Peoria High-Rise Revival: Owner Seeks Agreement to Reopen Riverview Plaza

Ongoing Legal Dispute Over Revitalization of Riverview Plaza

Peoria, Illinois is currently in the midst of a legal battle over the future of the 20-story Riverview Plaza, the city’s tallest high-rise. The building has been shuttered since a water leak caused significant damage in February 2024, and now both the city and the building's owner are seeking more time to finalize an agreement that could lead to its revitalization.

City Manager Patrick Urich and Thomas Leiter, attorney for MJ Illinois LLC—the company that owns Riverview Plaza—have asked a judge to delay a scheduled hearing set for 2 p.m. today in Peoria County Circuit Court. Both parties plan to meet again in court on Monday to continue negotiations. The goal is to reach a deal that will allow the building to be reopened for future tenants.

Key Issues at Stake

The primary issue revolves around millions in potential fines and the feasibility of bringing the building back online. While no details about a possible settlement were discussed in open court, Leiter revealed to WMBD-TV that his client is prepared to put approximately $500,000 into escrow. This amount would cover the costs of restoring the fire suppression system, which city officials have emphasized as critical for safety.

Leiter also noted that the elevators are operational but have not been certified due to the malfunctioning fire system. The escrow funds, he explained, would address most of the code violations currently holding up the building’s reopening. In return, the city would not pursue any fines that might be imposed by a Peoria County judge.

Both Urich and Leiter believe the two sides are close to reaching an agreement, although progress has been slow.

History of the Building’s Issues

The problems at Riverview Plaza began more than a year ago when a water pipe burst in February 2024, leading to extensive water damage. City code inspectors discovered that the building’s sprinklers and fire alarms were not functioning properly, prompting officials to declare the structure unsafe and shut it down.

This decision caused widespread concern among tenants, who have since vacated the building. With the alarm system and sprinklers still offline, city officials worry about the potential risks during an emergency. Additionally, the building’s parking deck has been blocked off due to concerns about falling concrete, which could pose a danger to people or property.

Recent Developments and Agreements

Last fall, the city and the building’s owner reached a temporary agreement. MJ Illinois LLC admitted liability for 18 fire and housing code violations, and in exchange, the city agreed to drop the charges once repairs were deemed to be on track. The terms of the agreement included the promise that no fines would be imposed, and the city would eventually get a functional building at 411 Hamilton that could be repopulated.

However, according to City Attorney Patrick Hayes, much of the required work remains incomplete. He stated earlier this month that the owner has not met the commitments made under the settlement agreement, despite voluntarily agreeing to complete the repairs in 2024.

Leiter, on the other hand, maintains that his client is committed to reopening the building. He claims that tenants want to return, but the scale and complexity of the necessary repairs have delayed progress.

What Comes Next?

As both parties continue to negotiate, the outcome of this dispute will determine the future of Riverview Plaza. If an agreement is reached, it could mark the beginning of a long-awaited revitalization effort. However, if tensions persist, the building may remain vacant for an extended period, posing ongoing challenges for the city and its residents.