Peoria City Council debates $1.125M settlement with Exposition Gardens bank foreclosure

In the dimly lit chambers of Peoria City Hall, council members gathered on June 24, 2025, to deliberate on a pressing financial matter that could reshape the city’s landscape. The discussion centered around a significant real estate transaction involving Exposition Gardens, a property that has been mired in financial difficulties, including a looming foreclosure.

Councilman Hayes opened the dialogue with a pointed critique of the transaction's timing, expressing concerns over the city's financial obligations. "I have 200 million reasons to really question this," he stated, emphasizing the urgency of the situation. The Exposition Gardens had taken out a $950,000 loan secured by a mortgage, but due to unpaid debts, the total owed had ballooned to nearly $1.4 million. The city, meanwhile, was owed approximately $457,000 in stormwater utility bills.

In a bid to resolve the situation, the bank has proposed a compromise of $1.125 million to settle the mortgage debt, contingent on a swift closing process. However, the council faced a critical question: without a current appraisal of the property, how could they justify this figure? The absence of an appraisal raised eyebrows, with council members questioning the prudence of moving forward without a clear understanding of the property’s value.

The city manager explained that the proposed price of $1.125 million was based on the acreage and consistent market trends, suggesting it was a fair deal. Yet, the lack of an appraisal left many council members uneasy. "I don't know anybody in this room tonight would buy anything without an appraisal," one member remarked, advocating for a delay to conduct further due diligence.

As the meeting progressed, the council discussed the implications of a $2 million grant earmarked for infrastructure improvements, which could potentially fund this acquisition. However, the conversation shifted to the city’s relationship with Morton Community Bank, which was described as strong, yet the urgency of the transaction raised concerns about the potential risks involved.

In a surprising turn, a motion was made to defer the decision for two weeks, allowing time for an appraisal and further discussions with the bank. This motion was met with support, as council members recognized the importance of ensuring due diligence before committing to such a significant financial decision.

As the meeting drew to a close, the council's deliberations highlighted the delicate balance between seizing opportunities and exercising caution in financial matters. The outcome of this transaction could have lasting implications for Peoria, making the next steps in this process all the more critical. The council's decision to pause and reassess reflects a commitment to responsible governance, ensuring that the city's financial future remains secure.