Peoria Heights board approves redevelopment deals and a TIF-funded sidewalk with added public parking

The Peoria Heights Village Board on Tuesday approved two redevelopment agreements and amended a TIF-funded sidewalk project to include four additional public parking spaces, moves trustees said will spur investment while highlighting the need for clearer zoning rules.

Trustee Kazam presented an amendment to Ordinance 2026-1792 that would reimburse up to 50% of an estimated sidewalk replacement project on Glenn (not to exceed $250,000 from TIF District 3) and add four parallel public parking spaces near Prospect at the developer’s cost if the project exceeded the village match. The board approved the amendment by roll call and then adopted the amended ordinance.

Later in the meeting trustees approved Ordinance 2026-1793, authorizing a redevelopment agreement with 4425 North Prospect LLC to redevelop the former Save A Lot building. The board heard that the project’s total investment would be about $12.5 million, with village reimbursement capped at $2.5 million on a pay-as-you-go basis tied to incremental property taxes. Officials described a tiered reimbursement tied to retail sales milestones (60%/80%/100% depending on thresholds), provisions intended to incentivize sales-tax–generating tenants and protect the village’s tax base.

Cole McDaniel, president of Hometown Consulting, told trustees the current property generates roughly $35,000–$40,000 in property tax and estimated the project could raise that to about $190,000 annually. He said the development envisions a long-term tenant employing roughly 80 full-time staff and additional seasonal or traveling employees, and the developer has committed to union labor and local hiring.

Trustees asked detailed questions about parking and whether the approved site plan elements (15 parking spaces along Prospect, tree bumpouts and other design features) would remain. McDaniel and development representatives confirmed those features remain part of the plan and that the rendering differences discussed earlier did not change the approved 15 Prospect parking spaces.

Several trustees emphasized process concerns. Trustee D'Vor said downgrading a design from three stories to two after public review was a material change that influenced prior votes: “When building height, mass, appearance, and overall project design change in a meaningful way, there should be a clear process requiring those changes to return for review,” she said, while also noting she intended to support the agreement to advance redevelopment. The village attorney told trustees that, under current code, materiality must be judged case-by-case and the village lacks a specific ordinance definition of a “material change.”

All motions on the redevelopments and the sidewalk amendment passed by unanimous roll call.

What’s next: the approvals authorize the mayor and staff to finalize the agreements and pursue the reimbursement and TIF steps described in the ordinances. The board also asked staff to continue work on zoning-code clarifications so similar post‑approval changes can be handled with clearer rules.

Sources: Board discussion and roll-call votes recorded at the Peoria Heights Village Board meeting; public comment from Cole McDaniel.