Program would offer up to $25K in incentives to rehab Rockford businesses

November 16, 2022|By Kevin Haas|In Top Stories, Local, Rockford, Business/development
Traffic moves down Broadway near Eighth Street on Tuesday, Nov. 15, 2022, in Rockford. The Broadway TIF district is one of seven that would be eligible for a new program that offers incentives for renovations. (Photo by Kevin Haas/Rock River Current)
By Kevin Haas
Rock River Current
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ROCKFORD — The city plans to launch a new program that will provide business and commercial building owners up to $25,000 to renovate their properties in areas of town in need of redevelopment.

The incentive would be available to repair properties inside seven tax-increment financing districts, each which has $150,000 available that’s designated for the program.

The program requires private investment from building or business owners, and the city would match whatever is spent up to a maximum of $25,000. The funds would be available on a first-come, first-serve basis.

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Mayor Tom McNamara said the program can help enhance the look of several areas of town, ranging from the Broadway business district to Rockford’s Miracle Mile and Midtown.

“You take a look at Broadway: You have so many local, wonderful businesses but they may not have enough money to improve the facade,” McNamara said. “They may be able to make some significant improvements to the exterior and really lift up their property value, their image and the entire street.”

The City Council’s Planning and Development Committee voted 4-0 on Monday to approve the program. It will need approval from the majority of the full City Council next week. If approved, the program would launch in the first quarter of 2023.

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Tax increment financing, or TIF, districts are a financial tool meant to help cities incentivize development in areas that are blighted or otherwise in need of economic development. A TIF district works by capturing increases in property tax revenue that come after improvements are made and property values rise into a special fund that can be spent on certain redevelopment purposes.

Eligible TIF districts

The tax-increment financing districts eligible for the Commercial and Industrial Rehabilitation Program are as follows:

  • Auburn Street TIF
  • Broadway TIF
  • East River TIF
  • East State and Alpine TIF
  • East State and Mulford TIF
  • Midtown TIF
  • North Main and Auburn Street TIF

You can see a map of the TIF districts’ boundaries here.

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