Pekin expands 'economic growth' with $14 million land purchase
The Pekin City Council recently weighed the merits of an investment in future growth against the need to fund current projects.
The scales tipped in favor of investing in future growth when the council voted 4-3 on Monday to authorize the $14 million purchase of the 1,000-acre Lutticken Farm property, to be paid over four fiscal years. Council members Rick Hilst, Dave Nutter and Lloyd Orrick voted against the action.
According to City of Pekin economic development director Josh Wray, the land purchase will increase Pekin’s geographic area by about 10%.
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“It will provide Pekin's avenue for economic growth for the next generation and beyond, including additional acreage for multiple types of residential and commercial development along with a significant portion of the land needed for the extension of Veteran's Drive to I-474,” Wray added.
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According to Wray, city staff's conservative estimate was that the property, once fully developed, could generate about $5 million annually in real estate tax revenue. It also has the potential to generate approximately $3.5 million a year in sales tax, income tax, utility tax, permit fees and license fees for the city's general fund.
Pekin Mayor Mary Burress, who cast the deciding vote in favor of the resolution, asserted that future growth was essential for Pekin, which had been “stagnant” in recent years.
“We weren’t thinking big, dreaming big, or growing,” she said. “We have this opportunity that will be the future of Pekin.”
Some council members disagree
Orrick contended the city should not move forward with the land purchase before conducting an economic study to ensure Pekin taxpayers would receive solid returns on their investment. He also questioned the land’s purchase price, claiming its value had not been properly appraised.
“From my calculations, it’s $14,000 an acre, and approximately one-third of that land is gullies,” Orrick said. “I don’t think anyone would pay $14,000 an acre for gullies.”
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Hilst voted against the action because he believes the funds needed to purchase the land could be better spent on pensions, the city’s ADA Transition Plan and roads.
“We are currently working on Derby Street and Court Street, but we put the second phase of Derby on hold because of a lack of funding,” he said. “To my knowledge, we don’t have the funding for the last section of Court Street, either, and we have several other roads we haven’t even started on that are falling apart.”
This article originally appeared on Journal Star: Pekin Council votes for future growth with $14 million land purchase
