ROCKFORD, IL — Rockford City Council is considering a package of proposed financial incentives including a $4 million forgivable loan for Urban Equity Properties’ estimated $45.6 million redevelopment of the former Rockford Register Star News Tower, 99 E. State St.
Justin Fern of Urban Equity Properties is planning to transform the 277,000-square-foot former newspaper building into a mixed-use redevelopment with 80 loft-style apartments, a restaurant and a dozen commercial spaces. The property currently includes a tower with eight floors, a two-story office building along the Rock River and an addition that once held a press.
Rockford officials say the project wouldn’t be economically feasible without public assistance. Work is expected to begin in 2027 and be complete in 2029.
Under terms of a proposed redevelopment agreement, the city would provide a forgivable loan not to exceed $4 million from the city’s Redevelopment Fund and an advance from a tax increment financing district. Rockford would recoup $1 million of the loan as the project generates additional property tax revenue.
Loan proceeds would be distributed in three payments tied to benchmarks. A $2.6 million portion would be loaned after Urban Equity Properties closes on the purchase the property from Iconic Energy.
Another $700,000 would be dispersed when the company proves it has assembled the needed financing for the project which is expected to include historic tax credits and a construction loan. The final $700,000 would be provided once the project reaches substantial completion.
The loan would be forgiven in 10 annual installments as development benchmarks are reached including 75% residential occupancy and the presence of an operating restaurant.
The nearly 100-year-old News Tower is located in a historic district. Designed by renowned architect Jesse A. Barloga, the building was constructed in phases from 1929 to 1932 in the Art Deco style. It was for decades home to the Rockford Register Star.
The building was sold by USA Today Co., the Register Star’s parent company, for $1.7 million to Iconic Energy in 2021.
Jeff Kolkey writes about government, economic development and other issues for the Rockford Register Star. He can be reached via email at jkolkey@rrstar.com and on X @jeffkolkey.
This article originally appeared on Rockford Register Star: Rockford considers $4M loan to spur redevelopment of News Tower
Reporting by Jeff Kolkey, Rockford Register Star / Rockford Register Star
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