Peoria details Pick 2 development pipeline; city projects cash flow to recover by 2029
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Summary
Staff said core 2 development is progressing with recent land transactions (Amcor, Parcel C3 to Opus), infrastructure work (~$140M) and a 5‑year sales plan that forecasts negative early cash flow and a return to positive net cash by FY2029; staff emphasized selling land at a pace matched to developers’ construction schedules.
Peoria staff presented an update on the Peoria Innovation Corps (PIC) business plan and Pick 2 development pipeline, outlining recent transactions, ongoing infrastructure commitments, and a conservative sales pace designed to support development activity and future revenue.
City staff said sales activity has begun: the Amcor transaction and a parcel sale to Opus were cited as recent closings. Staff described an infrastructure portfolio of roadways, drainage, water and sewer work totaling about $140 million planned or underway in FY2027, including the CAP conveyance work and major roadway builds. The presentation noted an option parcel sale to APS for a 10‑acre substation and additional LOIs and negotiations for large parcels in the core area.
Finance staff presented a five‑year cash‑flow projection showing an initial negative cash position while infrastructure investment peaks, with the plan turning cash‑positive by FY2029. Staff projected net revenue from the Pick 2 business plan of about $50 million over the planning horizon split equally with State Land ($25M each), while stressing a cautious, staged pace of sales tied to developer construction timelines to avoid land banking.
Council members asked about timing, market appetite and whether the city was pacing sales to avoid artificially constraining development; staff responded they are prioritizing partners who will build at the pace the city requires and highlighted a recent $7M interest‑cost avoidance by refinancing part of the project debt.
Ending: Staff said they will return with additional sales agreements and continue the multi‑session business plan briefings to track project cash flows and sales pacing.
