‘Finally, the right match’: Latest pitch to redevelop Barber-Colman sparks optimism in southwest Rockford

By Kevin Haas
Rock River Current
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ROCKFORD — A developer with ambitious goals. An empty manufacturing complex with broken windows and rundown facade.

It’s the start of a familiar story for residents in southwest Rockford, who for two decades have watched lofty redevelopment plans unravel into what ifs and near misses.

Now, after years of courting developers to reimagine the sprawling Barber-Colman complex, city officials feel they’ve finally found a company capable of pulling the project across the finish line.

“In the past we’ve kind of had our hearts broken by so many people pulling out of this project,” said Gabrielle Torina, an alderwoman whose 5th Ward includes Barber-Colman. “It just felt like the right match, for once. Finally, the right match.”

J. Jeffers & Co., a Milwaukee based real estate company with a specialty in historic reuse, has a letter of intent with the city to purchase the complex for $500,000. It has until April 6 to determine if its plans to bring a mix of townhomes, apartments and commercial development is feasible.

That determination depends on any lingering environmental issues at the site, the structural integrity of the buildings and the market for apartments in the area, all of which J. Jeffers is studying. But, the company sees promise so far.

“We typically don’t get engaged in a (letter of intent) unless we know there’s a 90% chance we’re going to close on that,” said Brian Loftin, senior vice president of development at J. Jeffers. “We’re very high on the area. We’re very high on the overall impact that we think this can do.”

Related: New roof, asbestos removal primes historic Rockford factory for redevelopment

Past misses

A handful of developers have pitched plans for the complex since the city purchased it for $275,000 in 2002, according to Rob Wilhelmi, the city’s brownfields redevelopment specialist.

Not long after the city acquired the property, it was considered as a site for a Rockford casino during one of the first failed attempts to get such legislation passed.

Ken Hendricks, a billionaire businessman from the Beloit, Wisconsin, area, brought forward that plan. Hendricks died in December 2007.

Related: People line up to test their luck at newly opened Rockford casino

A Park Ridge businessman named Tim Neider then eyed the complex for a youth sports venue, but he died in 2010 at age 46 before his vision could be realized.

A real estate and development company called Belmont Sayre then considered the property as a mixed use campus, but it never reached a redevelopment deal with the city.

Then came the much-publicized consideration by Rock Valley College to locate its advanced technology center at Barber-Colman. College trustees ultimately backed out of the plan, saying costs for redevelopment escalated beyond their initial commitment.

Rock Valley’s technology center will now be in the former Shopko at Big Thunder Mall in Belvidere. It’s expected to open in January.

“This proposed development is much, much better than all of those previous ones as far as the impact it will have on the city and southwest Rockford,” said Wilhelmi, who has worked on redeveloping the site since 2006, when he was in the private sector with Fehr Graham.

Shovel ready

Barber-Colman manufactured textile and milling machinery at the 1300 Rock Street site from the early 1900s until 1984, when the business was sold to Reed-Chatwood Inc., according to Rockford Register Star archives.

Loftin says environmental cleanup work the city has done over the past two decades has helped prime it for development and make it more likely the project will move forward.

The city has spent about $2.2 million in U.S. Environmental Protection Agency grants since 2002 to try to get the site as shovel ready as possible, Wilhelmi said. That work included asbestos abatement, soil cleanup and groundwater assessment, among other measures.

“The city has stepped forward over the past 20 years and pretty much addressed what I would say is maybe 90% of the environmental issues,” Wilhelmi said.

J. Jeffers work, so far, has shown the structures are capable of supporting reuse, Loftin said.

“I know from the outside that can be tough to see,” Loftin said. “But all in all, the buildings at Barber-Colman appear to be in pretty darn good shape.”

Paying for the project will involve a multifaceted financial plan that includes the state’s River Edge Historic Tax Credit Program, federal new market tax credits, historic tax credits and private investment.

The financial tools available through state and federal tax credits are part of the reason a development of this scale can happen in Rockford, Loftin said.

“It cost the same to build a building in downtown Rockford as it does downtown Chicago, but the rental rates are literally half,” he said.

The project would be built in phases if it moves forward. That was the case in Racine, Wisconsin, where the former Horlick Malted Milk Complex was rebuilt into lofts. The roughly 70 initial units were occupied within 40 days of being built, and the next phase involving two new buildings is underway now.

Loftin estimates Barber-Colman would be built in four to five phases taking place over eight to 10 years. But, if the company determines the project is feasible, it will move quickly on the first phase and could break ground as soon as next year.

“There have been a couple runs at this, and for whatever reason it was it didn’t happen,” Loftin said. “We don’t want to be in scenarios like that.”

What’s next

Developers are yet to determine the number of living units that will be built at the complex and what commercial business would be on site. Part of that decision depends on the market analysis being examined right now.

The company will also hold meetings with residents to determine what the area needs.

“This project is so big that I feel like you can incorporate so many ideas,” said Torina, the 5th Ward alderwoman.

She said residents have asked for quick service retail that now requires a drive to the other side of town. She’s also pushing for the company to work with minority contractors and businesses. She said she’s been happy with J. Jeffers willingness to engage with residents and allow them to be part of the plan.

“You will have an opportunity for your voice to be heard throughout this project,” she said.

Lifting the community, Loftin said, is a big part of the company’s mission.

“If you’re not figuring out how to invest in the community in a positive way than the real estate never has any value at all,” he said. “This is a large site, which we’re very excited about because it’s a chance to make a large impact.”

This article is by Kevin Haas. Email him at khaas@rockrivercurrent.com or follow him on Twitter at @KevinMHaas