EDAC

Regular Meeting

Pekin, IL · May 12, 2025

Minutes

City of Pekin PROCEEDINGS OF THE REGULAR MEETING OF THE ECONOMIC DEVELOPMENT ADVISORY COMMITTEE OF THE CITY OF PEKIN, ILLINOIS, HELD IN THE COUNCIL CHAMBERS OF CITY HALL 111 S. CAPITOL ST ON MONDAY, MAY 12, 2025 AT 12:00 PM Call to Order The regular meeting of the Economic Development Advisory Committee was called to order at 12:00 P.M. A quorum was declared by D. Leman. Attendee Organization Title Status Arrived Name John Campbell Economic Development Advisory Committee Member Absent Danielle Owens Economic Development Advisory Committee Member Present Noon Amy McCoy Economic Development Advisory Committee Vice Present Noon Chair Dennis Short Economic Development Advisory Committee Member Present Noon Jack Steger Economic Development Advisory Committee Member Absent Drew Leman Economic Development Advisory Committee Chair Present Noon Liridon Rrushaj Economic Development Advisory Committee Member Absent D. Neal Hanley Economic Development Advisory Committee Member Present Noon II Roy Bockler Economic Development Advisory Committee Member Absent Earl Riley Economic Development Advisory Committee Member Present Noon Caty Campbell Economic Development Advisory Committee Member Present Noon Others in attendance: Mayor Mary Burress and Director of Economic Development Josh Wray Approval of Minutes 2.1. Minutes of the Regular EDAC Meeting held on March 10, 2025 D. Short motioned to approve the agenda for today’s meeting and the meeting minutes from March 10,2025, with a second by E. Riley. The motion passed by voice vote. Public Input None Reports 4.1. Monthly Staff Report Mr. Wray reviewed the included monthly staff report included in the packet. There was discussion about the recently announced data center coming to Pekin. 4.2. Strategic Plan Scorecard Mr. Wray stated that he made minor updates to the scorecard to organize by intended target date for completion. He reviewed a few of the upcoming items. 4.3. Greater Peoria EDC Report Mr. Setti was unable to be in attendance today, but updates from Greater Peoria EDC are included in the packet for review. New Business 5.1. TIF Program Funding Recommendations for FY26 Mr. Wray reviewed a draft Request for Council Action that he plans to present at the upcoming council meeting. He asked the Committee for feedback on existing and potential new programs that could be supported through current funding. He shared that there is $400,000 available in the approved budget for these types of activities. Mr. Wray also clarified that these funds do not roll over and would need to be re-budgeted each fiscal year if unused, even though the balance technically remains in the fund. Mr. Wray asked for feedback to begin outlining proposed funding allocations by program type. Committee members asked about average demolition costs and whether a single project could qualify under multiple program categories. Mr. Wray confirmed that a project could potentially fall under multiple categories, but eligibility and approval would ultimately depend on council decisions. B. Hanley motioned to recommend the program funding proposal as presented, seconded by C. Campbell. The motion passed by voice vote. The Committee provided feedback that a consistent program structure year over year would be beneficial. Mr. Wray expressed hope that this format would allow for clearer yearly adjustments and enable council to allocate funding per program based on past performance. He also clarified that funding for previously approved projects is factored into the budget first before determining how much is available for new projects. 5.2. Lutticken Development Vision Mr. Wray presented a current map of the Lutticken property showing property boundaries, Ameren utility lines, and parcels that have already been sold so the Committee could discuss long-term visioning, potential rezoning, and development strategies. Committee members expressed excitement about the incoming technology park. There were questions about possible opposition, especially given issues experienced with other developments in the area. Mr. Wray acknowledged that while there had been a few concerns regarding the site’s location, no formal opposition has been reported. Once the site layout was reviewed with concerned parties, those concerns were resolved. He also pointed out that the absence of existing infrastructure presents an opportunity, as the project will bring in new infrastructure that will benefit the surrounding area. The Committee expressed interest in hearing from other communities that have dealt with data center developments and related opposition, so the city can be better prepared if similar concerns arise. The Committee also discussed the Lutticken property FAQ currently posted on the City’s website. Feedback was positive, and members suggested sharing key points on social media to help spread clear and accurate information. There was also a conversation about potential residential development around the northern portion of the lake. Some members suggested that residential zoning could extend up to the Ameren lines, with a tree or berm buffer to shield the area from utility lines. The Mayor asked Mr. Wray to follow up with the current property owner about engineering plans for a second lake on the site. It was also noted that dirt may be needed to fill in areas of the property, and excess soil from the future data center site could potentially be used for that purpose. McDaniels Marketing may be able to help communicate the vision for the Lutticken property. Any Other Business to Come Before the Committee None Adjourn Motion to adjourn the meeting by A. McCoy at 12:44 P.M., with a second by D. Owens. The motion passed by voice vote. The next regular meeting is scheduled for Monday, June 9, 2025, at 12:00 P.M. in the City Council Chambers.

Agenda

Packet

City of Pekin REGULAR ECONOMIC DEVELOPMENT ADVISORY COMMITTEE MEETING MONDAY, MAY 12, 2025 12:00 PM 1. Call to Order 2. Approval of Minutes 2.1. Minutes of the Regular EDAC Meeting held on March 10, 2025 3. Public Input 4. Reports 4.1. Monthly Staff Report 4.2. Strategic Plan Scorecard 4.3. Greater Peoria EDC Report 5. New Business 5.1. TIF Program Funding Recommendations for FY26 5.2. Lutticken Development Vision 6. Any Other Business to Come Before the Committee 7. Adjourn Page 1 of 16 EDAC Meeting Minutes March 10, 2025 Call to Order The regular meeting of the Economic Development Advisory Committee was called to order at 12:00PM. A quorum was declared by D. Leman. Attendee Name Organization Title Status Arrived Roy Bockler Economic Development Advisory Committee Member Absent Caty Campbell Economic Development Advisory Committee Member Present Noon John Campbell Economic Development Advisory Committee Member Absent Buster Hanley Economic Development Advisory Committee Member Present 12:05pm Drew Leman Economic Development Advisory Committee Member Present Noon Amy McCoy Economic Development Advisory Committee Member Present Noon Danielle Owens Economic Development Advisory Committee Member Present Noon Earl Riley Economic Development Advisory Committee Member Absent Liridon Rrushaj Economic Development Advisory Committee Member Present Noon Dennis Short Economic Development Advisory Committee Member Present Noon Jack Steger Economic Development Advisory Committee Member Absent Others in attendance: Josh Wray – Director of Economic Development, John Dossey – City Manager, Mary Burress – Mayor Approve Agenda and Meeting Minutes 3.1 Minutes of the Regular EDAC Meeting on February 10, 2025 A McCoy motioned to approve the agenda and meeting minutes from February 10,2025, seconded by C Campbell. Motion passed by voice vote. Public Input None Presentations and Reports 5.1 Strategic Plan Scorecard Mr. Wray reported that the Strategic Plan was received and filed by City Council at the last meeting. Open to feedback on the proposed scorecard. Suggestion from the committee to include a source on where the baseline numbers come from. 5.2 Staff Report Mr. Wray provided an overview of the included staff report. 5.3 Greater Peoria EDC Report Page 2 of 16 Mr. Setti was unable to be in attendance today, but updates from Greater Peoria EDC are included in the packet for review. Unfinished Business 6.1 Recommendation for TIF Residential Renovation Program Policy City Council tabled this item until tonight’s meeting and provided recommendations for updates and discussion for this committee, as included below: Lower maximum award for rental units of $30,000 No more than 50% of program budget can go to one developer in a given year Prohibition of owner-occupied projects from becoming rental within 5 years of incentive payment Personal guarantee required for all incentive agreements Recording agreements against property The contractor that initially brought this idea forth was present and questioned the recommended cap. Discussion held by members of the committee. Committee members discussed the considerations of cost to the city for properties sitting empty including code enforcement, demo, unpaid bills, mowing, and inspections. Neighbors may consider spending money to update their own properties as they see other properties improve. Committee in favor of the concept of a program, but suggest reassessing the program after a few months to see if it is effective, since there is concern about the maximum award amount. New Business 7.1 Presentation and Recommendation of a 3-Year Marketing Campaign Beth and Jacob from McDaniels Marketing presented a talent and business attraction marketing plan based on survey results from 21 leaders in the City of Pekin, which is included in the packet. Feedback from committee members that there have been many proposals in the past, but then nothing happens. Many comments about the need to spend the money to promote Pekin, especially with the Choose Peoria initiative and other school districts continued growth. Mr. Dossey agrees and encourages members to be more vocal and ensure their voices are heard. Motion to proceed with recommendation of the 3-year marketing plan by D Owens, seconded by B Hanley. Motion unanimously approved by voice vote. 7.2 Recommendation to Engage Retail Strategies for Retail Business Recruitment Services John from Retail Strategies presented a recruitment services plan, which outlines how they conduct their market analysis and use the data and proprietary tools to identify potential Page 3 of 16 opportunities. John also reviewed the process their team goes through as well as what reporting and collaboration would look like along the way. A McCoy motions to recommend a three-year engagement with Retail Strategies, seconded by D Short. Motion unanimously approved by voice vote. Any Other Business to Come Before the Commission None Adjourn Motion to adjourn the meeting by A McCoy at 1:39 P.M., seconded by C Campbell. Motion approved by voice vote. The next regular meeting is scheduled for Monday, April 14, 2025 at Noon in the City Council Chambers. Page 4 of 16 REQUEST FOR COUNCIL ACTION Agenda Date: May 12, 2025 To: Members of the Economic Development Advisory Committee From: Joshua Wray, Economic Development Director AGENDA ITEM: Monthly Staff Report DESCRIPTION: Commercial • Cullinan still plans to open Marshall's, Ross, and Five Below in fall 2025. Construction is ongoing. • The Bob Evans property renovation is near completion for its new restaurant tenant. • City Council voted to approve the accelerated purchase of the Lutticken property and, simultaneously, a land sale of approximately a third of the property to the technology park developer for the same cost per acre as the City's purchase for a total sale price of $4.5 million. The first buildings are expected to go up in 3 years, and full development is planned for 5 years. Staff estimates the property will generate $20 million of annual property taxes and employ over 100 jobs at full development. • City Council approved the 3-year agreement with Retail Strategies to attract new retail businesses at the regional and national level. Staff had a kick-off meeting with the team, and we will be represented by them at the International Council of Shopping Centers (ICSC) conference in Las Vegas. Industrial • Ambient Fuels is working on their plant design. • Epic Medical plans to submit their site plan for review at the June ZBA meeting. • GPEDC was awarded $40,000 to market industrial sites, and staff will be attending a meeting with them this month to determine how to spend it. Residential • Staff had a very preliminary discussion with a confidential, residential developer who may be interested in the Lutticken property on the north side of the lake. They will probably wait until the interchange and Veterans Drive extension are complete to buy any land. City Projects / Initiatives • The next phase of Court Street, from Stadium to 10th was awarded as one project but will be done in two phases. This year, we plan to compete 14th-Stadium as well as the federal Page 5 of 16 project from 8th-10th. The middle portion from 10th-14th will be in 2026. This will allow for proper traffic control between the projects, especially during Marigold Festival. • The City has been working to correct ADA issues in the downtown area per the ADA Transition Plan. We intend to spend over $500,000 this year on improvements. • City Council approved the 3-year marketing agreement with McDaniels, and staff had a kick- off meeting with them. A survey about the City's brand was sent to the EDAC. Other • We intend to put an RFQ out by the end of May to retain an engineering firm to permanently serve as the city engineer, which will allow for greater flexibility as workload ebbs and flows, and it will provide greater expertise in having a team of engineers in various disciplines as opposed to a single engineer on staff. • We hired a new public works director, Simon Grimm. Page 6 of 16 Plan ID Objective Baseline Goal / Deliverable Target Date Status G2 S3 O3 Finish reorganization of Riverway Business Park regulations. Land covenants in place Record covenant removal Q1 2025 Complete G1 S2 O1 Identify target industries. None Industry list Q2 2025 None G1 S2 O2 Fund at least $40,000 annually for multi-year economic development marketing plan. - $40,000 in budget Q2 2025 Complete G1 S2 O4 Identify and perform retention visits with top 10 employers and top 10 tax revenue generating businesses. - All visits complete Q2 2025 Businesses identified Pekin Chamber; GPEDC, Chamber, GPEDC, G2 S1 O1 Maintain memberships with regional and national economic development organizations. Q2 2025 Funding in FY25 budget PACVB PACVB, IEDA, APA G2 S2 O3 Spend at least $5 million annually for infrastructure improvements. - End of FY Review Q2 2025 Funding in FY25 budget Pages for incentives, New City website design G3 S1 O3 Create user-friendly website for available properties, incentives, and workforce info. Website live Q2 2025 RWBP, and Lutticken started 2025 G2 S1 O4 Stand-up cooperative with neighboring cities and taxing bodies regarding the Lutticken Property development. None First meeting report Q3 2025 None Webpage with list of Webpage with list of G3 S1 O1 Publish small business resource webpage. Final webpage live Q3 2025 resource links resource links Vacanies in engineering Vacanies in engineering G3 S3 O2 Full staff development related positions. All positions filled Q3 2025 and building and building G1 S1 O6 Create multiyear tourism strategy. None Strategy adoption Q4 2025 Complete G1 S2 O2 Attend 2 regional or national trade shows per year. - 2+ shows/events Q4 2025 0 G2 S3 O1 Maintain building code updated to one of most recent two code cycles. 2015 ed. 2021 ed. Q4 2025 2015 ed. G3 S1 O2 Host town hall regarding business / development topics. - Townhall event Q4 2025 none G3 S3 O1 Send development staff to professional development training at least annually. - Training completion Q4 2025 Complete for 2025 G3 S3 O3 Retain outsourced engineering and law firms to handle spikes in development activity. Law firm retained Agreements approved Q4 2025 Law firm retained G2 S2 O4 Identify opportunities for improvements to railroad, airport, and river transportation systems. - Opportunity list Q1 2026 - G1 S1 O5 Create entrepreneurship program. Sponsor to SmartStart Program kick-off Q4 2026 Sponsor to SmartStart G2 S2 O2 Complete proactive engineering studies for available sites of 10+ acres. None All studies complete Q4 2026 None 2026 G3 S2 O1 Publish commercial/residential development guides to create centralized sources for development regulations. - Guides published Q4 2026 - G3 S2 O2 Consolidate permitting and licensing systems. Three separate systems System launch Q4 2026 Three separate systems 2028 2027 G2 S2 O1 Complete a new comprehensive land use plan. - Plan adoption Q4 2027 - G2 S3 O2 Perform holistic review of zoning code and make recommendations for changes to modern regulations. - ZBA recommendation Q4 2028 - G1 S1 O1 Net 100 additional homes including 20 multifamily units. - 100 Q4 2030 1 G1 S1 O2 Net $18 million increase in industrial EAV. $12,078,077 $30,078,077 Q4 2030 $12,078,077 2023 G1 S1 O3 Reduce retail trade gap by 20%. $51,560,963 $41,248,770 Q4 2030 $51,560,963 G1 S1 O4 Net 100 additional jobs. 10,729 10,829 Q4 2030 10,729 ongoing G2 S1 O2 Participate in creation of Comprehensive Economic Development Strategy with Greater Peoria EDC - CEDS update ongoing Attended March mtg G2 S1 O3 Attend regional economic development meetings or events at least monthly. - Event report ongoing 2 Page 7 of 16 REQUEST FOR COUNCIL ACTION Agenda Date: May 12, 2025 To: Members of the Economic Development Advisory Committee From: AGENDA ITEM: Greater Peoria EDC Report DESCRIPTION: GPEDC Weekend Update - April 17, 2025 GPEDC Weekend Update- April 25, 2025 GPEDC Weekend Update- May 2, 2025 GPEDC Weekend Update- May 9, 2025 Page 8 of 16 REQUEST FOR COUNCIL ACTION Agenda Date: May 12, 2025 To: Members of the Economic Development Advisory Committee From: Joshua Wray, Economic Development Director AGENDA ITEM: TIF Program Funding Recommendations for FY26 DESCRIPTION: The City Council adopted the FY26 annual budget, which includes $400,000 for TIF / BDD incentives available for new projects. Staff would like to take a set of recommended programs and funding levels to Council for approval before opening up applications in June. The following programs are contemplated: Building Improvement Program - making spaces occupiable; preference to add new business or expand existing business Business Assistance Program - small grants to help businesses in financial need with small repairs to their building (e.g, leaking roof) Demolition Program - removing blighted buildings and cleaning-up properties; could be City-owned or privately-owned Residential Renovation Program - helping the middle-housing market by incentivizing renovations of vacant, dilapidated houses Investment Program - bringing in business that would earn the City a positive ROI via increases to sales tax, food/beverage tax, liquor tax, etc.; would generally be structured as a forgivable loan High-Impact Development Program - bringing-in development that has a great impact to the community, such as adding jobs, new housing, anchors/attractions, etc. The Committee is welcome to discuss other ideas for programs. The program funding would give staff direction on how this money is to be spent and would segregate classes of development to ensure we can have some money for business attraction, some for business retention, some for commercial, some for residential, some for big development, and some for small. Of course, if the Committee finds it in the best interest of the community to only focus on one or two of these, that recommendation can be made as well. Council approval of program funding would not necessarily lock-in that funding (e.g., we could hold off on demolitions if there is a desire to use that money to fund a high-impact development). A majority of City Council ultimately can spend this money on any TIF-eligible expense provided it is within budget rules. Staff's initial recommendation would be for the following allocation: Building Improvement Program - $100,000 (call for projects) Business Assistance Program - $50,000 (rolling basis) Demolition Program - $50,000 (rolling basis) Residential Renovation Program - $100,000 (call for projects) Investment Program - $100,000 (rolling basis) High-Impact Development Program - $0 Page 9 of 16 REQUEST FOR COUNCIL ACTION Agenda Date: May 12, 2025 To: Members of the Economic Development Advisory Committee From: Joshua Wray, Economic Development Director AGENDA ITEM: Lutticken Development Vision DESCRIPTION: Now that the City has accelerated the purchase of the Lutticken property, staff would like EDAC to start discussing the long-term vision for the development of the area. This will include future land use plans, recommended spending priorities, potential TIF district creation, identification of roadblocks to development, etc. Several maps of the property are attached for reference. Page 10 of 16 Cedar Rapids Chicago Fort Wayne Peoria Pekin Indianapolis Springfield Cincinnati St. Louis Louisville Lutticken Farm IL Hwy 98 • Pekin, IL 61554 1,000 acres recently acquired by the City for future development. City plans include extension of Veterans Drive through the property to I-474 (interchange already platted by IDOT). Ripe for mixed-use development with a City vision for residential around the lake and commercial along Veterans Drive. Property Details: PRICE: HIGHWAY: $14,000/ac negotiable Frontage on IL 98 I-474 – 6 miles SIZE: I-155 – 11 miles 997 acres RAIL: GRADE: N/A Variable PORT: ZONING: Peoria River Terminal – Agriculture / Estate 9 miles WATER: AIRPORT: Illinois American Water Pekin Municipal Airport – (at site) 7 miles SANITARY: Peoria International Airport City of Pekin - – 10 miles 15" main at site INCENTIVES: ELECTRIC: TIF District (partial) Ameren - 13.2 69, 138, and 345 kV at site Josh Wray, Director of Economic Development • City of Pekin, IL 111 South Capitol Street • Pekin, IL 61554 (309) 477-2300 • jlwray@ci.pekin.il.us • www.ci.pekin.il.us Page 11 of 16 Page 12 of 16 Page 13 of 16 Page 14 of 16 Page 15 of 16 Pekin Technology Park Concept Map Red – Luticken Farm boundaries Black – future Veterans Drive extension Yellow – Ameren electric transmission lines Blue – Property to be sold for technology park Page 16 of 16