Housing Demand Study for Peoria

Over the past few years, the City has worked with Tracy Cross, a nationally recognized housing analyst, to measure the strength of housing demand in downtown and the Warehouse District.  The last report was delivered in early 2011.  Working with the Tri-County Regional Planning Commission, the City engaged Tracy Cross to update that study.  The results are attached.

Tracy Cross continues to believe there is considerable pent up demand for housing, especially rental housing, in downtown Peoria. From their report (emphasis theirs):

“It is our contention that Peoria has yet to fully serve its downtown employment base with adequate housing alternatives.  In fact, the downtown area and its Warehouse District still have the potential to absorb 200+ new housing units annually for the next several years, primarily in the form of rental apartments. Not only has downtown Peoria’s rental market improved since our previous analysis, but no new apartment product has been introduced.  In addition, although the “for sale” sector of the market (overall) is sill performing poorly, downtown Peoria continues to be void of any new construction activity, with this sector also having modest potential over time.”

The chart below shows the improvement in market since 2011:

	2011	2013	Change
Rental Price (per square foot)
Loft Conversion	$1.04	$1.12	$0.08
New Construction	$1.11	$1.22	$0.11
Sale Price (per square foot)
Condominiums	$130.24	$130.24	$0.00
Row Homes	$121.71	$121.71	$0.00
Annual Absorption
Loft Conversion	102	108	6
New Construction	66	84	18
Condominiums	12	12	0
Row Homes	6	6	0
Total	186	210	24

Please share this information with your colleagues and partners.  Let me know if you have any questions.

Click to read the study.

Christopher Setti
Assistant City Manager

City of Peoria
419 Fulton, Suite 207

Peoria, IL 61602

w: (309) 494-8618
c: (309) 472-6291

Incentives

• TIF 50% of new property taxes to developer 
• TIF 50% of new taxes for public infrastructure 
• Historic Tax Credits - 20% Federal, 25% State
• Sales tax exemption on building materials
• Most properties in a HUB zone

Tracy Cross Market Study

Great Buildings Ready for Development

100 Walnut Murray Building 

Block bounded by Washington, Walnut, Water, and William Kumpf

 800 Washington Cohen Building
SE Corner of Washington and Oak

801 Washington
SW Corner of Washington and Oak

800 Adams Federal Building

SE Corner of Adams and Oak

736 Washington

NW Corner of Washington and Oak

812 Washington 
View from Vacant Land From the Rear

812, 808, 804, 800 Washington 
View from Vacant Land From the Rear

812 and 808 Washington 
View from Vacant Land From the Rear

812 Washington
Washington Street Under Construction

812 Washington
From the Rear

Great Building, already on the historic register

Building Next to the CAT Imaging Center

CAT Imaging Center

Very Nice Building on Brick Street With Adjacent Lot, Great Price

Most of the great historic warehouses are located at the south edge of the downtown within an easy walk to the CAT Corporate Headquarters and the two large hospitals.

Historic Tax Credits

Excerpted from landmarks.org

HISTORIC PRESERVATION INCENTIVES The Historic Pere Marquette was the first   building in Illlinois to receive the State and Federal Historic tax credit.                              The Illinois Historic Preservation Tax Credit Program provides a state income tax credit equal to 25% of a project’s qualified expenditures to owners of certified historic structures located within River Edge Redevelopment Zones (Aurora, East St. Louis, Elgin, Rockford and soon Peoria) who undertake certified rehabilitations during the taxable year. For information on the current program, administered jointly by the Department of Commerce and Economic Opportunity (DCEO) and the Illinois Historic Preservation Agency (IHPA), go to:www.illinoishistory.gov/PS/IHPATCP.HTM. A 20% Federal Rehabilitation Tax Credit is available for rehabilitating an income-producing building. This dollar-for-dollar Federal income tax credit equal to 20% of the construction costs may be used by the building owner or sold to a tax credit investor. The minimum investment is 100% of the building's "adjusted basis"; that is, the purchase price minus the land cost and depreciation, plus prior improvements. The building must be a certified historic structure. Tax Credit Projects PDF. To learn more … A 10% Federal Rehabilitation Tax Credit is available for rehabilitating an income-producing, non-residential building built before 1936. (This is NOT for properties listed on the National Register of Historic places or in local landmark districts). This dollar-for-dollar Federal income tax credit equal to 10% of the construction costs. The minimum investment is 100% of the building's "adjusted basis"; that is, the purchase price minus the land cost and depreciation, plus prior improvements. Use IRS form# 3468. To learn more …

Click to read more landmarks.org/incentives.htm landmarks.org

Peoria Heights TIF Development

Peoria Heights developing high-end housing

SCOTT HILYARD

9/10/2013

PEORIA HEIGHTS — The Village Board and developer Jeff Giebelhausen have agreed to be partners in a plan to turn 125,000 square feet of vacant and vexing warehouse space into 124 high-end apartment units and 60,000 square feet of retail space.

The $23 million project to convert the long-empty Cohen’s Warehouse on East Marietta Street begins with a $7.5 million loan to the Giebelhausen Group from the village. It would be repaid by the increased property taxes the improved property would deliver and the sales taxes generated by the retail segment of the development, according to Village Administrator Matt Fick.

Warehouse District Street Construction Report

To and From

$25,000,000 in Street Reconstruction is underway.

____________ 

Good morning,

I hope your holiday weekend is off to a great start. 

Things are progressing on the project, and now that a significant amount of the underground work is done, things are taking shape above ground.  Here’s what’s scheduled for next week:

·         On Adams Street, a layer of asphalt will be placed in the parking lanes, as a base for decorative bricks; and decorative bricks will be installed in the sidewalk areas on the riverside of the street.

·         Work on Oak Street between Adams and Jefferson is scheduled to begin Wednesday, September 4^th.  Contractor will begin sawing for removal of pavement, curb, sidewalk and driveways, followed by removal later in the week. Two-way traffic will be maintained on Oak Street, with flaggers at times.

Have a great weekend.  As always, if you have any questions or comments regarding the Warehouse District TIGER II Project, please visit our website at http://www.warehousedistrictpeoria.com.  

You can also contact me directly at kdvorsky@terraengineering.com or at (309) 472-3132.

Karen S. Dvorsky, P.E.

TERRA Engineering, Ltd.

401 Main Street, Suite 1130 | Peoria, IL 61602

P 309.999.0123 | kdvorsky@terraengineering.com

www.terraengineering.com | Sign-up for our news

CHICAGO | PEORIA| OAK PARK | ST. LOUIS | MILWAUKEE

Market Research Shows Strong Demand

The City has retained Tracy Cross to do studies on the near downtown area. Each study has shown strong demand for housing as shown above. Tracy Cross is currently updating their study and the new numbers should be available in September 2013.

 

The City offers: 

• Historic tax credits of 45% of investment 
• TIF incentives of up to 60% of new fair market value
• No sales tax on building material

The new CAT Visitor Center and Museum is open. The Pere Marquette Hotel is rehabilitated and the new Marriott Courtyard hotel under construction. We are in the midst of major construction on attractive new urban streets. CAT is planning a new Corporate Headquarters. Tracy Cross projects demand for 194 dwelling units a year.

Brochure

Warehouse District Maps

Warehouse District

Vacant Land north of River and Post Office 

Rivers Edge Redevelopment Zone

Comparison - the Rivers Edge Redevelopment Zone versus the Enterprise Zone. The Warehouse District and downtown Peoria will be taken out of the Enterprise Zone and placed in the Rivers Edge Redevelopment Zone which provides great incentives for redevelopment, including a 25% State of Illinois historic tax credit on the costs of rehabilitating historic structures.  

RERZ	Enterprise Zone
Investment Tax Credits Allow business in RERZ to claim additional .5% credit on IL Personal Property Tax Replacement Tax for qualified depreciable property.	Investment Tax Credits .5% against state income tax for qualified properties.*
Jobs Tax Credit – repealed	Job Tax Credit - Not available in EZ
Environmental Remediate Tax Credit State Income Tax credit of 25% on some non-reimbursed eligible costs for remediation work, approved by the IEPA in excess of $100,000. Credit is limited to $40,000 per year; and $150,000 per project.
Dividend Income Deduction Available to Individuals, corporations, trusts and estates. Income tax deduction equal to the amount of dividends received from businesses with substantially all of their operations in the RERZ.	Dividend Income Deduction Not available in EZ
Interest Income Deduction Available to financial corporations, may deduct amount equal to interest received for a loan for development in an RERZ from their corporate State Income Tax.	Interest Income Deduction Not available in EZ
Building Materials Sales Tax Exemption Sales tax exemption on construction materials for non-residential projects within the RERZ.	Building Materials Sales Tax Exemption  Sales tax exemption on construction materials for non-residential projects within the EZ.
Property Tax Abatement May be offered on a local basis.  Not currently proposed within Peoria; cannot apply in TIF.	Property Tax Abatement City of Peoria abates their taxes for up to 5 years.  May increase in the future when other taxing bodies are added on.
Illinois Tax Credit Amount equal to 25% qualified expenditures for the restoration and preservation of a qualified historic structure per a qualified plan in a RERZ may be deducted from taxes. Minimum project costs is $5000, and must exceed 50% of purchase price of the property. Eligibility is determined by DCEO and the IL Historic Preservation Agency.	(next page) Illinois Tax Credit Not available in EZ
N/A	EZ Machinery and Equipment Sales Tax Exemption  6.25% Sales tax exemption on all personal property which is used or consumed in EZ in process of manufacturing or assembly of tangible personal property for wholesale or retail sale or lease.  *
N/A	Utility Tax Exemption 5% state tax exemption on  gas, electricity and IL Commerce Commision.1% administrative charge and excise taxes on the act or privilege of originating or receiving telecummincations.*
N/A	Corporate Contribution Deduction Double state tax deduction on contributions made to a qualified DZO project.