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Council authorizes city to bid at sheriff’s sale for 1601 Northmore Road; budget amendment approved amid council split
Summary
The council authorized the city manager to bid at a Sept. 24 sheriff's auction for 1601 Northmore Road and approved a budget amendment to fund purchase and due diligence costs; two council members voted no and concerns remain about timing of state grant funds.
The Peoria City Council on Sept. 23 authorized the city to bid at a sheriff’s sale for property at 1601 Northmore Road and approved a budget amendment to permit purchase and due-diligence expenses related to the land-bank acquisition.
Corporation Counsel Hayes told the council that the sheriff’s sale date on the agenda was corrected to Sept. 24 and summarized the city’s legal position: the bank holds primary debt on the property, the city intervened and perfected liens for stormwater fees totaling roughly $457,000 and the city’s lien position is senior to most other claims except the bank. Hayes said the bank intends to bid an amount “slightly more” than its outstanding debt; the city may bid up to the bank’s full indebtedness (about $1,400,000) if necessary.
Hayes explained the post-auction process: if the city is the successful bidder, a court confirmation hearing is required and possession normally occurs 30 days after confirmation, which the city has scheduled to proceed on Oct. 1. Hayes also said there may be leasehold or tenant matters to resolve after acquisition.
Mayor Ali and staff told council members that the city has a $2,000,000 allocation from the Illinois Department of Commerce and Economic Opportunity (DCEO) intended for the land bank and that DCEO staff have confirmed the appropriation is an allowable use. Several council members, however, asked whether those state funds had arrived; Council member Cyr said the funds were not yet in the city’s bank account and said he could not support spending city money before state money is received. Council member Carmona also said she could not support the action for the same reason.
Despite those objections, Council member Allen moved to approve the ordinance authorizing the purchase procedure (item 25‑273 a); Gordon Young seconded and the motion passed with two nays (Cyr and Carmona). Allen then moved the related budget amendment to appropriate funds and $875,000 of additional authority for due diligence and purchase expenses (item 25‑273 b); Gordon Young seconded and that motion also passed with two nays (Cyr and Carmona).
The ordinances give the city manager discretion to determine the final bid amount within the funding authorized by the land-bank appropriation. Hayes said staff will brief council after the auction on the result and next legal steps.
Votes at a glance: - 25‑273 a (authorize purchase process at sheriff’s sale): passed (ayes: Mayor Ali, Council members Allen, Gordon Young, Jackson, Kelly, Euler, Riggenbach, Vespa, Valpula; nays: Cyr, Carmona). - 25‑273 b (budget amendment and appropriation for purchase and due diligence): passed (same tally).
