Local: Peoria leaders figure out a new way to kiss Caterpillar’s big yellow butt
Caterpillar Inc. is fixing up its parking deck. Good for them. For them. It’s their deck, they are responsible for it. In a totally pure free-market, free-enterprise system they ought to be responsible for those costs. One of those costs, one assumes, would be to find a place for its workers to park.
After all, there isn’t a mini-mall, mega-mall or a hot-dog stand that isn’t forced to comply with strict standard that state exactly how many parking spaces must be provided. The number of the spaces is set my ordinance. The number of handicapped spaces is set by ordinance. The width and length of the spaces are set by ordinance. The cannot just say that their customers and employees are going to park on the street. They have to either buy enough land to build their own lots, or make arrangements with nearby property owners who have a surplus.
But not if you are Caterpillar. For them, the free-market is a concept to be trotted out to argue that it should be able to do business anywhere, with anyone, without restriction from pesky rules and regulations.
But when it suits their interests, they are like pigs at the public trough.
So, Caterpillar simply went to the city of Peoria and announced they wanted to pave over the ground at the former Sears Block and have it’s minions park their cars there. Don’t worry, we’ll pay for the costs and cover the cost for providing security at the site. This would be roughly equal to the rental space the city otherwise would be able to get from the spaces.
Well, that was the theory when this was discussed during an executive session following the last council meeting.
Caterpillar didn’t need to pay rent, the thinking was, because it was “a wash.”
Council member Gary Sandberg now says that he was told that the process would take about five mnths. But the agreement presented to the council for approval Tuesday stated that it would take as long as 7 1/2 months, a 50-percent increase. In other words, the city was losing 50-percent more rent that the council had been led to believe.
Sandberg lectured the council:
“We are going to have to start treating our business assets with some business sense, like Caterpillar does,” he said.
“I guess I misunderstood the math” and “didn’t understand the length,” said City Attorney Randy Ray, adding that the “wash” was based on “rough math.”
“It’s not lost OR found money,” Ray said.
Mark Johnson of Caterpillar (I can’t find his title right at this moment; I’ll get it later) told the council that the company doesn’t know exactly how long the repairs will take. The deck, he said, is 45 years old.
“Instead of just patching it up, we want to do a major overhaul,” Johnson said. “I expect it (the length of the agreement) was extended so it could a a little cushion.”
Council member Barbara Van Auken, who earlier expressed doubts the longer length of the agreement made it a wash, said she trusted Johnson’s word and was among those who voted to approve the agreement.
But the biggest defense came from Peoria Mayor Jim Ardis.
“I have absolutely no problem with the agreement,” Ardis said, “considering all the good Caterpillar does for our community.
“I don’t think this is one we need to dig our heels in on, folks.”
The vote to approve was 9-1, with Councilman Eric Turner abstaining (he works at Caterpillar) and Councilman Pat Nichting, who was absent.
Sandberg told me after the meeting that the city essentially gave up about $100,000 in revenue by not renting Caterpillar the space. And then there is the revenue that the owners of privately-owned parking decks lost because Caterpillar didn’t have to rent spaces from them on the open market.
So the council not only screwed the taxpayers out of incoming revenue, they screwed some private businesses out of some cash as well. It’s sorta like if the city is standing outside of restaurants handing out free hot-dogs and soda.
And here’s my last comment/question about this whole mess: I assume these improvements to the Sears Block include paving it over and laying down some parking stripes. Exactly what good will these improvements be to the city once Cat’s own deck is completed? After all, aren’t they going to have to tear it our to build their museum and Caterpillar’s visitor center?
A wash? This thing sounds like a hosing from day one.
NOTE: Corrected to change weeks to months.
Billy Dennis is a former reporter and editor at small daily and weekly newspapers in Illinois and Missouri. He comments on media, news and politics. He also owns and operates 
Caterpillar has been outsourcing Peoria area jobs for decades now and those jobs retained are at significantly lower wages and benefits … Yet we still hear all this about the benefits Caterpillar brings to the area. Ask yourself if Peoria would GIVE a parking lot to Wal-mart.
“there is the revenue that the owners of privately-owned parking decks lost because Caterpillar didn’t have to rent spaces from them on the open market.”
Are the people who are parking in the Cat garage paying to park in privately owned lots? Mmm no. So the privately owned lots are NOT losing money. You cannot lose revenue you never had.
Bill,
Five months, not five weeks and……………$50,000 (or precisely $49,500) , not $100,000
It’s not butt kissing, Bill. I’d suggest it’s a little more intimate…
It’s not butt kissing, Bill. I’d suggest it’s a little more intimate…
Cat doesn’t need me to defend it but, why is it that Cat and Bradley, the two institutions that put Peoria on the map, are always getting dists on this site?
Excuse me? Low wages and benefits? Personally, I’d take $18 an hour to push a button 8 hours a day and get a $200 prescription for $5 anyday. Cat people wouldn’t know what to do with themselves if they couldn’t find something to bitch about.
Michael,
I believe you are referring to mostly the union jobs. Its not Cat’s fault the UAW thought that Cat had an unlimited pocket to keep pulling from to appease the union workers and had to look eslewhere when it ceased being cost-effective. Even their starting wage not is something line $15 an hour, that’s still an excellent wage for unskilled labor. Why is it some people think Cat should pay entry level employees more just because they’re the biggest employer in the area? Its ridiculous…
And building on Mahkno’s point, where are these privately owned parking decks? Nearly every deck I’ve ever used downtown is owned by the City and operated by National Garages? And they’re all packed anyway. I remember a number of days when I parked in the deck next to the Chase building where even thought my company paid for me to park there wasn’t a spot available for me to use!
Finally, I could be wrong on this point, but didn’t Cat demo that block for free anyway?? If it wasn’t for them we’d have a nice old unoccupied Sears building still sitting there.
My only bitch about Caterpillar is the inordinate salaries,bonuses and stock options they give to top level officers and directors. They work hard, but so dothe guys in the shops. Other than that, we are so lucky to have Cat here in Peoria that we don’t realize it; take your unemployed public officials and let them criticize someone else.
Mahkno – maybe “potential revenue” would be a better way of wording it.
When have people ever been paid for how hard they work? They get paid what the value of the work dictates.
“My only bitch about Caterpillar is the inordinate salaries,bonuses and stock options they give to top level officers and directors.”
That is a problem throughout corporate America. The solution to that is elusive. Talent tends to go where the money is. Cat isn’t the worst offender by far for executive pay.
I have heard they have to try really hard to get talent to come to Peoria. It’s why they push so hard (covertly) for stuff like the stadium.
“They work hard, but so dothe guys in the shops.”
“Working hard” isn’t the basis of one’s worth.
Roman and Mahkno,
So, how big are the hammer and sickle painted on your garage wall?
I’m guessing they’re about as big as the Swastika painted on yours. (oooh, snap!)
JOKING!
My statement was accurate. They have shipped a significant number of jobs away. And I didn’t say LOW wages … I said LOWER wages. How is it we applaud their record profits without noticing the wages have declined for those who make the product? My point is we continue to laud Caterpillar as if it still contributed what it did decades ago. It doesn’t.