Peoria approves purchase of Exposition Gardens site to pursue market-rate housing; budget amendment clears council

The Peoria City Council on June 24 voted to buy the Exposition Gardens property at 1601 Northmore Road as a step toward creating market-rate housing on the 70–80 acre site, approving a purchase agreement and a budget amendment to front due-diligence and acquisition costs. The votes passed with two nays: Council members Carmona and Cyr.

City staff said the purchase price being offered to the mortgage holder is $1,125,000 to satisfy outstanding mortgage indebtedness and to release the city’s stormwater lien of $457,770.54. City manager and staff told council the purchase will be temporarily funded from the city’s OPEB (other post-employment benefits) reserve and reimbursed from a $2 million grant to the Peoria Land Bank included in the new state budget.

“We are the recipient, in this new state budget of a $2,000,000 grant to our Peoria Land Bank,” a city manager representative told the council, describing the grant language in the state budget and the intended use for land acquisitions and infrastructure improvements.

Corporation counsel Hayes described the bank’s foreclosure action and the compromise negotiated with Morton Community Bank. “The bank’s foreclosure action…was in excess of 1.3 and approaching $1,400,000,” Hayes said, and he explained the bank agreed to accept $1,125,000 in full satisfaction if the city expedites closing.

Council debate focused on timing, due diligence, financing mechanics and long-term plans for development. Several council members said they supported the vision of creating single-family, market-rate housing near Richwoods High School and Northmoor Primary School; others urged additional appraisal and cautioned about using OPEB reserves as a short-term funding source.

Council member Euler, who moved approval of the purchase ordinance (item a), argued the acquisition allows the city to “control what happens to that land” and to shepherd a residential plan expected to produce new tax base. Council member Cyr made a motion to defer the item for two weeks pending an appraisal; that motion was denied (two yeas, Cyr and Kelly). Euler’s motion to approve item a passed with two nays (Carmona, Cyr). A separate motion to approve the budget amendment and release of lien (item b) passed with the same two dissenting votes.

City staff noted the land includes three small parcels along Northmore zoned neighborhood commercial and a larger portion zoned residential; staff estimated a developer could build roughly 150 single-family homes in a compatible plan and suggested the site could ultimately generate an estimated $1.3–$1.6 million annually in property taxes if developed. Staff told council there is no formal commercial appraisal on the property; the parcel is tax-exempt under its current ownership.

Under terms discussed, the city would negotiate a lease so Exposition Gardens could continue limited operations into 2026; the letter of intent reserves a lease through September 2026 with month-to-month occupancy afterward and a 60-day termination clause. Staff said they plan to issue a developer solicitation (RFP) after closing; a timeline presented estimated 60 days to prepare solicitation and an additional roughly 90 days for developer response, with 5–8 months likely before a developer is selected.

The council approved both items: the purchase agreement (item a) and the budget amendment/release of lien (item b).