Peoria approves $27.6M warehouse district, defers riverboat sale pending feasibility study
PEORIA, ARIZONA — March 8, 2022

Peoria approves $27.6M warehouse district, defers riverboat sale pending feasibility study

Council approved major 93-unit warehouse district development with TIF incentives, renewed Springdale Cemetery governance agreement, and deferred Spirit of Peoria riverboat sale decision pending feasibility study for local ownership retention.

Peoria Council Embraces Historic Warehouse Redevelopment and Cemetery Partnership While Narrowly Deferring Riverboat Sale Decision

On the evening of March 8, 2022, the Peoria City Council advanced three defining infrastructure agreements: a $27.6 million warehouse-district residential-and-retail project, a 10-year governance renewal for the 70,000-burial Springdale Cemetery, and a two-week deferral on the Spirit of Peoria riverboat sale—a decision that exposed a fundamental fault line in council philosophy regarding heritage preservation versus fiduciary restraint.

The meeting, attended by Mayor Dr. Rita Ali and nine council members, produced unanimous approval for the two major real-estate transactions but revealed sharp disagreement over whether the city should exercise its contractual right of first refusal on the historic riverboat before Yacht Starship (Tampa, Florida) closes a $1 million purchase on April 30, 2022.

800 Adams LLC Redevelopment Agreement: The Warehouse District's Largest Project

City Manager Eric Erickson introduced Economic Development Manager Cesar Suarez to present the 800 Adams LLC redevelopment agreement, which will transform two neglected historic buildings—the Federal Warehouse (six stories) and the Mitchell Fabrics building (one story)—into a mixed-use complex at the corner of Adams and Oak streets.

Project scope:

Key Speeches

"Most of you'll see that if you go there today you'll see development taking place there and that's because when you deal with commercial development most of the financing comes when you get about 50 or so the project done." — Cesar Suarez, Senior Economic Development Manager

Suarez emphasized the project's catalytic effect on the warehouse district and outlined the special terms and conditions that will govern its execution. Developer-requested provisions included:

  1. On-street parking permit program (OP3): The council committed to establishing an ordinance allowing residents and commercial tenants to request designated parking zones; commercial zones would require separate city staff approval and council consideration.
  2. Loading zones and patio frontage: The city committed to a process (not a guarantee) for the developer to request dedicated loading spaces and outdoor patio or parklet areas, subject to public works approval.
  3. Historic preservation: The city will not fund portions of the project affecting historically significant buildings.
  4. Design flexibility: The city manager received authority to approve budget and design changes up to 10 percent without council reapproval.

Financing and Incentives

The project benefits from a tax-increment financing (TIF) package that splits the generated increment between developer and city:

Suarez stressed that retail sales tax generated by the project—difficult to quantify but substantial—will accrue directly to the city and contribute to the district's economic revitalization. The project was approved unanimously with no council discussion or questions.

Springdale Cemetery Intergovernmental Agreement: Preserving 170 Years of History

The council renewed and expanded the 2002 intergovernmental agreement governing Springdale Cemetery, a 227-acre burial ground and public park founded in 1854 and home to 70,000+ interments, including Peoria's first mayor (William Hale), generals from the Black Hawk War, steamboat captain Henry Detweiler, and Bradley University founder Lydia Moss Bradley.

City Manager Erickson delivered a comprehensive historical narrative, beginning with the cemetery's troubled recent past. Between the 1990s and 2002, private operators drained the perpetual care fund to fewer than $40,000, failed to maintain the grounds (leaving gullies impassable by car), allowed marker damage, and lost burial records. In 1999, the Illinois Comptroller revoked the operator's license and placed the cemetery in receivership under Judge Richard Eagleton. The Springdale Cemetery Historic Preservation Foundation intervened, working with the city, Peoria County, and the Peoria Park District to craft the original 2002 20-year agreement.

New Terms (Effective March 10, 2022)

The renewed agreement is a 10-year term with an option to extend another 10 years, rather than the original 20-year term. Key changes:

Ownership and Governance:

The Savannah Preservation—Environmental Crowning Achievement: A 14-acre tall-grass oak savannah (with trees dating 300+ years) will be subdivided and conveyed to the Peoria Park District for $1.00, placing it into permanent environmental stewardship. This resolves a decade-long concern among environmental advocates about preserving one of Illinois's few remaining examples of pre-settlement prairie and oak woodland.

Financial Obligations:

PartyAnnual ContributionEscalation
Peoria Park District$40,000 cashFixed; in-kind maintenance of savannah (substantial)
Peoria County$102,000 (Year 1)Increases $2,000/year to $120,000 by Year 10
City of PeoriaRemainderUnlimited (after county/district contributions)

Since 2002, the city has contributed approximately $230,000–$275,000 annually (operational plus capital), totaling roughly $6.5 million over 20 years—a sobering reminder of the stakes. The new county increase (from $80K to $102K) represents an acknowledgment of shared responsibility.

Termination: Any party may exit by providing one year's written notice and paying $150,000 plus accrued obligations (this does not apply to the city, which owns the cemetery).

Council Remarks

"I want to recognize also Mr. Matuzak and thank him for his leadership that he provides on a day-to-day basis to springdale." — Councilmember Timothy Riggenbach

"This again exemplifies that [organizations] are not working in silos… without this partnership the city owns it, the city picks up the full responsibility." — Councilmember Zachary Oyler

Councilmember John Kelly praised the park district's financial acknowledgment of their savannah maintenance costs, noting that in-kind contributions are "not cheap." Timothy Riggenbach credited former councils for taking a bus tour of the cemetery 20 years prior to understand the need, and praised the "partnership" demonstrated by the county (County Administrator Sorrell and board members Jimmy Dillon and Kate Pachucka) and park district (Emily Cahill).

Councilmember Denis Cyr, with dry humor, asked whether IDOT—which owns some roads within the cemetery—should be party to the agreement. City Manager Erickson deferred, noting the city owns the entire cemetery and that state grants for road repair have been sought but remain pending.

The agreement passed unanimously.

Spirit of Peoria Riverboat Sale: A Council Divided on Heritage vs. Fiduciary Duty

The most contentious item of the evening centered on 22-085, a recommendation from the city manager and Corporation Counsel Kopuska to waive the city's 90-day right of first refusal on the Spirit of Peoria riverboat, currently under a $1 million purchase offer from Yacht Starship (Tampa).

Background and Timing

The city entered into a Riverboat Landing Agreement with GG Packet Company (operator Captain Alex Grieves) in 1996. One provision grants the city a 90-day right of first refusal should either the Katie Hooper or Spirit of Peoria be offered for sale. In 2004, the city waived its right on the Katie Hooper without objection.

On February 1, 2022, Captain Grieves informed the council, mayor, and city manager of a $1 million purchase offer from Yacht Starship. The purchase agreement waived both appraisal and sea trial. The 90-day evaluation window expires April 30, 2022—exactly when the entire 1996 Riverboat Landing Agreement itself expires, meaning the city's contractual right of first refusal terminates.

Corporation Counsel Kopuska's Presentation

"Under your right of first refusal your rights are the same as what is entertained in the purchase agreement. This purchase agreement does not anticipate an appraisal of the vessel and furthermore it waives the right to a sea trial." — Corporation Counsel Kopuska

On February 8, the city requested "reasonable financial and business information" about the proposed purchaser (Yacht Starship), as stipulated in the 1996 agreement. Kopuska's team:

Kopuska recommended waiving the right of first refusal because, without financials on the buyer, the city could not determine if the offer was bona fide. The staff position was that investor financials were irrelevant to the city's decision; what mattered was the boat's value.

The Council Debate

The discussion revealed a fundamental philosophical division.

Councilmember John Kelly's Position: Demand the Business's Operating Data

"The staff has asked that we waive our right or first refusal because we can't get financials from the buyer. I believe that provision was put into the original agreement because it was assumed that the boat would stay in peoria and that we needed to know the financial status of the buyer with whom we would therefore become entangled but this is not the case with the current arrangement. Mr. Grieves needs that info not us. What we need to know is whether the purchase price of a million dollars is realistic." — Councilmember John Kelly's strategy pivoted the conversation from investor solvency to asset valuation. He argued that GG Packet Company had provided 10 years of tax returns to the city (which Kopuska later confirmed), proving the boat was a going concern. John Kelly urged the council to:

  1. Request an appraisal of the Spirit of Peoria's asset value.
  2. If the appraisal supported a $1 million valuation, solicit local investors.
  3. If local investors came forward willing to purchase from the city, the boat stays in Peoria with zero cost to taxpayers.
  4. If no local interest materialized within the timeframe, waive the right of first refusal without guilt.

"If we're satisfied with the numbers then we need to have an appraisal. If that turns out well then we can solicit folks in the community to buy the boat from the city. If some come forward we can forward them the numbers and data we've come up with. If all that works out the spirit stays in peoria and the taxpayers of peoria are out no money if not we go ahead and let it go." — Councilmember John Kelly

Councilmember Zachary Oyler's Emotional Appeal: Preserve Cultural Heritage

"I think this has been an entirely disappointing experience from the onset. It seems as though the city has been more concerned about getting completely irrelevant information than actually finding solutions to this problem. The number one thing that we continue to go in circles about and hear about is the operation finances of a company who's who's put an offer in to buy essentially a piece of real estate and that has zero bearing on the decision that we have to make… It is part of our history our heritage it's been on the riverfront for decades it sets the landscape for this community and we are having the absolute wrong conversation." — Zachary Oyler rejected the notion that the boat's profitability mattered. He criticized the council for obsessing over investor financials—information irrelevant to a heritage decision. He compared the Spirit to other civic investments: "Why would we want to spend millions of dollars on the riverfront to plant more grass that isn't going to give us a return on our investment either?" Zachary Oyler argued that community partners (restaurants, businesses, cultural venues) drive foot traffic and revenue regardless of financial ROI. He urged the council to identify "solutions" to keep the boat operating locally rather than default to waiving rights.

Timothy RiggenbachDriven Perspective

"I'm a guy who's bought a lot of businesses and when i go in to find out i've got a detailed list of exactly what i need that the owner of the business during that due diligence period is sending me... so i'm not wasting the time of the other business owner as well. What i'm here to ask is what i'm not hearing my what i heard our counsel asked for from the broker and from the buyer or the current owner was the things that we asked for and i don't know that anything that we asked for was not asked in those communications." — Timothy Riggenbach, a seasoned investor, pressed for clarity on what documents the city actually needed from Grieves. He distinguished between a business valuation (profit-and-loss statements, capital expenditures, EBITDA) and an asset appraisal (the boat itself). He cautioned that the council had spent four weeks discussing the issue without specifying what information to request, putting Grieves in "unknown territory." Timothy Riggenbach supported a deferral—but only if the council first identified exactly which documents it would seek.

Dr. Kiran Velpula Fiscal Caution

"Let's say if i if we were to make an appraisal if we were to recommend an appraisal do we still have time let's say we are deferring for two weeks but do we still have an appraisal or to solicit somebody to do the appraisal before the april 30th that's my first question. The second question is what would be the costs associated with the appraisal." — Councilmember Dr. Kiran Velpula

Dr. Kiran Velpula voiced skepticism about the two-week timeline. An appraisal alone costs money; soliciting local investors requires a competitive bidding process; and the contract documents were executed in 12 minutes, suggesting Grieves might not be motivated to delay. She warned the council not to overestimate the feasibility of brokering a local sale before April 30.

Councilmember Graham's Fallback Strategy

"I don't know if we have that on tape but it was excellent so i in that regard i would support a deferral but i think we should have a fallback plan if something goes wrong with this to really get the word out more so than just through our local media… let others that could be interested in knowing that the people of peoria love our river and we love the boat and we'd like to see that continue." — Councilmember Graham, while sympathetic to Oyler's emotional plea, pragmatically endorsed a deferral conditional on a backup plan: if local investors did not materialize, the city should formally (via professional media and trade publications) notify regional and national riverboat operators of Peoria's interest in hosting a riverboat, not just rely on the Peoria Journal Star.

Councilmember Rodrigo's Procedural Concern

Councilmember Rodrigo questioned whether the city had a responsibility—or authority—to "broker" the business at all. He noted that while the boat is part of Peoria's identity, the council's role is not to become a real-estate broker or business owner. He acknowledged the emotional weight of preserving the Spirit but suggested the council needed clarity on whether that was a municipal obligation or an aspirational goal.

The Deferral Vote

After nearly 45 minutes of debate, John Kelly moved to defer the item for two weeks to:

  1. Determine what specific information the city would request from GG Packet Company.
  2. Evaluate feasibility of an appraisal and local-investor solicitation before April 30.
  3. Clarify the city's legal and fiduciary obligations.

The deferral motion passed unanimously.

No formal list of information requests was finalized during the meeting, though Councilmember Rodrigo suggested the city manager call Captain Grieves during a recess to determine his willingness to provide documents. City Manager Erickson deferred that call, noting the deferral itself gave the council two weeks to prepare a written request.

Project Details

800 Adams LLC Redevelopment

Springdale Cemetery Intergovernmental Agreement

Spirit of Peoria Riverboat

Vote Breakdown

800 Adams LLC Redevelopment (Item 22-087)

Springdale Cemetery Agreement (Item 22-086)

Spirit of Peoria (Item 22-085, Deferral)

Outcome & Next Steps

800 Adams LLC Redevelopment

Springdale Cemetery

Spirit of Peoria

Controversies & Context

Spirit of Peoria: The Heritage vs. Fiduciary Question

The riverboat debate encapsulates a tension that has periodically surfaced in Peoria's municipal governance: Should the city prioritize cultural and historical preservation even if no direct financial return is guaranteed?

The sale timeline—compressed by the April 30 agreement expiration—created artificial urgency. Corporation Counsel Kopuska's recommendation to waive the right of first refusal was rooted in a literal reading of the 1996 contract: the city's right to purchase is "no greater than" the buyer's right. Since the buyer (Yacht Starship) waived appraisal and sea trial, the city technically could not demand them either. However, John Kelly reinterpreted the contract's "reasonable financial and business information" clause to mean the city could request—not the buyer's solvency, but the boat operator's historical performance data.

Zachary Oyler emotional appeal—that the Spirit is priceless as an identity asset and that civic infrastructure projects (parks, riverfront amenities) are routinely funded without strict ROI analysis—resonated with a majority of the council. However, the lack of a clear operational plan for local ownership, combined with Velpula's fiscal skepticism and Rodrigo's governance concerns, prevented the council from committing to a purchase.

Key tension: Is the Spirit of Peoria a business asset (requiring financial analysis) or a cultural asset (requiring preservation on principle)? The council has deferred that question for two weeks.

Springdale Cemetery: Success in Intergovernmental Collaboration

By contrast, the Springdale renewal exemplified the collaborative model. No controversy emerged. The agreement showed how local governments can share risk and responsibility for historically significant assets. The county's willingness to increase its contribution by $22,000 annually, and the park district's acceptance of savannah stewardship, suggests each party recognized mutual benefit in preserving a 170-year-old site.

However, Councilmember Cyr's question about IDOT's road maintenance obligations hinted at a potential future issue: state highway authority roads within the cemetery remain neglected, and the city's capital budget cannot absorb all repairs.

800 Adams LLC: Developer Incentives and Warehouse District Revitalization

The project faced no opposition. However, John Kelly earlier concern about the Madison 2 apartments' cost-per-unit ($245,000) suggests latent scrutiny of TIF incentive structures. No such critique was voiced regarding 800 Adams, possibly because the $3.6 million incentive (15% of eligible costs) is relatively modest, and the retail component generates immediate sales-tax revenue.

Other Notable Items

Continuum of Care Homelessness Presentation (Item 22-084)

Kate Green (Home for All Continuum of Care) and Christine Call (Phoenix Community Development Services) presented data on homelessness across a four-county region (Peoria, Tazewell, Woodford, Fulton):

Key initiatives:

John Kelly asked about the cost-per-unit for Madison 2. Call provided context: Illinois Housing Development Authority compliance requirements, architectural fees for code compliance, and developer due diligence drive costs well above typical residential construction. Call promised to share detailed budgets with the city manager.

The presentation was received and filed unanimously; no funding requests were made.

Johnson v. City of Peoria Settlement (Item 22-076)

Councilmember Graham voted no on a police-conduct settlement, stating he believed officers "reacted as they had to under the circumstances." The settlement passed 7–1. No other council member objected or spoke.

Public Safety Benefits Ordinance (Item 22-058)

Deferred two weeks at the request of Corporation Counsel Kopuska and the city manager, who said administration needed "extra time to bring this to a happy conclusion." Moved by Councilmember Graham; seconded by Councilmember Kelly. Passed unanimously.

Peoria Keller Station Business Development District (Item 22-088)

The council designated the Keller Station business development district (former IDOT building renovation by developer Katie Kim) and imposed a 1% retailer's occupation tax and 1% service occupation tax to fund future redevelopment agreements. Councilmember Timothy Riggenbach recognized Kim's vision and noted the park district's master development agreement requires prevailing wages on all projects. Passed unanimously.

January 2022 Financial Report

The city's finance director presented the first monthly unaudited financial report in a new format. Highlights:

The report was received and filed unanimously. Councilmembers praised the new transparency and requested it monthly.

Public Comment

Resident Carrie Owens addressed the council regarding:

  1. Liquor commission approval of a package store at Family Dollar on Jefferson: The commission approved it 4–1 despite concerns from Police Chief Escheveria. Owens urged the council to establish a "findings of fact" requirement for liquor licenses (similar to planning-and-zoning commissions) and update spacing requirements (currently 100, 300, or 350 feet depending on context).
  2. Affordable housing concentration: Owens noted that affordable-housing development is concentrated in Districts 1, 2, and 3 (north valley and east bluff), leaving residents without grocery stores or job proximity. She urged a citywide affordable-housing plan.
  3. Spirit of Peoria: Owens suggested the council negotiate a contractual commitment from the new owner to keep the boat in Peoria, paralleling Councilmember Graham's fallback strategy.

Duration

Quotes & Key Moments

"It is part of our history our heritage it's been on the riverfront for decades it sets the landscape for this community and we are having the absolute wrong conversation." — Councilmember Zachary Oyler, on the Spirit of Peoria

"What we need to know is whether the purchase price of a million dollars is realistic." — Councilmember John Kelly, reframing the information request

"This shows our commitment to springdale and the heritage and history that it offers to the city." — Councilmember Timothy Riggenbach, on the cemetery agreement

"We have within this city county what i would call one of the crown jewels of service entities the city county health department." — Dr. Francesca Armour, in the public health week proclamation remarks