The East Peoria City Council is considering the implementation of a business district.
If approved, the business district would encompass 347 acres in downtown East Peoria, including the Downtown 2010 development (former Caterpillar Inc. property), city hall and Town Centre II.
Some Town Centre II business owners are concerned about the possibility of an up to 1 percent sales tax increase within the district, which would require a separate vote from the council.
The money raised from this sales tax — if approved — can only be used to make improvements inside the business district boundaries.
Silver Bullet owner Larry Massey said it is not fair to target his business with a sales tax increase and not those outside of the district’s boundaries. Massey fears those dining out will choose a different place to eat if they know the sales tax is 9 percent at Silver Bullet and only 8 percent elsewhere.
We do not think this will happen. People generally do not pay attention to sales tax unless it is a big ticket item such as a car purchase. Ask yourself if you stop to consider the sales tax when shopping, dining or staying at a hotel. Regardless, there are some who probably do, but the majority are more concerned with convenience, atmosphere and basic good service.
Commissioner Mike Unes said perhaps these existing business owners should be grandfathered in so they are excluded from the sales tax increase.
We do not think this is fair because those businesses at Town Centre II will benefit from the Downtown 2010 development, especially if the ShopKo building is torn down. Springfield Road will be extended, leading into the new heart of the city. That road goes right through Town Centre II, so it most likely will attract more people to those businesses there.
There are also talks about reconfiguring Town Centre II to make it better. This has to be paid for somehow and a 1 percent sales tax increase is one way. There are other options that would surely be less favorable, such as increasing the property taxes or charging the business owners in a share program with the city.
Even if the whole 1 percent sales tax increase is implemented, it will amount to less than Peoria’s. The East Peoria business district would have a 9 percent sales tax, while Peoria has a 10 percent sales tax. Peoria has an 8.25 percent sales tax coupled with a Hotel Restaurant Amusement tax to total 10 percent.
If East Peoria city leaders are considering an HRA tax, we hope it would not put those businesses in the business district higher than Peoria.
While we understand Town Centre II business owners’ concerns, we know that improvements are not free. Construction costs are expensive.
It is unfortunate that the state did not deliver the $13.5 million it promised East Peoria to aide in the development of Downtown 2010. City leaders have had to consider alternative ways to move forward with Downtown 2010 — a development that will change the face of the city and be a positive in many ways, including more of a draw to Town Centre II.
East Peoria, Ill. —
