PEORIA, Ill. – The empty Sully’s and Illinois Central College buildings off SW Adams Street in downtown Peoria will stay empty after plans to redevelop the block fizzled out.
City leaders say the plans to redevelop the part of the city’s Central Business District are scrapped because the developer never submitted building plans.
Peoria developer Keith Weinstein agreed with the city in March of 2023 to redevelop the Sully’s bar and ICC buildings. The buildings were to be turned into a $57 million Hilton Hotel, 50-unit apartment complex, restaurant, and convenience store.
As part of the agreement with Peoria, Weinstein was supposed to submit plans by April, which he didn’t do.
Peoria City Manager Patrick Urich tells 25 News, the city granted Weinstein a six-month extension in April, but he still missed the October due date to submit plans.
Urich says downtown redevelopment is part of the city council’s top priorities, so city leaders would have loved to see the project go forward.
“If he were to come back to us and say he has site control and he had his construction plans complete, we would certainly revisit the redevelopment agreement,” Urich says.
Weinstein’s lawyer Tom Leiter says high interest rates made the project unrealistic.
“Some relief needs to be had in the interest rate environment,” Leiter says. “If that occurs, then the project may get restarted.”
Leiter says other factors made the project unfavorable.
“The lack of activity in the downtown area of Peoria, crime, and the homeless population are also issues,” Leiter says.
Peoria 2nd District Councilman Chuck Grayeb says while the termination is a setback in redeveloping the downtown’s Central Business District, he’s not concerned about it preventing future developments.
“There are many entrepreneurs and a lot of great, creative, energetic business people who know that the central business district and the warehouse district of Peoria is going to be the place to go,” Grayeb says.
Grayeb says there’s a need for more people to live downtown as businesses grow, and he believes the buildings will eventually be redeveloped.
Urich says Weinstein owns the Sully’s building, but did not buy the ICC building. It’s still up for sale for $1.3 million.
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