The Village Board has entered into a tax increment financing (TIF) agreement with Pearl Enterprises of Illinois that ultimately could help produce a private investment upwards of $35 million on the insurance business’ main building at 1200 E. Glen Ave. and some adjacent properties.
The agreement comes after months of negotiations and could reimburse Pearl up to $8 million, or 80 percent of the net property tax increment produced by the development itself over the life of the TIF. The project is to happen in three planned phases. Phase 1A entails external changes to the current former headquarters. Phase 1B would renovate the interior of the building as Pearl secures leases. Phase 2, should all go as intended, includes the rehabilitation of nearby properties, likely for future retail use.
Meanwhile, the Village and Pearl will split the cost of relocating the utilities that serve the location, with an opt-out should cost estimates exceed $1 million. The current estimate to bury those utilities, which include Ameren and Comcast lines, is about $850,000.
Pearl, which was purchased by Boston-based One80 Intermediaries in 2022, is expanding its business with up to 60 new employees, while also creating space for new ground-floor retail fronting Prospect and office businesses above.
Pearl has been in business in the Heights for 70 years, covering three generations of the family, and “this is an important transaction for Gary (Pearl),” said his attorney, John Elias. Pearl has long been the largest employer in the Heights.
The project has been “10 years in the making,” added James Kemper, principal at the Peoria-based architectural firm handling the redesign, with Pearl “ready to pull the trigger on this now. He is 100 percent in on this.”
Phase 1A anticipates an 18-month buildout and “we’re ready to go,” said Kemper. The main building will be getting a new exterior skin, specifically a zinc cladding on the second floor with abundant glass and a whitewash applied to the brick base floor, along with an outdoor deck overlooking Prospect Road, said Kemper. Though it looks like a two-story building, what exists now is a façade that now will get a second floor, said Kemper, who lauded the high quality of the building materials.
“You see projects like this in Chicago, New York. Very upscale places,” said Kemper. “He is doing this right. Frankly, he’s not going to make his money back on this project. He’s doing this because he wants to give to the Heights.”
Board trustees had specific questions about the method and timing of installing new underground utilities and about the size of the public reimbursement, which at 80 percent of the tax increment is believed to be unprecedented in the Heights.
“This is a catalyst-type project. Pearl owns the entire block. … It’s a major project,” explained Community Development Director Wayne Aldrich. “Gary’s been a good neighbor. He’s early to get things done. That’s why the 80 percent is there.”
Meanwhile, money may be available for the utility lines through Business Development District funds, said Aldrich, who acknowledged that it’s a “big-ticket item” for the Village. Administrator Dustin Sutton added that the utilities situation across the street impacts Village Hall, which has had to contend with transformer explosions and power outages, and this investment should improve that situation.
Ultimately, the Board voted unanimously to approve the agreement, with Mayor Michael Phelan saying he was “very excited” about the investment and the creation of a significant number of head-of-household jobs.
In other business:
• The Village Board adopted its fiscal year 2026 budget, which anticipates about $5.63 million in spending on an estimated $5.68 million in revenue. Planned spending is down about 1.5 percent from the 2025 budget year.
Administrator Dustin Sutton noted that the Village is ending this fiscal year with an approximately $350,000 surplus, which is a far cry – and a welcome one – from the dire prognostications of one year ago, thanks to some mid-fiscal year adjustments and continued strong sales tax performance.
The proposed water budget shows expected spending of $1.79 million on revenues of $1.72 million. Expenditures are up about 24 percent over the 2025 fiscal year, as the Village’s water infrastructure enters a stage of significant capital investment.
The Village’s long-term water capital plan had anticipated two 10 percent increases in the coming year, but now the Village Board has adopted two 5 percent increases instead, scheduled for May 1 and Dec. 1. The local burden has been reduced by the Village’s success with grant acquisition, which Trustee Matt Wigginton noted in justifying his “yes” vote this year compared to his nay of a year ago when he felt there was too little to show for the rate hikes.
Now, with an $8 million filtration plant on the drawing board, a new water main coming on Route 29 and lead service lines being replaced, it’s “a totally different environment,” he said.
Finally, the Board approved a library budget of nearly $550,000, which has gone up just 3 percent in total since 2019, said Library Director Shawn Edwards. The near future will see significant building and grounds upgrades, paid for primarily with grants, he said.
• The Board approved the use of $10,000 in BDD funds for renovations at 1308 E. Seiberling, where two storefronts are being consolidated to make way for Golden Finch Boutique and Coffee Shop, owned by Charlotte Beck. The business is moving to Peoria Heights from Washington, where it operated on the Square for many years. Beck hopes to be open by the end of May.
An extra, 1 percent sales tax is placed upon establishments in the BDD that generate sales tax revenues for the Village, with the money collected then available for reinvestment in the downtown district. Typically, these grants or loans are not to exceed 75 percent of the eligible costs. Beck is investing more than $50,000 in the overall renovation.
The Board also approved a $2,242 BDD grant for Shekinah Investments and Debra Kuykendall for exterior improvements at 4711 N. Prospect Rd., which will be getting new awnings.
• The Board approved the purchase of two new Motorola radios for the fire department at a cost $13,875. The department is rapidly adding firefighters to its roster – up to 25 volunteers and other staff now -- which necessitates more equipment. The purchase prompted a board discussion afterwards, with Trustee Sarah DeVore saying that this was an unanticipated expenditure and that the Board needs better communication from the fire department moving forward.
• The Board voted unanimously to maintain its garbage fee at the current rate of $20 per month.
Trustees also discussed future options when the garbage contract expires in three years, with Trustee Brandon Wisenburg proposing that “the Village get out of the garbage business.
“When private companies compete, the price goes down,” said Wisenburg, who noted that some Illinois communities do give their residents multiple options of waste haulers, with local government not really part of the equation.
That’s not necessarily so with garbage pickup, given that guaranteeing haulers a specific number of households can be accompanied by discounted rates, said some other trustees. “There’s strength in numbers,” said Trustee Jeff Goett. Meanwhile, having garbage trucks from multiple haulers crisscrossing the community leads to more wear and tear on local roads.
The Village has had some service issues with its new waste hauler, GFL Environmental. Trustee Jennifer Reichert indicated that she would like to have regular meetings with GFL to do some relationship building. Wisenburg said he would like to see some provision made for an annual electronics pickup.
Meanwhile, Village administration scheduled a community cleanup on Friday and Saturday, May 16-17 at the Public Works Garage, 3838 N. Boulevard Ave. Dumpsters will be available on site from 8 a.m. to 5 p.m. on each of those days. The Village is working with GFL to coordinate the cleanup, which is a preemptive move aimed at preventing the littering of local alleys with large items that are not eligible for curb pickup. That said, the landfill will not be accepting everything. Not eligible for disposal are tires, appliances (dishwashers, humidifiers, laundry machines, air conditioners, refrigerators, water heaters, etc.), electronics (televisions, stereo equipment, computer monitors, keyboards, etc.), large batteries, hazardous waste including motor oils and wet paints, propane tanks and yard waste, among other items.
Finally, the Village is returning to its single-bill system for water and garbage pickup after separating the two created a lot of confusion among residents, said Sutton. Wisenburg said that he had received complaints from residents about their water being disconnected for failure to pay their garbage bills through the Village, so “we’re going back to the old system,” said Sutton.
• The Board unanimously approved a new A-2 liquor license, which brings to 17 the total of A-2 licenses in the Village. This one is destined for a longtime bar spot on Illinois Route 29, formerly the Riverview Tap, 4925 N. Galena Rd.
The new establishment will be a sports bar and grill and go by the name Big Behm’s. Hours will be 11 a.m. to 1 a.m., Monday through Sunday. Some concerns were expressed about the future of the front deck on the building, given the pending widening of Route 29.
Nonetheless, “I applaud you guys for taking the initiative down on Route 29,” said Wigginton. “I think there’s going to be so much opportunity down there.”
• The Board approved the expenditure of up to $9,000 to hire the Peoria-based firm Mohr & Kerr Engineering and Land Surveying to draw up a legal description and border map for a new riverfront TIF District – the Village’s fourth – to accommodate the pending $70 million-plus reconstruction of Route 29.
• The Board approved 3 percent wage increases for five non-union employees, three in administration and two at the police department. The total cost to taxpayers is just short of $9,500.
• The Board approved mayoral appointments Nick McCumber to the Board of Police and Fire Commissioners, Rick Picl as chairman of the Zoning Board of Appeals, Charlie Calloway to the Zoning Board of Appeals, Bart Cumming as treasurer, and Stephanie Turner to the Police Pension Board.
Phelan thanked all involved for the time they put in, as much as trustees in some instances, but singled out Picl for special mention.
“When people come to the Village and visit and they’re interested in spending some money here or opening a business, normally one of the first people we put them in front of is Rick,” said the mayor. “He cuts down on the red tape. He’s able to answer the questions about zoning and permitting …
“He’s just a real asset. I can’t thank him enough.”
• The Board learned that the proposed reconstruction of Prospect Avenue has been listed as a top priority of the Tri-County Regional Planning Commission, which has identified the need for a “a more consistent corridor” on Prospect from Tower Park in Peoria Heights to Glen Oak Park in Peoria.
Phelan noted the multiple regional assets along Prospect, from Junction City and Donovan Park on its north end to the Heights Downtown/restaurant row and Rock Island Greenway at its center, to Springdale Cemetery, Luthy Botanical Garden and the Peoria Zoo on the south. The whole corridor could become a historic and recreational tourism draw, branded by common signage, lighting and sidewalks, he said.
“Think what this could really turn into,” he said.