Peoria approves OSF Healthcare downtown headquarters, $2 million parking deck, South Village revitalization plan
PEORIA, ARIZONA — August 27, 2019

Peoria approves OSF Healthcare downtown headquarters, $2 million parking deck, South Village revitalization plan

City council meeting featuring OSF Healthcare's major downtown headquarters redevelopment, South Village revitalization plan, and controversial movie theater alcohol licensing proposal with procedural concerns from council members.

OSF Headquarters and South Village Plan Approved; Movie Theater Alcohol Ordinance Advances Despite Procedural Objections

Peoria City Council advanced two major downtown initiatives and approved a comprehensive neighborhood revitalization strategy Tuesday evening, but the meeting also highlighted deep procedural tensions when a movie-theater alcohol-licensing ordinance moved to first reading without advance review from the Liquor Commission or Police Department.

The council unanimously approved OSF Healthcare's revised redevelopment agreement and purchased a 450-space parking deck at One Technology Plaza for $2 million—transactions set to close within days. Simultaneously, the council received a detailed South Village transformation plan developed by IDG Architects, featuring mixed-use housing, an arts center, food vendors, and a workforce training facility, with phased implementation beginning in 2020. However, the evening's third major item—an ordinance to allow movie theaters to sell alcohol—sparked vociferous debate over whether first readings should proceed without foundational staff research and regulatory input.

OSF Healthcare: 700-Employee Relocation and Downtown Catalyst

The OSF Healthcare decision represents the completion of a multi-phase redevelopment centered on the Block and Coolidge Building, Peoria's oldest steel-structure building in downstate Illinois. The company will relocate 700 employees to the renovated headquarters, which has been undergoing restoration by the Sisters of the Third Order. The council also approved the city's purchase of the One Technology Plaza parking deck—currently operated by Caterpillar—to ensure adequate parking for OSF staff and existing tenants.

Vice President for Development Ryan Spain addressed the council, emphasizing the catalytic potential of the project:

"This project would not function if merely a one-off, a single phase redevelopment. It would be catalytic for other investment downtown." — Ryan Spain, OSF Healthcare

Spain noted that OSF now operates 14 hospitals with plans to expand to 16, and that centralizing corporate operations in Peoria positions the city to capture future healthcare-sector growth. He highlighted complementary development activity in the adjacent warehouse district and a partnership with Illinois Central College to create an innovation hub for startups.

The parking deck purchase—a $2 million outlay with no upfront city cost—will be financed through triple-net lease payments from OSF beginning in 2020. The city will make five years of $400,000 annual payments, after which OSF's lease revenue will offset the capital cost. Councilman Grab praised the arrangement during discussion:

"I believe one of our former colleagues is present tonight and that would please the council—one who can speak about what is in the offing for the City of Peoria and for our regional economy." — Councilman Grab, introducing Ryan Spain

All three items related to OSF—the revised redevelopment agreement, the parking deck purchase, and acceptance of the revised administration building (formerly the LD building) designation—passed unanimously.

South Village Revitalization: Community-Driven Design and Five-Year Rollout

The evening's most emotionally resonant moment came during the presentation of the MacArthur Corridor South Village implementation plan, a comprehensive neighborhood transformation rooted in extensive community engagement. Councilwoman More, who initiated the effort, introduced the work by IDG Architects and its three Prairie View A&M University student interns.

The plan identifies five sub-districts within South Village, including commercial flanking MacArthur Corridor, mixed-use developments with ground-floor retail and upper-floor residential, single-family home improvements, and targeted facilities: a health and fitness center with urgent care clinic, an art garden and arts/culture center, a South Village Plaza for community events, a farmers market, and a workforce training and continuing education center. The phasing timeline runs 2020–2025, allowing flexibility: delays on one project do not cascade across others.

Business Manager Erin Gunn detailed the engagement process:

"One of the major objectives of our approach was engaging the community. Having access to engagement platforms hosted by PC CEO and some facilitated by Kim Smith at IDA, we arranged sessions that were totally interactive so community members not only sat and listened but gave us feedback and contributed to what you see as a final product today." — Erin Gunn, IDG Architects

The community response was immediate and emotional. When the plan was presented at a South Village Community United for Change meeting, attendee Lavetta Rica reportedly began crying, saying she felt heard for the first time. Councilwoman More emphasized the significance:

"When this presentation was made to the south village, at least one lady started crying because she felt like somebody was finally, finally heard what the residents were saying." — Councilwoman More also credited Kim Smith (city planner) and Robin Grantham (PC CEO representative) for their fieldwork, noting that community members now know them by name and trust their role in the process. She pledged that unlike previous shelf-ware plans, this one would be funded and implemented, anchored by the $6 million MacArthur Street Bridge replacement and a nearby $2 million church expansion already in motion.

Mayor Ardis, Councilmember Dr. Andre Dr. Andre W. Allen, Councilmember Regan Bach, and Councilmember Jensen all endorsed the plan during discussion. Dr. Andre W. Allen specifically advocated for engaging "Southside alumni"—people who grew up on Peoria's South Side and now live elsewhere—as potential investors and donors, tapping their nostalgia and community ties. He also called for a mix of nonprofit and taxable development to maximize economic benefit.

Councilmember Regan Bach praised the modular design, noting that if one project faced delays, others could proceed without cascading failure. Councilmember Jensen echoed years of advocacy for arts, mixed-use development, and workforce incentives, all now reflected in the plan.

The council voted unanimously to receive and file the presentation, directing Councilwoman More and staff to bring funding proposals to the budget session.

Movie Theater Alcohol License: First Reading Amid Procedural Firestorm

The evening's most contentious exchange centered on an ordinance creating a new "MT4" (movie theater) liquor license classification. The proposal would allow theaters to sell beer, wine, and mixed drinks in auditorium areas during film viewing, mirroring licenses already held by the Peoria Riverfront Museum and other venues. However, Councilman Grab and Denis Cyr objected strenuously to the ordinance's advancement without prior review by the Liquor Commission or Police Department.

The Deferral Motion and Procedural Clash

Denis Cyr moved to defer discussion until September 24 to allow time for counsel review. Councilman Grab and Denis Cyr explained their concerns: the ordinance had arrived with minimal notice, lacked historical context about similar decisions (notably a 2008 Innovation Theater within Landmark), and omitted Police and Liquor Commission recommendations. Councilman Grab stated:

"First readings should come with about 98% of the information there and historic information as well. You have violated every canon of how this body is to do this kind of work, and I'm very disappointed. It reminds me of when we passed on being our hauler and got twisted around because of premature action." — Councilman Grab also objected to the framing of the ordinance:

"The problem with this, councilors, is first of all the action requested comes imbedded with a recommendation from the administration, even though the administration hardly states that no recommendation was meant to be provided." — Councilman Grab

However, Councilman Regan Bach, Councilwoman Jensen, and John Kelly opposed the deferral, arguing that first readings exist precisely to surface questions and gather information, not to delay:

"I will not be supporting the deferral because I think we're going against the whole concept of why we have first readings for ordinance changes to begin with. I would like the opportunity to ask my questions so that staff knows what those concerns are before we go." — Councilman Regan Bach

"I agree with Councilman Regan Bach and Councilwoman Jensen. That's why I don't see the reason for having a deferral on a first reading. That's the whole purpose of having a first reading is for us to ask questions, gather more information, voice concerns, and give some direction to the staff." — Councilwoman Jensen

The deferral motion failed 3–7, with only Grab, Denis Cyr, and Montelongo voting yes.

Operator Testimony and Council Questions

Rob Anderson, local manager for AMC Theaters, and Thomas Goodrich, regional manager for Goodrich Quality Theaters, addressed the council. Anderson outlined AMC's controls: Bassett training for all staff, internal training programs, secret shoppers, standard drink recipes, distinctive cups to identify alcoholic beverages, a two-drinks-per-person limit (per ID), carding of all customers regardless of apparent age, and a policy to terminate employees who fail to card. He noted that AMC operates 24 theaters in Illinois, several of which serve alcohol, with no citations for sales to minors or complaints from municipalities.

"I would be very happy to provide a list of the locations to your chief of police and I absolutely recommend he call all of them and see if they've had any issues. And we are 100% confident." — Rob Anderson, AMC Theaters

Anderson also emphasized that revenue from alcohol sales represents only about 7 percent of concession income but is part of an overall package designed to compete with streaming alternatives and make theaters an "event" destination rather than a drop-off for children.

Goodrich highlighted that 14 percent of Goodrich attendance is children under age 12, and explained the company's "one drink per one ID" policy—more restrictive than AMC's two-per-ID approach. He noted that approximately 1,083 of 5,800 active movie theaters in the United States hold liquor licenses.

Council members posed extensive questions:

Councilwoman Jensen asked about the number of AMC theaters statewide that serve alcohol (Anderson said 24 serve alcohol; the exact number out of the Illinois total was unclear), how long alcohol service has been permitted (since 2002), whether violations had ever occurred (none reported), and demographic breakdowns of theater attendance. She also asked what constitutes "over-service" enforcement and whether minors caught drinking are arrested (response: police are called; consequences depend on local ordinance).

Zachary Oyler probed whether theaters track demographics and requested that AMC and Goodrich provide demographic data on adults versus children by age and race. He also asked about controls to prevent underage drinking when a 21-year-old purchases drinks for minors in the same party (Anderson confirmed that staff are trained to watch for drink-sharing and would call police if suspected).

John Kelly noted that the riverfront museum has sold alcohol at its movie theater for three to four years, and Councilwoman More added that Chuck E. Cheese also serves alcohol—both operating without apparent incident. Council members requested comparisons to other municipalities' policies, hour-of-sale restrictions, and whether separate areas or check-in procedures are required.

Councilman Regan Bach asked whether a sunset or trial-license period (one year) would be acceptable (response: possible at second reading) and probed the cost of entry, insurance, and staffing for alcohol service.

Councilman Grab reiterated his procedural objection:

"As one looks at the original sheet as well as the yellow sheet, it would appear as if the industry is writing this. So this industry continues to evolve. The move towards movie theater liquor licenses is a logical next step for the City of Peoria. It's not necessarily logical to me. So I would hope that we would have more restrained language since it's not the intent apparently at the administration to make a recommendation." — Councilman Grab

First Reading Approval and Referral

Despite the objections, the ordinance passed first reading 10–0. Council members voted unanimously to move it forward, with the understanding that staff would solicit input from the Liquor Commission and Police Department before second reading in September.

Councilwoman More requested that director Black and staff provide: (1) a breakdown of hour-of-sale policies in other municipalities allowing alcohol at theaters, (2) data on whether separate areas or ID checks are required elsewhere, (3) demographic information on movie-theater attendance, and (4) analysis of tax-revenue implications. She also directed that the Police Department and Liquor Commission reviews be completed before second reading.

The council agreed to consider limiting hours of sale or other conditions at second reading. Councilman Regan Bach noted that current code allows sales until 1 a.m. but that theaters could operate more restrictive hours.

Key Speeches

"I'm one of the three women on this council, and Dorothy Sinclair certainly paved the way for us as being the first elected city council person, council woman, who served five terms." — Councilwoman Jensen, on Dorothy Sinclair memorial

"This project would not function if merely a one-off, a single phase redevelopment. It would be catalytic for other investment downtown." — Ryan Spain, OSF Healthcare

"When this presentation was made to the south village, at least one lady started crying because she felt like somebody was finally, finally heard what the residents were saying." — Councilwoman More, on South Village plan reception

Timeline

Township Financial Report (Item 19-220):

Consent Agenda (excluding items 19-266 and 19-267):

Dorothy Sinclair Memorial (Item 19-266):

MacArthur Corridor South Village Plan Presentation (Item 19-276):

Movie Theater Alcohol Ordinance - First Reading (Items 19-277 / MT4 License):

OSF Redevelopment Agreement & Parking Deck Purchase (Items 19-279, 19-280):

West Grange Hall Road Annexation Amendment (Item 19-281):

Opposition

Movie Theater Alcohol Ordinance:

Support

Movie Theater Alcohol Ordinance (First Reading):

OSF Redevelopment & South Village Plan:

Project Details

OSF Healthcare Redevelopment Agreement & Parking Deck

MacArthur Corridor South Village Revitalization Plan

Movie Theater Alcohol License Ordinance (First Reading)

Vote Breakdown

OSF Redevelopment Agreement Revision (Item 19-279)

One Technology Plaza Parking Deck Purchase (Item 19-280)

Movie Theater Alcohol Ordinance - Deferral Motion (Item 19-277)

Note: Transcript indicates Grab and Denis Cyr voted for deferral; Montelongo voting yes suggests a third yes vote, but exact identities for all seven no votes require inference from context. Transcript does not provide a complete name-by-name tally for the deferral vote.

Movie Theater Alcohol Ordinance - First Reading (Item 19-277)

South Village Plan Presentation - Received and Filed (Item 19-276)

West Grange Hall Road Annexation Amendment (Item 19-281)

Dorothy Sinclair Memorial - Sinclair Grove (Item 19-266)

ArcGIS Geo Event Server Software Purchase (Item 19-267)

Outcome & Next Steps

OSF Healthcare Redevelopment:

South Village Revitalization Plan:

Movie Theater Alcohol Ordinance:

West Grange Hall Road Septic System Exception:

Township OPEB Liability Reconciliation:

Controversies & Context

Movie Theater Alcohol Ordinance Procedural Conflict:

The ordinance's advancement to first reading without prior Liquor Commission or Police Department input sparked a governance-integrity debate that extended beyond the specific issue. Councilman Grab framed the objection as part of a pattern of procedural shortcuts: he cited the recent cannabis-fining debate and a prior panelwaste-hauler selection as examples of the council acting "from 30,000 feet up" without foundational information. He stated:

"This isn't a matter of how we're doing business in Peoria and 18 years on this council I've never seen anything more disgraceful than this first reading." — Denis Cyr, whose district includes two of the three Peoria movie theaters, emphasized that constituents had contacted him extensively and deserved council deliberation informed by police and liquor-regulatory perspectives. He requested deferral not to block the ordinance but to ensure proper process.

By contrast, Councilman Regan Bach, Councilwoman Jensen, and John Kelly argued that first readings inherently surface concerns and allow staff to gather information, making deferrals unnecessary. Councilman Regan Bach explicitly stated:

"That's why I don't see the reason for having a deferral on a first reading. That's the whole purpose of having a first reading is for us to ask questions, gather more information, voice concerns, and give some direction to the staff." — Councilman Regan Bach

Relationship to Broader Governance Issues:

Councilman Grab's lengthy statement also criticized the framing of the ordinance as a neutral first reading when it appeared to embed an administration recommendation. He argued that the city manager should have explicitly stated whether the administration supported or opposed allowing movie-theater alcohol sales, rather than presenting it as a neutral policy option. City Manager Lysed clarified that the administration was offering the ordinance as an option the council could consider, not as an affirmative recommendation. Grab remained unconvinced, arguing that the ordinance's language and presentation suggested industry influence rather than balanced municipal analysis.

East Bluff SSA (Special Service Area) Controversy:

In new business, Councilman Regan Bach referenced a parallel governance tension: the