ROCKFORD, IL — Rockford could be getting into the hotel and conference center business.
At its May 18 meeting, City Council authorized the sale of bonds to finance an expansion of the Hard Rock Casino Rockford.
Rockford plans to tap its borrowing power to finance a 215- to 225-room Hard Rock hotel and 15,000-square-foot conference center adjacent to the casino.
Hard Rock needs the city’s assistance because coming so soon after paying for the $365 million casino, it doesn’t yet have enough borrowing capacity to finance the construction on its own. The company is also expected to get better interest rates by utilizing the city’s borrowing power.
Hard Rock Casino Rockford President Geno Iafrate said the project will mean millions in additional revenue for the casino and the city. It is also expected to create 100 permanent jobs at the hotel, which will be the largest in the region. The conference center is expected to boost tourism.
“Approval of this bond initiative keeps the momentum going on a project we believe will bring even more energy, opportunity and visitors to Rockford,” Iafrate said. “The hotel and convention center are a big part of our vision for the future and further solidifies Rockford’s position as the premier regional entertainment destination. We can’t wait to bring this project to life.”
Rockford plans to sell $103 million worth of bonds to finance the expansion. Hard Rock would operate the hotel and conference center and pay off the bonds. Rockford would technically own the hotel and conference center for a period of time until Hard Rock pays off the bonds or refinances the debt.
Hard Rock has quickly become one of the highest revenue producing casinos in Illinois. Rockford has used its share of casino proceeds to fund hundreds of Rockford Promise college scholarships, public safety pensions and infrastructure projects.
Hard Rock would buy out the city within seven to 10 years, either by repaying the 30-year bonds or refinancing the debt conventionally, under terms of a development agreement now being finalized.
In addition, an amendment would be made to city’s host community agreement that would guarantee the city continue to receive a minimum of $7 million annually from the Hard Rock.
Until now, the host community agreement included a clause that re-opens negotiations if a competitor opens nearby. That provision is expected to be eliminated from the agreement despite the anticipated September opening of Beloit’s Ho-Chunk casino.
The bond sale should proceed within 60 days which would allow a 15 to 18 month construction process to proceed.
City Council voted 11-1 in favor of financing the expansion with only Ald. Frank Beach, R-10, voting against it. Ald. Mark Bonne, D-14, and Karen Hoffman, D-8, absent.
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 to finance $103M Hard Rock Casino hotel expansion
Reporting by Jeff Kolkey, Rockford Register Star / Rockford Register Star
USA TODAY Network via Reuters Connect
