An Illinois program that has helped preserve historic buildings and enhance local economies in three northern Illinois communities is now extended through Dec. 31, 2021.
The River Edge Redevelopment Zone program provides up to 25 percent income-tax credit for developers who rehabilitate historical buildings and put them to productive use.
Although limited to only five cities – Rockford, Elgin, Aurora, Peoria and East St. Louis – with rivers flowing through them, the program is credited with creating a $10 return for every $1 of credit. Examples of successful projects under the program include:
- The Prairie Street Brewhouse in Rockford
- An old barrel-making facility in Peoria transformed into luxury apartments that still reflect the historic building’s original charm.
- The St. Charles Senior Living Center in downtown Aurora that received the 2017 Landmarks Illinois Award for Rehabilitation.
The bill to extend the program -- Senate Bill 1783 – was filed by State Sen. Steve Stadelman, D-Rockford, and several area senators from both parties signed on as co-sponsors. Stadelman called it “an important tool in the revitalization of downtown Rockford.”
Rockford Mayor Tom McNamara said, “The incentive has helped us fill vacant properties and attract new capital investment to the city, while, at the same time, preserving culturally and architecturally significant buildings.”
The program applies to restoration and preservation of qualified historic structures in a state-defined River Edge Redevelopment Zone to safely revive and redevelop environmentally challenged properties to benefit economic revitalization and create jobs.
“These tax credits support the types of projects that offer the taxpayers of this state the chance to get a huge return on their investment in terms of tax revenue and economic activity,” said State Sen. Dave Syverson, R-Rockford. “We have seen first-hand how River Edge tax credits have had a major effect on Rockford's downtown development.”
About 100 buildings in the downtown Elgin area potentially can be rehabilitated under the program, city officials said.
“The extension of this important program will help us preserve our local history while we continue to see the job-creating benefits of the investments we have made in Elgin’s riverfront and downtown revitalization,” said State Sen. Cristina Castro, D-Elgin. “This legislation not only helps restore older structures to their former beauty but helps us accomplish our big-picture goals such as job creation.”
State Sen. Karen McConnaughay, R-St. Charles, pointed to the Elgin Tower Building in downtown Elgin as a development that “promotes economic growth and leads to more private investment and permanent jobs in our communities.”
State Sen. Pamela Althoff, R-McHenry, noted that, “by preserving local history, we are also supporting and promoting economic development.”
State Rep. Litesa Wallace, D-Rockford, was a sponsor of the legislation in the Illinois House. “The Historic River Edge Tax Credit has been instrumental in starting construction projects, creating jobs, and transforming empty buildings into centers of activity,” she said. “With numerous projects dependent on the passage of this extension, today's action immediately makes our community more attractive to investment."
Gov. Bruce Rauner signed the bill Friday at a ceremony in Aurora.