Peoria City Council Unanimously Approves Land Swap to Unlock 200-Home Expo Gardens Development

The future of one of Peoria's most visible vacant properties moved closer to reality Tuesday night. The Peoria City Council unanimously approved a land exchange with Peoria Public Schools that clears the path for a 200-home residential subdivision at the former Exposition Gardens site.

The deal reshapes the property's access points and creates new commercial potential along Northmoor Road. It also gives the school district land it wants near its bus maintenance facility.

"For those of us that have been supporting the concept of this project from the beginning, this is a significant step," said council member Tim Riggenbach.

What the city gets

Under the agreement, the city gains a roadway connected to University Street on the north side of the property. That creates a second entry point into the planned subdivision. The city also receives additional frontage along Northmoor Road that could support future neighborhood commercial development.

What the school district gets

Peoria Public Schools receives a long stretch of land to the west of the Richwoods High School athletic fields. The district wants that space to build an additional facilities building between the Expo property and its bus maintenance facility.

"They wanted some property between the existing Expo property and their bus maintenance facility to build an additional facilities building," said city attorney Patrick Hayes. "The city felt that that was positive because that would create a buffer between this residential area and where hundreds of buses park on a regular basis."

No money changes hands

The agreement includes no exchange of cash, even though the city is giving up more square footage than it receives. Hayes said the access to University Street and the Northmoor Road frontage are far more valuable than the interior land the school district is receiving.

Peoria spent $1.2 million last year to purchase the Expo Gardens site at a foreclosure auction. The purchase was aided by a $2 million grant from the Illinois Department of Commerce and Economic Opportunity, earmarked for land banks and housing development. City Manager Patrick Urich said the grant money has not yet been received.

TIF and tax incentives debated

The school district made one condition clear: the Expo Gardens development cannot be placed in a tax increment financing district. Hayes said a TIF district was never the city's plan.

The development could still qualify for the city's Urban Enterprise Zone program, which offers a modest property tax abatement that helps offset developer costs.

Council member John Kelly had planned to push for an urban decay designation for the site, which would unlock additional state income tax incentives lasting 10 years. Kelly ultimately tabled the item for further discussion.

Mayor Rita Ali said she would not support the urban decay proposal.

"I don't think the urban decay initiative is a fit for the Expo area. I don't believe that it's a decayed or blighted area," Ali said. "This is very similar to a TIF, and it delays property taxes for about 10 years. I think that's in counter to the agreement or understanding that we have with the school district."

What happens next

The Peoria Board of Education is expected to vote on the land exchange at its meeting on June 8. If approved, the city's request for qualifications from interested developers moves forward. The current submission deadline is June 9, though officials said that date could be extended to give developers time to review the implications of the land swap.

"I think it's a win-win for both taxing bodies, as government bodies, as well as for eventually for the city," Ali said.

The former fairgrounds site has sat largely vacant for years. The development would represent one of the largest residential projects in Peoria in recent memory and could reshape the East Bluff neighborhood.