At the City Council last night the aldermen were asked to look over their wards and find property that should be demolished as the city would like to budget each ward with x amount of dollars for that specific purpose. Not business property but personal property. This evidently could be rental properties or owner lived in homes. I know of 2 properties in Ward one that the city purchased in recent years and when sold will be sold at a loss.
If we had a building inspector doing his job, imo, none of this would be necessary on that large of a scale. Each ward has issues that is for certain but is purchasing the property and demolishing it the answer? Usually the answer is to start at the beginning and have a qualified inspector who will be working on issues like this and with persistence solve them long before we reach the demo point. What has happened to the proposed ordinance to make sure landlords are maintaining their property. Remember Boro, he got more done in one day than our current inspector does in 6 months.
Just recently the Public Property Committee looked over a list of city owner properties and most were amazed at the list and the properties owned by the city for years and years.
42 comments:
It must be election time Alderman A wants to make sure everyone get a copy of the concerts contract before the next meeting. Don't ya love it!
If Kristie didn't contact the Congressmen, Senators, and FAA the City would not have made more than $0.50 a ticket! That is a FACT look up the documents or find Kristie to give the details.
Does the airport make money as an airport?
3:36 PM
I don't believe it does but I could be wrong.
No the airport is not self sustaining by any means and after contact with approximately 8 different government agencies (who thinks government is ineffecient and too large is correct); a complaint is being filed under 14CFR16.
Furthermor a report for Fiscal Y13 prepaid by the City states:
"If grant revenue is excluded, a loss of $583,675 would be indicated for the budget cycle...the assets, almost exclusively, have been funded by general aviation grants received from either the Federal Government or the Illinois Department of Transportation Aeronautics Division."
This is NOT a Peru taxpayer issue; these funds are being provided by the federal government through the State Block grant. Every taxpayer in should be concerned with the waste in Illinois. It also appears the City of Pekin is concerned with the expense of funding their airport (Peoria Journal Star 2/13/13). So the question should be who is monitoring the effectiveness of this federally funded Airport Improvement Program in Illinois? Concert goers?
Kristy
Sorry Kristy is no obliged to answer any questions, she has a right to blog with her opinion just like others. I realize your intent.
It's a good thing the airport is being used for concerts because all the other time it is only for the rich who can afford a plane. Three times a year the common folks can come to the airport.
Speaking of those who use the airport its been heard that two or three of city halls finest record a bundle of frequent flyer miles. Watch closely for expenses from the airfield. What are the city laws in regards to turning credit cards in when someone is not reelected. How soon does a newly elected official take his seat after the election? There was quite a long period of time for the transition to take place after the last election.
Speaking of frequent flyer miles, if any were earned by a city official in this term where are they recorded and what becomes of them. Two city officials just flew to Washington D.C., did they recieve any and if they did where are they now? Any benefits thru city expense should be turned back to the city. Even travelling trophies should be deposited into the general fund.
8:39
People may not realize every year when a City agrees to an "improvement" at an airport and accepts federal funds WE AS TAXPAYERS renewed a 20 YEAR contract to operate the airport. Many grant adsurances exists and part of the requirements are to be self-sustaining (able to support itself).
Regardless of the concert argument; do you believe it is efficient or economical (used very loosely) the airport is only generating money when it has a concert but not as an airport?
10:39
Alderman Lukosus is a pilot and told me to basically mind my own business regarding the airport. It appears the parks are no longer a playground but it is the airport!
WE ALL should be concerned.
Kristy
Does anyone remember what year the hydro was purchased and for how much and from who? Another question is, is it worth keeping it up and running, how much of our electricity does it supply?
The airport doesn't make money on normal operations, but Kristy's post about the $583K loss is somewhat misleading. That loss is mostly from depreciation, which is really just a loss on paper. It has only been in the last few years that the government has required public bodies to start depreciating the value of their assets on their books. If you look at last years budget, you will see that there is a write-off of well over $500K for depreciation.
While the airport doesn't make money on normal operations, the concerts should go a long way toward correcting that. The state Division of Aeronautics has determined that the city hasn't violated any of it's grant obligations by having these events, and in fact they support the events as a way of generating revenue for the airport.
And for 8:39, who thinks the airport is only for rich folks, you should stop out sometime when the Civil Air Patrol cadet squadron is doing their training here (which is every Monday evening and many Saturdays). Or when we're giving Boy Scout or Girl Scout tours so the kids can get their aviation badges. Or on Young Eagles Day, when we give free plane rides to kids to introduce them to aviation. Or talk to the young men who learned to fly here that now fly for the Marines and Air Force. Or the ones who learned to fly here that went on to careers as pilots. You might think about the OSF Life Flight Helicopter that is based here. If you ever need it, you'll be glad that it doesn't have to come all the way from Peoria to get you.
The fact is that the airport has a 7 million dollar economic impact on the local economy, as was determined by the recent study by the state. The fact is that the vast majority of flights coming in to or going out of the airport are business related. And of the recreational flights, the vast majority are by members of the flying club, which is a group of hard working, middle class men and women who formed a club so we could afford to fly.
Anyone is welcome to stop out at the airport any time. I'll be glad to show you around and explain the airport operations.
Mr. Studer:
What is the intent or purpose of an airport? Certainly as the FBO that could be answered in one sentence.
Kristy
Also Mr. Studer your comment about a $7 million impact is misleading at best. When I contacted the State of Illinois Division of Aeronatics on August 12,2012 relative to the Illinois Aviation Economic Study (as you mentioned above); I was informed regarding the development of the data for this Final Report:
"unfortunately our contract with CDM Smith as a deliverable and is not available to distribute.".
Another fact is the form you completed relative to this study does not contain the same information as the final report. I question why as the FBO you information was not as important as the undeliverable and/or unavailable data compiled by CDM Smith? Also why wouldn't the State allow for the option to review the data on how the figures were obtained?
Kristy
Chuck answered your questions the airport don't make money.
Mr. Studer
You state that the airport does not make money on normal operations, and that the concert should go a long way toward correcting that. HOW?
Do you believe that $83,000 is a accurate figure for the loss the airport had last year. If $83,000 is a good number and the city spent $25,000 in renovations to convert some of the airport property to be suitable to hold a concert last year which Ms. Noonan was supposed to reinburse but Mayor Harl agreed with her that she did not have to do so. I now total $108,0000. Was not 30+ acres long term rental property given up to convert farmland into grass for the concert? Isn't Peru losing this income year after year?
Chuck how is the concert going a long way in correcting this $83,000loss when a Peru school did not even get the the normal set amount of $26,000 given out. Peru taxpayers paid and a the donation went to a out of town school.
I realize that you have all the figures and that you are running for trustee so would you explain how the concert should go a long ways in correcting the $83,000 figure when simple math shows that having the concert at the airport cost us $25,000+ and Peru has lost 32+ acres of long term farmland rent. I cannot figure how you can give away the airport and end up making a correction on a money losing business. Four years ago at the debates Mayor Harl told Mayor Baker that the airport was losing money and that it should be making money. Now under the same Mayor Harl we find that the airport lost over $100,000 last year which is four years later. Back home we'd say you guys gave away the farm!
To Mr. Studer, I think I understand your explanation about the airport not making a profit for the city. The fact that Peru's elected officials can't even manage to turn a profit on their own airport is very sad. This airport operation has has been an embarrassment since it was built.
Here is my question for you.
Please explain your company's agreement with the city of Peru regarding management of the facility, including the "Fuel Sales" at the airport and tell us if as I suspect, "you" are turning a profit on that Fuel Sale agreement.
Sign me,
Ms. Curious
I don't understand which, if any, aldermen have enough background information or knowledge to plan a demolition budget for their ward. We have a building inspector. Why don't the aldermen report any neglected property to him and let him do his job (the one we pay him to do)?
Isn't this the building inspector s job? Not Alderman!! Taylor and Bleck should be in charge of this. The city employees in the public works dept should be doing as much work as they can to save money! Also the city needs to sell this property to make money. We pay an outside person to have the yards cut on these properties because our summer help is too busy. These empty lots just cost us money. Not to mention the taxes on them!
Sell, sell, sell!!
8:49 You lost me on your analysis of the numbers, but that's OK, because I'm easily confused. Here's a little bit of info on the airport and the concerts.
When you look at just the operating budget at the airport, you have income from hangar rent, ground leases, fuel flow fees, farm rent, etc. You have expenses like maintenance of the lights and nav aids, building maintenance, legal and engineering fees, insurance, etc. If we don't have any major breakdowns of equipment, (like we have in the last couple of years), the revenue from the airport is nearly the same as the expenses. So the airport loses a few thousand dollars plus any extraordinary expenses like major equipment breakdowns.
Now, if you start adding in the cities share of capital improvement projects, then it will show as a loss for the airport. Depending on the size of the projects in any given year, that could be tens of thousands of dollars. Here's something to keep in mind. For every $5,000 the city spends for improvement projects, we get $90,000 from the FAA and $5,000 from IDOT. Most of this money is spent in the Illinois Valley. (Yes, you can present isolated cases of contractors from outside the area getting the jobs. But that is beyond our control, and still, a lot of the money is spent locally.) Now, people can debate whether the federal and state governments have the money to be spending on these projects, but the fact is, they are going to spend a certain amount of money each year on airport improvement projects. We might as well have that money sent to our community rather than others. And I know that Kristy thinks otherwise, but the fact remains that the airport has a 7 million dollar economic impact on the local economy.
As far as the concerts go, I won't rehash last years events. They have been debated here and elsewhere ad nauseum. There are valid points that have been made on both sides of the arguments. The thing that will change this year is that, in addition to getting $1 per ticket sold, the city will collect $5 for each car that parks on our property. If there are 3 concerts this summer, conservatively, the airport could expect to generate $60,000 this summer. That will more than offset the $7,500 in lost revenue from the farm rent.
And as far as who gets the donations from the promoter, I have no input into that.
Thanks Chuck, but I don't agree that last years concert was debated because the Mayor or any other city official ever responded to the accusations that were stated in the blog , at council meetings or anywhere else unless it was done within the inner circle which very few of us will ever be made aware of. I do remember when council memebers were getting nervous at the point wshere the concert owed the city $18,000 and had Alderman Bob A. go to collect. the result was that a additional $7,000 was added onto this amount and Mayor Harl erased it from existence with a pardon and that it never will have to be repaid. I also remember that this was a Mayor Harl thing and he moved forward on his own with no city council approval. The aldermen tired to discipline the situation but the mayor made all agreements before the council was aware of them.
The reason the city gets a $1.00/ticket rather than the previously agreed to $.50/ticket is to the creit of one person and only one person - KRISTY!
Glad to hear that the $60,000 generated from parking is a conservative figure. At $5.00 /auto that is 12,000 cars and now a bench mark has been established. What was the fee to park last year or was it included in the price of the ticket? One concerts draw was 9,000 x $5.00/auto = $45,000. How many concerts were at the airport last year? Who financially recieved the parking fees last year and how much was reported?
Also how much did the city recieve from $8.00/bottle of beer, $20.00 /punchboowls/ $4.00 slices of pizza and $4.00/bottle of water. Each promotional tent put up by vendors also pays as much as $10,000 each. What is the city recieving from these tents which are being erected on their land? If the city wants to have a concert why are they not hiring someone to promote it and make the profit from it? Could the real question be: Has someone or some group found they all of a sudden have a privat reason to love loud country music?
Anon 11:23 misspelled credit. Instead of creit replace with credit. Sorry and thank you.
Mr. Student @8:50
I realize since you operate your business from the airport and you are also the FBO and your "lively-hood" may depend on the continued operation of the airport. Please try to maintain an unbiased view regarding the $7 million impact study performed by the State. Illinois residents are intelligent and realize these types of "studies" are exactly why Illinois is in fiscal disrepair.
Whether the funds are from the federal, state, or local government; WE the taxpayer are funding the bill. Now for argument sake on a $100,000.00 project how much is utilized on engineering services? $20,000.00? Now these are estimates but my figures are not far off. How many different contractors have been utilized?
I am not against the airport and believe if marketed and utilized properly; it could be a great economic tool. It's about being cost efficient and taking the hands OUT of the cookie jar.
Kristy
Question please follow the thought process. The aiport must remain open per IDA and FAA correct? Is there a fee to park at the airport during regular airport use (no). So why would a taxpayer have to pay $5.00 to park at the airport during the concert if it must maintain the normal operation of an airport?
Kristy
Kristy,
As you probably know, the economic impact of the airport, or any other facility, is somewhat of a subjective calculation. I'm not a financial expert, but my understanding of how it is done is, the state (or its private contractor in this case) takes the information, which I provided with input from other people, and they take the amount of money that is spent at the airport for wages, services, construction, etc and they assume that money will be turned over in the community a certain number of times, and they come up with a figure. That may be an incredibly simplistic explanation, but that's what I know about economic impact.
The engineering fees for projects at the airport are not set by the city. The engineering firm prepares a project report for any given project. In that, they tell the Division of Aeronautics how much the engineering services for the design phase and the construction phase will cost. The Division of Aeronautics determines if the amount is acceptable and then the cost of those services are included in the total project cost, of which the city pays 5%.
And I've got news for you. This airport is an incredible economic tool. I can tell you with a great degree of certainty that several of the manufacturers north of I-80 simply would not be here if not for this airport. And as the economy picks up, and hopefully we start to see more activity, we have something to offer that many communities just can't. Along with our railroad, the river, and our access to interstate highways, Peru is a natural multi-modal transportation system. Certainly we could do more to market the airport. But marketing is very expensive. And then you would hear all of the cynics asking why are we spending money to market the airport? IVAC and the city do use the airport as part of their marketing strategy to prospective developers.
11:49 Dude, you need to read closer and pay attention. I didn't say the airport would generate 60K just from parking. Or just from one concert. And 9000 people doesn't mean 9000 cars. This might come as a shock, but everyone doesn't drive separately.
And I'm not a big fan of country music, but I am a big fan of 9000 people at the airport. And I can tell you one thing for certain, I don't make a penny off of the concerts. Not directly or indirectly. In fact, having these concerts costs me money.
Recently during the discussion of the BB Gun Club and the cities reluctance of acknowleging that there is a strong possibility of 1000 hours of city employee time not being charged to its building in the city hall basement several aldermen stated what a great utilization it was of city employees time. Everyone has heard the SPW Bleck say he doesn't have the manpower to perform all of the projects he is asked to take on.
Now I am hearing that Bleck has enough manpower to loan his employees out for 1000 hours and be complimented for it by aldermen.
Wasn't there work for these employees to perform for city purposes? The concrete stacked one slab on top of one another slab going on forever across the river has how much longer to be cleaned up before the EPA fines the city? This has been a unusally warm winter where alot of outside work should have been confronted. I bet another BB Gun Club isn't built next year in the basement!
Chuck,
Thank you for your explanation regarding how you believe the study was compiled. I too reviewed the data from CDM Smith and how the data was generated plus the final report regarding direct impact, multiplier impacts, total impact... My concern is it appears much of this "data" is qualative in nature in quite difficult to measure.
Could you please clarify what business with certainty are located in Peru North of 80 because of our airport? I don't dispute several businesses may utilize the airport but locating in Peru only because of the airport may be unjustly simplifying the other assets our City indeed has the potential of providing to industry.
So again it appears this issue with efficiency goes back to the State of Illinois relative to grants and engineering services. AIP grant is now 90/10 are you indicating the City pays 5% and the State pays 5% of engineering? Or is engineering under a different program at IDA?
It is acceptable to utilize airport revenue to market the airport and this is one small reason why it is so important to start to achieve economic efficiency at the airport by maintaining/determing grant assurances.
Kristy
In regards to the airports busboys sayin that 9,000 people does not mean 9,000 cars. Would someone wake him up and tell him there are supposed to be three concerts at the concert center this year. Of course this may be the end of them once a new mayor takes office as for his time at the airport?.
Chuck why are you giving a explanation of whether you make or don't make money off of the concerts. Everyone realizes that you are way too low on the food chain to even be considered. Of course if you want to keep hinting!
3:10 Didn't alderman Radke state at a council meeting that at least the BB gun project kept city workers busy because there was no snow to plow? Could someone verify that?
I do not care if there are 129 comments on this concert at the airport, the bottom line is the City of Peru should not be involved with a private business entity. This mayor should take some lessons from GLORIA!
Yes, This is what Alderman Mike Radtke said. Poor leadership.
Yes it was Alderman Radke who made that comment about keeping the city workers busy, as if not for the BB gun club, they wouldn't have had anything else to do.
Sherry Mayszak(x)
If alderman Radtke indeed made that comment then Sherry Mayszak deserves the support of the second ward in April. This craziness has go to stop!
10:15 PM
The video with the comment is on the city web site now. It is the last video to be posted and the comment is fairly early in the video, you might have to turn up your sounds a bit but it the comment can be heard.
Facts:
2011 ZERO DOLLARS received from concert for airport
2012 $9000.00 (1.00/ticket)
2012 is interesting. First it was $0.50/ticket with a minimum of $2500.00 with an estimate of 10-15,000 tickets to sell. Apparently the ticket estimate was high because at $1.00 a ticket only 9000 tickets were sold for Kid Rock. I don't understand why the exaggerated figures to the State of Illinois since concert promoter testified the concerts average 3000-6000 tickets.
2013 Suddenly during our economy it is estimated 10,000 tickets will be sold this year and charging $5.00 for parking for an event that supposing benefits an unknown "charity". Money galore with an estimated $12,500.00 per concert?
The worse part the State of Illininois, IDOT attorney, and IDA are in possession the the same documents but unfortunately Secretary Schneider relies on IDA to respond and IDA's response is full of inconstancies. In fact the letter from Secretary Schneider on June 18, 2012 indicated the 2012 concert would be the last concert at the airport.
In 2011 IDOT realized these non-aeronautical events were occuring all across Illinois and implemented an application process which has proven to be useless. I am not attorney and do not play one on TV but the IDOT attorney receiving copies of my correspondence certainly should review the intended use/purpose of an airport. The liability (to all Agencies) of allowing a non-aero event at a facility with assets funded almost completely by grant money out-weights the POTENTIAL monetary benefit to the airport fund.
This is a IDA/IDOT embarrassment and they do not want to address it properly now. Mark my words someone in Illinois needs to be pro-active on this issue instead of re-active...or is this going to be another Westclox issue?
Kristy
Alderman Mayszak asks on the latest council meeting video about the labor costs for the BB gun club. No answer could be given at that time nor has it been given yet. So, I roughly estimated costs and time according to information provided. For 4 weeks of work (160 hours) times 6 employees (960 hours) times $20/hour equals $19,200. This really increases the actual cost to the city for this project.
Anon 10:08 Is $20.00/hour the average wage/employee/hour of a city worker? This figure seems on the low side. Now you are speaking of employees which more than one alderman said they thought it was very good use of the hours and one said since there was no snow it gave them something to do. Take a average hourly wage and add cost of employees benefits /hour to it and multiply by 960 hours. Does anyone remember Mayor Harl saying to SPW Bleck you 've cut as much as you can havent' you. And that famous answer of were pretty much right down to the bone was the SPW's answer. All this was said at a city council meeting during the meeting.
12:20 My 10:08 post is just something off the top of my head. I'm sure it's a low estimate but the point is we were given no cost for labor for this project. It was meant to inform citizens that more than $3000 of their tax dollars went to this project and to question why we just can't have that transparent government the mayor promised. Honesty is all we ask.
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