clinic at the site.
Housing as a revitalization strategy
Ali argues that Phoenix Manor would address Peoria’s long-standing shortage of quality, affordable housing while bringing more residents to an area that has lost population over several decades. She said many future tenants may have ties to the South Side but left because suitable housing was unavailable.
The mayor also said project partners intend to help residents build skills and pursue employment opportunities. In her view, stable housing and support services can contribute to broader neighborhood recovery rather than simply address homelessness.
Debate over the project’s fit
First District Council Member Denise Jackson has opposed Phoenix Manor, questioning whether a large supportive-housing development is the right economic fit for an already struggling neighborhood and whether existing infrastructure can accommodate it.
Ali acknowledged the disagreement but said she remains committed to the project. She rejected a “not in my backyard” approach and described Phoenix Manor as an investment in opportunity, stability and the long-term goal of repopulating the South Side.
Broader South Side plans
Ali pointed to the city’s South Side Revitalization Plan, approved by the Illinois Housing Development Authority. The plan calls for more affordable housing, infrastructure improvements and new commercial development, and was developed with residents, neighborhood groups and community organizations.
She cited the 47-unit Churchview Garden Homes development and the planned MacArthur Senior Flats for residents age 55 and older as additional pieces of the housing strategy. The administration hopes more residents will help sustain grocery stores, pharmacies and retail businesses that have left the area.
Development beyond the South Side
Ali also highlighted plans to bring restaurants and a boutique hotel to the 500 block of Main Street near the historic Madison Theatre. The effort could help reactivate vacant buildings and potentially support the theater’s future, although restoring the full facility would require substantial fundraising.
Other projects include a proposed riverfront amphitheater, broader riverfront improvements and an industrial park near Galena Road. Ali said the industrial site could attract manufacturing and warehouse operations, while limited electrical-grid capacity makes a large data center in Peoria unlikely in the near term.
