Tuesday, January 08, 2008

Peoria Riverfront Museum Historical Review

This historical information is taken from a JS article dated 4/8/03. I quote "The $60million Lakeview Regional Museum proposed for the Sears block would do more to revitalize Downtown than new stores, offices, condominiums and hotels according to an impact analysis conducted by a Northbrook based economic development consulting firm. The study suggested it would cost $15 million to build an 110 room hotel, a scenario possible only if the city gave the land away. Part of the rationale is that the economy is flat and vacancy rates for downtown hotels, etc., are relatively high."

"I don't see that as a compelling argument," Mayor Ransburg said of the report. "They're not building a case for a museum on the Sears block. I'm disappointed....I think the report was useless."

The study states a new museum could attract 200,000 to 250,000 visitors a year to generate an estimated $900,000 to $1.9 million in spending at and around the museum. That equates to around $18,000 to $38,000 in local sales taxes.

A museum would also have the economic impact of supporting the marketing and recruiting efforts of Caterpillar with on on-site, interactive visitor Center expected to accommodate 20,000 who travel each year to Caterpillar Headquarters.

"The museum is the paradigm shift for Downtown. We have to get the museum firmly seated on the Sears block and let it be the gem it can be," said Lakeview CEO Jim Richerson.

The study say, "But the museum does have it's challenges. There are world class museums located just 150 miles away; Peoria is not yet recognized as an entertainment and culture center for tourists; there is limited population and employment growth. People of this region are more likely to attend a sporting event than visit a museum. It also depends on the museums ability to market itself as a package of attractions because as the report notes, outside of major cities, few tourists come into cities solely to attend a museum."

Several things stand out to me in this 2003 study paid for by the Heartland Partnership. I note that by 2006 the projected attendance has risen from 200,000-250,000 to a flat 360,000 per year. Also the amount of visitors spending has increased from approximately $900,000-1.9 million to $14 million. The CVT projected attendance jumped from 20,000 to 120,000. Also the museum has shrunk from Regional to Peoria with recently stated efforts to seek commitments from Tazewell and Woodford Counties. The museum has also been scaled back in size.

While the museum on the riverfront was being debated, a hotel was being conceived directly across the river, a 225 room Embassy Suites, now open to compete with the "flat" market in Peoria. And with the hotel comes an attached Convention Center. More competition. Maybe the good looking tax paying Embassy Suites in East Peoria might look pretty good right now siting on Peoria's riverfront with easy access to the Civic Center and downtown restaurants

It may be said that East Peoria had to give the developer an "arm and leg" but Peoria is not to bad in that game either. Except that the arm and leg they are giving such as Midtown Plaza and the gambling boat they gave to East Peoria plus all the incentives we have been giving for years in the way of TIF's, Enterprise Zone and the almost outright gift of land to the Park Districts RiverPlex that has never been able to generate enough revenue to pay the principal and interest on the huge bond the PPD sold to help build this recreation Center in direct competition to tax-paying local enterprise. The valuable riverfront land swapped for land near Carver Center (the ecently rebuilt baseball field also lies unused adjacent to the useless land just as the city funded Southside Library will be some day.)

By most reports, the economy is flattening out and at some point it will as it usually does, hit the Peoria area.

Peoria has developed a reputation of building it and so others can come visit, use it and just pay admissions and leave. Our Peoria City population is flat and the County shows a meager growth of maybe 3,000 in the past 10 years.

If you feel I may be pessimistic, you probably aren't invested in the local baseball club or the stock market or you don't pay property taxes.

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