Pick 2 development moves forward; city projects peak cash outlays in FY27 and expects cash-positive by FY29
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Summary
City staff said Pick 2 development (Peoria Innovation Corps) will see peak cash outlays in FY27, with multiple land transactions (including Amcor and a sale to Opus) underway; staff projects the business plan will be cash-positive by FY2029 and produce net revenue for the city and state land.
City staff presented the Peoria Innovation Corps (Pick 2) business plan to the council and outlined near-term transactions, infrastructure investments and a multi-year sales and financing plan.
Staff said Amcor’s transaction (104 acres) has a total value to the city of roughly $52 million after reimbursements and that the city approved a purchase and sale and development agreement for Parcel C3 (sale to Opus) at the council meeting the prior night. Staff emphasized they are phasing sales to match development pace rather than land-bank—"We could sell all this land tomorrow... The goal is we want to work with partners who want to move at a development pace," the city manager said.
The presentation showed Pick 2 will have heavy capital spending in FY26–27 as infrastructure construction accelerates, with a total infrastructure outlay across multiple years; staff expects the project to be cash negative across early years and cash-positive by FY2029. Finance staff said refinancing actions already taken will yield roughly $7 million in interest-cost avoidance.
Council members asked about timing and conveyed support for a measured sale pace tied to construction schedules. Staff said sales proceeds, grants and staged infrastructure financing will be used to recover costs and that the project is already transacting to partners while design and construction of roads, drainage and utilities continues.
