Rockford City Council’s busy start to 2026: 7 items to watch
By Kevin Haas
Rock River Current
Get our free e-newsletter
ROCKFORD — City Council has a busy lineup for its first meeting of the New Year, as aldermen tackle multiple development proposals and tax incentives they’re being asked to support.
The council’s work starts at 5:30 p.m. Monday at City Hall, 425 E. State St., with a series of committee meetings before the full City Council meets.
Here’s a look at seven of the biggest issues the council is slated to tackle.
New Senior Center
City Council is considering providing $300,000 to the Northwestern Illinois Area Agency on Aging to help the nonprofit establish a new senior center at 5439 E. State St., which is in the old River Valley Community Church on the southwest side of State Street Square commercial plaza that contains Flow Supreme Air Sports.
The money would be provided in three annual installments of $100,000 each.
The 20,000-square-foot center is designed to create a welcoming environment for adults ages 55 and older. There will be group activities such as bingo and trivia nights, and a coffee shop offering beverages and light snacks. There are also educational programs, health and wellness activities and other social services.
The council’s Planning and Development Committee will consider the matter Monday night before it moves forward to the full City Council for a vote.
News Tower Lofts
The City Council is considering a redevelopment agreement to assist with Urban Equity Properties’ planned $45.6 million revamp of the former Rockford Register Star News Tower, which was later the Iconic Energy Building, into the News Tower Lofts.
The future redevelopment of 99 E. State St. will include 80 luxury loft apartments, 12 retail spaces for a small business emporium, a riverfront restaurant space and a small publishing museum.
The council is being asked to approve a $3 million subsidy structured as a forgivable loan. An additional $1 million would be provided as a cash advance from the tax increment finance district. That money would be repaid to the city at $50,000 annually for 20 years. The agreement would also allow UEP to obtain 100% of the funds generate from the tax increment finance district, which captures the property taxes the company pays above the property’s current value into a special fund for redevelopment.
The issue goes before the council’s Planning and Development Committee on Monday before a full council vote potentially later that night.
New Watch Factory deal
City Council will consider a new redevelopment deal with Oliver Emerson Development that’s intended to close a financial gap on the redevelopment of the former Rockford Watch Co. factory after costs increased from $7.3 million to an anticipated $11.5 million.
The father-and-son development team plans to purchase the building, at 325 S. Madison St., from the city for $55,000 and transform the three-story cream-colored brick building into 24 residential units. There would be solar-covered parking outside.
The city, which has owned the building for over a decade, may subsidize part of the costs by providing $2.7 million in three $900,000 installments. That would be structured as a forgivable loan. The developer would also receive 100% of the Oak and Madison TIF District revenue on a pay-as-you-go basis.
City Council’s Planning and Development Committee gets first look at the proposal Monday before it goes to the full City Council.
Rockford Brake Manufacturing support
City Council is being asked to consider a $250,000 grant to support the restart of operations of Rockford Brake Manufacturing, the former Gunite Corp.
The factory at 302 Peoples Ave. closed amid bankruptcy proceedings of its parent company in early 2025, but it was purchased by four former employees and restarted operations under a new name late in the year. The company manufactures Gunite brake drums.
By mid-December, the company had shipped approximately $600,000 in product to 14 different states, according to a letter to the city from CEO Paul Wright. It also has blanket orders for $1 million worth of its highest-selling product.
The city’s grant is designed to help with cash flow as operations restart, and would be leveraged with other private capital including a $500,000 loan from Rockford Community Bank, City Administrator Todd Cagnoni said in a memo to aldermen.
The council’s Planning and Development Committee will consider the measure before it heads to the full council.
Cannabis grants
City Council is being asked to allocate $500,000 in cannabis tax funds to its Regrow grant program.
The city would award two 2-year grants at $100,000 each, four 1-year grants at $50,000 each and 10 “quick-deployment grants” at $10,000 each to support short-term projects.
The money comes from the 3% local tax on recreational cannabis.
The money is intended to go toward programs for economic and business development, education, youth programming, job training, housing, health, or other financial assistance to communities that have been disproportionately impacted by the cannabis-related laws and the war on drugs. It’s also designed to provide funds to programs that reduce gun violence, prevent family violence and treat trauma.
The cannabis fund was a point of controversy during the city’s recent budget approval process because the City Council in a narrow vote opted to take $2.6 million in unspent marijuana tax to close a budget deficit. Nearly half the council objected to the move, pointing to a 2021 ordinance that restricted the use of the funds to benefit communities affected by the war on drugs.
The council’s Planning and Development Committee will consider the measure before it heads to the full council.
Residential zoning
LAS Management, a local real estate company run by real estate investor Luke Salamone with backing from NBA star Fred VanVleet, is asking the city to rezone four parcels of land from limited commercial to two-family residential zoning. The zoning switch would allow for duplexes to be built at 6783 and 6819 Fincham Drive and 886 and 891 White Chapel Lane, which are plots directly north of the existing neighborhood.
The council previously rejected a more expansive pitch from the company, which would have led to approximately 180 units on additional land in the area.
Now, the group is asking only for a zoning change rather than presenting a detailed look at the type of structures it would build.
The matter goes first before the council’s Code and Regulation Committee before it’s presented to the full council.
New special-event space
City Council is being asked to approve a special-use permit and liquor license for the future Spider on Quinta, a special-event space filling the former Ellida Lodge at 1111-1115 Fifth Ave. in Midtown.
Owner Anahi Rubi, whose family has run Spider Sushi Bar for 17 years, wants to offer activities for people of all ages ranging from special celebrations to educational workshops.
The proposal received unanimous support from the city’s Zoning Board of Appeals and its Liquor & Tobacco Advisory Board in mid-December.
It now goes to the Code & Regulation Committee and then the full City Council.
This article is by Kevin Haas. Email him at [email protected] or follow him on X at @KevinMHaas or Instagram @thekevinhaas and Threads @thekevinhaas
