Rockford City Council OKs 9 ways to spend $7M in guaranteed Hard Rock Casino revenue

By Kevin Haas
Rock River Current
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ROCKFORD — City Council members on Monday approved a $7 million plan to spend guaranteed annual revenue from Hard Rock Casino Rockford.

The plan lays out nine initiatives for using the money in the coming year, ranging from expanding the Rockford Promise college scholarship program to alleviating some of the financial pressures on the city’s biggest pension funds.

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Rockford’s host city agreement with Hard Rock Casino guarantees $7 million in gaming tax revenue each year. If the casino reaps more money and generates additional taxes beyond $7 million, aldermen would be presented with new options to use the extra cash.

The $7 million guarantee is on top of any sales, food and beverage and property taxes the casino pays.

Tom McNamara’s administration said the goal for its spending plan was to use the money to make a lasting impact by funding potentially transformative initiatives rather than putting the money toward regular operating expenses such as police, firefighter and other employee salaries.

Aldermen approved the plan with a 13-0 vote.

Here are the nine measures that will be funded with the gaming tax revenue this year:

Expand Rockford Promise

$600,000

The city will pledge an additional $600,000 toward the expansion of Rockford Promise to offer Rockford University as a full-tuition scholarship option.

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High-Risk Neighborhood development

$150,000

The city will put $150,000 annually toward high-risk neighborhood economic development. That terminology comes directly from the city’s host fee agreement with Hard Rock.

High-risk neighborhood economic development isn’t specifically defined. The language is intended to allow the city flexibility to fund needed projects in economically challenged neighborhoods.

Hard Rock Casino Foundation

$250,000

The foundation is another element set forth from the city’s host city deal.

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 will 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 will set aside 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 put $2 million toward annual contributions to the police and firefighter pension funds, with $1 million going toward unfunded liabilities in 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 changes in Springfield, 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 will use $250,000 annually to support arts and culture initiatives.

That could involve anything from funding a new sound system at the Coronado, to supporting the redevelopment of Davis Park, or any number of projects that set out to elevate the city’s art scene.

McNamara had previously called for 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 will put $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.

The city has not laid out any specific projects that could be funded through this commitment. However, it does have several redevelopment projects looming, including plans to revive the former Illinois National Guard Armory.

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