'Creation of a new neighborhood': Peoria approves $38M development in Warehouse District

The "largest two" undeveloped warehouses in Peoria's burgeoning Warehouse District are about to get a major makeover.

The Peoria City Council approved a $38 million development plan for buildings at 800 SW Washington Street and 801 SW Washington Street to be turned into 176 residential units. Both warehouses have plans to include commercial space.

City Manager Patrick Urich said the addition of these residential units would bring the total number of residential units downtown and in the Warehouse District to over 1,000. He also said this addition would aid in what he described as the "creation of a new neighborhood" in the Warehouse District.

"This is a very welcomed development that we have," Urich said. "Oculus Development is a developer out of Chicago, they have a great track record of multi-family units."

Construction on the residential units has an estimated completion date of March 2026.

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Tax incentives for residential units

Project developer Oculus Development will be using historic tax credits and tax increment financing reimbursements to recoup development costs through 2043. The total TIF reimbursement on property taxes for the project will be $10.4 million, the developer will recoup $6.7 million of that money, and the city will get $3.7 million.

Oculus Development will receive a 100% rebate on property taxes in the years 2027 through 2029; 75% between 2030 and 2032; 65% between 2032 and 2034; 50% between 2036 and 2043. In the first three years of development, the developer will get no TIF rebate.

The developer can receive no reimbursement money however until the project is completed and a letter of occupancy is signed.

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Special parking agreement made between city, developer

A city-led parking project was also promised as part of this development, which will see the city develop a parking structure at 905 and 907 SW Washington Street to be used by the residents of the Oculus Development.

Two weeks ago, the City Council approved a plan for the city to buy the land at 905 and 907 SW Washington Street, in an effort to add more parking deemed crucial for the residential development.

Peoria plans to demolish the current buildings located at 905 and 907 SW Washington Street to develop a parking structure, once funds for the project are released, Urich said.

Residents of 800 SW Washington Street will be allocated 84 spots at the parking structure. Residents of 801 SW Washington Street will be offered parking on an "as available, non-exclusive basis."