Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Economic Development topic
No spam. Unsubscribe anytime.
Developer says Stadium Point remains viable but needs equity; council presses for clearer timeline
Summary
City staff and Steinhauer Properties told the council they are pursuing equity partners to fund Stadium Point and will prioritize multifamily and a Hilton Curio hotel while continuing to market proposed Class A office space.
City staff and the Stadium Point master developer, Steinhauer Properties, updated the council April 22 on progress and market obstacles for the 17‑acre Stadium Point project in Peoria’s P83 district, emphasizing that the team is seeking equity partners to move from schematic design to construction.
Deputy City Manager Mike Faust and developer Rory Sandstrom outlined the project’s history: the development agreement (DDA) was negotiated and approved in April 2021, followed by an implementation development agreement (IDA) in November 2022 that adjusted timing and confirmed public-incentive tools. Sandstrom said Steinhauer has spent more than $10 million in predevelopment capital and has executed schematic design for all vertical elements — multifamily, hotel, office and public amenities — and holds a letter of intent with Hilton to operate a 210‑key Curio-branded full‑service hotel. The developer also said Greystar would operate the apartments if the multifamily phase is advanced.
Market headwinds have changed the sequencing the partners expect to finance. Sandstrom said construction costs and interest rates have risen, and office leasing demand is “significantly lower,” so the developer plans to prioritize financeable elements — the apartment and hotel — while continuing to market the proposed Class A office to prospective tenants. He told council: “We have full confidence in this project,” but said identifying equity partners remains the gating item.
Council members expressed skepticism about the timing for office space. Councilmember Finn asked, “How do you tell me that you're prepared to move quickly when you don't have funding and you just — I just heard all those things?” Several councilmembers said the city needs clearer timelines or alternate plans if equity is not secured; Finn requested monthly written progress reports for the council and city manager. The developer said it will continue monthly meetings with staff and communicate with council when requested.
Timeline and next steps: Staff and the developer said the multifamily design-review process could move to construction-document submittal in roughly 12 weeks (after resubmittal); permits for non‑multifamily elements were estimated at four to six months for design review plus three to five months for permit issuance once construction drawings are submitted. The developers said that even with immediate funding, a 7–9 month stack of permitting and preconstruction steps could be expected before vertical construction begins.
Why it matters: Stadium Point is a long‑planned mixed‑use project intended to bring Class A office, hotel and apartments adjacent to the sports complex. The developer’s pivot to lead with residential and hotel components reflects broader market conditions for office product and affects the project’s sequencing, city infrastructure timing and expected economic outcomes.
What council asked for: Monthly written progress reports to the city manager and regular updates to council; staff and the developer said they will continue monthly coordination meetings and provide updates as requested.
