By Kevin Haas
Rock River Current
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ROCKFORD — City Council members on Monday approved financial support for three redevelopment projects that promise to bring new businesses and residential living to downtown.
Aldermen voted 14-0 to approve funding for the redevelopment of the former Watch Factory, 325 S. Madison St., Trekk building, 134 N. Main St., and the Art Deco building, 213 W. State St.
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Oliver Emerson Development is rehabbing the Watch Factory and Trekk buildings, and Urban Equity Properties is redeveloping the Art Deco building.
“Urban Equity Properties and Justin Fern just seem to be rehabbing and retooling and redesigning our downtown one building at a time,” Alderman Tim Durkee said. “These are just good projects to see. Who knows what, in the next 10 years, our downtown will look like. Kudos to both of these gentlemen.”
The money comes in the form of forgivable loans and from tax increment finance districts. TIF districts capture the additional property tax money that comes when improvements are made and values increase into a special fund that can be funneled back into paying for redevelopment costs.
The developers are also expected to utilize state historic tax credits and state River Edge Redevelopment Zone incentives to help pay for the projects.
Here’s a look at each development:
Art Deco building
What: Urban Equity Properties plans to renovate 11,700-square-foot Art Deco building at 213 W. State St. into a mix of retail and office space. It will have two businesses on the ground floor and loft office space on the second and third floors.
Urban Equity said a major national tenant has been secured for one of the spaces on the ground floor, but it cannot reveal the name of the business yet.
“It’s going to be a killer amenity in the center of all the action,” said Justin Fern, founder and CEO of Urban Equity Properties.
A groundbreaking ceremony is expected to happen in roughly a month, and the tenant would be named at that time, Fern said.
The goal is to have the ground-floor tenant in and the work completed by fall.
Where: 213 W. State St., Rockford
Redevelopment cost: $4.5 million
City support: Up to a $1 million forgivable loan, and reimbursement of 100% of funds the project generates from the TIF district on a pay-as-you-go basis through 2031.
Main and Mulberry
What: Oliver Emerson Development plans to turn the former Trekk building, which was built in 1929 as the city’s first Walgreens, into 14 residential lofts and a ground-floor business.
The business may be a vintage wine, spirits and cigar shop, the developers said. But they are in the early stages of that portion of the project.
Where: 134 N. Main St., Rockford
Redevelopment cost: $6.7 million
City support: $580,000 forgivable loan; $1,084,760 TIF district advance, which is repaid when the TIF district generates income from the higher property taxes that come with the improvement
Purchase price: Oliver Emerson will buy the building from the city for $70,000
Watch Factory
What: Oliver Emerson Development plans to rehabilitate the three-story former Watch Factory, which was built starting in 1874, into 24 market-rate apartments. There will also be solar-covered parking spaces flanking both sides of the building.
Work on both the Watch Factory and the Trekk building would begin in the fall.
Where: 325 S. Madison St., Rockford
Redevelopment cost: $7.2 million
City support: $620,000 forgivable loan; $1,396,505 TIF district loan
Purchase price: Developer will buy the city-owned building for $55,000
This article is by Kevin Haas. Email him at khaas@rockrivercurrent.com or follow him on X at @KevinMHaas or Instagram @thekevinhaas and Threads @thekevinhaas