Peoria’s Own Stimulus Package

February 4, 2009


FOR IMMEDIATE RELEASE

Peoria—The Block is Peoria’s own economic stimulus package—so let’s get to work! That was the clear message two local economists and two union leaders echoed today at a press event at Peoria’s Labor Temple.

Curious about the proposed development, independent researchers Robert Scott, Ph.D., and Joshua Lewer, Ph.D., donated their time to perform an economic impact study of the Peoria Riverfront Museum and Caterpillar Experience planned for a seven-acre downtown site on Peoria’s riverfront.

“We approached it like any other independent study we’ve done and were prepared to report whatever we found to museum collaborators,” explained Scott, who is chairperson of Bradley University’s Department of Economics.
 
What they found amazed even these veteran analysts.

Engine of Economic Growth
“This project couldn’t come at a better time,” said Lewer, an assistant professor of economics at Bradley University. “It’s Peoria’s own economic stimulus package. It will help soften the impact of the recession in our area and help quicken the pace of recovery.”

The researchers used national, state and local data sources and time-tested multipliers in their analysis. Their findings indicate The Block would create approximately:

  • 1,100 jobs during the two-year construction phase, including construction jobs and additional jobs that result from increased earning, spending and savings by those construction job holders
  • 87 jobs per year after construction
  • $210 million in business development and county growth during construction
  • $12 million in additional economic activity per year from facility operations
  • $9 million in additional commerce per year from visitor spending

    “I’ve been in this area since 1975, and I’ve never seen a local opportunity where the return on public investment is this high,” concluded Scott. “It’s something that happens maybe once in a lifetime.”
             

    Strong Private Support
    “Because of the pledged private support for The Block, the positive return on the public investment is very high and extremely rare,” said Scott.

    Caterpillar is funding the entire Caterpillar Experience and pledging more than $13.5 million toward the Peoria Riverfront Museum, joining scores of other local businesses and individuals who have donated to the museum to reach 86% of The Block’s private funding.

    As a result of that support and local and federal public funding, only about $35 million in additional public funds are needed for the $136 million development. If approved by Peoria County voters on April 7, those funds would come through a quarter of 1% sales tax increase over a maximum of 20 years.

    When Scott and Lewer analyzed the potential impact of this sales tax increase over a 20-year period, their calculations showed that for every $1 in sales tax directed to the Peoria Riverfront Museum, $14 dollars would be returned to the community in economic activity in the form of construction, attraction and visitor spending.

    Let’s Get to Work
    The West-Central Illinois Building and Construction Trades Council (WCIBCTC) represents 20 individual construction craft unions and nearly 15,000 members living in Central Illinois.

    WCIBCTC Executive Director Dan Silverthorn and Council President Mike Everett were joined by union construction workers in underscoring their support for The Block.

    “With the economic downturn, some people are asking, ‘Is this really a good time to build a new complex in downtown Peoria?’ And we say, ‘You bet it is!’” said Silverthorn, noting The Block project would employ 250 to 300 workers per month and generate $1.8 million in labor payroll monthly over a 25-month construction period.

    Through an unprecedented agreement among Caterpillar, the Museum Collaboration Group and the Greater Peoria Area Contractors and Suppliers Association, the entire Block would be built with 100 percent local union labor.
    “As those of us who drive or walk past it every day are well aware, for more than 15 years now the former Sears block has either been a crumbling mess or a vacant sinkhole,” said Everett. “But all that will change if we Build The Block.”
    “The result is a win-win for our local economy and The Block at a time when every job and every dollar counts,” he added.

    A copy of our report will be filed with the State Board of Elections and the County Clerk. The report will be available for purchase from the State Board of Elections, Springfield, Illinois, or the County Clerk, Peoria County Courthouse, 324 Main Street, Peoria, IL 61602.

         -- end –

Peoria’s Own Stimulus Package