A vacant building on Peoria's riverfront is slated to become a mixed-use residential and commercial property following an agreement between the city and developers.
The 20,000-square-foot property at 414 SW Water Street, which butts up against the Illinois River and sits on the same lot as the former Hooters building, is scheduled to be the recipient of a $7 million makeover that will add five residential units, a rooftop pool and commercial space to the now-vacant warehouse.
Peoria will also allow the developer to use 15 feet of land along the west boundary of the building and 6 feet of land along the south boundary to build a fenced green space for tenants and beams for balconies. The building will also be allotted nine parking spaces.
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Construction on the project is expected to begin in mid-2024, based on the timeline approved in the redevelopment agreement. Completion of the project is expected to take 21 months after construction starts.
Peoria and the site's developers, 414 Water LLC — managed by John Petrakis of Peoria — agreed to a 20-year tax increment financing reimbursement plan for the property. The developer will be eligible for 50% reimbursement on property tax increments.
The city estimates the property will generate $1 million in property tax increment over the life of the TIF.
"This will be a great addition to Peoria's riverfront and will really clean up an area that has had a pretty stagnate look for quite some time," said city councilmember Zack Oyler.
The building sits on the same chunk of land as the former Hooters restaurant, which closed in 2017 and is owned by the city.
For years, Peoria has been working to find a tenant to open a restaurant in the vacant Hooters spot.
City councilmember Andre Allen asked if the residential development had spurred any new interest in a tenant for the old Hooters.
"We consistently have interest in that space," assistant city manager Kimberly Richardson told Allen.
She added the old Hooters building is for lease and the city does not intend to sell the property.
"When we think about the future of our riverfront redevelopment plan, we want to have the right tenant go in that space," Allen said.
This article originally appeared on Journal Star: Vacant Peoria riverfront building to become luxury residences