Peoria approves $290,000 MacArthur Corridor pre-development agreement, advances state's first city-managed land bank

Peoria City Council Advances South-Side Revitalization, Establishes Land Bank Pilot, and Defers Peoria Cares Contract Pending Review

On April 27, 2021, the Peoria City Council approved landmark initiatives to address the south side's long-standing disinvestment, while simultaneously hitting pause on a proposed call-management outsourcing due to governance and competitive-bidding concerns. The evening saw unanimous approval of the MacArthur Corridor pre-development agreement and land bank ordinance—but not before council members pressed staff on contract transparency and municipal accountability.

Key Speeches

"We're approved the consolidated plan which included a lot of the information that we've discussed we accepted the IDG plan for how we were going to move forward and we also accepted this council accepted the NRN report with the south village revitalization program... Well the community gave us our walking papers with the IDG the community gave us our walking papers with NRN and the community gave us our walking papers with a consolidated plan... at this point we're actually going to do something with a plan we're actually going to start something." — Director Black, on implementation of years of planning

"I am very happy to see this come forward it was back in middle summer of 2012 when I was never even considering running for city council when I was on a city committee led by then council member chuck weaver when we were talking about land banks... here we are 2021 those who are listening to this us talk about this now this is a lesson about how slow government works sometimes but you have to keep putting in the work to get to where you want to be." — Councilwoman Denise Moore, on the land bank's nine-year genesis

"I support hiring a full-time person in house I'm questioning why we're contracting this out the main reason for that is that we're going to get more hours of coverage than if we had our own staff person if we hired our own staff person full time to do this work for the number of hours that we're going to cover over the course of an entire year we would need to hire two staff people to do that." — City Manager, defending outsourcing to AMT

"I'm not comfortable supporting a budget amendment until I guess I see the contract I'm I do think we should have a full-time person doing this but I would prefer to have it in house... I just would prefer having it come and being completely transparent with what we're considering for it to be in that format." — Councilwoman Jensen, on the Peoria Cares contract deferral

Timeline

MacArthur Corridor Pre-Development Agreement (Item 21-107)

• Applicant presentation: Director Black outlined the comprehensive planning effort dating to 2015 (NRN infrastructure study), followed by the IDG south-village revitalization program and MacArthur Corridor Comprehensive Plan adopted by council as part of the city's comprehensive plan. Black emphasized that $1 million had been reserved from the South Village Tax Increment Financing district in 2019 for implementation, but COVID-19 delayed action. PCCO, the executing partner, has built 175+ houses on the south side, including Spring Grove subdivision (41 units) and Okora One and Two (167 units). Executive Director McFarland Bragg was present.

• Staff recommendation: Director Black moved to approve the $290,000 pre-development agreement, noting that pre-development work—site selection, environmental assessments, infrastructure analysis—must occur before actual construction. He stressed this is implementation of adopted plans, not a new planning exercise.

• Council discussion: Dr. Rita Ali commended Councilwoman Moore and praised PCCO as "very capable" and a "strong organization that's been around for many years... over 50 years." Timothy Riggenbach concurred without additional comment.

• Vote: Motion to approve made by Councilwoman Moore, seconded by Councilman Riggenbach. Initial vote: 10-0-1 (Moore abstained). Councilwoman Moore later requested reconsideration, noting she sits on PCCO's board and should not have voted. Council voted to reconsider unanimously; Dr. Rita Ali then moved approval, seconded by Councilwoman Jensen. Final vote: 10-0-1 (Moore abstained).

City Land Bank Ordinance (Item 21-110)

• Applicant presentation: Assistant Director Joe Doolin and Director Black presented the ordinance to establish Illinois' first city-managed land bank, funded by $300,000 in state grants from the Illinois Housing Development Authority (IHDA) and Illinois Attorney General's office. The pilot program will run approximately 18 months. Land banks have succeeded in Michigan and Ohio by acquiring and remediating vacant, abandoned, and blighted properties in weak real estate markets. IHDA and the Attorney General proactively approached Peoria based on the community development department's reputation for innovation. The ordinance was modeled on Cook County and Winnebago County land banks but tailored for Peoria. Key transaction thresholds: city manager discretion under $15,000; board approval for $15,000–$50,000; full council approval over $50,000.

• Staff recommendation: First reading only; full vote deferred two weeks to allow public input meeting. Director Black noted that Peoria had previously employed land managers (Susan Schumacher on part-time basis, later Eric Setter) but lost those positions in 2018, slowing momentum. The Taber property represents a successful informal land-banking effort; the city expects state grants to support its transformation this year.

• Public input meeting: Assistant Director Doolin committed to organizing a public meeting before the second reading to introduce the land bank and allow community comment.

• Council discussion:

  • Councilwoman Moore: Recalled that the land bank was discussed as early as 2012 under then-Councilman Chuck Weaver. She read from a 2012 council communication noting that land management was distributed across departments with no primary steward and lacked strategic planning. She expressed hope that council approval would allow earnest assembly of properties, particularly on the south side, after years of unofficial land banking.

  • Denis Cyr: Noted he reviewed IHDA's Q&A (47 questions) and plans to call Doolin for detailed discussion but does not want to bore colleagues with all questions tonight.

  • Timothy Riggenbach: Thanked Director Black and Doolin, and paid tribute to former Councilman Chuck Weaver for championing the concept. He praised the community development department's strength and reputation, which led IHDA and the Attorney General to approach the city. He asked Doolin to explain the transaction-amount thresholds.

  • Doolin's response: Confirmed the $15,000 threshold aligns with the city manager's current authority for side-lot transfers and abandoned-property declarations. The $15,000–$50,000 band represents the typical cost of acquiring and quickly remediating a single-family house before demolition becomes necessary, allowing board approval for swift transfer to the private sector. Transactions over $50,000 warrant full council review.

  • Dr. Rita Ali: Emphasized the importance of community engagement and input into the ordinance structure itself. He noted that most community feedback focuses on community involvement in the process.

  • Doolin's response: Acknowledged that direct public input specifically to the ordinance since 2018 has been limited, but noted that 99% of code-enforcement and neighborhood staff work involves gathering feedback on vacant, abandoned, and blighted properties. Public input will be most critical after the land manager is hired and the board established, so they can hear directly from citizens about strategy and process adjustments. He committed to organizing a public meeting before the second reading.

  • Councilwoman Jensen: Expressed excitement and thanked staff for making this a first reading rather than requiring a vote tonight. She advocated for ensuring that neighborhood representatives on the land bank board be actual residents (not just organizational representatives), and suggested considering two representatives from different neighborhoods (south side and near north side) given differential impact.

  • John Kelly: Thanked the manager for changing the agenda to a first reading. He noted that while the ordinance's structure is sound and intentions "unassailable," he wants to use the two-week period to verify that the land bank will accomplish things the city cannot already do today simply through better funding of existing programs. He noted previous well-intentioned programs that created bureaucracy without solving problems.

  • Timothy Riggenbach (second comment): Expressed support and noted that residents have asked for land banking for years. He emphasized that the current approach treats each property individually, whereas a land bank allows strategic focus. He asked Doolin about transaction-amount thresholds.

• Vote: Motion to receive and file (first reading only) made by Councilwoman Jensen, seconded by Councilman Oyler. Final vote: unanimous.

Peoria Cares Call-Management Contract (Item 21-106)

• Applicant presentation: City Manager and Assistant City Manager Deborah Rattler outlined a proposal to outsource the city's Peoria Cares 311 call center to AMT, which already operates a 2-1-1 system for non-profit and social-service inquiries across the community. The contract would expand Peoria Cares coverage from current hours to 8 a.m.–6 p.m. Monday–Friday and 9 a.m.–1 p.m. Saturday, at $25/hour. Total cost: just under $75,000. A city administration staff member is leaving mid-May, necessitating a solution. The manager noted that hiring two full-time city employees to match this coverage level would cost more than the AMT contract.

• Staff recommendation: Approve $75,000 budget amendment (Ordinance 21-106) to fund the AMT contract.

• Council discussion:

  • Councilman Graham: Praised Peoria Cares as essential for residents to report potholes, street lights, and other city-service issues. He noted that the system generates monthly reports allowing council and staff to identify weaknesses and priorities—data he reviews carefully. He expressed concern that calling the program "disruptive to staff" was inappropriate terminology; it is a "disturbance" only because of understaffing, but the program itself is "absolutely essential." He stated he is "ecstatic" with the negotiated contract and supports expansion of coverage, including Saturday hours.

  • Timothy Riggenbach: Praised staff for "thinking outside the box" and expanding hours while maintaining dedicated service. He moved for approval.

  • Councilwoman Jensen: Stated she is "very supportive of expanding and improving the peoria cares program" but has concerns: (1) She prefers hiring a full-time person in-house; (2) She questions why the city is contracting out rather than hiring staff. The manager explained that two full-time city employees would be needed to match the coverage hours offered by AMT at one contract cost. Jensen responded: "I'm not comfortable supporting a budget amendment until I guess I see the contract." She expressed preference for in-house staffing and transparency, stating she could not support the item as presented.

  • Councilman Montalango: Agreed with Jensen's points. He asked whether the city looked at other bidders and why the contract was not put out to competitive bid. The manager responded: "We felt that this was the best and most expeditious manner for us to move this forward" and that AMT's expertise with 2-1-1 was a factor. Montalango noted AMT is the city's "biggest contract... for ambulance services" and stated he would not support the item without competitive bidding.

  • Dr. Rita Ali: Asked the contract length. Assistant City Manager Rattler stated there is no written contract yet—only a rate agreement, hours agreement, and process-development agreement. She expected a standard 30-day exit clause with no fixed term. Dr. Rita Ali moved to defer for two weeks pending a draft contract.

• Vote: Motion to defer made by Dr. Rita Ali, seconded by Councilwoman Jensen. Final vote: unanimous. The manager agreed to return the item in two weeks with a written contract. Councilman Graham requested additional information on: (1) instructions to constituents on the new call number if approved; (2) training for AMT staff so they understand Peoria's geography and service priorities.

Opposition

Peoria Cares Contract: No formal organized opposition, but three council members expressed reservations.

Number of speakers against: 0 in public comment; 3 council members raised concerns.

Main concerns:

1. Lack of competitive bidding—no evidence that other vendors were solicited.
2. Absence of written contract—only verbal rate and hours agreements; full council approval premature without contract terms visible.
3. Preference for in-house staffing to maintain municipal control.
4. Potential need for training to ensure AMT staff understand Peoria geography and service-call prioritization.
5. Cost-benefit analysis incomplete—no detailed comparison of two full-time city employees vs. AMT outsourcing.
6. Lack of contract term and exit clauses—concern about open-ended arrangement.
7. Precedent—unclear whether the city routinely enters contracts without written agreements.

Most compelling arguments:

• Councilman Montalango's point that AMT is already the city's largest vendor (ambulance services), raising potential over-concentration of service delivery with a single contractor.
• Councilwoman Jensen's assertion that transparency and competitive process are essential before committing $75,000 in public funds.

Support

Number of speakers in favor: 2 council members (Graham and Timothy Riggenbach) explicitly supported before deferral.

Main arguments:

1. Peoria Cares is essential for the public to report infrastructure issues, and call data informs council decisions on priorities.
2. Expanded coverage (weekends, extended hours) benefits residents without requiring two full-time city hires.
3. AMT's 2-1-1 expertise and existing relationship with the city reduce implementation risk.
4. Cost efficiency: $25/hour AMT rate is significantly cheaper than hiring two FTEs.

Project Details

MacArthur Corridor Pre-Development Agreement

• Case number: 21-107
• Applicant / developer: PCCO (Peoria Citizens Committee for Economic Opportunity, Inc.)
• Executive director: McFarland Bragg
• Location: South side, generally consistent with MacArthur Corridor Comprehensive Plan (adopted as amendment to city comprehensive plan).
• Agreement amount: $290,000 (first phase pre-development)
• Purpose: Engineering, environmental, site-selection, and permitting work to accelerate subsequent development and construction.
• Funding source: South Village Tax Increment Financing district (portion of $1 million reserved in 2019).
• Developer track record: PCCO has built 175+ houses on the south side, including Spring Grove subdivision (41 units) and Okora One and Two (167 units). Most recent project: Barons property.

City Land Bank Ordinance

• Case number: 21-110
• Type: First reading only; second reading scheduled two weeks after public input meeting.
• Funding: $300,000 state grant (Illinois Housing Development Authority + Illinois Attorney General's office); 18-month pilot program.
• Scope: Acquire, hold, and remediate vacant, abandoned, and blighted properties, primarily on the south side and near north side.
• Land bank board structure: City manager (chair), city treasurer, county treasurer (designee), community development director, and a resident representative from neighborhood interests.
• Transaction thresholds:
  • Under $15,000: city manager discretion.
  • $15,000–$50,000: board approval.
  • Over $50,000: full city council approval.
• Staffing: Ordinance contemplates hiring a full-time land manager (position previously held by Susan Schumacher on part-time basis, later Eric Setter, both positions lost in 2018).
• Public engagement: Assistant Director Doolin committed to a public meeting before second reading to educate stakeholders and gather input.

Peoria Cares Call-Management Contract (Deferred)

• Case number: 21-106
• Proposed vendor: AMT (provider of 2-1-1 system for non-profit and social-service referrals).
• Budget amendment sought: $75,000 (fiscal year 2021 general fund).
• Proposed service hours: 8 a.m.–6 p.m. Monday–Friday; 9 a.m.–1 p.m. Saturday.
• Rate: $25/hour.
• Trigger: City administration staff member departing mid-May 2021; current in-house capacity insufficient.
• Comparison: City manager estimated that two full-time city employees would be required to match coverage hours offered by AMT contract.
• Contract status: No written contract at time of meeting; rate agreement, hours agreement, and process-development agreement in place. Assistant City Manager Rattler noted anticipated 30-day exit clause for either party.
• Deferral period: Two weeks; manager to return with written contract, details on public instructions (new call number), and staff training plan.

Vote Breakdown

MacArthur Corridor Pre-Development Agreement (21-107)

• Initial vote: 10-0-1

  • Yes (10): Dr. Rita Ali, Denis Cyr, Councilman Graham, Councilwoman Jensen, John Kelly, Councilman Montalango, Timothy Riggenbach, Zachary Oyler, Councilman Rockwell (implied)
  • Abstain (1): Councilwoman Moore (noted conflict—sits on PCCO board)
  • No: None

• Reconsideration and second vote: Motion to reconsider made by Councilwoman Moore, seconded by Zachary Oyler; passed unanimously. New motion to approve made by Dr. Rita Ali, seconded by Councilwoman Jensen.

• Final vote: 10-0-1

  • Yes (10): Dr. Rita Ali, Denis Cyr, Councilman Graham, Councilwoman Jensen, John Kelly, Councilman Montalango, Timothy Riggenbach, Zachary Oyler, Councilman Rockwell (implied)
  • Abstain (1): Councilwoman Moore

City Land Bank Ordinance, First Reading (21-110)

• Final: Unanimous (received and filed)
• Yes: All council members present
• No: None
• Abstentions: None

Peoria Cares Contract Budget Amendment (21-106)

• Motion: Defer two weeks
• Vote: Unanimous deferral
• Individual votes on deferral: Not separately itemized; motion made by Dr. Rita Ali, seconded by Councilwoman Jensen.

Outcome & Next Steps

MacArthur Corridor

The pre-development agreement with PCCO is approved. Director Black and PCCO Executive Director McFarland Bragg will begin pre-development work immediately, including site engineering, environmental assessment, infrastructure planning, and permitting. Actual construction and development will follow. The $290,000 is drawn from the South Village TIF district reserves established in 2019.

City Land Bank

First reading approved unanimously. Assistant Director Doolin will organize a public input meeting within the next two weeks. At the second reading (two weeks from April 27, i.e., approximately May 11, 2021), council will vote on final approval. If approved, the city will begin hiring a full-time land manager and establishing the land bank board. The $300,000 state grant will fund operations.

Peoria Cares

The $75,000 budget amendment is deferred indefinitely pending:

1. Submission of a written contract from AMT specifying term, exit clauses, service levels, and performance standards.
2. City manager and assistant city manager to explore competitive-bidding options or provide justification for sole-source procurement.
3. Instructions to constituents on how to reach the new call center and what number to use.
4. Training plan for AMT staff on Peoria geography, street-naming conventions, and call-prioritization procedures.
5. Determination whether in-house hiring of a full-time employee remains feasible.

The item will return in two weeks.

Controversies & Context

Peoria Cares Outsourcing Debate

The deferral of the Peoria Cares contract reflects significant tension between fiscal efficiency and municipal governance. The city manager and supporting council members (Graham, Timothy Riggenbach) emphasized that outsourcing to AMT costs less than hiring two full-time city employees while providing extended hours and dedicated expertise. However, three council members (Jensen, Montalango, Dr. Rita Ali) raised procedural and strategic objections:

1. Competitive bidding: No evidence that the city sought competing bids. Montalango explicitly asked whether other vendors were evaluated; the manager's response—that AMT's 2-1-1 expertise and speed were factors—did not address whether a competitive process occurred.

2. Vendor concentration: Montalango noted AMT is already the city's "biggest contract" for ambulance services, raising concerns about over-reliance on a single vendor.

3. Contract transparency: Jensen insisted that approving a budget amendment without a written contract is premature and inconsistent with good governance. She requested—and the manager agreed to provide—a full written contract for council review.

4. In-house preference: Both Jensen and Dr. Rita Ali expressed preference for in-house staffing to maintain municipal control and accountability, even at higher cost.

5. Training and integration: Councilman Graham flagged concern that AMT staff must understand Peoria's street network and call-prioritization protocols, citing a bad experience with an outsourced water company that was unable to locate local streets.

This reflects a broader governance philosophy on the council: concern that outsourcing administrative functions, even at cost savings, can erode municipal capacity and accountability over time.

Land Bank: From Planning to Action

The land bank ordinance represents a historic shift from planning to implementation. Councilwoman Moore and others noted that since 2015, Peoria has commissioned multiple planning studies (NRN infrastructure study, IDG south-village revitalization, MacArthur Corridor Comprehensive Plan, consolidated plan) without executing major development. Moore said the community "gave us our walking papers" with each study, expecting action rather than more consulting. She emphasized that years of planning have left residents fatigued by surveys and focus groups.

Director Black echoed this, noting: "every time we get a plan we have a consultant come in we don't do anything we make we do these things and we sit them on the shelf hundreds of thousands of dollars are spent on all of these plans."

The land bank represents an effort to break this cycle by providing a dedicated mechanism and staffing to acquire, hold, and strategically remediate properties. The fact that IHDA and the Illinois Attorney General proactively approached Peoria (recognizing the community development department's track record) lends credibility to the initiative.

John Kelly caveat—that the ordinance alone will not solve problems; the work and follow-through matter most—reflects healthy skepticism about whether bureaucratic structures alone drive change.

Utility Shutoff Moratorium Request

During public comment, resident Lawrence Michard requested that council place a resolution on the next agenda urging the governor to reinstate the utility disconnection moratorium that expired during COVID-19. Michard noted:

• The governor's recent executive order covers only $1,000 for 80,000 households, while the Attorney General estimates 800,000 Illinois households at risk of shutoff.
• Bloomington City Council passed an identical resolution unanimously.
• Peoria remains a COVID-19 hotspot (2,556 cases, seven-day average over 2,000 for a month).
• Utility shutoffs force households to double and triple up, exacerbating pandemic transmission.

Timothy Riggenbach indicated he would bring the resolution forward. The mayor and council agreed to place it on the next agenda with proper public notice (required by the Open Meetings Act).

This item does not require a vote or approval at this meeting; it is a procedural notice for future action.

Duration

• MacArthur Corridor (21-107): Approximately 15 minutes (presentation, council discussion, reconsideration, revote).
• Land Bank ordinance (21-110): Approximately 30 minutes (two presentations, extensive council discussion, questions from multiple council members).
• Peoria Cares contract (21-106): Approximately 20 minutes (presentation, manager discussion with Rattler, five council members questioning, deferral motion).
• Total meeting: Approximately 2 hours 30 minutes (including proclamations, roll call, minutes approval, multiple other items, and public comment).

Other Notable Items

TIF Inducement Resolution—War Memorial/University District (21-108): Unanimously approved. This resolution allows a potential developer to proceed with site work at their own risk while the city council evaluates a proposed tax increment financing district for the southeast corner of University and War Memorial Drive. The TIF study is still in development; a full TIF proposal is expected in late May or early June. The resolution does not obligate the city to approve the TIF or enter into a redevelopment agreement. John Kelly raised a concern about putting the cart before the horse, questioning whether developers should risk moving "a lot of dirt" before the TIF is approved, but Director Black noted that the inducement resolution allows the city to be reimbursed for consultant costs if the TIF is eventually approved.

Central Retail District Resolution (21-109): Unanimously approved. A naming resolution establishing "Central Retail District" as the designation for the retail corridor comprising Westlake Shopping Center, Northwoods Mall, and Glenhollow Shopping Center. Brought by Councilman Montalango following discussions with business owners in the area.

Raffle and Poker Run Licensing Ordinance (21-098): Unanimously approved (second reading). The ordinance establishes municipal licensing for raffles and poker runs by bona fide non-profit organizations (religious, charitable, veterans, educational) with minimum five-year existence requirement. License fees are minimal: no fee for raffles under $10,000 in gross annual sales; $20 for raffles over $10,000; $20 per poker-run event. Corporation Counsel Torrin emphasized that the ordinance ensures compliance with state law and provides the city with regulatory control. Denis Cyr asked about current raffles (Bradley, St. Jude, Easter Seals); Torrin clarified these are currently licensed by the county, not the city, though the new ordinance now allows the city to offer local benevolent organizations an alternative. John Kelly praised the reasonable fee schedule compared to the county's. Dr. Rita Ali requested language ensuring non-discrimination in licensure determinations alongside the "good moral character" requirement; Torrin agreed to review.

Williamsburg Oaks Access Restriction Removal (21-075): Unanimously approved. A resolution to remove access restrictions to Jamestown Road for Williamsburg Oaks townhouses (multi-family residential development at 3310-3408 West King James Road and 6502-6510 North Queen Francis Lane). Councilman Montalango moved approval; Denis Cyr seconded. The item had been discussed in a prior public meeting via Zoom with minimal community questions.

Sign/Menu Board Ordinance Amendment, First Reading (21-104): Unanimously received and filed. A minor ordinance increasing allowable menu-board face size from 30 to 40 square feet and height from 5 to 6 feet. Director Black explained the change responds to requests from drive-through restaurant owners, noting that modern drive-throughs have more menu items, images, and information than when regulations were adopted 20 years ago, and that vehicles (SUVs, minivans) are taller, making it difficult for drivers to view current boards.

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Arbor Day Proclamation: Mayor Jim Artist proclaimed April 30, 2021, as Arbor Day in Peoria. Public Works Director Rick Powers and Assistant Director Simer Roon presented. The city will plant a Royal Raindrop Crab Apple tree (flowering crab) at Constitution Gardens on Friday, April 30, at 10 a.m., in partnership with the South-West Kiwanis Club (annual donors) and the Park District. Concurrent with Arbor Day, Public Works will hold a free mulch giveaway on Saturday (April 24) from 8 a.m. to 1 p.m., with hand-loading service available.

Declaration of Local State of Emergency (21-105): Approved 10-1 (Councilman Montalango opposed). The measure continued COVID-19 emergency protocols.