PEORIA (25News Now) – Peoria city leaders are hoping a higher sales tax will help pay for improvements to a busy shopping center.
Last week, the city council voted to create a business development district at the Glen Hollow Shopping Center, which is home to stores like Target, TJ Maxx, and Lowe’s. The council also voted to increase the sales tax in that area by 1%, called the retailer’s occupation and service occupation tax.
Glen Hollow is in Council member Andre Allen’s district. He believes the sales tax will help the area grow. He cited a recent economic study that shows 40% of Glen Hollow shoppers come from outside of Peoria.
“I look at Glen Hollow, West Lake, Northwoods Mall, and that whole entire area as a destination,” Allen said. “How can we ensure that this remains a sought-after area where retailers want to come to, where, within the city of Peoria, people want to shop, eat, work, and play?”
Allen said with stores like Best Buy leaving the center in June, city leaders hope the sales tax will attract more businesses and help fill the city’s coffers to pay for future upgrades.
“We have to be proactive and prepared, so that when opportunities arise, we can take advantage of those, and we can also support our existing businesses to ensure our constituents have the retail options they desire,” he said.
Not all council members were excited about establishing the sales tax and business district. Alex Carmona, representing District 2, said he did not want to place a financial burden on taxpayers.
They are being asked to, probably mostly unknowingly, get an extra 1% on the bill that they pay, in order for this developer to do things they’re already supposed to be doing,” he said.
Carmona said he disagreed with a study that identified the area as blighted, and he said he wanted to see policies put in place that would identify properties showing “actual blight.”
“Something that requires accountability and safeguards our citizens from bailouts and routine expenses that are supposed to be paid, now, by them,” Carmona said. “Also, a policy that treats local entrepreneurs and local chains fairly, so we’re not just benefiting big box stores.”
Councilman Allen said a healthy shopping center could boost property values, making it a more attractive place to live.
City Manager Patrick Urich said $300,000 to $700,000 could be generated from the 1% tax.
“We’ve seen that business districts have been utilized to a great extent throughout the State of Illinois, and it makes areas more attractive for shopping,” Urich said. “It makes it easy for people to get in and out, and that’s what you want to utilize those funds for.”
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