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Peoria council reallocates unspent ARPA funds and interest to housing, downtown facades and childcare workforce pilots
Summary
Council approved reallocating $613,751 of unspent American Rescue Plan Act funds and set aside $447,000 of interest earnings for local initiatives including a Grand Avenue commercial revitalization grant program, an updated housing study, pilot before/after‑school sites and a citywide outreach program.
Peoria City Council on Nov. 19 approved a plan to reallocate unspent American Rescue Plan Act (ARPA) grant funds and to commit interest earnings from the ARPA account to four local initiatives, with a unanimous 7‑0 vote.
City staff told council the city received approximately $20.8 million in ARPA funds in two tranches (2021–2022), has spent nearly $17 million and currently has about $4 million committed to contracts. Neighborhood and Human Services Director Chris Hallett said staff identified $613,751 in unspent ARPA allocations recommended for reallocation: roughly $513,007.51 to Newtown Community Development Corporation (an affordable‑housing nonprofit partner) and $100,000 to Community Legal Services (an eviction prevention provider operating from the Community Resource Center). Council approved that allocation.
Interest and new initiatives: Hallett said Peoria had earned approximately $447,000 in interest on ARPA funds to date and proposed allocating interest (and any future interest earnings) to four local initiatives aligned with ARPA’s intent: 1) a supportive grant program for Grand Avenue commercial revitalization (proposed $323,000); 2) an updated housing needs study required by state law (small allocation to update existing work); 3) a pilot to reopen before‑ and after‑school sites at three Title I schools with an emphasis on staff recruitment and retention; and 4) a citywide “1 Peoria” outreach and engagement initiative to promote district points of pride and remove access barriers.
Grand Avenue program details: staff recommended an initial focus on the south side of Grand Avenue between Cotton Lane and 80th Drive, where staff identified 29 commercial property owners and 23 properties with maintenance issues (signs, roofing, façade paint, weeds and parking lot repair). The $323,000 slot is intended to provide roughly $10,000 per property in matching grants, and economic development staff indicated an additional $100,000 would be available through the city’s façade improvement program to leverage the work.
Timing and compliance: Hallett reminded council that ARPA funds must be obligated by Dec. 31, 2024 and spent by Dec. 31, 2026. The council authorized the reallocations and allowed staff to use interest earnings for the four initiatives; staff said additional interest earned through December could be added to these pots to expand activity.
Council action: Councilmember motion and a second were called and the measure (identified in the agenda as item 28 R) was approved by a 7‑0 vote. Staff said the reallocations will enable immediate contracting and program design work in the downtown and community service areas.
Ending: Council directed staff to proceed with implementation steps for the approved initiatives and to return with required contract authorizations and details as work plans are developed.
