Peoria defers Westlake SSA amendment over $147,848 unpaid utility debt; approves short-term rental restrictions 7-3
PEORIA, ARIZONA — October 12, 2021

Peoria defers Westlake SSA amendment over $147,848 unpaid utility debt; approves short-term rental restrictions 7-3

Peoria City Council held a policy session on redistricting constraints from 1987 voting rights consent decree, approved controversial short-term rental restrictions (3% cap, 6-unrelated adults), received clean 2020 audit with $147M sewer liability, and presented strong 2022-2023 biennial budget with $10.8M surplus while deferring contentious Westlake SSA amendment addressing $147K unpaid utility debt.

Peoria Council Approves Short-Term Rental Caps, Defers Westlake Utility Debt Over Precedent Concerns

Peoria City Council on October 12 approved a short-term rental ordinance with controversial occupancy and density restrictions while deferring a special service area amendment for Westlake Shopping Center—citing concern that forgiving a three-year-old $147,848 utility debt would unfairly benefit developers over residents applying for city housing programs.

The 7-3 vote on short-term rentals marked the third substantial iteration of this policy in as many months, with Council Members Graham, Denise Jackson, and Jensen voting no and Zachary Oyler abstaining. The separate unanimous deferral motion, led by Oiler and Graham, sent the Westlake amendment to October 26, signaling that the 2010-established special service area would not expand financing without full payment of delinquent stormwater bills.

Key Speeches

On redistricting and voting rights:

"The consent decree has been amended twice. It was amended within a few months at the urging of the Peoria election commission to clarify how the cumulative voting would be taken, and then it was amended about five years ago when we were confronted by an event that was not covered by the consent decree." — Phil Lindzini, Kavanaugh Scully Sedo White & Frederick

"I think you should and perhaps the City Manager or City Attorney mentioned Josh earlier, but with credits, he does a fantastic job." — Phil Lindzini, on Josh Nevins' redistricting data work

On short-term rental enforcement:

"We have had some discussion about what that percentage should be and I think staff came up with that three percent figure. If you have a discrete neighborhood association envelope, is that correct?" — Councilmember Graham

"We pass an ordinance, we allow people to go out and purchase properties and begin this process and we are now finding them when we can't even figure out what we want in this ordinance ourselves. This has reached an absolutely unacceptable point." — Councilmember Euler

On Westlake precedent:

"The east village growth cell TIFF has a housing program that we make available to homeowners who want to make improvements. I checked with Director Doolin and he pulled out some of the guidelines and one of them reads: the property owner cannot owe any fine, fee, lien, or tax to the city of Peoria. So there is absolutely no way I am going to be able to support this for a developer while I'm not allowing that for the residents of my district." — Timothy Riggenbach

Timeline

Opposition

Short-term rental ordinance (3 nays + 1 abstention):

  1. Arbitrary and capricious percentage: Councilmember Graham stated no council member explicitly voted for 3% two weeks ago; the number appeared in staff recommendations only "a few days ago" without mapping impact.

  2. Insufficient neighborhood protection: Councilmember Jensen (26-year District 2 resident and neighborhood advocate) calculated that 3% cap on Moss Bradley (approximately 383 houses) permits 11–12 short-term rentals, and on Uplands permits up to 11 units in "only 11 or 12 blocks"—inconsistent with historical 3-unrelated-adult cap for long-term rentals.

  3. Inconsistent occupancy standards: Jensen noted city enforces 3-unrelated-adult limit for long-term rentals and all residential zoning but proposes 6 unrelated adults for short-term rentals, inverting the protection hierarchy.

  4. Lack of visual mapping: Graham and Jensen demanded map showing projected density across all districts before council vote; staff provided only generic neighborhood association boundaries without parcel-level projection.

  5. Enforcement incapacity: Graham emphasized code enforcement already stretched; no indication additional staffing allocated to inspect short-term rentals or respond to complaints.

  6. Speculative investment influx: Graham warned that undefined standards invite "commercial interests" to purchase properties in legacy neighborhoods (Moss Bradley, Uplands, Biltmore Heights); Jensen noted "four or five houses for sale right now" that could convert to short-term rental.

  7. Prior deferral agreement ignored: Timothy Riggenbach and Council Member Euler noted council agreed two weeks prior to defer for further discussion; Euler objected to repeating deferral cycle while residents already face enforcement ("fined for it").

Most compelling argument: Rigenbach's analogy to East Village housing-program guidelines—which bar applicants with unpaid city fees—directly challenged equity in conditional developer debt forgiveness. Graham's observation that the 3% figure appeared in staff recommendations only days before vote undercut claims of deliberate council adoption.

Westlake SSA amendment (unanimous deferral):

  1. Unequal treatment: Timothy Riggenbach cited East Village TIFF housing-program rule: "property owner cannot owe any fine, fee, lien, or tax to the City of Peoria"—yet amendment would let developer proceed with unpaid obligation.

  2. Three-year delinquency precedent: Timothy Riggenbach emphasized the debt dated to July 2018; deferring payment sets dangerous precedent for other SSAs and developers.

  3. Taxpayer subsidy: Timothy Riggenbach noted SSA levy shifts burden to property owners already paying the fee; developer avoids immediate payment.

  4. Prior tenant promise unfulfilled: Timothy Riggenbach recalled developer promised new tenant in similar situation but "simply cannibalized another shopping strip."

  5. Appeal process unclear: Timothy Riggenbach questioned whether developer would file appeal of stormwater utility bill; Corporation Counsel indicated appeal not yet filed but attorney Hall exploring basis for one.

Support

Short-term rental ordinance (7 yes, including Rigenbach's motion):

Westlake SSA amendment (initially had support before deferral):

Project Details

Short-Term Rental Ordinance (21-314):

Westlake Shopping Center SSA Amendment (21-313):

Vote Breakdown

Short-Term Rental Ordinance (21-314):

Westlake SSA Amendment (21-313) – Substitute Motion to Defer:

Other votes cited in meeting:

Outcome & Next Steps

Short-Term Rental Ordinance: Approved 7-3-1. City staff directed to explore airbnb/VRBO direct-payment collection mechanism and licensing verification requirements. Slower rollout with neighborhood input planned. No specific timeline for implementation stated, though Council indicated commitment to phased approach.

Westlake SSA Amendment: Deferred unanimously to October 26, 2021 regular council meeting. No amendment to special service area agreement will be voted on at that time without full resolution of the $147,848 stormwater utility debt, either through immediate developer payment or approved appeal process. Corporation Counsel to pursue appeal grounds with attorney Hall.

Redistricting Process: Committee of the whole formed to draw new council district maps incorporating 2020 Census reapportionment (District 1 +3,938 pop.; District 2 +1,555; District 3 +1,113; District 4 –1,329; District 5 –5,568). Target completion by end of Q1 2022 (by March 31). Public input period planned. Redistricting effort separated from substantive voting-rights consent decree review (which attorney Lindzini advised deferring 5+ years pending further study of 34-year electoral structure performance).

Financial/Budget:

Controversies & Context

Short-Term Rental Debate: The ordinance passed after nearly a year of council deliberation and two prior deferrals. Underlying tension: balancing neighborhood preservation against property-owner rights and investor interests. Council members Graham and Jensen, both from District 2 (home to historic Moss Bradley and Uplands neighborhoods), repeatedly warned of "commercial interests" targeting legacy residential areas for bulk short-term rental conversion. Graham's term "romanticized" suggested frustration with media framing favoring platforms like Airbnb.

Council had previously approved short-term rentals in concept but without non-transferability protections. Euler's sharp rebuke of critics ("this has reached an absolutely unacceptable point") reflected growing impatience with extended deliberation and enforcement actions undertaken before policy finalization—a procedural failure underscoring the council's own confusion about rules in effect.

Jensen's proposal for airbnb direct-payment collection and licensing verification responded to concerns about enforcement capacity and fee avoidance. Graham's demand for visual mapping reflected council's discomfort with staff's abstract 3% and 0.25-mile recommendations lacking empirical foundation.

Westlake SSA Amendment: Controversy centered on municipal equity: why permit a developer three years of unpaid stormwater utility fees while residential housing-program applicants face immediate payment requirements? Rigenbach's invocation of East Village TIFF housing guidelines posed a direct challenge. The fact that attorney Hall (the developer's representative) was invited to the lectern—a rare council procedural move—underscored both the amendment's complexity and concerns about setting adverse precedent.

Corporation Counsel's disclosure that the utility bill rose from $147K to $147,848 between mid-September and early October suggested ongoing liability accumulation. The appeal process mentioned (justification engineering analysis pending) remained speculative, leaving the council with no clear path to resolution short of deferral.

Redistricting and Voting Rights Consent Decree: Attorney Lindzini's presentation revealed the 1987 voting-rights case remains jurisdictionally alive under Judge Harold Baker (age 92, senior status) in federal court. The three core elements—5 single-member districts, 5 at-large seats, cumulative voting—are locked in by consent decree absent costly and unpredictable amendment process. Lindzini estimated $400,000–$500,000 cost for expert witnesses (mathematicians, political scientists) and fairness hearing.

Council member John Kelly noted cumulative voting's original purpose: arming minority voters with concentrated ballot power in at-large elections. Lindzini acknowledged the voting-rights case law but deflected credit: cumulative voting was "the preference of the plaintiff class," not staff invention. The irony—that 34 years of successful elections under the imposed structure might now become an obstacle to change—went underexplored.

Lindzini's suggestion to separate redistricting deliberation from Census reapportionment won broad council agreement, sidestepping pressure to rush substantive structural changes.

Fiscal Recovery and State Preemption: City Manager's summary of 2022-2023 budget highlighted strong revenue recovery post-pandemic: internet sales tax law change and state-shared revenues "coming in very strong." However, he cautioned against extrapolating federal stimulus-driven consumer spending, suggesting revenue assumptions remain conservative. The $10.8M surplus and planned $8M debt payback reflect disciplined financial management after 2020's pandemic contraction.

Duration

Other Notable Items

2020 Comprehensive Annual Financial Report: CFO Adam Pulley (Dr. Andre W. Allen) presented clean audit with unmodified opinion. Environmental remediation liability of $147M for combined sewer overflow recognized (triggering $149M negative net position change); $7.3M stormwater utility fund balance increase; one immaterial depreciation-carryover audit adjustment from 2019 software conversion (over-depreciation, not material but recommended for follow-up). City received GFOA award for 2019 statements.

2022-2023 Biennial Budget: $2.76B biennial budget incorporating strong fiscal recovery: general fund surplus projected at $10.8M (vs. $1.75M anticipated); $8M debt payback; 38 new positions; $34M higher capital budget; $10.2M ARP funding front-loaded for economic development, neighborhood stabilization, infrastructure, violence prevention, public health. Received and filed unanimously; detailed presentation October 19 special session; public hearing October 26.

Proclamations (3 issued):

  1. National White Cane Safety Day (Oct. 15): Recognized Central Illinois Center for the Blind and Visually Impaired (founded 1955). Paula Ballastrari (operations manager) invited public to white-cane demonstrations, guide-dog demonstrations, and "dinner in the dark" (vision-occluding glasses, November 4).

  2. Heart of Illinois United Way 100-Year Anniversary: Jennifer Zamudl (president) and Robert Brampus (board chair) acknowledged organization's $337M historical fundraising; $9.1M last year. Council Member Sid Rodrigo, who serves on United Way board, spoke to organization's role addressing education, health, and financial stability beyond city boundaries.

  3. 22 VA Suicide Awareness Day: Michael Reagan (founder, retired Navy) and Troy Phillips (photographer, retired Marine) recognized 22 veteran suicides per day and promoted art and horticultural therapy. Partnership with Peoria Public Library for 7th annual art show (Nov. 8–Jan. 5, 2022; reception Nov. 20).

Additional Meeting Notes: