GOV. BLAGOJEVICH CREATES PIONEERING INITIATIVE TO DRIVE GROWTH AND REDEVELOPMENT ALONG ILLINOIS’ RIVERS – HELPING RESTORE THEM AS ECONOMIC ENGINES

New Pilot Program Will Provide Integrated Set of Resources To Revitalize River Communities

The SPRINGFIELD – Gov. Rod R. Blagojevich signed two laws … creating an innovative new pilot program designed to help revitalize riverfront areas of Aurora, East St. Louis and Rockford. The new law provides developers and businesses with critical tools necessary to revive and redevelop abandoned or contaminated properties. This will stimulate economic development opportunities and ultimately create more Illinois jobs. The River Edge Redevelopment Initiative includes the designation of redevelopment zones that will be eligible to receive tax credits, exemptions and new grant funding. These incentives are to support clean-up, remediation and redevelopment efforts that will lead to economic revitalization in these areas. 

This initiative combines resources across state agencies and will be administered primarily by the Illinois Department of Commerce and Economic Opportunity (DCEO) and the Illinois Environmental Protection Agency (IEPA). State Senator James Clayborne (D-East St. Louis) and State Representative Linda Chapa LaVia (D-Aurora) sponsored Senate Bill 17, which creates this pilot program that includes Aurora and East St. Louis.  State Senator Ira Silverstein (D-Chicago) and State Rep. Chuck Jefferson (D-Rockford) sponsored Senate Bill 1892, which the Governor also signed that makes Rockford eligible for the program.    

“We are targeting areas of the state that have the greatest need for redevelopment and potential for growth.  River communities, like Aurora, East St. Louis and Rockford, were the original economic engines of Illinois,and there are underutilized and abandoned properties along major waterways prime for redevelopment,” Gov. Blagojevich said.  “This River Edge Redevelopment Initiative will provide municipalities and businesses with the additional resources they need to be able to clean-up brownfield sites, which is going to attract more businesses and put more people to work."

The River Edge Redevelopment Zones would consist of environmentally challenged areas that lie adjacent to a river that have economic development potential, but the costs of redevelopment have made attracting investment extremely difficult.  These zones would be structured similarly to the current Enterprise Zone designation, where municipalities would apply directly to the state to become a River Edge Redevelopment Zone.  Once a zone has been approved, developers and businesses could be eligible for tax exemptions, including sales tax breaks on building materials, an investment and jobs tax credit and various other deductions. Companies or individuals in the zones could also be eligible for an environmental remediation tax credit for certain clean-up costs.

Municipalities, developers and companies located in these zones could be eligible to receive funding to support infrastructure needs for economic revitalization projects, which will ultimately lead to job creation and economic development in a zone.  While many of these areas were home to former industrial sites, they are now ideal settings for new residential, office, warehouse/distribution, retail, recreational, hospitality, commercial and other productive land uses.    

“We are always looking for innovative ways to take advantage of all of our assets to continue growing the economy and creating more jobs.  Gov. Blagojevich’s River Edge Redevelopment Initiative is exactly the kind of spark needed to turn promise into prosperity by allowing East St. Louis to attract more private investment and economic development opportunities,” State Senator James Clayborne (D-East St. Louis) said.

"I am pleased to see the River's Edge Redevelopment Initiative become a reality.  I believe this legislation will help ensure that our river communities won’t sit on the sidelines as important redevelopment projects float past them.  This creative pilot program will provide businesses in Aurora the tools they need to spur renewed interest in prime properties that once were and still can be key components of Illinois’ economy," state Rep. Linda Chapa LaVia (D-Aurora) said.  

"Gov. Blagojevich and I will continue supporting innovative programs that will help grow our economy and clean up our environment.  This is going to create more jobs and attract more investment, and fulfill Mayor Morrissey’s vision for revitalizing Rockford’s riverfront," State Senator Ira Silverstein (D-Chicago) said.

“Gov. Blagojevich and I are committed to providing more economic development opportunities for businesses in the Rock River Valley.  This creative pilot program will provide businesses in Rockford with the tools they need to spur renewed interest in prime properties that once were and still can be important contributors to our local economy,” State Rep. Chuck Jefferson (D-Rockford) said.  

"New condo and town home development along the Fox River is already slated to bring hundreds of new residents to downtown Aurora.Gov. Blagojevich and I recognize that the River Edge Redevelopment Initiative paves the way for companies to tap into this market, creating new economic development opportunities and jobs. This creative program directly benefits our taxpayers by helping to transform Aurora's former industrial sites into a vibrant downtown commercial center,” Aurora Mayor Tom Weisner said.

“I want to thank Gov. Blagojevich and Senator Clayborne for creating these kinds of innovative economic development programs that are going to help attract new companies and new jobs to East St. Louis   I am looking forward to continuing to work with both of them to help us reach our economic potential,” East St. Louis Mayor Carl Officer said.

“We have an opportunity here in Rockford to revitalize land that has been languishing without providing any economic benefits to our taxpayers. Gov. Blagojevich and I understand that by establishing this creative program, we can open the door to economic development opportunities that have been closed here for far too long,” Rockford Mayor Larry Morrissey said.

“In Aurora, East St. Louis, Rockford and across the state, we constantly hear about the need to redevelop old, underutilized and contaminated properties.  But developers and businesses generally won’t make significant investments in areas that require significant amounts of remediation. The River Edge Redevelopment Initiative will provide vital resources to offset some of these costs so we can bring more opportunities and jobs to these areas,” said DCEO Director Jack Lavin.
      
Brownfields are abandoned, idled or underused industrial and commercial properties that have actual or perceived contamination and an active potential for redevelopment.  Brownfields vary in size, location, age and past use, and can include contaminated land varying from a multi-acre closed factory to a vacant gas station.  While brownfields were once considered to be only an environmental health issue, they are now fully recognized as areas with the potential to play a vital role in the economic development of a community.  In Illinois,there are an estimated 7,000-10,000 brownfields sites in need of remediation.

“As a former Mayor of a river community, I know that brownfield sites, especially those with abandoned properties, present significant roadblocks to redevelopment. Municipalities often don’t have enough resources to make a site viable for potential economic development projects.  This is a new, integrated set of tools that will lead to a renaissance along our river banks,” said IEPA Director Doug Scott.