Peoria Weighs STAR Bond District at Northwoods
The City Council considers a state-backed financing district to support redevelopment of the Northwoods Mall property.
Updated on Nov. 10, 2026 in City Hall
Live Poll
Would you support using future sales tax revenue to fund a Northwoods Mall redevelopment?
The Peoria City Council is considering a measure to create a STAR Bond District around Northwoods Mall, which would overlay the mall's existing tax increment financing district. Only Normal and Peoria have applied to create a STAR Bond District, and state rules limit the number of such districts in the area to three.
Why it matters
STAR bonds reinvest a portion of future sales tax revenue from new development into eligible project costs, including public infrastructure. For Peoria, the proposal could shape how the aging Northwoods Mall property is redeveloped and how future tax revenue is directed.
The reimbursement threshold is approximately $60 million in annual sales, and the state has capped STAR Bond Districts in the area at three, with only Normal and Peoria having applied. Whether the planned development will reach that sales level has not been established.
The players
Peoria City Council
The elected body of Peoria, Illinois, which will vote on whether to create the STAR Bond District and holds authority over the city's tax increment financing districts.
Summit Properties USA
The real estate firm that owns Northwoods Mall, the property at the center of the proposed STAR Bond District.
Patrick Urich
A Peoria public official involved in the city's consideration of the Northwoods Mall redevelopment proposal.
The details
The proposed district would overlay the existing Northwoods Mall tax increment financing district and stretch from Glen Avenue down Sterling Avenue to Newman Parkway. Redevelopment plans include retail shopping, dining, hotels, entertainment uses and additional outlot construction, and forming the district requires public notice, a hearing and a municipal vote.
Timeline
November 10, 2026: City Council considers the STAR Bond District proposal at its Tuesday meeting.
December 8, 2026: A public hearing on the STAR Bond District is scheduled at City Hall.
January 1, 2027: New state micromobility device rules take effect.
Political Context
The Peoria proposal applies the Illinois STAR Bond program, a state financing tool for large destination developments, to the existing Northwoods Mall site. Kansas City has been cited as a precedent for using STAR bonds, and the state's cap of three districts in the area limits how many communities can pursue the tool.
If approved, the district would redirect a portion of future sales tax revenue from new development on the Northwoods Mall site toward eligible infrastructure and project costs. Residents would see the effect through the pace and scope of redevelopment rather than through any direct new charge in the proposal.
The takeaway
The STAR Bond proposal shows how a city can tie future sales tax growth to a specific redevelopment, but the outcome depends on whether projected sales reach the state threshold. Readers tracking the Northwoods site should watch the November and December meetings for the council's decision and the public hearing record.
What happens next
The City Council takes up the STAR Bond District proposal on November 10, 2026, with a public hearing scheduled for December 8, 2026 at City Hall.
Further reading
For more on local government decisions, see City Hall coverage of Peoria.
Source note: This article includes information reported by WMBD 31 Peoria.
Live Poll
Would you support using future sales tax revenue to fund a Northwoods Mall redevelopment?
