Colman Yards developer terminates general contractor as it looks to restart the south Rockford redevelopment

By Kevin Haas
Rock River Current
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ROCKFORD — The developer behind the massive transformation of the former Barber-Colman industrial site has fired its general contractor and is taking steps to bring a local company on board to move the project forward.

J. Jeffers & Co. said Friday that it terminated its contract with Chicago-based ENC Construction & Development, which was leading construction on the overhaul of the industrial site on South Main Street into a mix of residences and businesses. Work had been halted at the site since the end of December, delaying a project that was initially projected to welcome its first residents by summer.

“The development work experienced challenges with our initial general contractor,” the Milwaukee-based developer said in a statement Friday. “While the (J. Jeffers & Co.) team worked diligently for months to find a path forward, we ultimately made the decision to terminate the general contractor given JJCO’s unresolved concerns which were shared by the project architects.”

The company said it has engaged with a local contractor who could potentially take over leading construction. They declined to name the company, but said they hope to announce a new partnership later this month with a goal of resuming construction in late April.

J. Jeffers “is unwavering in our plans for the historic Colman Yards development,” the company said in its statement. “We are thrilled to continue the transformation of the Barber-Colman site into a vibrant mixed-use development, returning its prominence to Rockford and the South Main Street corridor.”

ENC did not return messages left earlier this week inquiring about the state of the project.

The company, as well as two of its subcontractors, had filed several mechanics liens in February worth millions of dollars for work they say went unpaid, according to documents filed with the Winnebago County Clerk & Recorder’s Office.

Work on the $170 million first phase of the project began in November 2023. That phase aims to revamp nine long vacant historic buildings along South Main and Loomis streets into 334 apartments and 105,000 square feet of commercial space. A new 336-space parking deck is also being built.

The work is aided by millions of dollars in state and city incentives, including a $6 million advance from tax increment finance district funds, a $2 million environmental lawsuit settlement, $4 million state grant, TIF district reimbursements, historic tax credits and multiple loans.

That money was not paid up front. Instead, it’s held in an escrow account that allows funds to be drawn down as they’re spent, City Administrator Todd Cagnoni has said. A surety bond was also required from the general contractor to protect the city and developer from financial losses if it couldn’t complete the work.

“We will also be working closely with the bond and title companies relative to coordinating appropriate payments for work done to date and are confident with the financial partnerships in place to see the project through to a successful completion,” J. Jeffers said in its statement.

Mayor Tom McNamara said the appropriate safeguards are in place to protect taxpayers and he’s confident the project will move forward.

“I appreciate J.Jeffers & Co. and their capital partners commitment to continue the advancement of this transformational project and the utilization of local contractors. The J.Jeffers team has maintained transparency throughout this entire redevelopment project and is currently adhering to the required protocol and process for changing contractors,” McNamara said. “When we selected them to transform a property, which had been vacant for 25 years, into a vibrant, thriving campus, we recognized this would be a challenging project. I want to assure our residents that we remain fully committed to completing this project and holding J. Jeffers accountable.”

Concerns about the contractor and how much local and union labor would be used led to a rift in City Council in summer 2023 before the project was approved. Half of the city’s aldermen wanted to require the developer to reach a collective bargaining deal with organized labor called a project labor agreement before construction could move forward. McNamara ultimately split a tie vote rejecting the requirement.

Proponents of that deal had said it would ensure skilled workers will handle construction and it would curtail potential work stoppages.

Union protests followed as work began, with labor saying out-of-state and non-union workers were hired at the site. Both the developer and union labor leaders both said late last year that work going forward would be 100% done by organized labor. Alan Golden, president of the Northwestern Illinois Building Trades, declined to comment on the project at this time when reached earlier this week by phone.

Some Rockford aldermen say they were left in the dark about the state of the project when work stopped at the end of 2024.

“I assume there’s going to be some good news for the project coming, but that doesn’t erase the lack of transparency getting there,” Alderman Mark Bonne, who had favored a project labor agreement, said earlier this week. “Going all the way back to the private groundbreaking ceremony, any alderman without the last name Torina haven’t been given any updates.”

Bonne is referring to Alderwoman Gabrielle Torina, who represents the city’s 5th Ward where the project is taking place. He said she’s the only council member privy to information on the latest turns in the project. Torina couldn’t be reached for comment Thursday.

“I don’t think a project this big — with that level of public financing — should be shrouded in so much mystery from groundbreaking through to the labor dispute is settled to now with work stopped, and we don’t know why and when it’s going to resume,” Bonne said Monday. “I’m optimistic that the project’s going to get back on track, but I think there’s questions still remaining about whether or not the developer is going to be coming to the council for more money.”

The work stoppage also became fuel in the race for mayor, with independent challenger Derrick Kunz calling on McNamara to give back a $14,600 campaign contribution from J. Jeffers after the work stoppage was reported last week by the Rockford Register Star.

“Mayor McNamara is proud of his fundraising efforts even if much of it is coming from developers who have received millions of dollars from the city of Rockford,” Kunz said in a statement. “If I am elected mayor, I will refuse campaign contributions from anyone or any entity that receives tax dollars from the city of Rockford.”

Voters will decide on the mayor’s race on April 1, before work on the project is set to resume.

“I’m incredibly proud to have received contributions and support from several hundred residents, dozens of businesses, those who know education best – our teachers, those who sell our community – our realtors, those who build our buildings – our building trades, and numerous other endorsements and contributions,” McNamara said in response. “People are excited about the momentum and what is taking place in Rockford and want to keep that going by supporting me.”

The Colman Yards development was planned to be completed in phases over the course of a decade.

The full scope of the multiphase project, estimated at more than $430 million when it was unveiled in 2023, would create more than 900 living units and roughly 130,000 square feet of commercial space.

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