PEORIA, Ill. (25 News) – Former Peoria Mayor Jim Ardis was on the stand Wednesday in the third day of the federal fraud and embezzlement trial of Gary Matthews and Monte Brannan.
The two businessmen are accused of diverting millions of dollars from the operation of the Pere Marquette for their own purposes.
Ardis, who was mayor at the time of the redevelopment project and when Matthews’ hospitality group was operating the hotel.
Attorneys for both sides spent about two hours questioning Ardis, who says he supported the city making the $7 million loan and $29 million grant for the redevelopment of the historic hotel and the addition of the Courtyard because seeing the Pere fail was not an option.
Ardis says everyone knew the risks of the projects and two other developers passed on it before Matthews committed to it as GEM Hospitality Group.
But GEM also initially passed on the project because of the proximity to Big Al’s nightclub and other bars at the time. The city eventually provided the land for Big Al’s move to its existing location.
Ardis says he helped connect Matthews to potential investors, but ultimately the massive historic redevelopment project and the funding for it needed majority approval of the full city council.
Ardis also told the jury he initially supported Matthews and Brannan taking over management from Marriott, noting his experience with the hotels under Marriott wasn’t good.
Matthews’ defense team also reminded him about saying Matthews would, “get what he deserves.”
Ardis said he meant it literally both ways – if Matthews does well, he’ll reap the benefits. If he’s up to no good, then karma will take care of him.
Ardis says he made that comment more than once.
The trial resumes at 8:30 a.m. Monday.
