Rockford sets out plan for spending new wave of Hard Rock Casino revenue
By Kevin Haas
Rock River Current
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ROCKFORD — The city has set forward its plans for spending the guaranteed $7 million in annual Hard Rock Casino gaming revenue by expanding a college scholarship program, investing in economic development in high-risk neighborhoods, contributing toward police and firefighter pensions and supporting arts and culture, among other initiatives.
The plan was released Friday in anticipation for City Council members to begin discussing the proposal from Mayor Tom McNamara’s administration during Monday’s meeting of the Finance & Personnel Committee. The plan requires City Council approval, and Monday’s meeting is the start of those public discussions.
“Our vision for this casino has always been to create a lasting impact that goes far beyond just benefiting Hard Rock and the city itself — it’s about uplifting the people who call Rockford home,” McNamara said. “This vision is already being realized, with more than 415 Rockford Public School graduates attending Northern Illinois University tuition-free through the Rockford Promise-NIU Scholarship program.
“With the additional revenue generated by the casino, we will continue to improve the lives of our residents by expanding the Promise program, investing in our neighborhoods, enhancing public safety, and fostering a vibrant arts and culture scene.”
The city’s host city agreement with Hard Rock Casino guarantees $7 million in gaming tax revenue that’s paid in addition to sales, food and beverage, and property taxes.
City Hall isn’t recommending using that revenue on operating expenses, such as police, fire and other employee salaries. Instead, the goal is to fund capital projects and other community programs that can be modified if for some reason Hard Rock can’t meet its guarantees and the host fee agreement needs to be altered.
“In alignment with best practices, we are recommending that these funds be allocated toward capital projects and other transformative community investments,” City Administrator Todd Cagnoni said. “This recommendation ensures we are building long-term value for our city, rather than simply folding this revenue into our operating expense fund.”
So far, the city has committed $1.5 million annually to Rockford Promise, which provides full-tuition scholarships to qualified Rockford Public Schools graduates.
It has laid out nine recommendations for spending the remaining $5.5 million each year. Here are those proposals:
Expand Rockford Promise
$600,000
The city would commit an additional $600,000 annually to help fund the expansion of Rockford Promise to offer Rockford University as a full-tuition scholarship option.
High-Risk Neighborhood development
$150,000
The city would commit $150,000 annually for high-risk neighborhood economic development. That terminology comes directly from the city’s host fee agreement with Hard Rock.
“They weren’t specifically defined, but generally understood we’re talking about areas that haven’t had the same economic success as other areas in our community,” Cagnoni said. “Should there be an opportunity to advance a project forward but there’s a (funding) gap, this would be a potential funding source to help move that forward.”
Hard Rock Casino Foundation
$250,000
The foundation is another element set forth from the city’s host fee agreement with Hard Rock.
The foundation will have a nine-member board made up of two members appointed by Hard Rock, four City Council members, and three Rockford residents mutually agreed upon by the city and Hard Rock. The four aldermen on the board would include two Republicans and two Democrats.
The foundation would select various charitable organizations or initiatives to support.
Downtown entertainment support
$100,000
The city would contribute $100,000 to help the Rockford Area Venues & Entertainment Authority — which oversees the BMO Center, Coronado Theatre and Davis Park — with marketing to balance the effects of the entertainment booked at Hard Rock Casino.
Police and fire buildings
$1,000,000
The city would contribute a regular $1 million capital investment in police and fire department facilities, which are currently funded through the city’s general operating fund and tapped on an emergency basis.
Pension contributions
$2,000,000
The city will use $2 million to provide an additional annual contribution toward the unfunded liabilities in the police and firefighter pension funds. The city would put $1 million annually toward each fund.
Doing so would help alleviate the burden of pension payments on property taxes. The city’s pension obligations are expected to account for 100% of the property tax levy by 2031 without legislative intervention, city officials have previously said.
The city’s expenses on its firefighters’ pension are projected at about $24.74 million this year, according to the city budget. The police pension expenses are about $25.5 million.
Arts and culture
$250,000
The city would put $250,000 annually toward arts and culture initiatives.
McNamara had previously suggested using a tax on tickets sold at Hard Rock Live for arts and culture. However, plans to institute that tax have been shelved indefinitely.
International Women’s Baseball Center
$300,000
The city would contribute $300,000 annually toward bringing an International Women’s Baseball Center and museum to southeast Rockford, near the historic Beyer Stadium where the Rockford Peaches once played.
That center is being designed by world-renowned architect Jeanne Gang, a Belvidere native, and the nonprofit organization behind the plan is fundraising to pay for the multimillion-dollar project.
Economic development
$850,000
The city will have $850,000 in annual gaming tax revenue uncommitted that could go toward future economic development or redevelopment projects that need city assistance to reach fruition.
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
