Rockford City Council to rehash its vote denying proposed Kmart redevelopment
By Kevin Haas
Rock River Current
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ROCKFORD — City Council members will revisit their vote against a proposed deal to redevelop the former Kmart property on East State Street.
The previously rejected deal called for a mix of restaurants and businesses anchored by a self-storage facility filling the big box retailer. It was the self-storage proposal that drew the objection of aldermen, who felt it was a poor use of ideal retail space at the corner of State Street and Mulford Road.
Now, they’ll get a chance to change their minds.
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Aldermen had voted 10-2 on June 17 to reject the proposal, which would have required developers to activate at least two retail or restaurant spaces before opening a self-storage business inside the vacant Kmart at 5909 E. State St.
By rule, any alderman who voted on the prevailing side can request a motion to reconsider the decision at the next regular meeting of the full council. Alderwoman Gina Meeks did that on Monday.
Meeks said she wants the city to take a closer look at the process it has with its staff to bring forward development proposals. She also said it’s worth reconsidering the previous no vote because of the developer’s willingness to offer a compromise with the city for both sides to get what they want.
“It’s worth us reconsidering to just talk about the fact that we need development in this city, and we want to nurture our local developers,” Meeks said. “We also want to build on the communication that we have with our staff. I don’t want this to be a situation where we’re not trusting of our staff.”
The council will vote on Meeks’ motion at the next meeting in two weeks. First, aldermen would have to approve a motion to reconsider their rejection. Then, they could either vote to approve or reject the development plans, delay a final vote, or send the matter back to the committee level to continue discussions with aldermen and the developer.
Manuel Salgado, whose nonprofit puts on the annual Tamale Fest in the U-Haul parking lot, encouraged aldermen to take a second look at the project during the public comment portion of the City Council meeting.
“As I drive off of I-90, I go down East State Street and I hate the way that looks,” said Salgado, the president of MASA, or Mexico Americanos Saliendo Adelante. “I’d rather see something happen in that parking lot – other than just my festival – than to just see an empty building deteriorating.”
Salgado’s nonprofit helps aspiring entrepreneurs navigate opening their businesses.
“I’m over here breaking my back helping people start businesses on a local level, and if a company like U-Haul can’t get something done, what do I tell the people who I’m helping every single day?” Salgado said.
The proposed deal was put forward earlier this year as a compromise to allow U-Haul, which has owned the property since fall 2018, to open the self-storage business it wants to run while providing the city with the type of retail and commercial development it wants to see at the corner of East State Street and Mulford Road.
The zoning for that site doesn’t permit self-storage now, so the company needs special City Council approval before it can operate that type of business.
U-Haul is working with Orput Companies to develop the property. As part of the proposed deal, Orput would have to front the city $150,000 as collateral, which it would forfeit if the retail and restaurant space is not developed.
U-Haul has asked the city for the OK to open 60,000 square feet of climate controlled self storage to the former Kmart site. An additional 35,000 square feet of the retail space would be converted to climate controlled pod-style storage, called U-Box, where customers fill a portable storage unit for safekeeping in the space.
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Orput would redevelop the vacant KFC restaurant and build three other businesses along East State and Mulford. Orput said that those businesses would generate an estimated $12.25 million in sales annually and create approximately 125 jobs.
The company would also make pedestrian safety improvements by adding 2,000 feet of sidewalks along State and Mulford. Green space would also be added in the center of the existing parking lot to improve stormwater detention that has affected nearby businesses. That green space also calls for a common outdoor eating area and public art park.
The proposal was met with pushback from aldermen and nearby businesses when it was pitched in May.
Opponents self storage is a poor use of prime retail space. Supporters said the changing commercial landscape make it unlikely for another big-box retailer to fill that location, and the compromise provides a path to add new commercial activity to the intersection.
Company representatives previously said the property would likely remain vacant indefinitely if the proposal was not approved.
The next City Council meeting is July 22.
This article is by Kevin Haas. Email him at khaas@rockrivercurrent.com or follow him on X at @KevinMHaas or Instagram @thekevinhaas and Threads @thekevinhaas
