Economic Development Strategy

2009

Looking to our Future

INTRODUCTION

This Strategy is consistent with the CityComprehensive Plan, and amplifies theE c o n o m i c D e v e l o p m e n trecommendations of the Plan and otherplans developed and adopted by theCity.

The purpose of this Strategy is toprovide direction for the City of PeoriaEconomic Development Department intheir efforts to promote economicgrowth, increase the diversity of theeconomic base, provide good wagesfor Peoria’s citizens, and assist the Cityin recovering from the currentrecession.

PAST STRATEGIES AND PLANS

The Comprehensive Plan focuseseconomic development efforts onoffice, commercial and industrialredevelopment. Redevelopment effortsbegan with projects in downtownneighborhoods and in development ofthe underutilized waterfront property.The City developed an aggressiveprogram to renew and revitalize theolder portions of the City near andsouth of downtown.

The City has been engaged for the pasttwo years in the renewal of the CityComprehensive Plan. The City hasc o n duc ted ex t e n s i v e c i t i ze nparticipation as part of this process,conducting numerous focus groups andsurveys. The Economic DevelopmentCouncil for Central Illinois has alsodeveloped a wide range of strategies tolead economic development. Thisstrategy is consistent with and builds onthose efforts.

P r e v i o u s s t u d i e s i n c l u d e dimprovements to the Southern Gatewayof the City, the redevelopment ofRenaissance Park, the, Riverfront,Downtown, the Warehouse District, andthe Heart of Peoria. Each one of theten Tax Increment Financing (TIF)Districts also includes a redevelopmentplan.

STRATEGY TASK FORCE

In 2009 a task force of key economicdevelopment staff from the City,County, EDC and consultants met tobriefly evaluate pastaccompl i shment s .T h e c o n t i n u i n gnational and localrecession has createda need to review andr e a s s e s s p a s tstrategies. The teamreviewed strategy andproposed neededchanges.

Key Findings

• City efforts were succeeding despitethe national recession

• The City is concerned about lostjobs and investment

• The training of our workforce is vital • Improvements to the performance of

our Schools are required • More shovel ready industrial sites

are needed • The City core must be a vibrant

civic, cultural and living environment • Peoria continues to lose middle

income residents• Parts of the inner city continue to

decline

Post Recession EconomyChallenges

• Competition for business willincrease

• The USA will continue to loseunskilled jobs

• Business retention will becomemore difficult

• Global izat ion wi l l providechallenges / opportunities

• Business will become more hightech and white collar

STRATEGY

This strategy continues the efforts ofprevious plans and strategies, furtherrefining existing programs, andimproving our implementationstrategy. It incorporates citizen inputthat was part of the comprehensiveplanning process and addressesnegative trends that were identified int h e d e v e l o p m e n t o f t h eComprehensive Plan. It adds someadditional strategies which create acohesive comprehensive economicdevelopment approach combiningcurrent programs with a vision forfuture opportunities. The strategy alsoi nc or po ra tes cu r ren t t rendsappropriate for Peoria in thedevelopment of business andindustry.

E C O N OM I C D E V E L O P M E N TGOALS

• Retain and Expand ExistingBusinesses

• Nurture and Grow New Businesses• Attract New investment and

Business• Create a Positive Image of the City• Increase the Diversity of the

Economic Base• Rebuild the Heart of Peoria• Increase Sustainable Development

and “Green” Technology• Provide Solid Jobs at Good Wages• Create New Industrial Parks • Improve the School System• Continue and Refine Existing

Urban Redevelopment Programs• Embrace the Future• Continue and Refine Existing

Urban Redevelopment Programs

Retain and Expand ExistingBusinesses

Keep what you have. Grow what youhave. These two statements are a keyfor a successful economic developmentstrategy and program. Too manyeconomic development departmentsspend their time seeking newcompanies. Success begins withworking to keep your existing businessowners’ satisfied with their city, andthen helping them expand.

The City operates a dynamic BusinessRetention Program . Staff calls andmeets with businesses in thecommunity to better understandbusinesses and to determine if thereare any concerns with City services orordinances. Staff then works with thebusiness toward a resolution of thoseconcerns. This is also an excellentopportunity to inform business ownersof city programs and incentives to helpbusiness expand in the City. It furtheradvises staff of what the businesscommunity thinks, and lets staff know ifchanges are needed in City programsor services. This program will becontinued and improved.

The City also must continue to nurture

relationships with its major employers. Inthis day and age when industry is no

longer led by local CEO’s, it continues tobe important that the CEO of the City, its

Mayor, be on a first name andrelationship basis with the CEO’s of

major industry. The recent move byBoeing from its long time Seattle

headquarters, because among otheritems, its dissatisfaction with its

treatment by the community, highlightsthe need for this effort. Attention should

be paid to the industrial and medicalsectors of the City. This would be an

e f fo r t suppo r te d the Eco n o m icDevelopment Department and City

Manager, but led by the Mayor withparticipation from other elected officials.

Nurture and Grow Start-UpBusinesses

The City nurtures new and expandingbusinesses. Such efforts as the PeoriaNext Innovation Center and EnterpriseZone as well as other incentives help tocreate new jobs from existing talentwithin the community. The City willcontinue to move as it has recentlydone to capture the results of itsnurturing efforts by locating newbusiness or industries in the City. TheCity should not support developmentalefforts of business only to loseproduction facilities and active businessas they enter the market. This willrequire all of the above strategies towork as well as creative thought tomake incentives work.

The City will also use BradleyUniversity programs and the incubatoras precursors for these efforts as wellas discussions surrounding retirees andspin-offs from existing industries. Whatcan the City do to support developingbusinesses, especially job producingbusinesses and industries that will beleaders in the new economy? The Cityshould create an environment where ithears about new business creationopportunities. It should also try tocapture the ensuing business orindustry when providing incentives fordevelopment of the business orindustries.

Attract New Investment and Business

Attracting new investment and businessto the City is a vital function. Somebusinesses will fail or move to overseaslocations. New investment and newbusinesses must be sought to replacelost business and jobs, and to furthergrow our economy.

The City works closely with the regionalEDC and with the State DCEO on anaggressive attraction program. The City

has profess iona l l y preparedbrochures, an active electronicmarketing program, and attendsnational business developmentconventions. Working with the Stateand EDC, the City responds to RFP’sfrom a variety of business interestedin moving into the Midwest. The Cityalso reaches out to a variety ofbusinesses with direct mail, andinitiates contacts with business thatstaff or the Council believes may fitthe City.

The City works with developers toprovide affordable land, to make thedevelopment process seamless andto find incentives that will make thisCity more competitive in today’smarket.

Create a Positive City Image

Some citizens feel that Peoria has anegative image or they feel negativelytoward the City. Rather than helppromote the success of the City, thesecitizens inadvertently work to theCity’s worst interest. It is importantthat the City promote itself internally.The City must work to instill pride in itscitizens and staff.

Likewise, the City must continue topromote itself externally. These effortscan be combined through regionalefforts that showcase the metropolitanarea. The City will continue to workwith the EDC and others to showcaseour City and region at various nationalevents such as the InternationalShopping Center Conferences. Wewill cooperate in joint advertising inappropriate real estate magazinesand in the development of promotionalmaterials.

The City has developed its ownpromotional materials and has a wideselection of materials available throughE-Resources (Electronic Information onthe Internet). The City should continueto use written materials and continueits efforts with E-Resources. The Cityhas aggressively moved to providevery frequent E-updates of informationabout the City’s economic developmentopportunities. Currently, much of theCity’s Economic Developmentinformation is published at: http://peoria.blog.com/ The City willcontinue its E-Resource efforts,updating and improving them overtime. The City will continue its wide useof Web Sites, Blogs, LinkedIn,Facebook, and Twitter to market theCity.

Increase the Diversity of theEconomic Base

Peoria was and still is a majormanufacturing City, but during the pastten years the City has diversified withprofessional and medical servicesincreasing dramatically.

The City will continue to encourage thediversification of the City economicbase. High tech, medical, and “green”technology businesses are openingand expanding, and the City willsupport this encouraging trend.

Rebuild the Heart of Peoria

The City of Peoria continues to losemiddle income residents. There aremany reasons that can be sited for thattrend. One is the international changein industrial production and thecorresponding reduction in the need forsemi and low skilled labor in the UnitedStates and the mid West specifically.

Second, there was and continues to bea reduction in workers due toproductivity improvements. Finally,workers have left as industries haverelocated or closed.

These trends have resulted in a loss ofworkers and the overstock of moderateincome housing they once occupied;artificially suppressing home values.Homes in older neighborhoods havenot gained in value, making middleincome residents reluctant to purchaseolder homes in traditional middleincome older neighborhoods. Instead,they choose newer housing both in andunfortunately, many times outside ofthe City. Discussions about crime havealso lead to a fear of olderneighborhoods. Finally, there are fewalternatives for young professional andnew empty nesters who prefer urbanlifestyles.

The City completed quality plans for theredevelopment of the Heart of Peoria,Renaissance Park, and the WarehouseDistrict. This Strategy follows andexpands the goals developed in thoseplans.

The following strategies will becontinued to resolve this problem.

• Continue to seek jobs with goodwages in job development strategiesfurther developed in other sectionsof this Strategy.

• Continue and expand uponmarketing the first time home buyerincentives. This incentive shouldregularly be promoted with youngprofessional and first time homebuyers. These residents tend to beless fearful of crime and theincentive will help overcomeconcerns about property values.Because of fears of falling propertyvalues, the program might beenhanced to include all buyers introubled neighborhoods to shore uppricing values and to maintain andreintroduce middle income buyers tothese neighborhoods. As valuesincrease in these neighborhoods,the need for the program is reducedand it can be phased out. Anincrease in housing values in thesehomes will also help to pay for theprogram.

• Enhance Quality of Life programs.Efforts should be made to promoteall recreational and arts programswithin the City. Current cable and

public television promotions are notenough. The City should considera yearly calendar of events whichis then produced as a promotionitem for both the EconomicDevelopment Department and theCity as a whole. This could beupdated monthly.

• Improve and implement the ArtistR e l o c a t i on P ro g r a m t h a tencourages artists to locate theirhomes, studios, and shops in olderneighborhoods.

• Continue the incentive program tosupport the purchase andrehabilitation of older homes andinvestigate new programs. Olderhomes inherently have additionalmaintenance costs. The City couldrecognize these maintenance costsin a program that promotes thepurchase of older and historichomes through tax credits. Asva lues increase in theseneighborhoods, the need for theprogram is reduced and it can bephased out. This tax credit couldencourage the maintenance andupkeep of single family historichomes. An increase in housingvalues in these homes will alsohelp to pay for the program.Criteria would be necessary totarget this program. Working withother departments the EconomicDevelopment Department shouldidentify land which could bepurchased and cleared. Althoughthere is a small budget for this, ifdone correctly, land banking couldallow for additional new housingand commercial developments inredevelopment areas. Thecontinued implementation of theWarehouse, Renaissance Park,and River Trail Drive developmentsare examples of areas where thisstrategy could be successful.Additional housing alternatives inthe downtown area are anattraction to the young and newworkforce members as well asthose seeking to downsize anddown responsibility related tohousing.

• Celebrate and ballyhoo the recentpassage of the referendum for themuseum. This is a majordevelopment. Passage of areferendum during an economicdownturn where referenda for basici t e m s a s e d u c a t i o n a n dinfrastructure failed across the Stateis a major accomplishment. Thisshould be recognized as a symbolof the City’s support of andrecognition of the importance ofarts, culture and recreation.

• Continue marketing and improvingRenaissance Park, Warehouse, andRiver Trail Drive areas to attracthome buyers back to the inner city.

I n c r e a s e S u s t a i n a b l eDevelopment and “Green”Technology

The Environmental movement is nowfully part of American and Worldthinking. Almost everyone agrees thatwe should improve our air and waterquality, and use less energy. Localgovernments are becoming leaders inefforts to enhance Sustainability andimplement Green Technology.

The City of Peoria has created aCommission on Sustainability andGreen Technology. The following areitems the Commission has identified forimplementation: • Promote more efficient buildings• Use passive solar orientation of

buildings• Encourage solar and wind energy

systems

• Use recycled material in buildings• Recycle building material waste• Encourage rain harvesting &

irrigation• Support the use of natural

landscaping

• Employ green roofs• Improve City and County staff

knowledge of “green” techniques• Support quality construction for long

lived buildings• Encourage mixed use development• Support walk to work programs• Encourage development that

supports transit• Support efforts to redevelop older

communities• Permit Live / Work Space

development• Support natural open space and

parks• Design wetlands, drainage systems,

retention and bio swales into parks• Use open surface natural drainage

where feasible• Require street trees• Encourage the use of geothermal

energy• Revisit development requirements,

minimizing pavement widths andcost

• Update City / County codes to permitand encourage “green” development

• Support the development of the localproduction of “green” technologyequipment

• Incorporate bikeways and pedestrianpaths into new and olderdevelopments

• Support recycling

Provide Solid Jobs at GoodWages

The recent national recession hasreached Peoria, and unemploymentreached 9% in early 2009. A majoreffort of this strategy must be to helprestore our businesses and increasejobs, wages and income. To achievethat end we must take action on thefollowing goals.

Create New Industrial Parks

The need for a diversification of theeconomic base with its accompanyingincrease in good wage jobs is anongoing theme for all economicdevelopment programs. Peoria finds

itself at a competitive disadvantagewith neighboring communities.Surrounding communit ies areprepared with low cost improved landready for industry. Peoria does nothave these sites and parks.

Peoria currently lacks land ready forindustrial development. Industrialredevelopment sites are available, butare not readily marketable even withincentives. Small redevelopment sitesare available, but no improved landhas been set aside for industrialpurposes. When opportunities areavailable, either they bypass the Cityo r t h e C i ty s c r am b l e s t oaccommodate them. The City shouldwork on a strategy to develop anindustrial park that provides improvedland at competitive prices.

Improve the School System

There have been many references tothe need for improved schools incomments by residents, professionalsand elected officials. While thecontinued improvement and provisionof a quality education are laudablegoals, they are ones which can haveonly one response by the City’seconomic development program. Ifeconomic development programsresult in an increase the City’s taxbase within the School District’sboundaries, then the decreasing taxbase and ongoing funding problems ofthe school system will diminish.However, to create the tax base, itmust be recognized that there is aneed for the City and School Districtto collaborate on targeted incentivesthat result in a long term viable taxbase for the City and its other taxingdistricts.

Continue County, Regional,State and National Participation

Working with other groups, learningf r om o the rs m i s tak e s a n dunderstanding new programs are allbenefits for working outside the City.

The City should continue its ongoingparticipation with other groups tonurture, refine and enhance economicdevelopment In addition, the Cityshould use these groups to refine andenhance its economic developmenti n c e nt i ves themse lves . Mo s tknowledge of “best practices” forprograms and incentives comes fromassociations with these groups. Toknow what is on the horizon andappropriately make it part of itsprogram and incentive arsenal makesthe City competitive in economicdevelopment. Participation in thesegroups allows the City to stay on top of,improve, and evaluate its program andincentive arsenal.

Finally, participation in these groupshelps educate staff. This educationhelps to make the staff moreprofessional in their interactions withinand out of the City. It improves thecaliber of the City’s economicdevelopment efforts.

Continue and Refine ExistingUrban Redevelopment Programs

While these are the last strategieslisted, as they are not new endeavors;they are the most important strategies.They combine with many of the abovestrategies and are key to the futuresuccess of the City. These programsand their current status and the nextkey steps in their implementation areidentified below.

Embrace the Future

It has already been noted that the Cityshould embrace the future by nurturingbusinesses that are going to create thejobs base for the future. The Cityshould also embrace new technicalprograms that have the opportunity toresult in long term job viability for theCity. Such items as sustainability andnew technologies are musts in thisendeavor. Support of sustainabilitymeans more efficient businesses whichare more likely to thrive. These effortsshould continue in concert with BradleyUniversity, Illinois Central College, themedical base as well as other industriesand businesses in the City.

CONCLUSIONS

Trend is not destiny. The currentrecession demands that the City workhard to improve our economy. ThisStrategy is dynamic, and must befrequently reviewed and revised asnecessary. The City will follow thisstrategy, and revitalize our City andour economy.

Following this strategy will promoteeconomic growth, increase thediversity of the economic base,provide good wages for Peoria’scitizens, and assist the City inrecovering from the current recession

For Additional Information Contact

City of Peoria Economic Development Department419 Fulton St. Room 403

Phone: 309.494.8640Fax: 309.494.8650

DRAFT 7/26/09 CRE