Peoria Approves Downtown Development Incentives

New tax-increment financing district aims to spur investment in city's core.

Published on Feb. 10, 2026

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The Peoria City Council has approved the creation of a new tax-increment financing (TIF) district to encourage development and investment in the city's downtown area. The TIF plan is designed to provide financial incentives for property owners and developers to revitalize aging buildings and vacant lots in the city's central business district.

Why it matters

Downtown revitalization is a key priority for Peoria as the city seeks to attract new businesses, residents, and visitors to its urban core. The new TIF district is expected to leverage private investment and spur economic activity in an area that has struggled with high vacancy rates and aging infrastructure in recent years.

The details

The TIF district will allow the city to capture a portion of the increased property tax revenue generated by new development projects within the designated area. These funds can then be reinvested into public infrastructure improvements, building renovations, and other initiatives aimed at making the downtown more attractive for private investment.

  • The Peoria City Council approved the new TIF district on February 11, 2026.

The players

Peoria City Council

The governing body of the City of Peoria, Illinois, responsible for approving the new downtown TIF district.

JJ Bullock

A business and government reporter for the Journal Star newspaper, who covered the City Council's approval of the TIF plan.

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What they’re saying

“This TIF district is a critical tool to help revitalize our downtown and attract new investment. We're hopeful it will be a catalyst for positive change in the city's core.”

— Mayor Jim Ardis, Mayor of Peoria (Journal Star)

What’s next

The city will now work to identify specific development projects and public improvements that can be funded through the new TIF district, with the goal of breaking ground on the first projects by the end of 2026.

The takeaway

Peoria's approval of a new downtown TIF district demonstrates the city's commitment to revitalizing its urban core and leveraging public-private partnerships to drive economic development and investment in the city's central business district.