Peoria council approves special-use for University–War Memorial development, removes north-University access restrictions

Peoria City Council on Tuesday approved a special-use ordinance to allow a shopping-center redevelopment on roughly 1.5 acres at the corner of University Street and War Memorial Drive that could include two drive-through restaurant sites, with one potential tenant identified as Dutch Bros.

The ordinance replaces the existing special-use (No. 15077) for the property at 3624 and 3622 North University Street and 1205 West Florence Avenue and removes two of staff’s recommended conditions that would have limited access from northbound University to right-in/right-out only. The motion to approve passed with one nay vote from Mayor Ali.

The site sits inside the University and War Memorial tax-increment financing (TIF) district created in 2021, and city legal staff told the council the city has an outstanding reimbursement obligation tied to earlier site improvements. Corporation Counsel Hayes said the TIF agreement provides that 75% of the increment from those parcels is available to reimburse the developer for work made to prepare the site, and that the outstanding reimbursement amount initially tied to those improvements was about $980,000.

Assistant Community Development Director Leah Allison summarized staff’s position: the development would occupy a visible, formerly auto-sales lot that has been cleared and graded, and staff recommended conditional approval chiefly to manage traffic safety. Allison said access to the site from Florence Avenue was recommended as left-in, right-out only, and that the University Street approach be limited to right-in, right-out to reduce conflicts for southbound vehicles. She also said staff wanted a traffic impact study submitted before permits would be issued.

Todd Roth Eisen, representing RSCC Group (the developer), told the council his company has built retail and quick-service restaurants across the region and that Dutch Bros operates an order-and-service model the developer said manages drive-through flow efficiently. “Dutch Bros is a tremendous asset to the community,” Eisen said. He also said his group had used traffic analyses informed by commercial tools and artificial-intelligence planning and that they did not object to conducting a traffic study.

Council members split over the staff conditions. Council member Carmona moved to approve the special use while striking two of the numbered conditions that would have restricted the northbound University access (conditions 1 and 3); Council member Gordon Young seconded. Some members, including Council member Cyr, asked whether the city could require a study later if congestion emerged; the city manager said a post‑approval traffic study done later would fall to the city to fund if it were required after full access was granted.

The council debated timing and cost of a traffic study: Allison said a study would “take a few months,” while the developer referenced a shorter timeline and an estimated cost during his remarks; the exact dollar figure cited in the meeting was not clearly stated. Several council members who live or travel regularly near the intersection said they had observed traffic patterns and felt motorists adapt to turning patterns over time. Council member Riggenbach urged caution but supported approval as amended.

The council vote approved the special-use ordinance and the development may proceed under city permitting rules. City staff and the developer signaled willingness to pursue a traffic impact study if conditions or future operations indicate it is necessary, and Corporation Counsel Hayes warned that allowing full access now and restricting it later could prompt property‑value or takings claims if access is subsequently reduced.

The council’s approval clears the way for the developer to proceed with design and permitting; staff will administer any required permits and, if needed in the future, the city can direct engineering or public‑works reviews and studies to address access or safety concerns.