Village to seek more home building and ownership with tax breaks

Work continues on an intergovernmental effort to create a tax incentive program to grow Peoria Heights’ population and lure a new grocery store to town.

Mayor Matt Wigginton met with representatives of the school district, library and Richwoods Township on March 27 to discuss the population decline in both the Village and the school district and what could be done about it. Peoria Heights’ population has dropped from a peak of nearly 8,000 residents in 1970 to some 5,800 today, a drop of nearly 28 percent, most of that following the closure of the Pabst plant in the early 1980s. Meanwhile, student enrollment at School District 325 has fallen from 750 in 2017 to fewer than 600 today.

Other items of concern include the large percentage of rental housing in the Village, at 960 total units, along with 128 vacant properties. Incentivizing and increasing home ownership and attracting young families are top priorities.

Wigginton aims to accomplish that through a tax rebate program, which is not the first time the Heights has gone down this path. Former Heights Schools Superintendent Roger Bergia saw this issue coming more than two decades ago and a $500,000 grant was secured to try to stem the losses, but the effort ran into regulatory and implementational hurdles. Some of those have now gone away through changes in state law while others – such as a significant number of tax-exempt properties and TIF districts in the Village – have since cropped up.

“There is an ability in the tax law that says a municipality such as Peoria Heights, by ordinance, can direct the county clerk to abate taxes by up to 10 years on newly constructed, owner-occupied, single-family and duplex homes located in areas of urban decay,” said Wigginton. “This represents a critical shift from past assumptions that such initiatives were not feasible.”

Short-term strategies could include capping short-term rentals such as Airbnb, while in the longer term the Village could create a pathway for renters to transition into affordable housing. Quality-of-life issues also could be addressed, for example, through exploration of a partnership with the Peoria Park District that might produce a community center, pool or splash pad in town that would be attractive to families.

Meanwhile, the Village also wants to attract a new grocery store.

With a Census count coming up, the issue “matters now more than ever,” said Wigginton, as without a reversal of these trends “our local relevance as a Village drops dramatically.” That could include the potential loss of representation on the Airport Authority and CityLink boards if the population drops below 5,000.

Unfortunately, there isn’t much open land in the Village on which to build, said Trustee Brandon Wisenburg, who asked if abatements could be applied to remodeled properties, as well as new construction. The answer is yes.

“If we could spur people to add a room, turning a two-bedroom into a three-bedroom … I think that’s huge,” he said.

Wigginton said he intends to contact other regional governments and said the next step would be the creation of an Abatement Review Board.

In other action or discussion:

  • The Village Board approved an amended professional services agreement with Missouri-based water consultant Woodard & Curran at a cost not to exceed $91,600, in addition to the $945,000 contract the Village signed with the firm last fall, to manage the construction of the new water filtration plant.

Further due diligence on the project has revealed the need for additional features and tasks, including a retaining wall on the hillside property, more electrical power for the plant, and a sewer connection. The company’s projected cost for that additional design work initially came in at $103,000, but pushback from the Village brought down that number.

The changes still prompted some “sticker shock” and questioning from trustees, who wondered why those issues weren’t caught earlier and whether this signals future requests for more money.

“Do we need to add 10 percent to everything you say?” asked Trustee Sarah DeVore. “We have to answer to the people … The six of us are taking the heat every single day about the water rates and the brown water, right. … I just want to be able to explain myself.

“How this is going to be paid for is people paying their water bills,” she continued. “I’d rather you come to me and tell me a project is going to be a million and a half dollars and it ends up being only $1 million.

“We are nickel and diming on this budget. I just think that it’s imperative that we know the worst-case scenario rather than having to continually add.”

Engineering consultant Mark Lee and a representative for Woodard & Curran, Samantha Weidenbenner, explained that 25 employees have been working on the project under a time crunch with a mid-April bidding deadline and a plan submission to the Illinois Environmental Protection Agency immediately thereafter, that the process should have taken about six months longer, and that unknowns are routinely uncovered the more “granular” you get in the discovery process. Nonetheless, Weidenbenner reassured trustees that, insofar as the design, “we are ready to go.”

“I’d like to see groundbreaking this year,” said Trustee Teresa Symmonds. “This is going to be an exciting task to be a part of.”

  • Renovations have been completed on nine local homes through a $75,000 grant from the Healthy Homes program of the U.S. Department of Housing and Urban Development along with $75,000 in matching funds from the Village.

The home received basic life/safety improvements such as structural and electrical work and radon, lead and mold remediation.

Heights Building Inspector Larry Young had high praise for the program and for the contractor hired to do the jobs, Mid-Illinois Companies of Peoria.

“The people we worked with were ecstatic,” said Young. “You need to be commended for what you did for these people.”

The only downside was the need to whittle the list of improvements in order to conform with the program budget, “which was sad because these people needed everything on the list,” said Young, adding that he was “really proud” of his involvement with the project.

“It would be nice if we could see more of this done in the community.”

  • The Village Board approved the purchase of a Vermeer hydrovac trailer for nearly $133,250. The equipment is to be used for lead service line investigations and other utility work, which is expected to be much cheaper than contracting out for those jobs.

It can be “very dangerous” to dig without knowing what’s underground, said Public Works Superintendent Chris Chandler.

“We need to discover as many known lead lines as we can by 2027,” he said. Beyond that, “this is going to help us find a gas line before we start putting a backhoe in the ground.”

The equipment is expected to last at least 10 years. Were the Village to lease that equipment over that time frame, it would cost $2.4 million, noted DeVore.

  • Residents can drop off large items not otherwise eligible for curb pickup as part of the Village’s annual spring cleanup from 8 a.m. to 5 p.m. Friday and Saturday, May 1-2, at the Public Works Garage, 3838 N. Boulevard. Dumpsters will be available. The drop-off is for residents only and they must show ID. Some large items will not be taken, including tires, appliances, electronics, yard waste, etc.

  • The Village Board is weighing its options to renew its relationship with Discover Peoria, the regional marketing group, after a pause. Previously the Village has paid between $15,000 and $20,000 for membership, which included a board seat with the organization. Trustee Elizabeth Khazzam is recommending a $7,500 “trial run” re-engagement, which will not come with the board seat.

The likes of Chillicothe, Princeville and Creve Coeur participate with Discover Peoria at that funding level, said Khazzam, who called it an “excellent value” at a modest cost while recommending that the money come out of Business Development District funds. The investment would put local festivals, restaurants and other activities on the regional marketing calendar, explained Khazzam. When there are high school state championship tournaments in central Illinois or events at the Civic Center or Wildlife Prairie Park, for example,  often Peoria Heights is not on tourists’ radar, and it should be, said Khazzam.

“Being on their calendar, I think, is a game-changer,” said DeVore.

The issue is expected to come up for a future vote.

  • The Village Board set aside Tower Park for use by the Central Illinois Resource Center on Saturday, Sept. 19. The organization will host a resource fair that day to make residents informed of the full spectrum of community support available to them in areas such as health care, food assistance and other social services.

  • A pet chip recognition station has been installed at Tower Park. The station, courtesy of Peoria County Animal Protection Services, can scan the tag on lost pets to bring up contact information for their owners and reunite them.

  • The mayor noted the recent passing of Heights resident Raymond Lockhart, who was a frequent presence at Village Board meetings.

“He was very clear of where he stood on issues, and I think a lot of us appreciated that,” said Wigginton. “So please remember Ray tonight.”