Interesting article on David Jordan's Transportation Blog at

http://www.wpgrr.com/

The article states that:

"(1) Peoria ranks No. 22 in the nation for the value of its exports, rivaling St. Louis and exceeding considerably larger cities such as Cleveland, Indianapolis and Pittsburgh. Peoria area companies exported $9.6 billion worth of product in 2006.

(2) A primary example of items exported from this area is heavy machinery, which makes better use of surface transportation rather than air freight due to weight.

(3) Chicago area roadways are expected to reach saturation point by 2020, which would cause transit delays for trucks. The rising costs of diesel fuel may also shift more air cargo back to the local airport rather than Chicago."

_________________


We expect that the continued increases in congestion around Chicago and St. Louis create economic development opportunities for Peoria. There simply is no easy correction for the massive congestion that comes with very large urban areas. Companies and individuals will continue to "vote with their feet", and move to smaller and less congested areas like Peoria.

Market Analysis - Residential Development in Downtown Peoria

Executive Summary

The City of Peoria, Illinois commissioned Tracy Cross & Associates, Inc. to provide a market analysis regarding the potential for residential development in the city’s downtown with particular interest in the feasibility of redevelopment within its Warehouse District. Overall, our analysis demonstrates the downtown of Peoria has the capacity to absorb 194 residential units annually among higher density attached housing forms. In fact the Downtown/Warehouse District has the capacity to absorb 102 loft-style apartments converted from existing structures, 66 new construction rental apartments, 16 new garden condominiums, and 10 new construction townhomes/rowhomes.

Our conclusions of aggregate potentials assume a strategic approach to the introduction of new housing is taken with respect to both geography and the order in which the various housing forms are brought to market. This is to say, maximum absorption will most likely be achieved only with a concerted effort to introduce new housing in a way that extends the sphere of residential desirability and does so in an order that does not concurrently pit competitive housing forms against each other.

Much like other urban centers undergoing gentrification and redevelopment, the potential for Peoria’s downtown is very strong. The Warehouse District has already demonstrated its strength as a place for new housing through several successful residential programs recently introduced, while the City of Peoria has, furthermore, supported further redevelopment through the adoption of its innovative Form-Based Zoning Code and approval of its generous incentives packages. What is needed to continue Peoria’s downtown and Warehouse District revival is the application of a sensible and strategic plan of development that builds on existing strengths and maximizes the potential for future sites.

Click here to see the full study:

Click on the link below to read an interesting article by John Sharp about the redevelopment plans for the former Walgreens on Main Street near Bradley University.

http://www.pjstar.com/business/x1870877031/Former-Walgreens-property-sold

Thanks to Christopher Callen for sharing.

City Economic Development Staff are requesting that the City Council authorize the studies required to create the Hospitality Improvement Zone (HIZ) as shown on the map above. The purpose of this zone is to assist existing and potential hotels in downtown make capital improvements.

Our competitor cities have or are creating high quality new conference center hotels using incentive programs. The Embassy Suites in East Peoria, the new hotel conference center in Normal, the Conference Center Hotel in Tinley Park, and the Lincoln Museum complex in Springfield have all created strong competitors for conferences.

The City of Peoria has created a very high quality Civic Center, but our downtown hotels continue to need assistance. The HIZ would help them revitalize their properties, and would help them or other operators to expand.

The HIZ would have both a Tax Increment Financing District (TIF), and a Business Development District (BDD). The TIF captures new property tax paid by the revitalized or new development, and is used to assist those redevelopments. The BDD can use a new up to 1% hotel tax and/or an up to 1% sales tax in the BDD to assist them to revitalize. In our opinion, the HIZ will assist improvement in our downtown hotels. If we do not help our downtown hotels, we will likely see them continue to struggle. And the position that Peoria has historically enjoyed as the conference / convention center for mid-state Illinois will continue to erode.

More information at:

http://hospitalityimprovementzone.blogspot.com/

Renaissance Park Progress

Amazing amount of progress in Rennaisance Park over the past few years. Thanks and congratulations to all those who created all these improvements.

May 20, 2008

Completed the Medical Technology District Plan in 2005

Formed the Renaissance Park Commission

Began marketing effort

Rebranded Med Tech District as Rennaisance Park

Developed Web Site

http://www.renaissanceparkpeoria.com/

Constructed the Peoria Next Innovation Center

Incubated High Tech Business to Innovation Center

Construction of the Illinois Medical Center Clinic underway

Construction of the OSF Children’s Hospital underway

Construction of the Long Term Acute Health Care facility underway

Methodist Hospital Expansion being planned

University of Illinois College of Medicine Cancer Center planned

Comprehensive Prosthetics & Orthopedics planned

Opened One World Green Dragon Lounge & Restaurant

Approved West Main St Corridor Form District

Completed I-74 Reconstruction

Major Bradley University expansion underway

Provided two Business Development Loans

Provided four Façade Improvement Grants

Walgreens redevelopment planned

Main Street Traffic Study underway

For More Information:

Bobby Gray
Economic Development
419 Fulton Street
Peoria IL 61602
(309) 494-8640

http://www.ci.peoria.il.us/

http://www.renaissanceparkpeoria.com/

http://www.PeoriaED.blogspot.com/

Just outside Chicago, there’s a place called Illinois.”

Move your business and home to Peoria

“Just outside Chicago, there’s a place called Illinois.” The State of Illinois developed this catchy slogan for it’s tourism marketing program to encourage Chicago-area residents to visit the Illinois south and west of Chicago, instead of visiting Wisconsin and Michigan. The strategy aimed to keep tourism and the dollars it generates in Illinois.

The strategy need not stop at tourism, though. Communities in downstate Illinois should employ a similar strategy when attracting businesses and economic development. Outside of the Chicago metropolitan area, the cost of home ownership and renting is tremendously cheaper. The cost of doing business is also much less. Congestion, often cited as a quality-of-life issue, is virtually non-existent: “rush hour” in smaller communities is often the “rush minute”.

Demographic trends indicate that the problem is only going to get worse in Northeast Illinois. Of Illinois’ population of 12 million people, 8 million citizens live in or around Chicago. By 2030, Illinois is projected to grow over 15%, but of the 2 million more people living here, most will be living in or near metro Chicago.

While growth is encouraging, it also comes with associated costs. Both Chicago and Illinois would be better off if some of the projected growth occurred in other Illinois communities. The addition of two million more people to the Chicago area will create more traffic congestion and air pollution. This will require increased capital expenditure at the federal, state and local levels as the transportation, protective and educational infrastructures swell to accommodate this growth. The increase in taxes need to manage this growth is rarely appreciated by citizens.

Illinois communities outside of Chicagoland could accommodate and welcome this growth. Many communities are at best experiencing moderate growth, while many more are losing population. These smaller communities often have housing stock, roads, schools, and other infrastructure that have capacity sufficient to the task.

This potential is illustrated by comparing two large metropolitan areas in Illinois. The moderately-growing Peoria metropolitan area is the second largest metro area in Illinois. However, as the following table demonstrates, there are significant advantages to locating or relocating “downstate”:

Chicago / Peoria

Median Home Price[1]

$ 274,700 / $ 114,900


Average Commute Time (2000)[2]

35 minutes / 20 minutes


“Cost of Doing Business” Rank[3]

90th / 47th

Cost of Living Index Composite[4]

103.9 / 96.9

Student-Teacher Ratio[5]

16.40 / 14.40


Relocating Businesses and Employees to Peoria

More and more people are controlling their own job location. The Internet permits more people to work remotely. Telecommuting allows mobile professionals to flee large, congested metro areas and work and live in a pleasant environment. Free lance writers, advertising executives, entrepreneurs, artists, computer experts and even salespeople are typical of employees who often have control of their work location. Jack Manahan is a perfect example. Manahan left the Chicago suburbs for Peoria. As a home-based computer consultant to government, he simply drives 10 minutes to the airport when he needs to visit a client. "I saved half the cost of my auto insurance and got a much nicer home in Peoria when I left Chicago. And the rush hour is much less than in Chicago. Peoria is a pleasant place to live and work, without the hassle of a really big city. "

Long gone is the requirement for manufacturers, agencies, sales forces and consulting companies to be located in a large metropolitan area. In fact, the cost of doing so might well outweigh the benefits. The same connectivity that permits telecommuting allows business leaders the flexibility to move their entire company to smaller, more attractive communities where both the quality of life and the cost of doing business are better. The marketplace is no longer local – it is global and requires little more than a strong technology and transportation infrastructure. This trend is accelerating and will likely continue to be popular, especially as congestion increases.

Attracting a Retiree Migration South

Moving to a downstate community can also be an excellent retirement strategy. Retirees can achieve substantial savings from the sale of their homes. With Chicago’s real estate market rocketing skyward, retirees can often turn the sale of one home into the purchase of two: A home in a moderately-sized downstate community that offers proximity to family and friends and offers all the amenities of city life, and possibly a second home for the winter months in the Sun Belt. This move is especially appealing to those individuals who grew up downstate but moved to larger metropolitan areas for work reasons.

One budding strategy in attracting retirees is to build housing communities in conjunction with universities and colleges. The housing can be privately developed, with alumni and faculty targeted as purchasers. The partnership is a win-win situation: Alumni bring a love of the institution and serve as natural source of volunteers, donors, event boosters and even students in continuing education. The city gets more homeowners and consumers in the local economy, but does not need to concern itself with these new citizens taking high-paying jobs or additionally taxing the local public school system.


Craig Harlan Hullinger AICP is the Economic Development Director for the City of Peoria. Craig has a BA Degree in Public Administration, a Master s Degree in Environmental Planning. Contact him at (309) 494-8639 or chullinger@ci.peoria.il.us.

Christopher Setti is an Economic Development Specialist with the Economic Development Department of the City of Peoria. Chris has a BA in Political Science and a Master’s Degree in Public Administration. Contact him at (309) 494-8618 or csetti@ci.peoria.il.us.

[1] National Association of Realtors: http://money.cnn.com/pf/features/lists/nar_3q05/price.html#table
[2] Arbitron “Average Travel Time to Work Comparison.” www.arbitron.com/outdoor_companies/travel_result.asp
[3] Forbes Magazine, “Best Places for Business and Careers.” May 5, 2005.
[4] ACCRA Cost of Living Index, 2nd Quarter 2005
[5] www.money.cnn.com. “Best Places to Live 2005.”

Peoria Journal Star article on Peoria home price increase - second highest percentage growth in the nation.

http://www.pjstar.com/php/index.php?/news/peoria_area_housing_market_one_of_tops_in_the_nation/