Peoria Pundit

Late word tonight from someone in the know that the agreement between Cub Foods owners and MidTown Plaza developer David Joseph says that Cubs essentially agreed to pay him rent for the space for the entire length of their 25 year lease.

So  when they close up shop in mid March — with only a handful of senior employees moving north to their Glen Hollow location — they will continue to pay rent for the remaining 15 or so years remaining. City taxpayers will, however, remain on the hook for $5.3 million in TIF district bond payments for the next 11 years. About 90 percent of the sales tax revenue generated by the shopping center goes to paying off those loans, as does part of the property taxes. With Cub generating most of the sales taxes MidTown generates, we’re going to see less of our taxes going to things like police and fire protection and streets and sidewalks.

But don’t you worry. Mr. Joseph isn’t going to suffer one bit. In fact he doesn’t even have to look for a new tenant. He can just sit back on his fat, politically connected Peoria developer ass and do nothing and still rake it in. It’s a lot less work than renting a house to crack dealers, and a lot less dangerous.

But then there is the following sentence from my 2004 article on the redevelopment scheme:

In return, Joseph agreed to keep a shopping center open at the site for the life of the TIF, Sandberg said. Beyond that, there are no guarantees, he added.

But, I’d sure like to see the complete written agreement. Was there language that specifically defined an “open” shopping center? Without an anchor store, the $5 million MidTown Plaza is no different than any of the hundred or so storefronts you can find all over the city.

I would propose that the city communicate to Mr. Joseph that a taxpayer financed, $5 million shopping center that doesn’t have an anchor store really isn’t a shopping center at all, and if he doesn’t get a replacement in there ASAP to start paying sales taxes, then …

Well, let’s just say that the the the area surrounding the corner of East Nebraska and Knoxville is starting to look mightly “blighted” and in need of redevelopment. Maybe even blighted enough for the use of eminent domain. I think it’s a perfect location for some Habitat for Humanity homes. I’m sure they’d appreciate the city making a “take it or leave it” offer on their behalf to the current owner.

Is this ethical, or legal? Well, I don’t know about legal. But it sure is one HELL of lot more ethical than that the city did last decade, which was to put the squeeze on little old ladies on behalf of David Joseph.

I mean, I’d rather spend $5 million to create new owner occupied homes than to continue to put money in the pocket of a leech like David Joseph.

Editor’s note: Back in November 2004, I wrote articles for what was supposed to be Peoria’s new alternative newspaper, the River City Times. It was a fun gig, although it ended badly. The paper’s not around anymore. I have no idea if the publisher is still around. I am still owed more than $100 for work I did, and the amount is worth trying to get it.

But I was turning out some good work for the plucky little rag, including this piece about an issue that was near and dear to my libertarian heart: Eminent domain. The reason I am reprinting it and the accompanying photos will be made clear.

Enjoy.

In the closing years of the last decade, a rich and powerful businessman came to Fanny Ort and informed her that she would be sacrificing the home she and her late husband Robert raised their children.

Her East Bluff neighborhood was in decline, and the City of Peoria had decided it needed to be redeveloped. Besides, the new shopping center would bring in more property and sales taxes.

“They said either you take it or the city would use eminent domain and then we would have to take whatever they offered,” she said. “We weren’t very happy.”

Today, Fanny lives in a home a quarter of the size.

And a vacant lot sits where her home once stood.

The shopping center is Midtown Plaza, with its anchor store Cubs Foods and a handful of smaller businesses located in the site’s strip mall. Read more »