Peoria approves $1.125 million Exposition Gardens acquisition despite appraisal concerns, foreclosure deadline pressure

No, no problem. Good evening everyone. It is 6 o'clock p.m. on Tuesday, June 24th, 2025. I'd like to call the meeting of the Poria City Council to order. I'd also like to welcome everyone here in our historic council chambers as well as our listening audience at WCBU. We also welcome our audience watching through cable channel 22. Madame clerk, the council mics are open. Please call the role. Mayor Ali, present. Council member Allen, present. Council member Carmona, here.

Council member Seir here. Council member Gordon Young present. Council member Jackson here. Council member Kelly here. Council member Oiler here. Council member Rianbach here. Council member Velpula. And council member Vesa here. You have a quorum present. Madame Mayor. Thank you madam clerk. Please join me everyone and stand for a moment of silent prayer or silent reflection followed by the pledge of allegiance.

I pledge algiance to the flag of the United States of America and to the republic for it stands one nation under God indivisible with liberty and justice for all. Madame Clerk, we are at the approval of the minutes. Council member Rigenbach. Thank you, Madam Mayor. I move to approve the minutes of the joint city council and town board meeting held June 10th, 2025 as printed. Seconded by Council Member Jackson. Any questions or comments? Please cast your ballots. Motion passes unanimously.

Madame clerk, we are at the consent agenda. 25-152 is a communication from the city manager and finance director controller with a request to approve an existing property and commercial auto insurance coverages with Liberty Mutual Insurance through Alliant Insurance Services, Inc. for a one-year term in an amount not to exceed $673,191. 25-153 is a communication with a request to approve the purchase of 57 Armor Express ballistic vests and accessories from Gauls in the amount of $98,610.

25-154 is a communication with a request to approve the low bid of JC Dylan, Inc. and award a contract for the storm water outfall repairs in the amount of $92,535 with an additional authorization of $90,254.95 for contingencies for a total contract award of $992,790.

25-155 is a communication with request to approve and authorize the execution of a contract with resource management associates to administer the police sergeant and police lieutenant promotional examination in the amount of $117,580. 25-156 is a communication with request to approve a settlement agreement with United Fellowship Ministries for the demolition of the church at 231 South Saratoga, Pora, Illinois.

25-157 is a communication with request to approve a resolution regarding the approval of close session minutes. 25-158 is a communication with request to concur with the recommendation from the planning and zoning commission and staff to adopt an ordinance approving a special use in a class R4 single family residential district for a short-term rental for the property located at 116 West Beverly Court, Poria, Illinois.

25-159 is a communication with request to concur with a recommendation from the planning and zoning commission and staff to adopt an ordinance approving a special use in a class R4 single family residential district for a family care facility with a waiver for the property located at 2119 Northeast Street Poria Illinois 25-160 is a communication with request to approve the site application for a class B restaurant 50% food liquor license with on-site consumption and retail sale of alcohol for Seafood Business, Inc.

doing business as Jonas 101 Oyster Bar at 6035 North Knoxville, Sweet 101J, contingent upon the issuance of a certificate of occupancy with a recommendation from the liquor commission to approve.

25-161 is a reappoint by Mayor Ali to the CDBG public service advisory commission with a request to concur of Sheri Cannon Aaron Kilgore Alexander Ike Jaku Jael Mloud and Jada Hair 25-162 is a reappoint by Mayor Ali to the construction commission with a request to concur of Brad Hall and Steve Ceciorelli 25-163 is a reappointment by Mayor Ali to the Downtown Advisory Commission with a request to concur of John Dre.

25-164 is an appointment by Mayor Ali to the Downtown Development Corporation with a request to concur of Alex Carmona. 25-165 is a reappoint by Mayor Ali to the East Village Grow Cell Advisory Committee with a request to concur of Steve Catlac, Kurt Deerking, Lisa Fiser, and Matt Smith. 25-166 is a reappointment by Mayor Ali to the Fair Employment Commission with a request to concur of Carl Holloway, Solivian Dismuk, Anu Pama Udavalu, Brittany Strickland, and Ronald Rofen.

25-167 is a reappointment by Mayor Ali to the fire and police commission with a request concur of Marvin High Totower, Thomas Burke, and Terry Cooper. 25-168 is a reappointment by Mayor Ali to the Historic Preservation Commission with a request to concur of Jan Krauss, Marissa Frell, and Michael Maloof. 25-169 is an appointment by Mayor Ali to the liquor commission with request to concur of channel Hargrave Murray.

25-170 is a reappoint by Mayor Ali to the liquor commission with a request to concur of Aras Hanuano.

25-171 is a reappoint by Mayor Mayor Ali to the mayor's advisory committee for citizens with disabilities with a request to concur of Bri Mu Bower Jishnu Surinvas Thomas Peterson 25-172 is a reappoint by Mayor Ali to the municipal band commission with request to concur of Marsha Buer 25-173 is a reappointment by Mayor Mayor Ali the to the Poria Civic Center Authority Board with a request to concur of Matthew Bartolo.

25-174 is a reappointment by Mayor Ali to the Poria Public Library Board of Trustees with a request to concur of Barbara Vanaken, Margaret Cousin, and Ruth Bitner. 25-175 is a reappoint by Mayor Ali to the Peoria Urban Forestry Advisory Board with a request concur of Randy Swinson and Amy McLaren. 25-176 is is an appointment by Mayor Ali to the Advisory Committee on Police Community Relations with the request to concur of Denise Jackson.

25-177 is a reappointment by Mayor Ali to the advisory committee on police community relations with request to concur of Lee Lang and Daryl Jackson. 25-178 is a reappoint by Mayor Ali to the police pension fund board of trustees with a request to concur of Katherine Hardy. 25-179 is an appointment by Mayor Ali to the sister city commission with request to concur of Ming Grangu. 25-180 is a reappoint by Mayor Ali to the sister city commission with a request to concur of Patrick Russler.

25-181 is a reappoint by Mayor Ali to the solid waste disposal landfill committee with a request concur of Steven Van Winkle. 25-182 is a reappoint by Mayor Ali to the Springdale Cemetery Management Authority with a request to concur of Kathy Ma. 25-183 is a reappointment by Mayor Ali to the Tourism Reserve Fund with a request to concur of Bernice Gordon Young and Gregory Wilson.

25-184 is a reappoint by Mayor Ali to the transportation commission with a request to concur of Bernie Guiton Natada Naf Nafak Colin code 25-185 is a reappoint by Mayor Ali to the zoning board of appeals with a request concur of Laith Al Kafage Ryan Cannon and Richard Russo and that completes our consent agenda. Thank you, Madam Clerk. It's that time of year when all these appointments expire on June the 30th. So that's why you see all these reappoints occurring.

Are there any items to remove from consent? Council member Seir. Thank you, Madam Mayor. Move to approve consent agenda. Seconded by council member Allen. Any questions, comments, or any other items? Please cast your ballots. Motion passes unanimously. Madame clerk, we are at the regular agenda.

25, excuse me, 25-186 is a communication from the city manager and director of community development with a request to approve a grant award extension to Lula NFP to reimburse hotel costs for unsheltered individuals in an amount not to exceed $64,000. Mr. Manager, uh thank you, Madame Mayor.

Um, as a followup to our uh, policy session discussion, um, we put this agenda item on, which would be an extension of one month uh, of the hotel project, and I'll turn it over to our community development director, Dulan, to walk through the item. Thank you. Uh, thank you, mayor. Thank you, councel. Um, as the manager said, the item in front of you is to extend the, uh, hotel project for one month. Uh, just kind of wanted to take the opportunity to kind of give an update on where we stand.

Uh as of today, there are still 46 individuals still in the hotel. Uh but uh the very good news is hopefully by June 30th, that number will be down to about anywhere between 22 uh and 30 individuals. Uh and and even some of them within that first week of July will also be housed. Uh as I mentioned during the policy session, uh right now we just don't have line of sight of about 17 of those individuals. Uh but the rest we uh have good plans in place uh to have them housed.

The 30-day extension is specifically to give our social service agencies just a little additional time. Uh often uh people who are experiencing unsheltered homelessness uh are a little skeptical of engaging services uh and due to the four or five months they've been in the the hotel, they've uh grown uh to really embrace those services. and we'd hate for them to go back on the streets and kind of lose track of them while we're so close to actually finding a permanent housing solution with them.

Um, this will uh ensure that we have the funding to keep the project going. Uh, likely we won't spend the entire amount um because as we uh move people out of the hotel, those costs go away. This would be essentially forecasting and then if we don't spend that money, this is just coming from that money we allocated at the beginning of the year to uh uh specifically address this issue. It'll just be available for future projects. Happy to answer any questions on it.

Director Julen, I know we talked at length about this last Tuesday at the special meeting, but can you state or restate how many people at the end of this next 30 days? How many people do you think will be left without temporary or permanent housing? Uh yes. Um so throughout the lifetime of the project, there's been about 108 individuals who have come through it. Um the top at one time at any one time there's about 70 individuals in in the hotel at one time. Uh right now there are 46.

Uh hopefully by June uh 30th we'll be down to that 25 26 27 range. And then by July 30th uh well 31st uh we'll be down to 17 individuals. 17. And what do you see the plan for those 17 individuals? Um, uh, unfortunately there's not one right now. Um, I think that, you know, we talked about at length last Tuesday the phenomenal work of all of our social agency partners.

um the work that Lula has done um Dream Center, Phoenix, Trillium, Pure Housing Authority, uh Jolt, uh just a laundry list of social service agencies been out there and they have been trying very hard to find a housing solution for everyone that's involved in the project. Um we may be able to to whittle that number down. Uh but the reality is is those 17 likely all have additional barriers and need permanent supportive housing support. Uh and even with that, there's some barriers.

Uh and it's unlikely that we'll probably overcome those barriers by July 31st. Uh we will encourage them to obviously utilize the shelter space. Uh and hopefully uh we may even be able to reduce that number from 17 down lower. Uh but right now there's not really a solution in place for those 17. Okay. Thank you.

And thank you you and your team, all of our partners, stakeholders for just the phenomenal work that you've done in reducing this number from over a hundred people in and out of the hotel down to what will likely be 17 or less. It's it's been an amazing project and amazing effort. Thank you very much. Well, I know I mentioned this, but you know, special thanks to Lula and all of the peer support and volunteers they have out there.

I think when they originally launched the project, uh, admittedly a little nervous about it, but I think they've showed kind of kind of this approach and these social service agents, this focus, um, you know, in kind of thinking about what would be said tonight, I think one of the things, you know, this doesn't solve homelessness in the community, but when you look at when we originally uh started discussing this issue and passed this ordinance, uh, since then and by the end of this project, we'll have housed about 70 to 75 individuals who are living unsheltered out on the streets and it solved homelessness for them.

I think it's taught us a lot of lessons to uh use in the future for anyone who might be experiencing uh and I think often, you know, a lot of people who are experiencing homeless weren't expecting to to to get to that point. And so it could happen to anyone. So all of the lessons we've learned through this project uh can just keep being applied in the future and keep doing whatever we can to reduce that time someone who might be experiencing homelessness actually experiences it.

It's a case study for sure. And thank you, Lula, for initiating the the motel project and taking people off the streets. And you were able to do it because you had that street credit. You had those relationships with the people that were living in the encampments. I don't think anybody else could have done it but Lula. So, thank you very much, Council Member Rianbach. Thank you, Madam those remarks. Uh special thanks to Casey Bernard and and the Lula team of pure support.

Um and I would like if it's allowable to offer privilege of the floor to Casey Bernard. If there's no objections, please Kiy come forward. Hello, Madame Mayor and city council and all our guests. I want to start by thanking all of you for support for the motel project. I do know there were reservations. Um, but you guys did it anyway, just like we did. We all did it scared. We did it with reservations, but we knew it needed to be done, and we really pulled together to do it.

Lula and the motel guests will never be able to express our deep gratitude for providing a safe place to sleep, eat, and try to navigate services and resources, for giving our guests a chance to experience human dignity that they haven't felt in literally years. I think most of you are aware now that the people that we serve are our highest acuity folks. There are people that have been pushed to the sides of society.

They're our most underresourced and underserved community members, but they are that right? They're our community members. So, thank you all. I know that sometimes it's hard to hard to get behind them because of a lot of misinformation that they don't want to engage that you know they're not worth it. They are and they do and we're seeing real and measure measurable change. So thank you for that.

I think you all know, most of you have talked to me that we do want this extension to to give that number of people a chance to access permanent supportive housing. Um, I've had a lot of questions about where folks come from because those are the city's official numbers, but you know, Lula also supports people in the community. were still out in the streets daily serving our folks that couldn't stay at the motel for certain reasons or got kicked out of and barred from other shelters.

So, we're still serving people in the streets. We're still serving people in uninhabitable buildings. So, I do want everyone to be aware that th those folks are still out there and we're still serving them as well. And they need resources, too. But they are community numbers. I know people are worried that people are coming in because they heard about the motel project from other communities. And guys, that is simply not true.

I can tell you every single person that we've entered into the homeless management information system, where they came from, and how they got here, and there has not been this great influx of people. So, thank you for taking care of your community, supporting us, and taking care of your community. Um, there's a lot of questions about those 17 people, but I need everyone here to realize that those numbers by my estimation are closer to 50.

And that's not just at the motel, that's in our community. It's our people that are barred from shelter. They're barred from resources. They're barred from community support. when you ask what we can do about them. I think that Lula, we were kind of seen as new even though we've been doing the work for a long time. Have have proven ourselves that we are willing and ready to do the work, but we can't do it without your support.

We are willing to continue to work with those those folks that have been deemed unhousable because we don't believe people are unhousable. We just believe they need more support. I couldn't do it without my peer workers that are sitting back here. So, thank you guys. They have done this unpaid for almost seven months. And I cannot tell you enough that Lula would have failed without them.

The motel project would have failed without the people that came from this population that was considered unhousable. They served those 112 people. And that wasn't including the people who went to the dream center and we had peer staff in there as well. Those projects would not have made it without the peer workers who donated their time, their energy, their emotional capacity. It's Heather Pulking Horn's birthday. So, happy birthday, Heather. Thank you for your for your hard work.

But I digress. It's just Lula is willing to be part of a permanent solution and I am up here asking that we be recognized as part of that permanent solution. That we be included in those conversations about what that permanent solution would look like. Um we're here. We're ready. We're willing. You know, I'm always willing to talk and just thank you.

extending the motel project will keep tents from popping up because guys when it when this project ends that we're going to be back in the streets if we don't come up with a better solution. So we want to collaborate with everyone including you and the other service providers to minimize that as much as possible. Thank you again. You're welcome. Bye. Councilman Regen. Thank you Madam Mayor.

I think our discussion last week really highlighted the issues that that we have as a community as a as a region here, not just in Poria, but in greater central Illinois. So, I just want to again thank Lula for the leadership that they took in getting us to this point. And Director Dulan, if I may, you said um through this process since that about 75 people have found housing solutions. Is that was that the number? Uh that number includes uh since we passed the ordinance.

Uh so our data is a little cross uh represented with the hotel project, but we will by July 31st about the number of of people who are unsheltered since last November when we passed the ordinance. So acknowledging the work that still needs to be done, let's also acknowledge the success that we've seen in these last six months. So, thank you, Director Dulan, for your staff's time and energy in this. Thank you, Lula, and all the peer support that um is represented here tonight.

And I I would move for approval of this item as presented. Is there a second? Seconded by Council Member Kelly. Uh continued discussion. Council member Gordon Young. Thank you, Madame Mayor. Um, Casey, you actually said part of what I was going to say, which is basically we must not forget that there aren't just 17 people out here who are unhoused. And so when you hear that number, yes, they're going down, but it really is a revolving invisible door when it comes to the unsheltered.

Um, and as someone, you know, I say it a lot because I'm very passionate about the social services and the mental health and and just this field in general. Um, I think that this is that band-aid and it's a great band-aid and we've really done as a city um, working with Lula um, and all the partners have done a great job.

But I and I talked to the manager and as well as the mayor about really like we need to put together an advis advisory commission where we are bringing people to the table because in this field um, there are a lot of silos not intentionally but they just are.

And I think that if we know who has what type of services, um who's barred from certain banned from certain housing uh complexes, um has there been changes, what changes do people need to make in order to be readmitted, then we can start to narrow that window. Um, and I think that's a huge piece, having those conversations, holding, um, organizations accountable. Um, and making sure that service providers who often do such hard work, it's really difficult and challenging work, but we love it.

But understanding compassion fatigue can also interfere with decision- making when it comes to admitting into housing complexes. So, just want to make sure that we're looking at the entire picture.

And when we're talking about permanent solutions or at least long-term solutions, making sure that we're at least um creating a space where we can come to the table, and I do um agree with Caseian in terms of including her at that table because she does have those relationships that some of us will never have. And it is really about building those um building bridges to connect people, but doing it in a way that expresses compassion and a clear understanding. Thank you, Madam Mayor.

You're welcome. Council member Allen. Uh, thank you, Madame Mayor. Uh, I just want to begin by first off expressing my gratitude to Lula, um, Ki. Uh, happy birthday, Heather. Shout out to CJ in the back as well, too. Um, I appreciate you all. Uh, welcome me to the motel several weeks ago. Um, the vulnerability, uh, the transparency that you showed me. Um, and the data that director Dulan has provided, you know, us possibly being down to 17 by the end of July is miraculous.

Um, and I'm a big data driven person. Uh, but I like to look at both mixed methods, looking at the quantitative data, but also to the qualitative data. And when I visited the motel, I got those stories. I got that qualitative data of people saying how their lives have changed being in the motel. how individuals were holding other individuals accountable for their behavior because they knew about the great opportunity they had to transform their life being at the Motel project.

And so I want to say thank you all so much. Director Dulan, thank you to you and your staff. Um I've noticed in this space there's always differences of opinions of what the role of government is. Um and there's always philosophical differences when it comes to that. But you and your team and the community development department um picked up and and you put the the cape on and ran with this along with the various stakeholders within the continuum of care in our community.

So I want to give my hat off to you all and the respective stakeholders within the continuum of care. Um I will say as the district council member where the motel project is housed, um there has been some challenges and and we've done our best to navigate those.

Um we've had some stakeholder meetings to address certain instances that came up and I appreciate um our Poria Police Department and Chief Edavoria and his team sitting down working with uh Westlake Shopping Center, working with other stakeholders to ensure that uh there was plans in place to ensure uh comfortability and public safety uh in that area. So again, it takes a village to truly address this issue. um we have a imperfect problem without true perfect solutions.

But uh what this case study if you will as you said madame mayor has showed is as peorans when we rally together we can attack any problem. And will this problem be solved by the end of July? No. Um homelessness will be a constant issue in our society. But we're doing something about it. And so I'm just so proud of of the work that we've been that's been done thus far.

And I look forward to continue to develop solutions so that way we can get to a point where once these future projects come on deck, whether it's the Phoenix Community Services project at the old Methodist College/ Ramada in or what the Salvation Army is doing with that brand new men's shelter, we can get to a point of of functional zero housing here in our community. So again, thank you to everyone involved and I look forward to supporting this this evening. Thank you, Madam Mayor.

You're welcome. Council member Kelly. Thank you, Madam Mayor. Um, I would just like to say I was one of those who didn't know anything about Lula when all this began and I was one of those who was somewhat skeptical. Um, I've come to see this organization as one that is almost miraculous. The people who run Lula are all volunteers. I believe they're all volunteers. Many most of them are as uh uh qui said peers or or what people who've been there done that before as far as being in trouble.

I was witnessed to uh one incident when I visited with a rather large and imposing man who all of a sudden was out of control. Just out of control. And he was calmed down and calmed down and calmed down. No voices were raised. No. And and the guy was like a little lamb by the time he was done. It was incredible. Um I know this there there have been many successes. There have been some problems.

I do uh like uh Councilman Allen take my hat off to uh our police department who uh has been present uh and in their presence incidents have fallen dramatically. Yes. Uh which is is very good. Um what the future holds no one knows. I think we all have hope. Uh we must work hard though uh uh because these these these folks are going to continue to need help and at this time from a public standpoint we're it from private standpoint people or outfits like Lula could use some private help.

Um, they do excellent work. The results they get out of squeezing a dollar is incredible. So, I'm very happy to support this uh motion and I urge our uh urge the council and the staff to um work hard to to be able to on a permanent basis take care of some of these folks who can't really take care of themselves. That's a tall order, but we're we're a good community. And so, uh, thank you, Madame Mayor. You're welcome. Councilman Carmona. Thank you, Madame Mayor.

Um, I have a couple questions uh for Director Dulan. If this passes tonight, what will the dollar amount be given for this whole project is doesn't have to be. Um, with tonight's amount, probably about 340,000 I think. I think we approved 80ome,000 of uh the ARPA money in February. Then the city received 200,000 from the state of Illinois. Uh, and then this would be 64,000 of money of that uh, repurposed ARPA funds.

And correct me if I'm wrong, but is the money that we're using for this now, was it supposed to be some of that ARPA money or how does um, is that correct? Uh, this money was uh, specifically kind of repurposed uh, with the same intention of ARPA money. Uh, maybe I'll ask the manager to explain it a little better. So we had some ARPA funds at the end of the year that we knew that we had a deadline to spend at the end of the last fiscal year.

So we we took the money that was going to be used for this purpose that was ARPA related and we applied it towards other eligible capital projects where we had already spent our capital dollars on it. in essence freeing this money up to be utilized because it's it's now as as director Dylan said repurposed ARPA funds uh using our general fund dollars to support that. Thank you. And that money was earmarked for this homeless problem. Right. Okay.

Um if you don't mind, Madam Mayor, I just have a question for uh Ki if she doesn't mind. And by the way, on your way up, I'd like to say too that I've visited the motel and I'm just very impressed with Ki and her crew and the passion that you have. Um, Miss Ki, uh, what is Lula's plan to sustain your mission um, when the city doesn't give you money anymore? Well, we have always been a donationbased organization. Um, we we do do a lot with a little.

So, we also saw ourselves as sort of a gap filler, which is why some of you didn't really realize the scope of what we did because we didn't do it for recognition or accolades and we weren't looking to be a funded agency. We just wanted to do the work because we are peerounded and led.

But um I think this project really really highlighted that we need to step up into a more robust position into a um because we're ready to right that the need has been demonstrated and I think that we were hoping other agencies would be able to do that and we just be able to stay in the streets. If it most of you have talked to me, you know that um my heart belongs to streetbased outreach. I really love direct care and I think that's true of most of my peer workers.

But um we will continue to seek donations from public but there are funding opportunities available. We just need to be recognized. We need to be recognized that we have been doing this work. We incorporated as a nonforprofit in August of 2020 and we have ran the motel project. We our move in date was January 3rd and we're still there. We're still doing it. Um so just recogn recognition of the hard work we've done. So we are looking for support from any and all places.

Uh people don't really realize the scope of what I do though. I think the motel project's just a part of it. Um, I sit on state advisory boards, national advisory boards, and I'm a co-chair for a coalition. I'm seeking opioid funding that will really kind of help serve this population. And um, as we get more guests housed, we can look into more grant funding as well. But we're not going away. So, I hope everybody's just used to working with us now and see the benefits that we provide.

Thank you uh for that, Kishi. Um, and I just want to go on to say that, you know, Council Member Allen made a good point about philosophical differences of what the government is actually here for. I am one of those people that doesn't believe that the government should be here um for these sorts of things because our founders um in none of their writings did they write about anything except for protecting our liberty and our uh natural rights. But I do commend you for all your efforts.

I really appreciate your passion and your whole crew like I said. Uh, and I want to kind of end by giving a little um call to action to our community, to the churches, to the nonprofits who have traditionally met the needs of the homelessness and the hungry to um help organizations like Lula. Uh their their passion is there. they are doing this out of the goodness of their heart from at great cost to their own personal lives.

Um, I'd also like to call to action the business community um who wants the government to uh limit the barriers on growth the way I do. Uh, but this homelessness issue will stifle growth on its own everywhere where businesses want to be. And so for anybody in the business community, please reach out. Reach out to Ki. See how you can help Lula develop a sustainable business plan and model that can be the example for the whole nation. I really do believe in what you're doing.

U I am going to support u this funding um because it is earmarked for that specific reason these dollars are. Um but I I did want to say just thank you very much for everything that you do. Um and um that's it, mayor. Thank you very much. Thank you, Council Member Seir. Thank you, Madam Mayor. Just a few questions for Director Dulan. Uh I'm I love the conversation tonight. I'm learning some new things. Number one, I didn't know that uh uh Lula was a nonfor-profit organization.

I mean, have you ever mentioned that uh before, Director Dulan? Um I I not I don't know not. Okay. So I just want to say thank you number one to Ki and her organization. I mean I echo what all my colleagues are talking about. I think it's fantastic. I don't think I think that Peoria does not exist without volunteers and obviously this is a great example that what volunteers can do.

But my understanding all the time we gave this money which is I think we said 380 $380,000 and another60 at the night it was al always to a group of volunteers. It was not for nonforprofit. So they actually have a nonfor-profit tax ID. Is that correct? Uh yes but but actually all of the money has specifically gone to reimburse actual costs. None of the money actually went to Lula to pay their cost or staffing. All of the entire process and system is designed on reimbursement.

So, it's paying the food receipts uh and the hotel receipts mainly and then some transportation receipts. And have we ever done that in our history, the city history? Have we ever done what? Like pay the bills directly for any type of organization. Have we ever done that in the past or since you've been there in your position? We've awarded direct grants to organizations many times through public service, through things like that. Yes. Okay. Lula is not on the list.

I've not seen them on the list of these 28 organization that we deal with. Is that correct? We have never provided direct funding to Lula in the future. Will they be on the list in the future? Um depending on what the funding opportunity is, depending on what the requirements are. Uh I'm don't believe right now they meet a lot of the federal HUD requirements.

So, specifically, a lot of the money that we spend uh for a lot of the housing on the different report backs that we give you is uh federal money, and I don't believe they would meet the requirements at this point. Uh this money uh is not federal money. So, it was able to go uh directly to them to the hotel. Is that possible for us, for your group, for your department to help them uh get to that level? Uh I mean we can have that discussion with them but it's it's uh sometimes not that simple.

Okay. Thank you very much for your work. Thank you very much for all you've done.

It's great to have a tremendous amount of volunteers and peorates really part of our community and I will be supporting tonight with the caveat that in the future and which it's important for me that we have some orders and who we give the money to and some regulation and qualification and all the business stuff that you know is a pain in the butt for all of us but it'd be nice for them to be part of those 28 maybe number 29 organization that could get funding from us.

Thank you very much to all of you and to everybody. Thank you. Welcome, Council Member Oiler. Thank you, Madam Chairwoman. Um, when I pushed for this ordinance some months ago that finally brought this challenge to a head and got the city to start u addressing it, it was with a vision in mind that we were actually going to work through this challenge and really start to quantify the need and how to solve some of these problems. I expected at that time that this was going to cost money.

I expected at that time that it was going to take involvement from others like Lula outside of the city staff to try to do that. And I think we're moving in a direction that is really cataloging the challenges that we have and helping us start to look at what the long-term plans might be.

I had some concerns going into this week about approving another round of funding when I didn't feel like I was getting back from staff what I needed to be able to make a decision and to know that we're actually working towards those plans. But in meeting with Director Dulan, it seems that that has been happening. So, I will be supportive of it tonight and Director Dulan has assured me that we will have more regular communication on that going forward.

um so that it's not consistently the week of trying to find out what's going on that we're beginning to go down a path from here of how do we address the the bigger unresolvable challenges again which I know are going to cost money and I know it's going to come with work on the city's part as well as organizations who are supporting us um we will never completely eradicate homelessness But we can be an icon for how to actually work through the challenge and make sure that we're holding people accountable in providing the services that are actually needed and not just lumping everyone into one big pool and saying this problem exists.

We don't know what to do about it. So, thank you to Lula for stepping up and being a part of helping us with this solution. And I fully expect that there will be more um work to do in this space. And so I will support it tonight with the understanding, you know, with staff as well that that we are going to continue to work through this individual by individual and understand what those specific needs are so that we can figure out how to provide these specific solutions to satisfy those needs.

Thank you. Welcome. Due to a technical issue, council member voting will not be displayed on the monitor screen, but I'll let you know what the vote is. We have a motion on the floor. There's no more discussion. Please cast your ballots. Council member Rianbach. Motion passes unanimously. Thank you. Madam clerk, 25-187 is a communication from the city manager and corporation council with a request for the following. A.

adopt an ordinance approving the real estate sale and purchase agreement with Exposition Gardens for the acquisition of 1601 Northmore Road, Poria, Illinois, including parcel identification numbers 14-17-1000-11 14-17-10-012 14-17-10-13 3 and 14-17-110-014. And on your desk, there is a handout of a real estate agreement that corresponds with A.

And then with B, adopt an ordinance amending the city of Poria 2024 2025 bian bianial budget relating to the general fund for the purchase of 1601 Northmore Road as well as due diligence costs in the amount of $1,125,000 and the release of a city lean in the amount of $457,77054. And item B requires a twothirds vote of council members voting no less than a total of six votes and I need separate motions on each. Please, Mr. Manager. Uh, thank you, Madame. Thank you, Madame Mayor.

Um several weeks ago we had some discussions with the city council about uh the fact that Exposition Gardens um was about to see a foreclosure on um the property by Morton Community Bank. Um so we tendered them a letter of intent um which is included in the council communication um that stated that um we would um satisfy the outstanding mortgage.

uh we would release our storm water uh utility claim um and then we would potentially look at a future lease on a short-term basis for Expo uh for Exposition Gardens. Um while we looked to redevelop the property uh for market rate residential development, the um so uh as I mentioned that is attached um we are the recipient uh in this new state budget of a $2 million grant to our Poria Land Bank.

Um, and the the language that was in the the budget bill that was just signed by Governor Pritsker um uh allocates $2 million um in in the from the Build Illinois Bond Fund to the Department of Commerce and Economic Opportunity for a grant to the Peoria Land Bank for capital improvements including but not limited to general infrastructure improvements, land purchases and acquisitions, building and housing purchases, and building construction.

So, the city would utilize those grant funds from the state of Illinois um for the purchase of this land. Now, those funds have not been released as of yet uh since the governor just signed the budget bill on Monday. The fiscal year starts on July 1. Um so, what we have structured in this uh is utilizing our OPED funds, which is our other post-employment benefit funds.

Um, those are retirey health care funds that that we set aside as funds that are they're set aside for future claims that we may have for our retirey healthcare. We've never paid out of that. This is just a reserve fund that we have to by law kind of set up. So, this is uh over $30 million that we have sitting aside uh just for that future purpose. We operate a health fund. We pay for our health claims for both our retirees and our active employees through our health fund.

But this is an obligation that we have to set aside those dollars for that reason. So, um, in the short term, they would loan the money to the general fund. Once the grant comes in, then we would reimburse back for that. Um, the intent of the city's purchase, as I mentioned, uh, is to look at market rate development uh, on the property.

Um, probably working with the school district to, um, kind of level out some of the property that they need for the, uh, parking lot at Northmore Primary School and and some parking that they need at Richwoods High School. But the intent would be that that this would be we would solicit and seek uh developers um to to to look at single family housing on this property. There is three parcels at the front that along Northmore that are zoned neighborhood commercial.

The rest of the larger parcel of Expo Gardens is zoned residential. Uh so it fits in that role. Uh neighborhood commercial can have a residential component. Uh but it could also have some small resident or some small commercial um property in that as well. So, um, with that, I think we'd be happy to answer any questions. Thank you, Mr. Manager. Council member Oiler, our resident realtor. Thank you, Madam Chairwoman.

Uh want to begin with first of all cuz some may have seen at some point in the past that I had real estate signs on the front 6 acres of the property here. I no longer have any contractual obligation to this nor any financial benefit from the cities pursuing this. Um what we're doing here is um executing the ability for the city of Peoria to show a vision for residential real estate in the future.

This is one of the largest solely owned remaining sections of property in the city of Peoria that a housing development could go on in Peoria public school district. And so while in many cases I wouldn't advocate for the city to involve government funding in what could be private development, this is an opportunity to have an actual city vision and execute that vision and do city planning.

One of the things that we are actually here to do is plan what we want the future of a community to look like and to ensure that the direction that we're going and what where we want our community to go is seen through to an end. And with this opportunity, we're able to potentially build give or take 150 single family residential market rate houses. Not subsidized housing, not tiny homes that were talked about in some other um unrelated uh council meetings in the past weeks.

uh actual houses in a neighborhood that can appraise at a value that's justifiable for the neighborhood and that will then generate tax revenue for the community, not just the city of Peoria, but the school district, the county, the park district. That's what you call growing the pie. Not just raising people's taxes to generate additional income. It's additional income through the ability to grow the tax base.

And that's what this will allow us to do is um circumstances have developed where the city is able to purchase u 70 acres of property for half the value of what the six front acres were listed for at one point. So it's a great opportunity for the city, its residents, our tax base to be able to move forward with a project like this. It will be beneficial to the school district with the two schools sitting on opposite ends of this property to see something like this happen.

And it will also ensure that with us uh guiding the potential execution of a residential plan. It will prevent the potential that this could fall into the hands of someone that might not take care of the property that would buy it on a speculative basis in hopes to flip at some point. potentially decades in the future and not maintain the property and then be in a situation where we're dealing with code violations and issues that negatively impact the community.

But we are in a driver's seat on something that will be beneficial to us and its citizens. And so I think this is going to be a a great opportunity for the city, for the school district going forward. And with that, I'll move for approval of item A. Seconded by Council Member Rigenbach. Thank you. Well said, Council Member Allen. This is in your district. Uh, thank you, Madame Mayor. Uh, I echo well said, Councilman Oiler.

Um, before I begin to answer ask some questions, I do want to acknowledge the leadership of Expo Gardens and the various volunteers and stakeholders. As a longtime Peorian growing up, going to Expo Gardens, attending the fair, seeing some of my favorite music acts come to the fair, whether it was B2K or Lil Bow or whoever. Um, having so many fond memories at Expo Gardens and even this past year attending different events, fashion shows, and other cultural events.

Um, I know that this is a challenging time for all of those who have put a lot of blood, sweat, and tears into that property. Uh, creating so many memories for the city of Peoria and beyond. And so I do want to acknowledge you all and I say thank you for creating so many memories for myself, for my family, and so many uh throughout our community. Um now I want to go into a couple of questions that I that I do have um that have been raised uh by constituents.

And I know that uh and this is directed to either you Mr. Manager or Director Katty. I know that we have we're looking at um frontloading the funds with the post-employment benefits fund. Um, can you speak to again why that particular uh fund was chosen to frontload the money until we get reimbursed from the state of Illinois and is that fund whatsoever connected to our uh fire and police pension fund? Uh, so I'll kind of take the the first part of that question.

Um, the reason it was chosen is uh the city has from time to time used the OPED fund for short-term loan or even longer term loans. Um the last two early retirement incentives that were offered um the city used the post-employment B benefit fund to loan the money to pay the upfront cost. Instead of paying the seven% interest rate through IMRF, we charge ourselves three.

So, it's a very common practice that we've had in terms of using that fund for either short-term or long-term loans because at the end of the day, what we want to be mindful of, right, is the reserve levels in the general fund and those purposes in terms of providing general services. So, in this case, that's why we felt that it was a good idea to use that. Uh, the OPED fund um is does not impact funding or is not nec is not related to our police and fire pension obligations.

Um, part of a different governmental accounting standard requires us to have the value of any future post-employment benefits, mostly health insurance for any of our current employees. We have a long-term liability associated with that. So, this fund is intended to be that funding mechanism for that for that long-term liability. Thank you.

And depending on how long it takes us to find a suitable developer to develop this land that matches the character of the area, will we ever be in jeopardy of risking those health insurance if we hold on to the property too long or as the manager said, it sounds like we have about $30 million that is present there. So, do you find ourselves ever in jeopardy of of risking that?

Uh, I don't believe so because really the intent with this funding is um the dollars are not available for this purchase through the state yet. Um, the dollars will come through probably during this fiscal year for the city. At that point, we'll reimburse ourselves. Um, and that even is agnostic of whether or not the property gets developed. That's really just about that kind of upfront cost. Uh, thank you, Director Katty. Uh, Mr. Manager, just a couple questions for you.

Um there has been and I think because of these conversations happening simultaneously with the policy session last Tuesday and I do apologize about my absence of missing that. Um is this an appropriate site for a tiny home development? Uh no I don't believe so. And I I think that as we've mentioned prior, you know, our intent here would be that we find a developer to look at market rate housing.

If you look at the neighborhoods that surround uh Richwoods High School, they're all, you know, single family uh housing developments and so looking at trying to complement the rest of the neighborhood around it. And then you spoke to the zoning aspect of the current parcel. So uh it's residential and then you said neighborhood commercial as well too was the the two designations. That's correct.

We have we have three parcels roughly about 2 acres each at the front that are along north the frontage along Northmore Road that are zoned neighborhood commercial. uh that allows for, you know, small neighborhood commercial type stores uh that could have residential above it. Um but that would, you know, that's really kind of the intent of the of that type of of design. I don't know if Leah Allison is in the back, our community, assistant community development director.

She might be able to provide a better example than I'm uh butchering of what neighborhood commercial can actually be. Thank you very much. No, you you did fine. Um but but you're absolutely right that it is currently developed or a zone for a mixed commercial type of of use. Northmore is a bit of a busy road, so that could act as sort of a of a buffer for any of the residential development that would be further to the north on that property. Uh thank you for elaborating and Mr.

Manager, we appreciate your uh Leah Allison. interpretation there.

But, you know, in all seriousness, I think that's very exciting because when I think about just the current aesthetics of that area, uh, with Northmore being redeveloped over the last several years and you go down Northmore anytime, you're always seeing people walking, biking, things of that nature, you think of all of the neighborhoods around, if you could put an ice cream parlor, if you can put some neighborhood shops where it really creates the walkability that we are really trying to strive for in our community.

So, I think that's great and it creates great opportunity with this parcel of land. Uh, and I'll just conclude with this. Um, I think this is a great opportunity not only for district 4, shameless plug, but also the city of Peoria. Uh, this parcel of land, it is neighbors to district 2, district 3, district 5. Um, is in a core part of our of our city, and we're able to truly take advantage of this. We're not looking to be the long-term landlord.

We're not looking to be the developer, but we are looking to be in the driver's seat uh to ensure that the right development goes there that again matches the character of the surrounding community. So, uh I appreciate again the opportunity that was brought forth to us and I think that our ability to use state dollars bringing those back home uh even makes the makes this opportunity that much uh better. So, thank you to all involved and appreciate you answering my questions.

Thank you, Madam Mayor. You're welcome. Council Member Carmona. Thank you, Madam Mayor. Uh, you know, there's a lot of talk about controlling the destiny of properties in our city that are coming up for sale. Uh, we tried to control the destiny of the Pure Marquette. We tried currently trying to control the destiny of the PNC building and now we're going to try to control the destiny of a 70 acre lot of land.

um a lot of maintenance on that land that we will have to endure until this perfect world scenario uh comes to fruition. I was against this from the beginning and then I was kind of for it when I realized that this fund came in but at the end of the day um government intervention in the in the private uh uh sector is typically not a good idea and we have plenty of examples as to it not working not just here but in history and all over the country. So I will be against this madame mayor.

Thank you. You're welcome, Council Member Seir. Thank you, Madame Mayor. The timing of this transaction is so bad. I mean, I have 200 million reasons to really question this uh the timing of this transaction. Got a few question, got a lot of question, but I'm going to try to get it down to five or six. I'm going to start with uh Mr. Hayes. Uh we had a conversation this afternoon.

Can you educate us a little bit and the public on where this transaction as far as how much money was all from uh from the uh to the lender for this situation? Uh the um Exposition Gardens took out a $950,000 note and it was secured by a mortgage on the property um a number of years ago. those debts had incurred over time. Um, and the loan, original loan was in the latter part of the last decade. They were unable to make payments on that loan. So, it went into foreclosure.

At the same time, the city was in discussions with the um with the Exposition Gardens about past due storm water utility bills. Um we uh found out about the um about the foreclosure action. The bank's foreclosure action um alleges that uh with regard to the debt, the original 950,000 plus acred interest, penalties, and fees was in excess of 1.3 and approaching $1.4 million. Uh that matter was proceeding in circuit court towards a foreclosure action. And so um the banks owed nearly a million4.

Uh they owe the city and as evidenced by the city's lean 457,000. The bank has agreed with the city to accept a compromise sum of 1,125,000 and full satisfaction of the mortgage indebtedness if we can expedite the closing. And so we're working with the bank on that closing date. The working closing date is the second week of July. Um and uh we'll be working through due diligence in the interim if this is approved by council tonight. Thank you, Mr. Hayes. Couple question for Mr. Manager.

Excuse me. Um so we history $950,000. They owe a million4 and the offer is 1.125. What is the the current appraisal value of this property? What is the current appraised value of this property? Do we have an appraisal? We we do not have an appraisal on the property. It it's currently non-t taxable. Um you know it's being used for fair purposes. Um we did not go through the process of getting appraisal on this property. Okay.

So how do we come up with a million125 if we have a range from 950 to 1.4 and with no appraisal. So looking at at the the acreage in terms of you know buying you know what's there that's roughly about $14,000 an acre would be the acquisition cost uh for us to acquire that property.

Uh that's pretty consistent uh actually more on the low side uh in terms of what um property's been selling for in the city and so that's one of the reasons why we've looked at at trying to get it at that price and we felt that that was a a very good price to to move forward with this. Tell me a little bit or tell us a little bit about where the money is coming. I mean, I understand that, but is there any strings attached to that $2 million coming to Poria?

It is a pure grant to the city of Poria. It it it's it's a pure grant. They're bond funds, so you you know, you can't use them for operating expenses. Um, and it I think that that as I mentioned in the in the the uh language that would ended up in the budget bill. um they talk about general infrastructure improvements, land purchases and acquisitions, building and housing purchases, and building construction.

So, that's going to be pretty explicit from DCO that those are the eligible expenses that we can utilize the funds for. Another question, how would you rate the city's relationship with Morton Community Bank on the scale from 1 to 10, being 10 being the best? I I think we have a very good uh relationship with MCB and and with Morton Community Bank. Okay. So, we have great relationship. Okay. Mr. Ky, I asked for a report back on May 27th.

The fourth report back had to do with which funds uh are restricted and not restricted. I apologize. Usually I talk always talk to you so I'm I'm I don't have any difficult question. But if I go to that page, there is about 27 funds.

I'm sure you know all that and uh all fund that we have all 27 are uh restricted except for three obviously number one totally unrestricted it's general fund two that are partially partially restricted capital fund which is not involved in this transaction and the second one is oped now when I you when I read your notes from this report back it talks that we can only make loans loans to things that are related to early retirement incentive programs. That is I'm reading from your notes here.

So my concern is this accurate. Am I missing something? Number one. Number two is how much money we have in that fund today roughly. Uh I think to go to your first point if that's how it reads, I apologize for that. I was using that more as an example of of loans that we've done using those funds before. It was not intended to mean that we couldn't loan for other purposes. Um, we are able to use that for loans for any general purpose that we have.

Um, in terms of uh your second question, uh, the the balance right now um sits at around 34 million. any of that $34 million invested in Morgan Community Bank. Because of how we do our investments, I can't necessarily say the percentage, but we do have a banking relationship with Morton Community Bank um that takes up a component of all of our reserves. Would that be fair to say that we're getting average 4.5% interest on our money? Yeah, right now they're close to about 4.2%. 4.2%. 2%.

And we Mr. Manager, you want to make a loan at zero interest rate. Is that correct? I I think we envisioned that at this just for the timing of this that we wouldn't charge interest back to the to the um OPED fund, but we certainly could. I mean, that if that's a policy decision the council wants to do, uh that can easily be made that that we can we can add that in. Well, I'm just concerned who is watching the OPED fund that would say, "Hey, now we're going 4.5%." That's $45 $50,000 a year.

We're going to lose that during the duration of the the loan. So, I'm I'm just questioning who will come back in front of this body and say, "Hey, what are you guys doing here? It's wrong what what what you're doing." I you know I think we can we could certainly look at at establishing the interest rate um at the levels that we're we're currently you know seeing our interest rates coming in and and charge that back for this type of short-term loan.

Um, we do I think we've the the the mayor I think sent out a correspondence today that uh she had with the governor's office um and and with the director of DCO about the fact that um they will work to get us the money as quickly as they can and and that um our purchase of this property now um uh will be eligible for reimbursement using these grant funds.

So, um, you know, if the council's desire is that they'd like to see us charge the interest rate, we could certainly charge the interest rate on that. Um, you know, the as as director Katty said, these are dollars that that really the um the the Gazsby regulations require that we set these funds aside. Um, and so that's why we set those funds aside. We're not spending any of these dollars on retirey health insurance right now.

So because we're a we operate a solvent health care fund um that pays for all of the claims for our employees and our retirees and all of our employees dependent. So so it's just there um for a future liability uh and we've been told that we need to set that aside. We've never put that money into an irrevocable trust which at that point it could never be used for anything else. So uh that's there. It does provide us a certain level of flexibility.

Um what is the timeline to pay this note from the city to the bank? Uh I think as as the corporation council said it would be probably the second week of July that we would look at second week of July. Okay. So I think it's important that all of us understand that if we have a great relationship with the bank which I I know we do and we're a little short in my opinion on our due diligent. I mean, I don't know anybody in this room tonight would buy anything without an appraisal. Minimum. Minimum.

So, to my opinion, it's not that I'm for it or against it, but as I my opening statement, I got 200 million reason to ask these questions right now. And before my colleague made a motion, I was actually going to ask to defer this for a few weeks and ask the bank to actually hold any type of uh u no slow down the process so we can finish our due diligence and and go from there. So, and I know you know the answer to this question.

I mean, what are the chances that of us and you, excuse me, and or you asking the bank to uh slow down and give us a few more weeks just so we can finish the due diligent diligence for this? If I could respond, the bank um had actually filed a motion for summary judgement in the foreclosure action and uh was not willing to give us an extension.

originally passed June 30th but because of the intervening uh activities has agreed to extend till the uh middle of July at the latest to close on this loan. That's the conditions on which they were willing to compromise the amount due. They expressed that they felt certain that they would be entitled to the judgment and then normally the bank would then turn around and auction off that property. And so they would have their paper uh to go to the sheriff's auction to acquire the property.

There'd be some substantial delay and perhaps some um variability on when or if that would take place. So there'd be some delay on when the city might be able to take control and we might have to bid against other biders for that property. Um so um but the timing of it, the bank has already extended their initial deadlines um on from the June 30th date to the to the middle of July to accommodate our activities and and getting this.

Well, I would I would recommend that we ask again if we have such a great relationship with the bank and we have guaranteed money coming to pay for their lean. I would recommend we ask again to see if they can so we can finish our due diligence. Uh, and I would ask my colleague, Mr. Oiler if he would want to take his motion back and maybe just defer have a motion to defer for a couple weeks or until the money is actually in the account or at least at least you're a realtor.

At least until we have an appraisal to see that it's really valued at least at 1.125. Would that be possible? Mr. Orler and Mr. Kelly I what circumstances I could just I if I could suggest Councilman Seir a motion to defer is in order. If you want to make a motion to defer directly. Move to defer two weeks for our next meeting or until uh appraisal is uh presented to this body. Is there a second? Seconded by council member Carmona. discussion. This is a discussion on the motion to defer. Okay.

Did you want to make just to you know the councilman was asking for some questions of MCB. We don't there's no representative here tonight. So we you know if this item is deferred we'll go back and ask those questions of of MCB to see what kind of answers we can get. Yes. Are your questions related to the motion to defer? Coun, yours are okay. Council member Rianbach. Thank you, Madam Mayor.

Corporation council, would you just reiterate the conversation once again that you had that they've already given us an extension? Is that my understanding of your earlier remarks? Yes, you'll recall that we had originally we had two different close sessions about this opportunity. Um, and we had a working agreement with the bank to close by not later than June 30th originally and that's been extended because of the date today and time we need to put together materials and a closing.

So, the bank's already extended their original deadline on that for that opportunity to come back and go forward. In the meantime, they had proceeded in court with the filing their motion for summary judgement. Um they've incurred some additional costs and I think they need they they proceeding with their uh process. They want some certainty but um I don't I don't know whether they would be amendable to an extension or not. Uh haven't broached that topic with them.

So, an extension or the the longer this drags on costs them more money. Is that a fair statement? Well, they've already expended some additional funds for their attorney's fees to file the motion for summary judgement. I don't know what other additional costs they have. Of course, they're writing off additional interest and accumulating penalties and fees as well. Based on that, I' I'd be I'm very apprehensive to to risk an opportunity like this.

Um I I have more to say, but that's not on the deferral. So, okay. Thank you. Council Hayes, council directed you to draft a letter of intent. Who was that letter of intent to? That was to the fair the um um the exposition gardens board. Okay. And did the exposition gardens board sign the letter of intent? Yes, ma'am. That's in the council packet as well, the actual executed letter of intent. Yes. And then what happened with the letter of intent?

That's what matures into the um agreement that's before the council for approval, which is the real estate agreement. And so the letter of intent has some conditions, including them not negotiating with other parties to sell the property and everything. It focuses a party on the general terms um and to uh seek to to strike that bargain to um uh close. So, the contract for sale itself would be subject to a 20-day due diligence period, and that is a rather brisk uh term for due diligence.

Uh a short timeline. Uh but that's to keep in mind that the letter of intent was reviewed by the bank and part of our getting the bank to continue to extend this price that they've extended to us was being open with them about the progress of the letter intent. Thank That's the point I I wanted to make that you were directed by this council to write the letter of of intent, present it to Expo, Expo Gardens organization, sign the letter, and then the letter was shared and presented to the bank.

Council member Vespa, is your question related to the defer? Okay. Yes, it is. Yes. Um, thank you, Madame Mayor. Um, so, uh, if we were to defer this to the second week of July, um, would would you say that more community banks can incur more legal fees? This is for either the city manager or council Hayes. I don't know whether they would how they would direct their counsel in the interim. I don't I don't want to speculate or speak for the bank. Okay.

Um I you know I don't often do this but I do see Jim Kaine in the audience. I know he's uh more community banks council. Uh Mr. Kaine I' I'd be happy to give you the floor if you'd like to address this but I also know I'm putting you on the spot. I don't I I don't know if you uh and I don't know if the person next to you is from MCB or not. Um if you if you wanted to weigh in, you know, you might be able to move this one way or the other.

If I could, uh Councilman uh Yeah, Attorney Kane's here representing the Exposition Gardens board. Oh, okay. You know what then? I'm sorry. I guess then yeah, I not I don't need your your counsel, Mr. Kane. It's nice to see you. Um, but yeah, it's it's MCB that that we would need to consult in. To my knowledge, nobody is here from MCB, right? Okay. Well, yeah, I mean, you know, we've we've sent we've sent a uh letter of intent. Um, and um, so I I mean, are we going to go back on our word?

Um, this is, you know, this doesn't look good for us if we do that. Um, we've already directed uh staff to do this. They did it, ran it by MCB and Expo Gardens. Um, and now now we're getting cold feet. Um, that's that's not a good look. Um, I I know that I know that Council A doesn't know for a fact that more costs are going to be incurred. Um, but I mean, you know, even continuences rack up legal fees. Um, and uh, you know, I if I were the bank, I would I would want the property.

You know, take it to foreclosure, bid what you're owed, which is $1.4 million. Um, and if uh, you know, we've already asked for extension, I I wouldn't bank on them, no pun intended, giving us another extension. Uh, so yeah, I'm not going to defer this. I that just seems like very risky behavior. Thank you, Madam Mayor. You're welcome. Council member Oiler. Thank you, Madam Chairwoman. Um, I'm going to oppose a deferral.

I I see no benefit from doing a deferral that'll have no material effect on the outcome of the actual contract that's being executed. It's very unlikely that a commercial appraisal is going to be ascertained with a twoe deferral. And so nothing in this circumstance is going to change other than putting the potential of our ability to close on this at risk as a whole. So I will be opposing it as there's no benefit and deferral. Council member Kelly. Thank you, Madam Mayor.

Uh, Council Hayes, uh, with the letter of intent having been delivered, is the motion to defer out of order? No, sir. Okay. Thank you. Thank you, Madam Mayor. You're welcome. Council member Seir, thank you, Madam Mayor. Um, I'm a little shocked tonight. Um, all I'm going to say, I'm not going to fight with my colleagues. Uh, but you know, I was elected to protect the best interests of the people of the fifth district first and the rest of the city.

I suspect that none of my colleague would ever buy any type of property without at least having some type of appraisal. So, uh, my concern are not the best interests of Morgan Morton Community Bank. I mean, I love the bank. They're great. One of the best bank in this area. They're great. But in this chair, I'm here to fight for the best interest of the fifth district in the city of Poria, not the best interest of a bank or any bank, local or outside Poria.

So, I'm really uh feel sorry for my colleagues, but um that's how I feel about it. Thank you. You're welcome. There's a motion on the floor to defer. It has been seconded. Please cast your ballots. Motion is denied with two yays, Seir and Keller. Now we're going to go back. Were you want to speak? Yes. Yeah. We're going to go back to our original motion. Councilman, who who made the motion? My motion. I made the motion. Who second my motion? You made the motion. And who second?

Council member Carmona. Okay. And the votes were only two. Where the yes vote for the deferment? The you supported the motion and Councilman Kelly supported the motion. Okay. Councilman Carmona. Yes. I was confused with that vote. So, um I not that it makes a difference. Right. So, how should we handle that? Councilman Hayes. Typically in a moment like this, the minutes would simply reflect reflect that the councilman would have voted in the alternative. That's noted in the minutes. Okay.

Rather a motion to reconsider. Okay. Thank you, honor. Madame clerk, please note the minutes that council member Carmona intended to vote in support of the motion. Thank you, madam. You're welcome. Now we have the original motion that was made by council member Oiler and seconded by council member Rianbach. Does anyone want to continue to speak to that motion? Council member Rianbach. Thank you, Madame Mayor. I would continue to contend that this is a a prudent investment for the city of Poria.

Um, when we established the land bank all those years ago, we had a mission statement and let me just read it to you. This is from our own website that the city of Poria's land management strategy involves demolition of problem properties, pursuing large parcels of land for future development, and returning vacant property to the citizens. The city of Pure's land bank's goal is to transform vacant properties into opportunities for future homes, businesses, and green space.

So, what action we're presented with tonight clearly is part of our adopted strategic plan and and has been part of our policy for some time. I think when you look at acquiring large parcels, um there's a community to the east of us that was had control of a large parcel of property that they developed and shepherded into a thriving um retail district.

So I I think while we always like to encourage the the private sector to step up, there's always a place for government and and the government of the city of Poria, I think is close to its people and we have a track record with some successes, some that weren't quite as successful, no doubt about it. But when we stop trying to see this city grow, we're not going to we're not going to see it grow. So, I see so much potential in this.

And sitting next to um a a a real estate professional gives me additional confidence that this is a good thing. And um I I'm definitely supporting it and staying true to what our previously stated strategic vision and policies have been. Thank you, Madam Mayor. Thank you, Council Member Gordon Young. Thank you, Madam Mayor. I echo the sentiments of excitement regarding um the potential of residential development.

Uh you know, I I'm thinking about three of my friends that just within this month purchased homes outside of Peoria um because they did not see um or we had limited inventory. And I think that um because we have such limited potential in terms of the land, this is like a gold mine. Um you know and and it will forever and be etched in my heart as well for everything that the ex exposition garden stood for.

Um I think most of us you know that grew up here or been here for some time have fond memories. Um and it's it's really hard to say goodbye to yesterday. It really is right. But this is an opportunity to transition into something that will continue to create generational memories, generational opportunities. Um, and not only that, um, when we think about, um, growing Peoria, well, we can't grow Peoria if we don't have quality housing for people to move into.

And so, again, um, I will definitely be supporting uh, this opportunity and thank all parties involved. Thank you, Madam Mayor. You're welcome. Council member Kelly. Thank you, Madam Mayor. I agree with those folks who think that we have a great opportunity here. I was not much in favor of the city directing that opportunity except with a great package of incentives which would work either way no matter who owns the property.

Um, uh, Councilman Rianbach talked about those folks east of us who were so smart and all that stuff. They had a bunch of land and got it going. We were we were earlier on that. Okay. We did Southtown and Southtown had fabulous drawings, beautiful buildings. It was unbelievable. That was 1978. You can still shoot a cannon through Southtown. Okay. So, just because we got the land doesn't mean doesn't mean we got the deal. We need in this city of very very high taxes and average regulation etc.

We need an incentive package on this land that's really going to produce. I believe we can put such a package together. I have not been opposed to the development of this at all. I'm very much in favor of it. I'm in in favor of heading toward the most ambitious ideas that we have. But we've got to do this right. Okay? And there isn't any guarantee that just because we have it, we're going to do it right. We've done a lot of things wrong and we've done a lot of things right. Okay?

So, let's keep that in mind. I do have a couple questions. Um, and these are detailed questions which don't perhaps they don't even bear on the they're they're sort of related to the uh to the motion if you'll uh forgive me madame mayor. Um, number one, if there is an auction, does a private part I think this was covered in the uh executive committee, but I'm not sure of the answer. If private parties bid on this and when are they liable for the storm water fee uh uh owing yes to the city?

Yes, they are. Okay. That puts us in a u very good position in in that regard. Um secondly, all these funds we have including this retirement fund earn interest. Okay. Where does that interest go? Does it stay with that fund or does it hit the general fund? Uh we uh give out the interest based off of the amount in that in that fund at the end of each month. I'm sorry.

So every month depending on how much interest we earn, it's divvied out based off the percentage of overall uh dollars there is in each fund. In other words, they're all in a pot that is is uh uh put uh is divided up on paper. Yep. Okay. So, the interest stays within the pot. It doesn't go to the general fund. The general fund is the general fund other than general funds interest. You know, all the all the other interest stays with that particular fund. That is correct. Okay. Thank you.

I'm I'm sorry for the distraction, Madame Mayor. Uh, and thank you. You're welcome. I'm going to say this and then we can go around again. This is a rare opportunity to address the city's housing shortage in a significant way. 70 acres of contiguous land. It's a rare opportunity to increase our annual property tax revenues for both the city, the county, and our Peoria public school district. It's a rare opportunity, as mentioned earlier, to control what happens to that land.

located next to two in demand schools within Poria Public Schools, Richwoods High School and Northmore Elementary School. I couldn't be more excited about a project like this that allows us to grow our tax base and support our education system. Opportunities like this don't come every day. And it's just a blessing that as we encountered this opportunity money, $2 million came from the state to our land bank. $2 million in reimburseable funds from DCEO. This is a a great opportunity for Peoria.

We shouldn't let it go. We shouldn't pass it by. Council member Allen. Uh thank you, Madame Mayor, and well said. Um, city manager, you're looking at the council communication, looking at uh, bullet point three. Can you elaborate a little bit on um, it states that there's an option for us to uh, lease the land back to Expo Gardens? If I could.

So when we were dealing with the Exposition Gardens board, the discussion around their ability to continue to operate until the property was developed uh was initiated by the board's representative and we tried to develop some parameters that made sense to the city but also gave us a free hand to develop the property.

Um, and so those terms reflect that through December of next year or I'm sorry, September of next year, they'd have a certain lease uh at a nominal amount so they could continue to operate in the way that they chose and that would be subject to a lease that we would negotiate. They asked for a longer term and so it's fairly restrictive after that September date. It's monthtomonth. Uh, and the city can end that with 60 days notice in advance of the termination date.

That's what's in the um the letter of intent and the lease will be developed consistent with that letter of intent. Um, they intend to operate like they are now. So, there'll be some elements in the lease that we see in our leases for places where the city owns a business that operates uh, you know, concessions and liquor events and things like that.

So, it'll be similar to our leases with the gateway and uh that type of thing where the city protects itself, make sure they have insurance, make sure they maintain the property. So, at this point, I don't know whether the board will agree to a lease, but we are negotiating lease terms and we'll continue to do so. Thank you. Thank you for that elaboration. I know that some of the calls that I received, certain people did have events planned at Expo Gardens, you know, for the foreseeable future.

And so that lease option would allow some of those to still um happen. Uh I guess my last clarifying question is if we are to lease it back to them, they would be required for maintenance, utilities, upkeep, and therefore we wouldn't incure any additional cost while we are in technically in ownership, but since we're leasing it back to them, they would be responsible for all those responsibilities. All those uh issues will be in the lease. Certainly, they're direct cost utilities.

Uh they'll be expected to pay. Um, I think we've already discussed that the city would be willing to absorb its storm water utility fee as the property owner, but all the true cost issues that they might incur, electricity, water, things like that, they'll have to pay. Okay. Thank you, Corporation Hayes. Thank you, Madam Mayor. You're welcome, Council Member Jackson. Thank you, Madam I I have question.

Um, council member Oiler talked about in his initial presentation that the 70 acres are available for half the value. Um, has there been some determination as to what the actual property could be worth? Uh, I know, um, council member Seir was talking about an appraisal, but uh, with that comment that made me question whether at some point there's an assessment or do we know that information? Are you able to respond to that? Okay. Yes.

The currently agreed to price is half for the full 70 acres is half of what the fair board was originally asking for the front six commercial neighborhood commercial acres. So essentially if it had sold under their control it would have been closer to two plus million dollars but it didn't sell at that and our opportunity is for half of what they were originally asking. Okay. Well, um you know that that says to me that um you know they were willing to uh uh negotiate or work with us.

Um and Madame Mayor um I know this question came up in executive session. I uh just for the public's um knowledge, uh when was the last time the city had an opportunity uh to acquire this amount of property in a in this part of the city or anywhere? This amount of property? Yes. Yes. Mr. Manager, you've been here a long time. Uh I don't recall us ever having an opportunity like this where we've got an opportunity to get 75 to 80 acres of property.

So it's unique and the other interesting element um you know it's it's it's been a long time but what makes this particular proposal enticing is the fact that uh monies are being available uh to the land bank to acquire this property with the grant um in an area where we've seen most of the growth occur and um to your point, council member uh Kelly, uh Southtown has lost population. Uh yes, we have tons and tons of land, but people have left our community.

So, the challenge for us is uh with the rebuilding effort and the lack of uh people as well as businesses, we've got to bring population back. And in this particular instance, we've got huge parcels of land available where most of the growth in the city is occurring and uh with monies available uh this puts us in a situation that we have not seen in a long time. Madame mayor, most of the times the challenge is where are we going to find the money? We have the money available.

And so, uh, based on those factors, I I think this would be a win-win situation for us given, uh, where we've seen the growth take place in the city in the recent years. So, uh, Madame Mayor, I will be supporting this. Thank you, Council Member Vespa. Thank you, Madam Mayor. Um, so, yeah, I've I've fielded a lot of questions um over the last few days. Um, a lot of good questions. Um, so I'm just going to pose a few of them. Um, you know, why don't we have a developer lined up?

First of all, well, the the first reason is that this has just come to us over the last several weeks. And so, you know, I think the intent would be to acquire the property and then work with staff to get a solicitation out as quick, you know, for developers to look at the property once we have it under our control. Okay. Uh why don't we just wait for the foreclosure and then purchase it from the bank afterward? So if it that's assuming that they they get it.

Well, it I mean that assumes that the bank is going to get the property for their debt, right? And no one comes in and you know bids above the bank's debt to get the property. Um they'd have to bid above the bank's debt and and stormwater lean. I think that um certainly that's a policy direction that if council wanted to wait, they could do that.

Again, um this is an opportunity to get this at a price below um what MCB is would would, you know, take to the to the foreclosure and say that they're um wanting the property for um which puts us in in a position of as we look at redeveloping the property um to say that we only have 1.125 million into the property. And so that's another reason to to really look at it in that way. Why do you think they're offering us this price below what they're owed?

Well, I think that once they acquire the property, they're going to have to maintain the property and that's why they're looking at this. There's probably some expenses and going forward uh through the um full foreclosure process, too. Yes, probably. Um, now if uh if the bank were to um bid, you know, what it's owed, which is about $1.4 million in a win, um our lean would be extinguished. Correct. That's correct. Okay. So, we would get nothing. Correct. Okay. Um Okay. So, yeah.

I mean, um, I I love the fair. I grew up going to the fair. I think it's I, you know, I I wish we could have the fair continue on somewhere else. Um, I I think that this is a good opportunity and it sounds like a good deal. I I know an appraisal would be great. I don't disagree with that. Um but we have comparables and uh we have indications uh through you know past listings uh that this is this is a pretty good deal. Um and we are using state money for it.

Um so we are looking uh I believe the estimate is like uh $1.3 million if this gets uh developed. um into the types of single family homes uh that are expected um per year, correct? In property tax revenue, 1.3 to 1.6, right in that area there, total property taxes that would be generated off of this. Okay. And again, that's looking at what assessed values are for properties, the neighboring subdivisions in this in this immediate vicinity. Great. And how much are we getting now?

Uh there are no property taxes being paid on this property. It's tax exempt. Okay. So like even if we get half of that, then you know that's $700,000 a year. Um so I mean our our estimates don't have to be perfect for this to be uh to be a good idea. Um and it's not just good for us. I mean it's good for district 150 that we all know needs the revenue. They need the money. um expanding the tax base for them too. Uh this doesn't contribute to sprawl. Uh you know, I grew up on the north end.

Um and we have we develop development that keeps going north and north and that just means more roads, more sewer lines extended that we have to you know repair forever. Um but this is you know in the center of the city. Um and I mean there will be some uh some you know building of curbs uh some building out of sewers but wouldn't a developer be paying for that traditionally? Yes.

That's we, you know, with gross cell 1A, um, we created special service areas and special assessments, um, that as properties were, uh, that the city fronted the money for the for the infrastructure to go in the sewer infrastructure to go in and then that was paid back as lots were sold. So, um, that's something that was done, you know, uh, further north as we were, you know, expanding within that residential growth cell that we had.

Um but traditionally um other subdivisions it's the it's the developer responsibility to put in all the infrastructure and then they make that up on the home sales. Okay. Okay. So yeah, I mean um and you know given the market conditions uh you know homes are homes are going for decent prices. Um people are going over uh across the river um looking for homes as council member Gordon Young just mentioned. Uh that's that's a lot of lost revenue for us too.

Um I I do think this is this is a good idea and I fully recognize that we don't have a perfect track record getting involved in this stuff. Uh this is not like the pair market. We are not we are not guaranteeing a loan that might be defaulted and then we have to pay it out of the general fund. This is this is totally different. Um I you know even if this doesn't play out perfectly uh this I I see this being somewhat positive. Um and we're not planning and holding this forever. Correct.

That's correct. Okay. I mean we're just going to find a developer uh who are going to present us with plans that uh you know that that we like that fits in with the neighborhood, right? And eventually sell. And that's correct. Okay. Okay. All right. Well, all checks out for me, Madame Mayor. You have a yes for me. Thanks. Thank you, Councilman Vespa. You sound like an attorney. I I happen to know that you're a very good attorney, and it it runs in the family. I appreciate it.

Council member Velpula. Thank you, Madame Mayor. I just have one I mean a couple of clarification questions to you, Mr. Manager.

Uh so basically it's like a I was I was understanding it's more like uh we are time bound the bank gave us uh additional two weeks historically when such kind of properties are listed how quickly they went off let's say you go for a foreclosure and then they open for listing how quickly somebody will come out and buy is it like a is it also a time bound one or people are willing to jump in and buy it off immediately.

So, so I think procedurally there there would have been the motion for summary judgement that where the bank would have gotten the summary judgement motion. Then the then the judge would have scheduled a foreclosure that might have been within 6 to 8 weeks out from there. Once the the auction occurs and if the property were in the hands of the bank, uh the bank's going to figure out a time frame, uh it could be quick to sell the property. It could be lengthy.

It's just going to depend on the market and what what may happen or or who's interested in the property at that time. So, so technically we are looking at six months.

I if we went down that process probably you'd be at six months and with with no you know that you go down that process you know there could be somebody that wants to come in with that has a different idea for what the property they would want to do with the property I mean so this is this as we've discussed this is um with the vision of making this market rate housing within this part of the community how much would the bank owe to does if we wait till the foreclosure?

Well, I I don't have an answer to that question if the bank would would be willing to to wait and go through the foreclosure process. Um, you know, if they go through the foreclosure process, um, I'm not sure what number they would want. They've incurred additional legal costs that they would have. Um, so that that's a risk to the city that that, you know, we wouldn't be able to get it at the price that we've negotiated. Um, so I, you know, I don't know if I can answer anything more.

No, no, my question was what would happen to the fines that we we have. If if the bank takes it, we we lose the the storm water utility lean that we have that that's wiped out at that point in time. Okay. I mean, I see I see this as a visionary acquisition going forward.

I I kind of uh agree to all the comments made but again I it wouldn't hurt to have like a costbenefit analysis because yeah everything we sound everything positive right off the bat everything looks positive then we'll wait we'll wait we'll wait so I understand I understand how important and critical it is to the city I understand how why we need to have a housing um places why need why we need to develop the theory.

But again, I just really wanted to know, let's say you invest uh uh like uh let's let's say $1.3 million. Going back to what Councilman Vespa asked, what would be our timeline to leave it to kind of move from plan A to plan B that is executing to sell? What would be like a tentative timeline? So, I think we would we would work from the staff's perspective to get an RFP out, a solicitation out for developers, um, and do that within the next 60 days after after this.

Um, and then, you know, you give developers another 90 days to look at the property. So, that you're talking 5 months probably before we had a decision on that. Um, and then, uh, take it from here. So, five I would say 5 to 8 months just to be safe to give some some time over what it might take um to find someone that would that would be interested in uh redeveloping the property. Thank you. And just for clarity purpose, we are buying the property because it is in the center of the city.

We wanted to make sure that it goes into a proper hand. We let the single housing happen there and then we take the money and put it back. That That's correct. Yes. So, so what we would look to do is would be to to sell the the the property to a developer um so that the the funds could come back to the land bank.

Um I think we would also uh you know as as you mentioned in the center of the city, this is the this is the largest undeveloped parcel that that's zoned residential inside Poria Public Schools boundaries. And so, um, where, um, you know, district 323 to the north, where there are corn fields that have been able to be developed with new housing, it's because they have corn fields around them. Puri public schools doesn't have cornfields around it to have that development.

This is in essence that cornfield that they can develop um for single family housing. Thank you, Madam Mayor. You're welcome. Council member Seir, thank you, Madam Mayor. I really would love to stay silent but I just can't tonight and I u so many of the comments I think my colleagues have made already in the question just uh really make my case as far as deferral until we do our due diligence. I mean everyone to comment you know I mean Mr.

Hayes, if these this property goes to auction, have we filed our lean yet? Would this just auction to a private part party right now, our lean would stay in place? If it's auctioned, if it goes to the bank, the foreclosure would wipe out our lean. So, one of the issues we were working through was early on, you may recall the the the um Exposition Gardens board was exploring or auctioning the party the property off directly.

And so, an auction just an outright auction to a private party, our lean would stay on the property. An if the bank goes through foreclosure, that wipes out our lean. I'm sorry if I misunderstood a question. Director Douly, I got a question for you if you want to come down, please. Uh, Mr. Mayor, Mr. Mayor, Mr. uh, Urick, I'm sorry. I heard a couple of my colleagues asking about a plan.

Do we have I mean, you yourself just said a few minutes ago this came on our on your desk just a few weeks ago. Do we what's the plan? Because I get these question also. So, if it goes through tonight, which looks like it will go through, what is your plan or our plan? Cuz I've not seen any personally. Well, we we haven't put together any plans. I think what we would do is we would put together a solicitation.

Um, normally when we have housing developers that come to us, they've laid out a plan for a parcel of property that they've acquired and they've looked at it and said, "We can build homes on this property." So that's what we're looking for is a housing developer that would come in and say I can take this 80 acre or 75 acre parcel of property and here's the how we would subdivide the property up and and plat it out.

Um that's the process that we utilize um you know in where we're seeing uh residential subdivisions being built in North Poria. Um and we would just see that that following that same process here. So, to Miss Jackson's point, you know, the uh and Mr. Orler, I think, said that there was an offer for or sell for uh $2 million and nobody made any offer. So, really, we just we just don't know what the value of that property is.

We know that nobody would pay 2 million and we know that so far we only only buy that that would pay 1.125. Um Mr. Hayes, I seen a contract also that somewhere, maybe I misread it, we would lease back to the tenant for a dollar. Did Did I see that somewhere? Can you explain that to Mr. Allen's point? When Yes.

When the uh Exposition Gardens board, we were in discussions about trying to put together what terms we'd put in a letter of intent, the board was looking at auctioning off the property to the private market. So, we were looking at ways to incentivize the transaction to entice the board into agreeing.

Uh, we had the ability to offer the um the waiver of the storm water utility fee as well as offer them the ability to continue to operate for a short period of time so they could deal with transa transition to either another facility or some other mode of operation. Um, as Councilman O Allen pointed out, they also have some contracts for some of these events that they do that they were concerned about.

So, uh, I don't know whether they'll operate the fair going forward, but that was another issue at the time that promoted us allowing them to operate through two summers going forward uh, for a nominal fee. The idea was to make the offer enticing so the board would agree to the letter of intent rather than go to the market and sell the property to a third party. Thank you. But the lease back is for a dollar for Yes. The nominal sum.

So we want to incentivize someone who owes us $400,000 and we'll put a million one on the line with no interest and we'll get rent for $1. Makes sense to me. Uh, Mr. uh, Dulan, give us a little history about land bank, please. I mean, uh, and my I mean I we waste enough time here. I just want you to tell us, have we ever purchased any vacant land? Uh, yes, we have. What's the biggest piece of land we have uh bought? And I thought usually we just get bankruptcy land.

We don't most of the land we get, we don't purchase. Uh there's been times uh council as part of the American Rescue Plan uh money allocated funds specifically to the land bank and we use those to purchase some vacant lots that were contiguous to other vacant lots uh to have a larger parcel to be able to entice uh a developer uh in those situations. What was the average price of these vacant lots? Uh for a vacant lot, I think it range anywhere from$1 to $5,000.

So, by far this is this will be the largest uh transaction that we you've ever made for the land bank. Uh yes. Okay. Last comment, Madam Mayor. Again, I apologize uh but I just can't be silent about all that stuff. It just it just makes no common sense to me. But you made a comment about this is a great opportunity on my colleague. Okay. So many so many uh things that happened transaction in the past. They all started with a great opportunity. That's why we vote for them.

But I would prefer if we said there's a possibility, okay? It's a possible great investment for this city because there's risk with everything that we do. Okay? We can't speak like there's no risk. This will be a tremendous it is a tremendous opportunity city. It's not true. It is just not true because none of us know about tomorrow. Okay? So I I will use a language. I know it's going to go through, but I will use a language about the possibility of a great investment for our taxpayers.

Thank you, Madame Mayor. Thank you, Mr. Douly. You're welcome. Council member Carmona. Thank you, Madam Mayor. Uh, just a few more things to add to the conversation. Um, just a question from a constituent and I think I know the answer, but um, this is just for the purchase of the land. No assets of expo gardens, equipment, building, anything like that.

uh the the buildings would remain but the buildings remain yeah any of the other assets and no um there's so the comment I made earlier about controlling the destiny of these parcels of these developments would it be fair to say that we already have some of that power through zoning when a developer buys a plot of land to to have them stick to the R1 R2 zone zoning residential, we we do to a certain extent.

Um, but council also has the ability to grant reszonings um and to grant waiverss and uh to uh you know change that depending on what the the developer may bring forward. So, you know, if it were sold to a a private property owner and and um they wanted to do something different, um it's one of those situations where you'd likely hear from the neighbors and you'd hear from others and before any kind of resoning came forward to to the council.

So, and it would have to go through the, you know, the planning and zoning commission and and would have to come to the city council. So, the council wanting to control all this property as is would still have that ability to do so and vote for that. to a certain extent. Yes. Okay. Um, last question. Um, so there's no this there's a tax exempt property, correct? It is. It is property tax exempt. So there's no taxes after the foreclosure process. Does it remain tax exempt? Well, that's a no.

that once the bank would take title and that sometimes is a matter that banks delay, the property tax exemption would fall off because it's no longer an eligible entity. So, we would gain a taxpayer if the bank owned this property that couldn't sell, right?

The assessor would develop what the assessor felt the market value was of the land as it sat as of January 1st on the date of the assessment and that would be the assessed value that the bank would for whatever period of time they owned it have a tax liability. So if we don't if we end up let's say in this in this in a scenario where we um where this doesn't pass there is a potential that we could gain tax revenue from this property. Correct.

Well, other than the unlikely scenario that a different taxexempt entity acquired the property, it would go on the tax roles at some value at some point in time in the future. Okay, that was it. Thank you very much, Madame Mayor. You're welcome, Council Member Kelly. Thank you, Madam Mayor. Just a couple quickies here. Um, I don't know what the biggest land acquisition was that the city ever made, but I do know that we got 168 acres in Southtown and Southtown was full of people.

It was complet and we kicked them all out. So, um, this was one of the great municipal redevelopment programs. Okay. So, let's be careful. Let's be careful. Okay. Um, we had a lot of smart minds at that time. Okay. And as I said, you can still you can shoot a cannon through Southtown. Unfortunately, it's right next to downtown and it was full of people who owned their own homes and uh you know so let it be a uh a warning to us. We need to do this right. And I I think we can.

Maybe we can't, but I think we can. But let's keep that in mind that hubris does not serve especially in government. So thank you madam mayor. You're welcome. No risk no reward calculated risk. I think we got one more and that's uh council member Valpula. Thank you madam mayor. I just uh wanted some more clarification on the letter of intent.

The third option we've been we've been discussing about that but could you repeat it one more time cons uh corporation council what exactly it means to us I read it with great interest so we we would we have we'd extend an option for expo to lease the property subject to terms to be negotiated uh for uh through September of next year. Um and then they could rent monthto-month with the city abil has the ability to terminate that with 60 days notice.

So the agreement in front of you reflects those issues because it's got more terms in it than the letter of intent. Um and the um lease will have additional terms particularly related to the city's requirement that they maintain the property and that they in fully ensure the property for all the activities to um protect the city's interests. How many acres that they'll be using it? The total parcel is about 80 acres. All the parcels together.

Um, we've reserved the ability if the school district wants to buy some of the parcels that they're presently renting from the exposition gardens that the lease would reduce um so that they they would have to allow the school district to control those properties. The school district right now uses some portion of the adjacent parcels for parking and there's long-term lease agreements in place and they've expressed an interest in in eventually acquiring those parcels and owning them outright.

So, in the agreement that we're working through, we're reserving the right to execute those transactions with the school district if we prefer to during the term of the lease. I see that the lease, you're going to have a lease agreement till September 30 of 2026. So, what happens if a buyer comes in? What happens if a developer comes in right after the bat, right after the fact that we we we issue an RFP and somebody will come in and say, "Oh, we want to take it." What happens to this agreement?

Well, we had anticipated that a purchaser would understand and by that time we marketed and got a developer in place six to eight months from now that the term that they would have the property no sooner than the end of September would be acceptable to the buyer if they knew that when they came forward with their proposals. So in other ways we are obligated to wait till 2026 of September. Yes.

Um, so I understand the idea is unfortunate, but the discussion between the um, uh, Exposition Gardens and the city revolved around being able to operate for a couple of more years. So, you know, this we probably wouldn't do these this under any other circumstances and we were trying to induce them to come into an agreement instead of auctioning off a property to the private market. Okay, let me ask you this question.

Why should I I understand I understand we need to have all these things but are we in a rush to buy it or Expo Gardens could not do it so they are willing to sell it? So where who who holds the edge here, us or the expo gardens? Um well the the timing issue this is being pressured by the bank's foreclosure action. Correct. Because once the bank goes to the summary judgment outcome, they then control the future legal ownership.

So the pressure on us to get the deal done was really exerted by the bank's foreclosure action. I understand it. But let's say will the bank also have done the same way. Let's say we don't we we don't uh go for purchase. Let's keep it that way. The bank will go for a auction. Somebody will buy it. What happens to the expo gardens proposed stay on the same place that city owns till September of 2026?

If the bank goes through with the foreclosure, they'll obtain full uh possession of the property at some point in time and it would exclude any future operations of Exposition Gardens, which is why they had an incentive to do a deal with us.

So now uh the answer for this question is we are regardless of how quickly we move we will have to wait till September 2026 which is again I understand there there will be ifs and buts there but technically you have to wait till that time even then we we're going to also obligate or request the developer to give concession because we have a lease agreement that will expire in 2026. Is that correct? That's correct. Okay. Why do we need to do that?

To incentivize Exposition Gardens to enter into the letter of intent. They wanted terms about continuing operations. So, we tried to restrict those as much as we could, make it as short a period as we possibly could and get them to sign the agreement. But either way, the bank is going to go for a foreclosure. That's that's what I not the the bank won't go for a foreclosure if if we enter a deal with them. No, I understand that we stepped in the middle.

But I understand I'm not questioning about the land. I'm not questioning about why we need to have it. I'm just trying to understand why we need to be obligated to please everybody. We are paying the money. We let's say developer comes in. You give him a clean ground.

What is so regardless of we purchase anybody purchases the bank will terminate the expo I am not against expo gardens I'm just trying to understand why do we need to kind of allow everybody to wait till 2026 that means we are waiting for one and a half year for anything to happen at a grand scale so I don't I just need to understand the logic behind it otherwise I'm okay with so all the techniques I I'll trying to answer.

I think that out of respect to the fair board that the the exposition gardens board has operated that site as a community entity for 40, 50 years, maybe even longer. And and so that's an oper. This is just out of recognition of of their contribution to the city. This is a way to allow this property to wind down gracefully. Thank you, Madam Mayor. You're welcome. Councilman Oilers's Councilman Oiler moved in support of item A. It was seconded by Council Member Rianbach.

So, we're voting on item A. Please cast your ballots. Motion passes with two nays, Carmona and Seir. Council member Oiler. Move to approve item B. Seconded by council member Rianbach. Please cast your ballots. Motion passes with two nays. Carmona and Seir. Thank you.

Um, madame clerk, 25-18 is a communication from the city manager and corporation council with request to deny the site application for a class B restaurant 50% food liquor license with on-site consumption and retail sale of alcohol for Empire Lounge LLC doing business as Empire Lounge at 3033 North Sterling with a recommendation from the liquor commission to deny. And today, um, at 1:00 p.m., the city clerk's office received an email from the applicant withdrawing his request.

So, no vote is necessary on this item. Okay, let's move on. Thank you. Okay, so we are at unfinished business. There's no unfinished business. Okay, then we're at new business. Does anybody have any new business? Council member Jackson. Thank you, Madame Mayor. Um well, you know, as you all have probably heard uh over the last couple of days, the unfortunate news about uh Kroger's uh decision to um close its uh grocery store on Sterling Avenue.

Um, and I was asked the question earlier today, um, what may have precipitated their decision, and I honestly have no idea, but to assume that it was probably based on uh, lack of revenue, lack of profit. Uh but um I I was still somewhat disappointed having campaigned in that area where we have vibrant healthy neighborhoods.

Sterling Oaks, uh Ward Cliff Neighborhood Association, Forest Hill, Gale Avenue Neighborhood Association along an interior roadway where people travel daily uh to and from work or wherever they're going. And you know, if you're like me, the grocery store is a destination spot either before or after work or Saturdays, you know, it's it's just a a destination spot.

But um Madame Mayor um in the interest of uh due diligence and and as I shared earlier in a conversation with uh the media, Kroger still has a footprint in this city and prides itself on uh community uh involvement in in whether it's the food hunger programs.

And so I I would like to if I could uh request a meeting with them because uh you know we we have as I said what six neighborhoods uh several in that area that will be left healthy neighborhoods where people work and uh will be left uh without a an alternative option. Um I go to that grocery store people from all over the city. And I was told uh today um you know somebody googled the popular grocery store in Poria. That was the first one that came up.

So that says to me, you know, I'm not the only one going there. But I I would like to talk to Kroger's uh being that they continue to have a footprint, but you know, to see if they'd be willing to uh consider um something in the way of a of an an auxiliary service. I don't know what that looks like, but they have on their website, you know, how they are actively, always engaged in community service. And so I I would like to meet with them to talk a little bit about uh possible options.

They will continue to have a a presence in this city. And so having said that, I I welcome the opportunity to um expand what they currently do in the terms of in the way of community service. And so um I I would like to request Absolutely. I applaud your efforts, Councilwoman Jackson. It it is unfortunate. I did get a call from their corporate office. Um, of course, Kroger's is closing 60 stores nationwide and the Sterling store is one of them.

They indicated that the store had not been profitable in a number of years and it was a business decision and unfortunate for us but I'm confident that they would be willing to meet with you to meet with us to explore you know whatever uh ideals you may have. I think that I think that they will listen. Okay. Thank you madam mayor. Welcome, Council Member Rianbot. Thank you, Madam Mayor. Two quick things.

Um, first of all, I want to welcome Jonah's 101 Oyster Bar to Poria, one of the items on our consent agenda, new restaurant going into Keller Station. So, that's really exciting. Um, we're happy to have them. And the other um thing I would like to just recognize the continuing efforts of Invictus Woods which is um Dr. and his Mrs.

Rabs John's um project and it's a peerupported let me just read this so I get it right it's peerupported recovery environment for individuals in early sobriety and as we talk about the unsheltered situation and all the challenges that our community faces in that regards I think we really need to recognize the efforts of people like the Rabs John's for providing continuing to provide had opportunities like this.

This will be their third house in Poria and one of them is in the third district and we have not had any issues with the neighbors. It's a very well-run organization and group and we're I'm personally excited to see them expand. Thank you very much. You're you're welcome. Council member Gordon Young. Thank you, Madam Mayor. One of my favorite things to do is to catch people being great. So, uh, anybody on my Facebook page know I often catch people being great in Peoria.

And, um, so over this past weekend, I had the amazing opportunity to attend the 4th annual all class manual high school reunion. And, um, I want to give a shout out to Crestston Coleman and his team for bringing so many people back to Peoria um, and just the unity that was displayed. In addition to that, I also want to shout out those um individuals such as Lamont Carroll who is working on a Richwoods all class high school reunion. And that's really what it's about.

You know, bringing back those feelings in Peoria. Um you know, we we know that there's some negativity. We hear about that a lot, but just to have those opportunities to get together and just have fun and reminisce and keep the you know, keep those memories and those traditions going strong. So again, just want to shout those guys out. Thank you, Madame Mayor. Thank you, Councilwoman from a fellow Ram. I was out of town, but uh so I missed the activities, but hopefully next year.

That's right, Council Member Allen. Uh thank you, Madame Mayor. Um I'm glad that some uh Knights are going to be able to return to the castle this fall for our all class reading. Shout out to Lamont Carroll. I do want to uh echo the sentiments of Council Member Jackson. Uh growing up going to that that was our neighborhood Kroger.

Um, and many of my constituents in the fourth district utilize that Kroger, especially those who live along Reservoir that live in Sterland Towers and some of the senior living facilities that literally get on their mobile devices and that is their neighborhood grocery store. And so, um, it's going to create a huge inconvenience for them and and so definitely I definitely would welcome any type of progress you can make on that. Council member Jackson.

Um, on two lighter notes though, I do want to uh shout out the fill the fire truck initiative that um our Poria Fire Department in collaboration with the Poria Park District is doing this year. This is initiative where their goal is to literally fill a fire truck full of school supplies and donate those to Peoria area schools. There are three upcoming social events to help uh generate some funds.

So, Party with a Purpose, uh, that myself and council member Gordon Young will be participating in for the next year. Tomorrow is the first event. Um, it will be at Jimmy's Bar. Um, and they have guest, uh, bartenders from not only the fire department, but as well as teachers from Pora Public Schools. Uh, and then the second event will be on July 5th that myself as well as our fire chief Saulberger and assistant fire chief Tony Cumins will be participating in. That's at Friendly Valley.

Uh and then the third event is a trivia night and that's on July 12th and I know that that's the event that council member uh Gordon Young will be participating in as well too. So uh it's very important that our young people have what they need to be successful this coming academic year. So please support those three events. And then the last thing I want to shout out I want to take a uh point of personal privilege is to shout out uh my better half uh Mrs.

Jalisha Allen who participated in the Miss Black United States pageant uh this past week. You may have noticed I was absent last week from our policy session. Um she has showed up so much for me uh throughout my life and it was a pleasure to be there for her. She did very well in this pageant and she got runner up uh out of the entire pageant system and so she did very well. Um and I'm so proud of her.

Uh she's worked very hard and she put not only Illinois on the map but when we were there they were like Poria Caterpillar Richard Prior and we like yeah but by the end of it they knew about Jalicia Allen. So I'm so proud of her. uh and congratulations to her and I appreciate you all giving me some opportunity to to be there for her. Thank you. You're welcome. Congratulations to Jalisa Allen. First runner up. Congratulations to the entire family.

Madame clerk, we are at citizens opportunity to address the city council and we have not received any cards. So we would be at executive session.

I'd like to invite a motion to adjurnn and to convene in close session immediately following adjournment of the city council meeting pursuant to the open meetings act 5 lcs1 122c1 to discuss the appointment employment compensation discipline performance or dismissal of specific employees or legal counsel for the public body including hearing testimony on a complaint lodged against an employee or against legal counsel for the public body to determine its validity.

And pursuant to the open meetings act 5CS1202C11 to discuss pending litigation or pro probable or imminent litigation. Um can I get a motion moved by council member Allen seconded by council member Gordon Young. Uh please cast your ballots. Motion passes unanimously. We are adjourned in the close session.