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Planning & Development ~ Agenda ~ City Hall, Second Floor Rockford, IL 61104 Committee Meeting http://www.rockfordil.gov/ Monday, June 28, 2021 5:30 PM Generated 6/25/2021 4:53 PM The following represents, in general, the chronological order of proceedings at the City Council/Committee Meetings: Call to Order, Invocation, Pledge of Allegiance, Public Speaking and City Council/Committee Agendas. Meeting will be live streamed on Channel 17 and via this link: http://rockfordcityil.iqm2.com/citizens/default.aspx. I. CALL TO ORDER II. COMMITTEE REPORTS 1. Comcast Franchise Agreement 2. West Side #2 TIF Termination and Dissolution 3. Second Amendment to the South Rockford Plan & Project 4. First Amendment to the Amerock Hotel Plan & Project 5. Ordinance Designating Amended Amerock Hotel RDA 6. Ordinance Adopting Tax Increment Financing for Amended Amerock Hotel RDA III. ADJOURNMENT THE CITY OF ROCKFORD INTENDS TO COMPLY WITH THE INTENT AND SPIRIT OF THE AMERICANS WITH DISABILITIES ACT. IF A SIGN LANGUAGE INTERPRETER, PERSONAL P.A. SYSTEM, OR OTHER SPECIAL ACCOMMODATIONS ARE NEEDED, PLEASE CALL THE LEGAL DEPARTMENT AT (779) 348-7391 AT LEAST 48 HOURS IN ADVANCE, SO WE CAN BE PREPARED TO ASSIST YOU

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Page 1: Planning & Development

Planning & Development ~ Agenda ~ City Hall, Second Floor

Rockford, IL 61104

Committee Meeting http://www.rockfordil.gov/

Monday, June 28, 2021 5:30 PM

Generated 6/25/2021 4:53 PM

The following represents, in general, the chronological order of proceedings at the City

Council/Committee Meetings: Call to Order, Invocation, Pledge of Allegiance, Public Speaking

and City Council/Committee Agendas.

Meeting will be live streamed on Channel 17 and via this link:

http://rockfordcityil.iqm2.com/citizens/default.aspx.

I. CALL TO ORDER

II. COMMITTEE REPORTS

1. Comcast Franchise Agreement

2. West Side #2 TIF Termination and Dissolution

3. Second Amendment to the South Rockford Plan & Project

4. First Amendment to the Amerock Hotel Plan & Project

5. Ordinance Designating Amended Amerock Hotel RDA

6. Ordinance Adopting Tax Increment Financing for Amended Amerock Hotel RDA

III. ADJOURNMENT

THE CITY OF ROCKFORD INTENDS TO COMPLY WITH THE INTENT AND

SPIRIT OF THE AMERICANS WITH DISABILITIES ACT. IF A SIGN LANGUAGE

INTERPRETER, PERSONAL P.A. SYSTEM, OR OTHER SPECIAL

ACCOMMODATIONS ARE NEEDED, PLEASE CALL THE LEGAL DEPARTMENT

AT (779) 348-7391 AT LEAST 48 HOURS IN ADVANCE, SO WE CAN BE PREPARED

TO ASSIST YOU

Page 2: Planning & Development

1

FRANCHISE AGREEMENT

THIS FRANCHISE AGREEMENT (this “Agreement”), effective as of

_____________________, 2021 (“Effective Date”), is made by and between Comcast of

Illinois/Indiana/Ohio, LLC (the “Grantee”), and the City of Rockford, a municipal corporation of

the State of Illinois (the “City”). The Grantee and the City shall sometimes be referred to

separately as a “Party,” and collectively as the “Parties.”

RECITALS

WHEREAS, the City has determined that the financial, legal, and technical abilities of

Grantee are reasonably sufficient to provide the services, facilities and equipment necessary to

meet the future cable-related needs of the community and desires to enter into this non-exclusive

Franchise Agreement with Grantee for the construction, operation and maintenance of a Cable

System on the terms and conditions set forth herein; and;

WHEREAS, this Agreement is entered into by and between the Parties under the

authority and shall be governed by the Cable Act, the Illinois Municipal Code, as amended from

time to time, including without limitation, 65 ILCS 5/11-42-11 (the “Municipal Code”); provided

that any provisions of the Illinois Municipal Code or the Illinois Constitution which are

inconsistent with the Cable Act shall be deemed to be preempted and superseded.

NOW, THEREFORE, in consideration of and reliance upon the respective

representations, promises, concessions, terms and conditions contained herein, the City and

Grantee agree as follows.

1. Definitions.

For the purpose of this Franchise Agreement, capitalized terms, phrases, words, and

abbreviations shall have the meanings ascribed to them in the Cable Act, unless otherwise

defined herein.

“Cable Act” or “Act” means the cable Communications Policy Act of 1984, as amended

by the Cable Consumer Protection and Competition Act of 1992 and the Telecommunications

Act of 1996, 47 U.S.C. §§ 521 et seq., as the same may be amended from time to time.

“Cable Operator” means any Person or group of Persons who provides Cable Service

over a Cable System and directly or through one or more affiliates owns a significant interest in

such Cable System; or who otherwise controls or is responsible for, through any arrangement,

the management and operation of such a Cable System.

“Cable Service” or “Service” means the one-way transmission to Subscribers of Video

Programming or Other Programming Service and Subscriber interaction, if any, which is

required for the selection or use of such Video Programming or Other Programming Service.

2.1.a

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“Cable System,” or “System,” has the meaning set forth in 47 U.S.C. § 522 of the Cable

Act, and means Grantee's facilities, consisting of a set of closed transmission paths and

associated signal generation, reception and control equipment, that is designed to provide Cable

Service which includes Video Programming and which is provided to multiple Subscribers

within the Franchise Area, but such term does not include (i) a facility that serves only to re-

transmit the television signals of one or more television broadcast stations; (ii) a facility that

serves Subscribers without using any public right-of-way, (iii) a facility of a common carrier

which is subject, in whole or in part, to the provisions of Title II of the Communications Act of

1934, as amended, except that such a facility shall be considered a Cable System (other than for

purposes of section 621(c) of the Cable Act) to the extent such facility is used in the transmission

of Video Programming directly to Subscribers, unless the extent of such use is solely to provide

Interactive On-Demand Services; (iv) an open video system that complies with section 653 of the

Cable Act; or (v) any facilities of any electric utility used solely for operating its electric utility

systems.

“Channel” or “Cable Channel” means a portion of the electromagnetic frequency

spectrum which is used in a cable system and which is capable of delivering a television channel

as a television channel is defined by the Federal Communications Commission by regulation.

“City” means the City of Rockford, Illinois or the lawful successor, transferee, designee,

or assignee thereof.

“City Code” means the Code of Ordinances of the City of Rockford, Illinois.

“Customer” or “Subscriber” means a Person who lawfully receives and pays for Cable

Service with the Grantee’s express permission.

“FCC” means the Federal Communications Commission or successor governmental

entity thereto.

“Franchise” means the initial authorization, or renewal thereof, issued by the City,

whether such authorization is designated as a franchise agreement, permit, license, resolution,

contract, certificate, ordinance or otherwise, which authorizes the construction and operation of

the Cable System.

“Franchise Agreement” or “Agreement” means this Agreement and any amendments or

modifications hereto.

“Franchise Area” means the present legal boundaries of the City as of the Effective Date,

and shall also include any additions thereto, by annexation or other legal means.

“Grantee” shall mean Comcast of Illinois/Indiana/Ohio, LLC, or its successor.

“Gross Revenue” means any and all cable service revenue derived by the Grantee from

the operation of the Cable System in the Franchise Area to provide Cable Services, calculated in

accordance with generally accepted accounting principles. Cable Service revenue includes,

2.1.a

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monthly Basic Cable Service, Cable Programming Service regardless of Service Tier, premium

and pay-per-view video fees. advertising and home shopping revenue, installation fees, late fees,

and equipment rental fees. Gross revenues shall also include such other revenue sources from

Cable Service delivered over the Cable System as may now exist or hereafter develop, provided

that such revenues, fees, receipts, or charges may be lawfully included in the gross revenue base

for purposes of computing the City’s permissible franchise fee under the Cable Act, as amended

from time to time. Gross Revenue shall not include refundable deposits, bad debt, investment

income, programming launch support payments, third party advertising sales commissions, nor

any taxes, fees or assessments imposed or assessed by any governmental authority. Gross

Revenues shall include amounts collected from Subscribers for franchise fees pursuant to City of

Dallas, Texas v. F.C.C., 118 F.3d 393 (5th Cir. 1997), and amounts collected from non-

Subscriber revenues in accordance with the Court of Appeals decision resolving the case

commonly known as the “Pasadena Decision,” City of Pasadena, California et. al., Petitions for

Declaratory Ruling on Franchise Fee Pass Through Issues, CSR 5282-R, Memorandum Opinion

and Order, 16 FCC Rcd. 18192 (2001), and In re: Texas Coalition of Cities for Utility Issues v.

F.C.C., 324 F.3d 802 (5th Cir. 2003).

“Initial Franchise Service Area” means that portion of the Franchise Area served by the

Grantee’s Cable System as of the Effective Date of this Franchise Agreement.

“Public, Educational and Governmental (PEG) Access Channel” shall mean a video

Channel designated for non-commercial use by the public, educational institutions such as public

or private schools (but not “home schools”), community colleges, and universities, as well as the

City.

“Public, Educational and Government (PEG) Access Programming” shall mean non-

commercial programming produced by any City residents or organizations, schools and

government entities and the use of designated facilities, equipment and/or Channels of the Cable

System in accordance with 47 U.S.C. 531 and this Agreement.

“Person” means any natural person or any association, firm, partnership, joint venture,

corporation, or other legally recognized entity, whether for-profit or not-for-profit, but shall not

mean the City.

“Public Way” shall mean, pursuant and in addition to the City’s Right of Way Ordinance

(Chapter 26, Article XI of the City Code), the surface of, and the space above and below, any

street, alley, other land or waterway, dedicated or commonly used for pedestrian or vehicular

traffic or other similar purposes, including, but not limited to, public utility easements and other

easements dedicated for compatible uses, now or hereafter held by the City in the Franchise

Area, to the extent that the City has the right and authority to authorize, regulate, or permit the

location of facilities other than those of the City. Public Way shall not include any real or

personal City property that is not specifically described in this definition and shall not include

City buildings, fixtures, and other structures and improvements, regardless of whether they are

situated in the Public Way.

2.1.a

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“Standard Installation” means those that are located up to one hundred twenty-five (125)

feet from the existing distribution system (Cable System).

2. Grant and Requirements.

2.1. Nonexclusive Franchise Authority. The City hereby grants to the Grantee a

nonexclusive Franchise authorizing the Grantee to construct and operate a Cable System in the

Public Ways within the Franchise Area, subject to the City’s ordinances, and for that purpose to

erect, install, construct, repair, replace, reconstruct, maintain, or retain in any Public Way with

the City’s prior written permission such poles, wires, cables, conductors, ducts, conduits, vaults,

manholes, pedestals, amplifiers, appliances, attachments, and other related property or equipment

as may be necessary or appurtenant to the Cable System, and to provide such services over the

Cable System as may be lawfully allowed.

2.2. Term. The term of this Agreement shall begin on the Effective Date and end five

(5) years after the Effective Date; with an automatic five (5) year renewal option, unless either

party notifies the other that it chooses not to renew at least ninety (90) days prior to the end of

the initial term; and/or unless this Agreement is renewed or is lawfully terminated under the

provisions of applicable law and/or this Agreement. From and after the Effective Date of this

Franchise Agreement, the Parties acknowledge that this Franchise Agreement is intended to be

the sole and exclusive agreement between the Parties pertaining to the Grantee’s franchise for the

provision of Cable Service.

2.3. Renewal. Any renewal of this Franchise shall be governed by and comply with

the provisions of Section 626 of the Cable Act, as amended, and any applicable State law which

may exist at the time of renewal and which is not superseded by the Cable Act.

2.4. Police Powers. Nothing in this Franchise Agreement shall be construed as an

abrogation by the City of any of its police powers to adopt and enforce generally applicable

ordinances deemed necessary for the health, safety, and welfare of the public, and the Grantee

shall comply with all generally applicable laws and ordinances enacted by the City pursuant to

such police power.

2.5. Reservation of Authority. Nothing in this Franchise Agreement shall (A)

abrogate the right of the City to perform any public works or public improvements of any

description, (B) be construed as a waiver of any codes or ordinances of general applicability

promulgated by the City, or (C) be construed as a waiver or release of the rights of the City in

and to the Public Ways.

2.6. Competitive Equity.

2.6.1. In the event the City grants an additional Franchise to use and occupy any

Public Way for the purposes of operating a Cable System, the additional Franchise shall only be

granted in accordance with the Illinois Level Playing Field Statute, 65 ILCS 5/11-42-11.

2.6.2. In the event an application for a new cable television franchise or other

similar authorization is filed with the City proposing to serve the Franchise Area, in whole or in

2.1.a

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part, the City shall to the extent permitted by law promptly notify the Grantee, or require the

Grantee to be notified, and include a copy of such application.

3. Construction and Maintenance of the Cable System.

3.1. Construction in the Right-of-Way. Except as may be otherwise provided in this

Franchise Agreement, all construction and maintenance of the Cable System shall be done in

accordance with the generally applicable provisions of Chapter 26, Article XI of the Rockford

City Code, as may be amended from time to time.

3.2. Aerial and Underground Construction. At the time of Cable System

construction, if all of the transmission and distribution facilities of all of the respective public or

municipal utilities in any area of the Franchise Area are underground, the Grantee shall place its

Cable Systems’ transmission and distribution facilities underground, provided that such

underground locations are actually capable of accommodating the Grantee’s cable and other

equipment without technical degradation of the Cable System’s signal quality. In any region(s)

of the Franchise Area where the transmission or distribution facilities of the respective public or

municipal utilities are both aerial and underground, the Grantee shall have the discretion to

construct, operate, and maintain all of its transmission and distribution facilities, or any part

thereof, aerially or underground. Nothing in this Section shall be construed to require the Grantee

to construct, operate, or maintain underground any ground-mounted appurtenances such as

customer taps, line extenders, system passive devices, amplifiers, power supplies, pedestals, or

other related equipment.

3.3. Undergrounding and Beautification Projects.

3.3.1. In the event the City requires users of the Public Way who operate aerial

facilities to relocate such aerial facilities underground, Grantee shall participate in the planning

for relocation of its aerial facilities, if any, contemporaneously with such users. Grantee shall be

reimbursed its relocation costs from public or private funds allocated for the project to the same

extent as such funds are made available to other users of the Public Way, if any, provided that

any utility’s exercise of authority granted under its tariff to charge consumers for the said

utility’s cost of the project that are not reimbursed by the City shall not be considered to be

public or private funds.

3.3.2. The Grantee shall not be required to relocate its facilities unless it has

been afforded at least sixty (60) days notice of the necessity to relocate its facilities. Upon

adequate notice the Grantee shall provide a written estimate of the cost associated with the work

necessary to relocate its facilities. In instances where a third party is seeking the relocation of

the Grantee’s facilities or where the Grantee is entitled to reimbursement pursuant to the

preceding Section, the Grantee shall not be required to perform the relocation work until it has

received payment for the relocation work.

3.4. Technical Standards. Grantee shall construct and operate the Cable System to

comply with the FCC technical standards contained in Part 76, Subpart K of the FCC’s rules and

regulations, as updated and amended from time to time (47 C.F.R. Part 76, Subpart K). The

Grantee shall cooperate with the City in conducting inspections related to these standards upon

2.1.a

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reasonable prior written request from the City based on a significant number of subscriber

complaints.

4. Compensation to the City.

4.1. Franchise Fees. The Grantee shall pay to the City a franchise fee in an amount

equal to five percent (5%) of annual Gross Revenues received from the operation of the Cable

System to provide Cable Service in the Franchise Area; provided, however, that Grantee shall

not be compelled to pay any higher percentage of fees than any other video service provider,

under state authorization or otherwise, providing service in the Franchise Area. The payment of

Franchise Fees shall be made on a quarterly basis and shall be due forty-five (45) days after the

close of each calendar quarter. If mailed, the Franchise Fee shall be considered paid on the date

it is postmarked. Each Franchise Fee payment shall be accompanied by a report prepared by a

representative of the Grantee showing the basis for the computation of the franchise fees paid

during that period. Any undisputed Franchise Fee payment which remains unpaid in whole or in

part, after the date specified herein shall be delinquent. For any delinquent Franchise Fee

payments, Grantee shall make such payments including interest at the prime lending rate as

quoted by Chase Bank U.S.A or its successor, computed from time due until paid. Any

undisputed overpayments made by the Grantee to the City shall be credited upon discovery of

such overpayment until such time when the full value of such credit has been applied to the

Franchise Fee liability otherwise occurring under this Section.

4.1.1. The Parties acknowledge that, at present, the Cable Act limits the City to

collection of a maximum permissible Franchise Fee of five percent (5%) of Gross Revenues. In

the event that a change in the Cable Act would allow the City to increase the Franchise Fee

above five percent (5%), the City shall hold a public hearing and determine if the City should

collect the additional amount. Following the determination, the City shall notify the Grantee of

its intent to collect the increased Franchise Fee and Grantee shall have a reasonable time (not to

be less than ninety (90) days from receipt of notice from the City) to effectuate any changes

necessary to begin the collection of such increased Franchise Fee or notify the Grantee of its

intent to not collect the increased fee. In the event that the City increases said Franchise Fee, the

Grantee shall notify its Subscribers of the City’s decision to increase said fee prior to the

implementation of the collection of said fee from Subscribers as required by law.

4.1.2. In the event a change in state or federal law requires the City to reduce the

franchise fee percentage that may be collected, the parties agree the Grantee shall reduce the

percentage of franchise fees collected to the lower of: i) the maximum permissible franchise fee

percentage; or ii) the lowest franchise fee percentage paid by any other Cable Operator granted a

Cable Franchise by the City pursuant to the Cable Act, and Section 11-42-11 of the Illinois

Municipal Code; provided that: (a) such amendment is in compliance with the change in state or

federal law; (b) the City approves the amendment by ordinance; and (c) the City notifies Grantee

at least ninety (90) days prior to the effective date of such an amendment.

2.1.a

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4.2. Franchise Fees Subject to Audit. The City and Grantee acknowledge that the

audit standards are set forth in the Illinois Municipal Code at 65 ILCS 5/11-42-11.05 (Municipal

Franchise Fee Review; Requests For Information). Any audit shall be conducted in accordance

with generally applicable auditing standards.

4.3. Maintenance of Books, Records, and Files. Notwithstanding anything to the

contrary set forth in this Agreement, the Grantee shall not be required to disclose information

which it reasonably deems to be proprietary or confidential in nature, with the exception of the

information directly related to an audit of Franchise Fees as set forth in Section 4.2, and PEG

Capital Fees as set forth in Section 5.6. The City agrees to treat any information disclosed by the

Grantee as confidential and only to disclose it to those employees, representatives, and agents of

the City that have a need to know in order to enforce this Franchise Agreement and who agree to

maintain the confidentiality of all such information. For purposes of this Section, the terms

“proprietary or confidential” include, but are not limited to, information relating to the Cable

System design, customer lists, marketing plans, financial information unrelated to the calculation

of Franchise Fees or rates pursuant to FCC rules, or other information that is reasonably

determined by the Grantee to competitively sensitive. Grantee may make proprietary or

confidential information available for inspection but not copying or removal by the Franchise

Authority’s representative. In the event that the City has in its possession and receives a request

under the Illinois Freedom of Information Act (5 ILCS 140/1 et seq.), or similar law for the

disclosure of information the Grantee has designated as confidential, trade secret or proprietary,

the City shall notify Grantee of such request and cooperate with Grantee in opposing such

request. Grantee shall indemnify and defend the City from and against any claims arising from

the City’s opposition to disclosure of any information Grantee designates as proprietary or

confidential. Compliance by the City with an opinion or directive from the Illinois Public

Access Counselor or the Illinois Attorney General under the Illinois Freedom of Information Act,

5 ILCS 140, or with a decision or order of a court with jurisdiction over the City, shall not be a

violation of this Section.

5. Educational and Governmental Programming.

5.1. Grantee shall provide capacity for the City’s noncommercial Public, Educational

and Governmental (“PEG”) Access Programming through three (3) Channels (the “PEG Access

Channels”) on the Grantee’s Cable System The PEG Access Channels may be carried on the

Grantee’s basic digital service tier. The City’s PEG Access Programming shall be provided

consistent with Section 611 of the Cable Act, as amended from time to time.

5.2. The Grantee does not relinquish its ownership of or ultimate right of control over

a Channel by designating it for PEG use. However, the PEG Channel is, and shall be, operated

by the City, and the City may at any time allocate or reallocate the usage of the PEG Channel

among and between different non-commercial uses and Users. The City shall be responsible for

the editorial control of the Video Programming on the PEG Channel except to the extent

permitted in 47 U.S.C. §531(e).

5.3. Origination Point. At such time that the City determines that it wants the

capacity to allow Subscribers in the City to receive Public, Educational and/or Governmental

Access Programming (video and character generated) which may originate from Schools and/or

2.1.a

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City facilities (other than those having a signal point of origination at the time of the execution of

this Agreement); or at such time that the City determines that it wants to establish or change a

location from which Public, Educational and/or Governmental Access Programming is

originated; or in the event the City wants to upgrade the connection to the Grantee from an

existing signal point of origination, the City will give the Grantee written notice detailing the

point of origination and the capability sought by the City. The Grantee agrees to submit a cost

estimate to implement the City’s plan within a reasonable period of time. After an agreement to

reimburse the Grantee for its expenditure, the Grantee will implement any necessary system

changes within a reasonable period of time.

5.4. PEG Signal Quality. Provided PEG signal feeds are delivered by the City to the

designated signal input point without material degradation, the PEG Channel delivery system

from the designated signal input point shall meet the same FCC technical standards as the

remainder of the Cable System set forth in this Agreement.

5.5. Because the City and Grantee agree that a blank or under utilized PEG Access

Channel is not in the public interest, in the event the City does not completely program a

Channel, Grantee may utilize the Channel for its own purposes in accordance with the terms of

47 U.S.C. §532(b)(4). Grantee may program unused time on the Channel upon no less than sixty

(60) days prior written notice to City subject to reclamation from the City. Text messaging

containing out of date or expired information for a period of thirty (30) days shall be considered

unused time. A programming schedule that contains playback of previously aired PEG Access

Programming that has not been updated for a period of ninety (90) days shall be considered

unused time. Unused time shall be considered to be a period of time, in excess of six (6) hours,

between noon and midnight, where no community produced programming of any kind can be

viewed on a PEG Access Channel. Fallow time shall not include periods of time where

programming cannot be viewed that are caused by technical difficulties, transition of broadcast

media, signal testing, replacement or repair of equipment, or installation or relocation of

facilities.

5.6. PEG Capital Support. At its sole discretion, the City may designate PEG

access capital projects to be funded by the City. The City shall send written notice of the City’s

desire for Grantee to collect as an external charge a PEG Capital Fee of up to thirty-five cents

($0.35) per customer per month charge to be passed on to each Subscriber pursuant Section

622(g)(2)(C) of the Cable Act (47 U.S.C. §542(g)(2)(C The Grantee shall make the PEG capital

payments from such sums at the same time and in the same manner as Franchise Fee payments.

The notice shall include a detailed and itemized description of the intended utilization of the

PEG Capital Fee for PEG Access Channel facilities and/or equipmentand the Grantee shall have

the opportunity to review and make recommendations upon the City’s plan prior to agreeing to

collect and pay to the City the requested amount. The capital payments shall be expended for

capital costs associated with PEG access. Consistent with the description of the intended

utilization of the PEG Capital Fee, the City shall be permitted to hold all or a portion of the PEG

Capital Fee from year to year as a designated fund to permit the City to make large capital

expenditures, if necessary, provided that if the entire amount is not expended during the term of

this agreement, any remaining funds shall be credited against PEG Capital requests from the City

in subsequent franchise renewals. . Moreover, if the City chooses to borrow from itself or a

financial institution revenue for large PEG capital purchases or capital expenditures, the City

2.1.a

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shall be permitted to make periodic repayments using the PEG Capital Fee. Said PEG Capital

Fee shall be imposed within one hundred twenty days (120) of the City’s written request. On an

annual basis, the City shall provide the Grantee with a report detailing hoe the prior year’s

funding was spent or confirming it is being held in a capital reserve account for future PEG

capital needs.

5.6.1. For any payments owed by Grantee in accordance with this Section 5.6

which are not made on or before the due dates, Grantee shall make such payments including

interest at an annual rate of the prime lending rate as quoted by Chase Bank U.S.A. or its

successor, computed from time due until paid. Any undisputed overpayments made by the

Grantee to the City shall be credited upon discovery of such overpayment until such time when

the full value of such credit has been applied to the Franchise Fee liability otherwise accruing

under this section.

6. Service Obligations.

6.1. Initial Service Obligation. As of the Effective Date of this Agreement,

Grantee’s Cable System has been designed to provide, and is capable of providing, Cable Service

to residential Customers throughout the Initial Franchise Service Area. The Grantee shall

continue to make Cable Service available in the Initial Service Area throughout the term of this

Agreement and Grantee shall extend its Cable System and provide service consistent with the

provisions of this Franchise Agreement.

6.2. General Service Obligation. Grantee, subject to the terms herein, shall make

available Cable Service to all residential dwelling units located within the Franchise Area where

the minimum density is at least thirty (30) dwelling units per cable plant mile and is within one

(1) mile of the existing Cable System’s technically feasible connection point. Subject to the

density requirement, Grantee shall offer Cable Service to all homes located within one hundred

twenty-five (125) feet of the Grantee’s distribution cable.

6.3. The Grantee may elect to provide Cable Service to areas not meeting the above

density and distance standards. The Grantee may impose an additional charge in excess of its

regular installation charge for any service installation requiring a drop in or line extension in

excess of a Standard Installation. Any such additional charge shall be computed on a time plus

materials basis plus a reasonable rate of return.

6.4. Customer Service Obligations. The City and Grantee acknowledge that the

customer service standards and customer privacy protections are set forth in the Cable and Video

Customer Protection Law, 220 ILCS 5/22-501 et seq. and Chapter 5, Article 3, Division 11,

Subdivision III of the Rockford City Code. Enforcement of such requirements and standards

and the penalties for non-compliance with such standards shall be consistent with the Cable and

Video Customer Protection Law, 220 ILCS 5/22-501 et seq.

6.5. Programming. The Grantee agrees to provide cable programming services in the

following broad categories:

2.1.a

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Children General Entertainment Family Oriented

Ethnic/Minority Sports Weather

Arts, Culture and Performing Arts News & Information Educational

Pursuant and subject to federal law, all Video Programming decisions, excluding PEG Access

Programming, are at the sole discretion of the Grantee.

6.6. Annexations and New/Planned Developments. In cases of annexation the City

shall provide the Grantee written notice of such annexation. In cases of new construction,

planned developments or property development where undergrounding or extension of the Cable

System is required, the City shall provide or cause the developer or property owner to provide

notice of the same. Such notices shall be provided at the time of notice to all utilities or other

like occupants of the City’s Public Way. If advance notice of such annexation, new construction,

planned development or property development is not provided, the Grantee shall be allowed an

adequate time to prepare, plan and provide a detailed report as to the timeframe for it to construct

its facilities and provide the services required under this Franchise Agreement.

6.7. Service to School Buildings and Governmental Facilities.

The City may request that Grantee provide Cable Service and the corresponding equipment to

the location(s) specified in Attachment A, and shall specify the requested level of services and

number of outlets for each location. The City shall notify Grantee in writing whether it wishes to

be invoiced at standard rates as disclosed by Grantee for these services and equipment or to have

the charges deducted from the franchise fee payment due pursuant to this franchise. In the event

the FCC Third 621 Order is reversed on appeal on the issue of complimentary services (pending

at the 6th Circuit at the time of this Agreement) and that reversal becomes final, the City and the

Grantee will revert to the provisions of 220 ILCS 5/22-501(f), whereby the Grantee shall provide

complimentary Basic Cable Service, one Digital Transport Adapter (or its current equivalent if

equipment is necessary to receive the service) and a free Standard Installation at one outlet to all

eligible buildings as defined in the state statute. Eligible buildings shall not include buildings

leased to non-governmental third parties or buildings such as storage facilities at which

government employees are not regularly stationed.

6.8. Emergency Alerts. At all times during the term of this Franchise Agreement,

the Grantee shall provide and maintain an Emergency Alert System (EAS) consistent with

applicable Federal law and regulation including 47 C.F.R., Part 11 and the “State of Illinois

Emergency Alert System State Plan” – as may be amended from time to time. The City must

become qualified and authorized to activate the EAS, through the authorized State EAS plan.

The City agrees to indemnify and hold the Grantee harmless from any damages or penalties

arising out of the negligence of the City, its employees or agents in using such system.

7. Indemnification.

7.1. Grantee shall indemnify, defend and hold harmless the City, its officers,

employees, and agents from and against any and all liabilities, damages, losses, judgments or

2.1.a

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claims, including reasonable attorneys fees and costs of defense, resulting from or arising out of

the construction, operation, maintenance or removal of the Cable System by Grantee, its

employees or contractors provided that the City shall give Grantee timely written notice of its

obligation to indemnify and defend the City following receipt of a claim or action pursuant to

this Section. For purposes of this Section, the word “timely” shall mean within a time period

that does not cause prejudice to the respective positions of the Grantee and/or the City. The

Grantee’s obligation with respect to the Indemnities shall apply to Indemnification Events which

may occur during the term of this Agreement, provided that the claim or action is initiated within

the applicable statute of limitations, notwithstanding that the claim may be made or action filed

subsequent to the termination or expiration of this Agreement. If the City determines that it is

necessary for it to employ separate counsel, the costs for such separate counsel shall be the

responsibility of the City. Grantee shall not indemnify the City for any liabilities, damages,

costs or expense resulting from the willful misconduct or negligence of the City, its officers,

employees or agents for which the City, its officers, employees and agents may be liable under

the laws of the State of Illinois. Nothing herein shall be construed to limit the Grantee’s duty to

indemnify the City by reference to the limits of insurance coverage described in this Agreement.

8. Insurance.

8.1. Insurance. Throughout the term of this Franchise Agreement, the Grantee shall,

at its own cost and expense, maintain such insurance and provide the City certificates of

insurance in accordance with Chapter 26, Article XI of the Rockford City Code.

9. Enforcement of Franchise.

9.1. Notice of Violation or Default. In the event the City believes that the Grantee

has not complied with the material terms of the Franchise, it shall notify the Grantee in writing

with specific details regarding the exact nature of the alleged noncompliance or default

9.2 Grantee’s Right to Cure or Respond. Grantee shall have thirty (30) days from

the receipt of the City’s written notice: (A) to respond to the City, contesting the assertion of

noncompliance or default; or (B) to cure such default; or (C) in the event that, by nature of the

default, such default cannot be cured within the thirty (30) day period, initiate reasonable steps to

remedy such default and notify the City of the steps being taken and the projected date that the

cure will be completed.

9.3. Subject to applicable federal and state law, and following notice and an

opportunity to cure and respond pursuant to the provisions of Section 9.2 above, in the event the

City determines that the Grantee is in default of any material provision of the Franchise, the City

may:

9.3.1. seek specific performance of any provision that reasonably lends itself to

such remedy as an alternative to damages, or seek other equitable relief; or

9.3.2 in the case of a substantial default of a material provision of the Franchise,

declare the Franchise Agreement to be revoked in accordance with the following:

2.1.a

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(i) The City shall give written notice to the Grantee of its intent to

revoke the Franchise on the basis of a pattern of noncompliance by the Grantee, including two or

more instances of substantial noncompliance with a material provision of the Franchise. The

notice shall set forth with specificity the exact nature of the noncompliance. The Grantee shall

have ninety (90) days from the receipt of such notice to object in writing and to state its reasons

for such objection. In the event the City has not received a response from the Grantee or upon

receipt of the response does not agree with the Grantee’s proposed remedy, it may then seek

termination of the Franchise at a public hearing. The City shall cause to be served upon the

Grantee, at least ten (10) days prior to such public hearing, a written notice specifying the time

and place of such hearing and stating its intent to request termination of the Franchise.

(ii) At the designated hearing, the City shall give the Grantee an

opportunity to state its position on the matter, present evidence and question witnesses, after

which it shall determine whether or not the Franchise shall be terminated. The public hearing

shall be on the record and a written transcript shall be made available to the Grantee at its sole

expense within ten (10) business days. The decision of the City shall be in writing and shall be

delivered to the Grantee by certified mail. The Grantee may appeal such determination to any

court with jurisdiction within thirty (30) days after receipt of the City’s decision.

9.4. Remedies Not Exclusive. In addition to the remedies set forth in this Section 9,

the Grantee acknowledges the City’s ability pursuant to Section 6.4 of this Franchise Agreement

to enforce the requirements and standards, and the penalties for non-compliance with such

standards, consistent with the Illinois Cable and Video Customer Protection Law enacted by the

City as Chapter 5, Article 3, Division 11, Subdivision III of the Rockford City Code; and,

pursuant to Section 3.1 of this Franchise Agreement and Chapter 26, Article XI of the Rockford

City Code, to enforce the Grantee’s compliance with the City’s requirements regarding

“Construction of Utility Facilities in the Rights-Of-Way.” Notwithstanding the foregoing,

nothing in this Agreement shall be interpreted to permit the City to exercise such rights and

remedies in a manner that permits duplicative recovery from, or payments by, the Grantee. Such

remedies may be exercised from time to time and as often and in such order as may be deemed

expedient by the City.

10. Miscellaneous Provisions.

10.1. Modification. Except as provided in Sections 4.1.1 and 4.1.2, this Agreement

may be amended or modified only by a written instrument executed by both parties.

10.2. Severability. If any section, subsection, sentence, clause, phrase, or other portion

of this Franchise Agreement is, for any reason, declared invalid, in whole or in part, by any

court, agency, commission, legislative body, or other authority of competent jurisdiction, such

portion shall be deemed a separate, distinct, and independent portion. Such declaration shall not

affect the validity of the remaining portions hereof, which other portions shall continue in full

force and effect. If any material provision of this Agreement is made or found to be

unenforceable by such a binding and final decision, either party may notify the other in writing

that the Franchise has been materially altered by the change and of the election to begin

2.1.a

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negotiations to amend the Franchise in a manner consistent with said proceeding or enactment;

provided, however, that any such negotiated modification shall be competitively neutral, and the

parties shall be given sufficient time to implement any changes necessitated by the agreed-upon

modification.

10.3. Entire Agreement. This Agreement constitutes the entire agreement between the

City and Comcast with respect to the subject matter contained herein and supersedes all prior or

contemporaneous discussions, agreements, and/or representations of or between the City and

Comcast regarding the subject matter hereof. All ordinances or parts of ordinances that are in

conflict with or otherwise impose obligations different from the provisions of this Franchise

Agreement are superseded by this Franchise Agreement.

10.4. Waiver. Failure on the part of either Party to enforce any provision of this

Agreement shall not be construed as a waiver of the right to compel enforcement of such

provision or any other provision. Nothing in this Franchise Agreement shall be construed as a

waiver of any rights, substantive or procedural, Grantee may have under Federal or state law

unless such waiver is expressly stated herein.

10.5. Notices. Any notice that requires a response or action from a party to this

franchise within a specific time-frame, or that would trigger a timeline that would affect one or

both parties’ rights under this franchise, shall be in writing and may be delivered to either

personally, by facsimile or by certified or registered mail with postage prepaid and return receipt

requested, or by reputable overnight courier service and addressed as follows addressed as

follows:

If to the City: If to Grantee:

City of Rockford Comcast

425 East State Street 1500 McConnor Parkway

Rockford, IL 61104 Schaumburg, IL 60173

Attn: Legal Director ATTN: Dir. of Government Affairs

Recognizing the widespread usage and acceptance of electronic forms of communication, emails

and faxes will be acceptable as formal notification related to the conduct of general business

amongst the parties to this contract, including but not limited to programming and price

adjustment communications. Such communication should be addressed and directed to the

person of record as specified above. Either party may change its address and addressee for

notice by notice to the other party under this Section.

10.6. Transfer of Cable System or Franchise or Control of Grantee.

10.6.1. Neither the Grantee nor any other Person may transfer the Cable System

or the Franchise without the prior written consent of the City, which consent shall not be

unreasonably withheld or delayed.

10.6.2. No transfer of control of the Grantee, defined as an acquisition of fifty-

one percent (51%) or greater ownership interest in Grantee, shall take place without the prior

written consent of the City.

2.1.a

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10.6.3. No consent shall be required, however, for (i) a transfer in trust, by

mortgage, hypothecation, or by assignment of any rights, title, or interest of the Grantee in the

Franchise or in the Cable System in order to secure indebtedness, or (ii) a transfer to an entity

directly or indirectly owned or controlled by Comcast Corporation.

10.6.4. The Grantee, and any proposed transferee under this Section 6, shall

submit a written application to the City containing or accompanied by such information as is

required in accordance with applicable law and FCC regulations, specifically including a

completed Form 394 or its successor, and in compliance with the processes established for

transfers under FCC rules and regulations, including Section 617 of the Cable Act, 47 U.S.C.

§537. Within thirty (30) days after receiving a request for consent, the City shall, in accordance

with FCC rules and regulations, notify the Grantee in writing of the additional information, if

any, it requires to determine the legal, financial and technical qualifications of the transferee or

new controlling party. If the City has not taken final action on the Grantee's request for consent

within one hundred twenty (120) days after receiving such request, consent shall be deemed

granted. As a condition to granting of any consent, the City may require the transferee to agree

in writing to assume the obligations of the Grantee under this Franchise Agreement.

10.6.5. Any transfer of control resulting from or after the appointment of a

receiver or receivers or trustee or trustees, however denominated, designated to take over and

conduct the business of the grantee, whether in a receivership, reorganization, bankruptcy or

other action or proceeding, unless such receivership or trusteeship shall have been vacated prior

to the expiration of a one hundred twenty (120) day period, shall be treated as a transfer of

control pursuant to 47 U.S.C. §537 and require the City consent thereto in the manner described

in Section 10.6 above.

10.7. Force Majeure. The Grantee shall not be held in default under, or in

noncompliance with, the provisions of the Franchise, nor suffer any enforcement or penalty

relating to noncompliance or default (including termination, cancellation or revocation of the

Franchise), where such noncompliance or alleged defaults occurred or were caused by strike,

riot, war, earthquake, flood, tsunami, unusually severe rain or snow storm, hurricane, tornado, or

other catastrophic act of nature, labor disputes, failure of utility service necessary to operate the

Cable System, governmental, administrative or judicial order or regulation or other event that is

reasonably beyond the Grantee’s ability to anticipate or control. Noncompliance or default shall

be corrected without delay after the force majeure event has ceased.

10.8. Venue. Except as to any matter within the jurisdiction of the federal courts or the

FCC, all judicial actions relating to any interpretation, enforcement, dispute resolution or any

other aspect of this Agreement shall be brought in the Circuit Court of the State of Illinois,

Winnebago County, Illinois. Any matter brought pursuant to the jurisdiction of the federal court

shall be brought in the United States District Court of the Northern District of Illinois.

10.9. No Third-Party Beneficiaries. Nothing in this Franchise Agreement is intended

to confer third-party beneficiary status on any person, individual, corporation or member of the

public to enforce the terms of this Franchise Agreement.

2.1.a

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10.10. Validity of Franchise Agreement. The parties acknowledge and agree in good

faith on the validity of the provisions, terms and conditions of this Franchise Agreement, in their

entirety, and that the Parties have the power and authority to enter into the provisions, terms, and

conditions of this Agreement.

10.11. Authority to Sign Agreement. Grantee warrants to the City that it is authorized

to execute, deliver and perform this Franchise Agreement. The individual signing this Franchise

Agreement on behalf of the Grantee warrants to the City that s/he is authorized to execute this

Franchise Agreement in the name of the Grantee.

10.12. Headings. The headings used in this Agreement are inserted for convenience or

reference only and are not intended to define, limit or affect the interpretation of any term or

provision hereof. The singular shall include the plural; the masculine gender shall include the

feminine and neutral gender.

10.13. Compliance with this Agreement. Grantee shall not be excused from complying

with any of the terms, conditions, and provisions of this Agreement by any failure of the City

upon one or more occasions to insist upon or to seek compliance with any such terms, conditions

or provisions.

10.14. Governing Law. This Franchise Agreement shall be deemed to be executed in

the State of Illinois, and shall be governed in all respects, including validity, interpretation and

effect and construed in accordance with, the laws of the State of Illinois and/or Federal law, as

applicable.

IN WITNESS WHEREOF, the Parties hereto, by their duly authorized representatives,

have executed this Agreement and made the same effective as of the Effective Date.

COMCAST OF ILLINOIS/INDIANA/OHIO, LLC.

By: ______________________________________

Name: ____________________________________

Title: _____________________________________

CITY OF ROCKFORD

By: ______________________________________ ATTEST:

Name: Thomas J. McNamara ______________________________

Nicholas O. Meyer

2.1.a

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Title: Mayor Legal Director

2.1.a

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Nicholas O. Meyer Legal Director Department of Law

City of Rockford, Illinois USA 425 East State Street Rockford, Illinois 61104-1068 USA

Phone – 779-348-7154 Fax - 815-967-6949 www.rockfordil.gov

MEMORANDUM

Date: June 24, 2021

To: Ald. Gina Meeks, Chair, Planning & Development Committee

From: Nicholas Meyer, Legal Director

RE: Comcast Franchise Agreement

Attached is a draft Franchise Agreement with Comcast which renews the non-exclusive agreement under

which Comcast is allowed to operate in the public rights of way.

The existing agreement was entered into in 2010 and expired in 2020.

Much of the Agreement is based on the model agreement negotiated by the Metropolitan Mayor’s caucus and is

consistent with the terms and provisions of the 2010 contract. It is also consistent with cable franchise agreements

in comparable and surrounding communities.

The City has three main purposes in the Franchise Agreement: (1) to regulate the use of the right of way

for public safety and efficiency with other users, (2) to assure a high level of technical competency and

customer service, and (3) to assure payment of the franchise fee, which by law is capped at 5% of gross

revenues of the cable system. This fee generates about $1.4 million for the general fund each year. The

cable system includes cable television subscriptions. It does not include internet, streaming service, or cell phone

service. Comcast is required to provide cable service to all residential dwelling units in the City.

Federal and State law effectively preempt much of the City’s ability negotiate terms of the agreement.

The only substantive changes from the previous contract are:

2.2 Term

The previous term was 10 years. The term of this agreement is 5 years with an automatic 5 year renewal in

the event that council chooses not to terminate the contract. Staff will bring the agreement back to council for

consideration prior to expiration of the initial term. The purpose of the shorter term is to allow the City to

potentially re-negotiate certain provisions in the mid-term if more competition is introduced into the service area.

6.7. Service to School Buildings and Governmental Facilities.

Under previous rules, municipalities could require franchisees to provide free cable service to government

and schools as a condition of their franchise. However, recently the Federal Communications Commission issued a

new rule clarifying that these types of mandatory services are considered payments under the franchise fee and that

cable providers must be compensated for them. The FCC’s ruling was appealed to the 6th Circuit Court of Appeals

and was upheld. However, the 6th Circuit ruled that the fee that cable providers can charge to provide cable

television access to government buildings is not market rate, but must be a substantially reduced rate based on the

marginal cost of providing the service to the government building. We do not yet have a calculation on the cost of

cable service.

2.1.b

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Nicholas O. Meyer Legal Director Department of Law

City of Rockford, Illinois USA 425 East State Street Rockford, Illinois 61104-1068 USA

Phone – 779-348-7154 Fax - 815-967-6949 www.rockfordil.gov

2.1.b

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ROCKFORD, ILL.

June 21, 2021

TO THE CITY COUNCIL OF THE CITY OF ROCKFORD:

Council Members:

The Committee on Planning & Development to whom was referred the South

Rockford Tax Increment Financing (TIF) District, begs leave to report recommending the

Second Amendment to the South Rockford Tax Increment Financing (TIF) District

Redevelopment Project Area – Redevelopment Plan and Project be approved. The Legal

Director shall prepare the appropriate ordinance.

_____________________________________________

_____________________________________________

_____________________________________________

_____________________________________________

_____________________________________________

Committee Action: June 14, 2021

Meeks: Ayes:___ Nays:____ Absent:____

Durkee: Ayes:___ Nays:____ Absent:____

Hoffman: Ayes:___ Nays:____ Absent:____

McNeely: Ayes:___ Nays:____ Absent:____

Prunty: Ayes:___ Nays:____ Absent:____

2.2.a

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To: Alderman Gina Meeks, Chairman, Planning and Development Committee

Cc: Mayor Thomas McNamara

City Council

From: Karl F. Franzen, Community & Economic Development Director

RE: First Amendment to the Amerock Hotel Tax Increment Financing District

Date: June 10, 2021

________________________________________________________________________

On July 20, 2020, the City Council approved a contract with Kane, McKenna and Associates Inc.

(KMA) as a consultant to complete the qualification and redevelopment plan for a proposed First

Amendment to the Amerock-Hotel Tax Increment Financing District.

With the assistance of KMA and in conformance with the Illinois TIF Act, the City of Rockford

has completed the following procedures in connection to the proposed designation of the

Amerock Hotel TIF District:

1. The proposed TIF District, as proposed for designation, was added to the City’s Interested

Parties Registry and Rules filings on March 5, 2021.

2. On March 5, 2021, the City’s TIF Consultant, Kane, McKenna and Associates, delivered for

placement with the Legal Department a TIF Plan and TIF Eligibility Report that

demonstrated that the proposed TIF District met all of the criteria required for its designation

under TIF Law.

3. The Public Hearing Resolution for the proposed TIF District was adopted on March 29,

2021.

4. Legal notices regarding the public hearing were sent by certified mail to all affected taxing

districts and the Illinois Department of Commerce and Economic Opportunity on March 30,

2021.

5. Notices regarding the City’s intent to consider adoption of the proposed TIF District were

sent out by regular mail to any interested parties and to residential properties located within

750’ of TIF boundaries on April 30, 2021.

2.2.b

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6. The Joint Review Board (JRB) for the proposed TIF District was duly convened by the City

on April 15, 2021. At the meeting, the JRB members present were presented with an

overview of both the TIF Plan and the TIF Eligibility Report pursuant to State law.

7. The JRB consists of the following members:

The City;

The County of Winnebago;

Rockford Park District;

Rockford Township;

Rockford School District No. 205;

Rock Valley College; and

A public member.

8. Members present and participating in the JRB proceedings included all members except for

Rockford Township and Rockford School District No. 205.

9. At the meeting, the JRB members present voted 5-0 to recommend to the City that it proceed

with the designation of the proposed TIF District.

10. Legal notices regarding the public hearing were sent out by certified mail to all property

owners of record, on April 30, 2021.

11. Publication of the legal notice regarding the public hearing was placed in the local

newspaper, in the manner` proscribed by State law, on May 1, 2021 and again on May 2,

2021.

12. A public hearing was held on May 17, 2021 at Rockford City Council Chambers. A

representative of Rockford School District No. 205 spoke in opposition. Two community

members spoke in favor of modified boundary for the amended TIF to retain certain parcers.

Staff is now presenting for City Council consideration the following attached ordinances:

1. An Ordinance for West Side #2 Termination and Dissolution;

2. An Ordinance for Second Amendment to South Rockford Plan and Project;

3. An Ordinance Approving the First Amendment to the Amerock Hotel Redevelopment Plan

and Project Area;

4. An Ordinance Designating the Amended Amerock Hotel Redevelopment Area;

5. An Ordinance Adopting Tax Increment Financing for the Amended Amerock Hotel

Redevelopment Area.

2.2.b

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2021-___-O

AN ORDINANCE OF THE CITY OF ROCKFORD, WINNEBAGO AND OGLE COUNTIES, ILLINOIS, PROVIDING FOR THE TERMINATION OF THE WEST SIDE #2 REDEVELOPMENT PROJECT AREA AND THE DISSOLUTION OF THE SPECIAL TAX ALLOCATION FUND FOR THE WEST SIDE #2 TAX INCREMENT FINANCING DISTRICT

WHEREAS, the City of Rockford (the “City”) pursuant to, and in accordance with

the Illinois Tax Increment Allocation Redevelopment Act 65 ILCS 5/11-74.1-1 et seq. (the

“TIF Act”) established the West Side #2 Redevelopment Project Area on January 22,

2007 by a series of ordinances numbered as 2007-15-O, 2007-16-O, and 2007-17-O; and

WHEREAS, the City pursuant to, and in accordance with, Section 11-74.4-8 (65

ILCS 5/11-74.4-8) and other provisions of the TIF Act adopted and utilized tax increment

financing in connection with the implementation of the Redevelopment Plan for the West

Side #2; and

WHEREAS, the West Side #2 Redevelopment Project Area is set to terminate on

December 31, 2030, such date being not later than December 31 the year in which the

payment to the municipal treasurer, as provided in subsection (b) of Section 11-74.4-8 of

the TIF Act, has been made with respect to ad valorem taxes levied in the 23rd calendar

year after the year in which the ordinance approving the redevelopment project area was

adopted; and

WHEREAS, the City is required to complete and retire all obligations for the

redevelopment costs incurred for West Side #2 Redevelopment Project Area not later

2.2.c

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than December 31 of the year in which the City, pursuant to the Act, receives payment

with respect to ad valorem taxes levied in the twenty-third (23rd) year calendar year after

the ordinance approving the RPA is adopted (such calendar year also being tax 2030,

with payment due in calendar year 2031); and

WHEREAS, the City has made a determination that it is in the best interests of the

City and the taxing districts that are affected by the continued operation of the West Side

#2 Redevelopment Project Area to terminate said Redevelopment Project Area effective

immediately upon adoption of this Ordinance; and

WHEREAS, under the TIF Act, the City is required to notify affected taxing districts

by no later than November 1 of the year of termination the West Side #2 Redevelopment

Project Area Special Allocation Fund; and

WHEREAS, the City shall request that a tax increment agency distribution

summary report be prepared by the Office of the Winnebago County Clerk (the “County

Clerk’) for 2020 taxes (payable in 2021) will provide for: (1) a determination of the total

2020 equalized assessed valuation for West Side #2 Redevelopment Project Area; and

that (2) the frozen equalized assessed value of the West Side #2 Redevelopment Project

Area as previously certified by the County Clerk; and

WHEREAS, the difference between the 2020 equalized assessed value of the

property in West Side #2 Redevelopment Project Area that will be subsequently

determined by the County and the frozen value of the West Side #2 Redevelopment

Project Area is commonly known as the recovered TIF value; and

WHEREAS, as a result of the completion of the payment of ad valorem taxes levied

in the calendar year upon this termination of the West Side #2 Redevelopment Project

2.2.c

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Area, all taxing districts whose boundaries include that TIF Area will have the opportunity

to impose their 2021 property tax levy (taxes payable in 2022) upon the recovered TIF

value from the West Side #2 Redevelopment Project Area.

NOW, THEREFORE, BE IT ORDAINED by the Mayor and City Council of the City

of Rockford, Winnebago, and Ogle Counties, Illinois, as follows:

SECTION 1: Recitals.

The recitals to this Ordinance set forth above are incorporated into and made a

material part of this Ordinance.

SECTION 2: Termination of the West Side #2 Redevelopment Project Area.

Effective immediately upon adoption of this ordinance, the West Side #2

Redevelopment Project Area shall be terminated and shall no longer be designated as a

redevelopment project area under the TIF Act. Effective after December 31, 2021, the

special tax allocation fund for the West Side #2 Redevelopment Project Area shall be

dissolved. On and prior to December 31, 2021, any funds in the special tax allocation

fund for the West Side #2 Redevelopment Project Area may, pursuant to the terms of the

TIF Act, be available for use in to complete obligations for the West Side #2

Redevelopment Project Area, and/or in any contiguous tax increment financing district or

any manner as allowed by the TIF Act.

SECTION 3: County filing and notification of affected taxing districts.

Upon the approval of this ordinance, a certified copy thereof shall be filed with

Winnebago County. Prior to November 1, 2021, a copy of this ordinance shall also be

2.2.c

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4

transmitted to any and all taxing districts that levy taxes upon the West Side #2

Redevelopment Project Area.

SECTION 4: Invalidity.

If any provision, clause, sentence or paragraph of this ordinance or the application

thereof to any person or circumstances shall be held invalid by a court of competent

jurisdiction such invalidity shall not affect the other provisions of this ordinance which can

be given effect without the invalid provision or application, and to this end the provisions

of this ordinance are declared to be severable.

SECTION 5: Effective Date.

This ordinance shall be in full force and effect upon its passage and approval and

shall subsequently be published in pamphlet form as provided by law.

2.2.c

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5

PASSED BY THE MAYOR AND THE CITY COUNCIL of the City of Rockford,

Illinois, at a regular meeting thereof on the ___ day of ____________, 2021, and approved

by me as Mayor on the same day.

VOTING AYE:

VOTING NAY:

ABSENT:

ABSTAIN:

APPROVED: , 2021

____________________________________

MAYOR

ATTESTED:

_______________________________________

LEGAL DIRECTOR

PASSED: APPROVED: PUBLISHED:

ATTESTED and FILED in my office this ______ day of _______________, 2021, and

published in pamphlet form this ______ day of ______________, 2021 by order of the City

Council of the City of Rockford, Illinois.

____________________________________

Legal Director and ex officio

Keeper of the Records and Seal

2.2.c

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APPROVED BY: ___________________________________

NICHOLAS O. MEYER, Legal Director

RECOMMENDED BY:

MEGAN MCNEILL, Assistant City Attorney

2.2.c

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ROCKFORD, ILL.

June 21, 2021

TO THE CITY COUNCIL OF THE CITY OF ROCKFORD:

Council Members:

The Committee on Planning & Development to whom was referred the South

Rockford Tax Increment Financing (TIF) District, begs leave to report recommending the

Second Amendment to the South Rockford Tax Increment Financing (TIF) District

Redevelopment Project Area – Redevelopment Plan and Project be approved. The Legal

Director shall prepare the appropriate ordinance.

_____________________________________________

_____________________________________________

_____________________________________________

_____________________________________________

_____________________________________________

Committee Action: June 14, 2021

Meeks: Ayes:___ Nays:____ Absent:____

Durkee: Ayes:___ Nays:____ Absent:____

Hoffman: Ayes:___ Nays:____ Absent:____

McNeely: Ayes:___ Nays:____ Absent:____

Prunty: Ayes:___ Nays:____ Absent:____

2.3.a

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2021-___-O

AN ORDINANCE OF THE CITY OF ROCKFORD, WINNEBAGO AND

OGLE COUNTIES, ILLINOIS, ADOPTING AND APPROVING THE

SECOND AMENDMENT TO THE CITY OF ROCKFORD SOUTH

ROCKFORD TAX INCREMENT FINANANCING REDEVELOPMENT

PROJECT AREA – REDEVELOPMENT PLAN AND PROJECT

WHEREAS, the City of Rockford, Winnebago and Ogle Counties, Illinois (the “City”),

is a duly organized and existing municipal corporation created under the provisions of the laws

of the State of Illinois and under the provisions of the Illinois Municipal Code, as from time to

time supplemented and amended; and

WHEREAS, on November 1, 1999, the City Council of the City of Rockford (the “City

Council”) passed and adopted Ordinance No. 1999-247-O entitled “An Ordinance Adopting the

South Rockford Redevelopment Plan and Redevelopment Project,” Ordinance No. 1999-248-O

entitled “An Ordinance Designating the South Rockford Tax Increment Financing Redevelopment

Project Area,” and Ordinance No. 1999-249-O entitled “An Ordinance Adopting Tax Increment

Financing for the South Rockford Redevelopment Project Area”; and

WHEREAS, on January 14, 2019, the City Council of the City of Rockford (the “City

Council”) passed and adopted Ordinance No. 2019-5-O entitled “An Ordinance Adopting the First

Amendment to The City of Rockford South Rockford Tax Increment Redevelopment Project Area,

- Redevelopment Plan and Project”; and

WHEREAS, Ordinance Nos. 1999-247-O, 1999-248-O, 1999-249-O and 2019-5-O were

adopted pursuant to the Tax Increment Allocation Redevelopment Act, 65 ILCS 5/11-74.4-1 et

seq. (the “Act”); and

WHEREAS, the City Council has determined that it is both desirable and in the best

interests of the City and its citizens to provide for this second amendment to the City of Rockford

2.3.b

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South Rockford Tax Increment Redevelopment Project Area Redevelopment Plan and Project (the

“Second Amendment Plan and Project”) to incorporate certain changes that include the deletion

of certain properties (as designated for exception or exclusion) out of the existing South Rockford

Tax Increment Redevelopment Project Area, as previously amended, in a manner consistent with

the City’s overall redevelopment project goals and objectives in connection with the South

Rockford Redevelopment Project Area and Redevelopment Plan and Redevelopment Project; and

WHEREAS, the changes incorporated as designated by the Second Amendment Plan and

Project is legally described within Exhibit A (attached hereto), and is shown by map, as amended,

within Exhibit B (attached hereto); and

WHEREAS, pursuant to Section 11-74.4-5c of the Act, additional changes to the South

Rockford Redevelopment Project Area and Redevelopment Plan and Redevelopment Project as

designated by this Second Amendment Plan and Project, which do not add parcels, affect the

general land use, change the nature of the redevelopment plan, increase the TIF budget above a

specified amount, add additional costs to the itemized TIF budget, or increase the number of

displaced inhabited residential units may be made without further public hearing and related

notices and procedures including the convening of a joint review board as set forth in Section 11-

74.46 of the Act, provided that the City gives notice of any such changes by mail to affected

taxing districts and registrant of the interested parties registry, and by publication in a newspaper

of general circulation within the affected taxing districts; and

WHEREAS, pursuant to the Act the City shall provide such required notices by mail and

by publication not later than 10 days following the adoption of this ordinance;

NOW, THEREFORE, BE IT ORDAINED by the City Council of the City of Rockford,

Winnebago and Ogle Counties, Illinois, as follows:

2.3.b

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3

ARTICLE I.

IN GENERAL

Section 1. Incorporation Clause.

The City Council hereby finds that all of the recitals hereinbefore stated as contained in the

preambles to this Ordinance are full, true and correct and does hereby, by reference, incorporate

and make them part of this Ordinance.

Section 2. Purpose

The purpose of this Ordinance is to authorize, approve and adopt this Second Amendment

to the South Rockford Tax Increment Redevelopment Project Area and Redevelopment Plan and

Redevelopment Project and to by reference authorize, approve and adopt amendments to the

Rockford South Rockford Tax Increment Redevelopment Project Area and Redevelopment Plan

and Redevelopment Project and related Ordinance Nos. 1999-247-O, 1999-248-O, 1999-249-O

and 2019-5-O to reflect and incorporate this Second Amendment.

Section 3. Invocation of Authority.

This Ordinance is enacted pursuant to the authority granted to the City by Constitution of

the State of Illinois Compiled Statutes.

Section 4. State Law Adopted.

All applicable provisions of the Illinois Compiled Statutes, including the Illinois Municipal

Code, as may be amended from time to time, relating to the purposes of this Ordinance are hereby

incorporated herein by reference.

ARTICLE II.

APPROVAL AND ADOPTION

Section 5. Amendments to the Redevelopment Project Area,

Redevelopment Plan and Redevelopment Project, and related

Ordinances.

2.3.b

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4

a. The South Rockford Tax Increment Redevelopment Project Area and

Redevelopment Plan and Redevelopment Project, as previously amended, is hereby further

amended to reflect and incorporate the Second Amendment, the provisions of which are included

in the Second Amendment to the South Rockford Tax Increment Redevelopment Project Area and

Redevelopment Plan and Redevelopment Project, a copy of said document is attached hereto and

made a part hereof as Exhibit C, is hereby adopted and approved.

b. Ordinance Nos. 1999-247-O, 1999-248-O, 1999-249-O and 2019-5-O are hereby

amended herein by reference to reflect and incorporate this Second Amendment.

Section 6. Other Actions Authorized.

That the City’s officers, employees and contractors are hereby authorized and directed to

take any and all action required to effectuate and carryout the intent of this Ordinance.

ARTICLE III.

SAVINGS CLAUSES,

PUBLICATION, EFFECTIVE DATE

Section 7. Headings.

The headings for the articles, sections, paragraphs and sub-paragraphs of this Ordinance

are inserted solely for the convenience of reference and form no substantive part of this Ordinance

nor should they be used in any interpretation or construction of any substantive provisions of this

Ordinance.

Section 8. Severability.

The provisions of this Ordinance are hereby declared to be severable and should any

provision, clause, sentence, paragraph, sub-paragraph, section, or part of this Ordinance be

determined to be in conflict with any law, statute or regulation by a court of competent jurisdiction,

2.3.b

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5

said provision shall be excluded and deemed inoperative, unenforceable, and as though not

provided for herein, and all other provisions shall remain unaffected, unimpaired, valid and in full

force and effect. It is hereby declared to be the legislative intent of the City Council that this

Ordinance would have been adopted had not such unconstitutional or invalid provision, clause,

sentence, paragraph, sub-paragraph, section, or part thereof had not been included.

Section 9. Superseder.

All code provisions, ordinances, resolutions and orders, or parts thereof, in conflict

herewith, are to the extent of such conflict hereby superseded.

Section 10. Publication.

A full, true and complete copy of this Ordinance shall be published in pamphlet form or in

a newspaper published and of general circulation within the City as provided by the Illinois

Municipal Code, as amended.

Section 11. Effective Date.

This Ordinance shall be in full force and effect upon passage and approval, as provided by

the Illinois Municipal Code, as amended.

2.3.b

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6

PASSED BY THE MAYOR AND THE CITY COUNCIL of the City of Rockford, Illinois,

at a regular meeting thereof on the ___ day of ____________, 2021, and approved by me as

Mayor on the same day.

VOTING AYE:

VOTING NAY:

ABSENT:

ABSTAIN:

APPROVED: , 2021

____________________________________

MAYOR

ATTESTED:

_______________________________________

LEGAL DIRECTOR

PASSED: APPROVED: PUBLISHED:

ATTESTED and FILED in my office this ______ day of _______________, 2021, and

published in pamphlet form this ______ day of ______________, 2021 by order of the City

Council of the City of Rockford, Illinois.

____________________________________

Legal Director and ex officio

Keeper of the Records and Seal

2.3.b

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7

APPROVED BY: ___________________________________

NICHOLAS O. MEYER, Legal Director

RECOMMENDED BY:

MEGAN MCNEILL, Assistant City Attorney

2.3.b

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EXHIBIT A

2nd Amended Legal Description- 2021

2.3.b

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mmcneill
Typewritten text
TO BE PROVIDED
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EXHIBIT B

2nd Amended Boundary RPA Map- 2021

2.3.b

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S MAIN

ST

WEST

ST LOOMIS ST

ROCK

STMORGAN ST

COUR

T ST

WINNEB

AGO S

T

KENT ST

S CHU

RCH

ST

MONTAGUE RD

SALTER AVE

LINCOLN AVE

BLAKE ST

MILL ST

LANE ST

WINN

EBAG

O

EDWARDS ST

HULIN ST

WYMAN

RACE ST

MORGAN ST.

CUNNINGHAM ST

HOUGHTON ST

KNOWLTON ST

MADISO

N1S

T ST

SEMI

NARY

ST

WELDON ST GRAHAM ST

N WAT

ER ST

MONTAGUE ST

RIVE

R ST

KENT ST

KNOWLTON ST

¯

0 0.150.075Miles

THE DATA PROVIDED IN THIS MAP IS FOR INFORMATIONAL PURPOSES ONLY AND THE CITY OF ROCKFORD, ITS PARTNERS, AND AFFILIATES (COR) ASSUMES NO LEGAL RESP-ONSIBILITY FOR THE INFORMATION CONTAINED IN THIS DATA. THE BURDEN FOR DETER-MINING FITNESS FOR THE USE OF THIS INFORMATION RESTS SOLELY UPON THE USER. COR ASSUMES NO LIABILITY FOR THE ACCURACY OF THE DATA OR RESPONSIBILITY FOR DIRECT, INDIRECT, SPECIAL, CONSEQUENTIAL, EXEMPLARY OR OTHER DAMAGES.

Map Produced: June, 2021

Second Amendment South Rockford TIF Redevelopment Area

2.3.b

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S MAIN

ST

WEST

ST LOOMIS ST

ROCK

STMORGAN ST

COUR

T ST

WINNEB

AGO S

T

KENT ST

S CHU

RCH

ST

MONTAGUE RD

SALTER AVE

LINCOLN AVE

BLAKE ST

MILL ST

LANE ST

WINN

EBAG

O

EDWARDS ST

HULIN ST

WYMAN

RACE ST

MORGAN ST.

CUNNINGHAM ST

HOUGHTON ST

KNOWLTON ST

MADISO

N1S

T ST

SEMI

NARY

ST

WELDON ST GRAHAM ST

N WAT

ER ST

MONTAGUE ST

RIVE

R ST

KENT ST

KNOWLTON ST

¯

0 0.150.075Miles

THE DATA PROVIDED IN THIS MAP IS FOR INFORMATIONAL PURPOSES ONLY AND THE CITY OF ROCKFORD, ITS PARTNERS, AND AFFILIATES (COR) ASSUMES NO LEGAL RESP-ONSIBILITY FOR THE INFORMATION CONTAINED IN THIS DATA. THE BURDEN FOR DETER-MINING FITNESS FOR THE USE OF THIS INFORMATION RESTS SOLELY UPON THE USER. COR ASSUMES NO LIABILITY FOR THE ACCURACY OF THE DATA OR RESPONSIBILITY FOR DIRECT, INDIRECT, SPECIAL, CONSEQUENTIAL, EXEMPLARY OR OTHER DAMAGES.

Map Produced: June, 2021

Second Amendment South Rockford TIF Redevelopment Area

2.3.b

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EXHIBIT C

Second Amendment- The City of Rockford South Rockford Tax Increment Redevelopment

Project Area and Redevelopment Plan and Redevelopment Project

2.3.b

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SECOND AMENDMENT TO THE CITY OF ROCKFORD SOUTH ROCKFORD TAX INCREMENT

REDEVELOPMENT PROJECT AREA REDVELOPMENT PLAN AND PROJECT

Prepared for: City of Rockford, Illinois

Prepared Jointly by: Kane, McKenna and Associates, Inc.

and

The City of Rockford

June 2021

Original Plan and Project: November, 1999 First Amendment to the Plan and Project: January, 2019

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Page 44: Planning & Development

SECOND AMENDMENT TO THE CITY OF ROCKFORD SOUTH ROCKFORD TAX INCREMENT REDEVELOPMENT PROJECT

AREA REDEVELOPMENT PLAN AND PROJECT

TABLE OF CONTENTS

SECTION TITLE PAGE

I. Introduction 1 II. Amendments to the TIF Plan and Project 2 Appendix 1B Amended Legal Description- 2021 Appendix 2B Amended RPA Boundary Map- 2021 Appendix 3B 1999 TIF Plan and Project (Original TIF Plan) Appendix 4B 2019 First Amendment to TIF Plan and Project

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1

I. INTRODUCTION FOR FIRST AMENDMENT

In November 1999, the City of Rockford, Illinois (the “City”) adopted the City of Rockford South Rockford Tax Increment Financing Redevelopment Area Redevelopment Project and Plan (the “Original TIF Plan,” attached hereto as Appendix 3B). Further, in January 2019, the City adopted the First Amendment to said Original TIF Plan (the “First Amendment”, attached hereto as Appendix 4B) The purpose of the report herein is to further amend the Original TIF Plan by City adoption of this Second Amendment to the City of Rockford South Rockford Tax Increment Redevelopment Project Area Redevelopment Plan and Project (the “Second Amendment”). The Second Amendment is intended to make additional changes principally by again amending the TIF District boundaries to remove additional parcels generally bounded frontage along South Main Street from Kent Creek to the south, Winnebago to the West, Cedar Street to the north, and the Rock River to the east. The City is enacting this Second Amendment as part of its overall strategy to promote the continued economic revitalization of key properties (including the former South Main railyards and the former W.A. Whitney campus) as part and extended Urban Land Use Mix that is associated with the City’s redeveloping Downtown area. The City intends to immediately place the parcels to be removed from the City of Rockford South Rockford Tax Increment Redevelopment Project Area into a newly amended Amerock Hotel Tax Increment Redevelopment Project Area. The Second Amendment is being adopted by the City in conformance with the Tax Increment Allocation Redevelopment Act, (the “Act”) 65 ILCS 5/11-74.4-3, et. seq., as amended. For its remaining parcels, the City intends to reinforce commitments to implementation of the Original TIF Plan, as amended, in order to continue to restore, stabilize and increase the tax base associated with the South Rockford Tax Increment Financing Redevelopment Project Area (the “RPA”), and resulting tax revenues. Additionally, recognizing the renewed opportunities to further revitalize the South Rockford RPA. The City is favorably disposed toward supporting redevelopment efforts offered only through the renewed commitment of resources only made available through the implementation of this Second Amendment to the Plan and Project for the RPA.

Unless expressly stated herein, all sections, statements, conclusions and findings contained within the Original TIF Plan, except as such is modified or amended by the First Amendment and this Second Amendment, remain in effect as adopted by the City.

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2

II. AMENDMENTS TO THE TIF PLAN The entire exhibits attached to the Original TIF Plan that is entitled “Appendix 1: Boundary and Legal Description for TIF District” and that entitled “Appendix 1A: Amended Legal Description- 2019 are deleted and replaced with the attached Appendix 1B: Amended Legal Description-2021. Further, the exhibits attached to the Original TIF Plan that is entitled “Map 2 – Boundary Map” (the “Original Boundary Map”) and that entitled Amended RPA Boundary Map- 2019 are deleted and replaced with the attached Appendix 2B-Amended RPA Boundary Map- 2021. All other maps and displays showing the boundaries in the manner consistent with the prior legal descriptions and boundary maps shall be considered modified in the same manner with the Appendix 1B: Amended Legal Description- 2021 and Appendix 2B: Amended Boundary Map- 2021.

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Appendix 1B

Amended Legal Description- 2021

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Appendix 2A

Amended RPA Map- 2021

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Appendix 3B

1999 TIF Plan and Project (Original TIF Plan)

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2019 First Amendment Plan and Project (First Amendment TIF Plan)

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ROCKFORD, ILL.

June 21, 2021

TO THE CITY COUNCIL OF THE CITY OF ROCKFORD:

Council Members:

The Committee on Planning & Development to whom was referred the adoption

of the First Amendment to the Amended Amerock Hotel Tax Increment Financing (TIF) District,

begs leave to report recommending that the First Amendment to the Amended Amerock Hotel

Tax Increment Financing (TIF) District Redevelopment Plan and Project Area be approved. The

Legal Director shall prepare the appropriate ordinance.

_____________________________________________

_____________________________________________

_____________________________________________

_____________________________________________

_____________________________________________

Committee Action: June 14, 2021

Meeks: Ayes:___ Nays:____ Absent:____

Durkee: Ayes:___ Nays:____ Absent:____

Hoffman: Ayes:___ Nays:____ Absent:____

McNeely: Ayes:___ Nays:____ Absent:____

Prunty: Ayes:___ Nays:____ Absent:____

2.4.a

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DRAFT

ORDINANCE NO. 2021-____-O-___

AN ORDINANCE OF THE CITY OF ROCKFORD, WINNEBAGO AND OGLE

COUNTIES, ILLINOIS, APPROVING A FIRST AMENDMENT TO THE

REDEVELOPMENT PLAN AND REDEVELOPMENT PROJECT FOR THE

AMENDED AMEROCK HOTEL

REDEVELOPMENT PROJECT AREA

WHEREAS, the City of Rockford, Winnebago and Ogle Counties, Illinois (the “City”),

is a duly organized and existing municipal corporation created under the provisions of the laws of

the State of Illinois and under the provisions of the Illinois Municipal Code, as from time to time

supplemented and amended; and

WHEREAS, it is desirable and in the best interest of the citizens of the City of Rockford,

Winnebago and Ogle Counties, Illinois, for the City to continue to implement tax increment

allocation financing pursuant to the Tax Increment Allocation Redevelopment Act, 65 ILCS 5/11-

74.4-1 et seq., as amended (the "Act"), for a proposed first amendment to the redevelopment plan

and redevelopment project for the Amerock Hotel Tax Increment District (the "First Amendment")

located within the municipal boundaries of the City and further within a proposed amended

Amerock Hotel redevelopment project area (the "Amended Area") described in Section 2(A) of

this Ordinance, which Amended Area constitutes in the aggregate more than one and one-half

acres; and

WHEREAS, the City authorized a study in regard to the designation of the Amended Area

for the Amerock Hotel Tax Increment District and the preparation of the First Amendment in

relation thereto; and

2.4.b

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WHEREAS, the City made available for public inspection the Frist Amendment, with said

First Amendment containing an eligibility study (or qualifications report) for the Amerock Hotel

Tax Increment District, addressing the tax increment financing eligibility of the Amended Area

(the “Eligibility Study”); and

WHEREAS, the Mayor and City Council of the City (the "Corporate Authorities") desire

to implement tax increment financing pursuant to the Act for the First Amendment within the

municipal boundaries of the City and within the Amended Area described and depicted in Exhibit

A, Exhibit B, and Exhibit C, each being attached hereto and made part hereof; and

WHEREAS, pursuant to Section 11-74.4-5 of the Act, the Corporate Authorities called a

public hearing relative to the First Amendment and the designation of the Amended Area as a

redevelopment project area under the Act for May 17, 2021; and

WHEREAS, due notice with respect to such hearing was given pursuant to Section 11-

74.4-5 of the Act, said notice being given to taxing districts and to the Department of Commerce

and Economic Opportunity of the State of Illinois by certified mail on March 30, 2021, by

publication on March 25, 2021, and May 1 and May 2, 2021, by certified mail to taxpayers within

the Amended Area on April 30, 2021, and to residential addresses within 750 feet of the boundaries

of the Amended Area on April 30, 2021; and

WHEREAS, the City has heretofore convened a joint review board as required by and in

all respects in compliance with the provisions of the Act; and

WHEREAS, the joint review board met on April 15, 2021, to review the public record,

planning documents and proposed ordinances approving the First Amendment and Amended Area

and consider whether the First Amendment and Amended Area satisfy the requirements of the Act;

and

2.4.b

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WHEREAS, on April 15, 2021, the joint review board considered and approved a

resolution recommending approval of the Amended Area, First Amendment and the designation

of the Amended Area; and

WHEREAS, pursuant to the Act, the Corporate Authorities have waited at least fourteen

(14) days, but not more than (90) days, from the public hearing date to introduce this Ordinance to

the City Council of the City.

WHEREAS, the Corporate Authorities have reviewed the information concerning such

factors presented at the public hearing and have reviewed other studies and are generally informed

of the conditions in the proposed Amended Area that could cause the Amended Area to be a

“conservation area” as defined in the Act; and

WHEREAS, the Corporate Authorities have reviewed the conditions pertaining to lack of

private investment in the proposed Amended Area to determine whether private development

would take place in the proposed Amended Area as a whole without the adoption of the proposed

First Amendment; and

WHEREAS, the Corporate Authorities have reviewed the conditions pertaining to real

property in the proposed Amended Area to determine whether contiguous parcels of real property

and improvements thereon in the proposed Amended Area would be substantially benefited by the

proposed Project improvements; and

WHEREAS, it is the intent of the Corporate Authorities to utilize the tax increment from

all sources authorized by law; with such revenues to be exclusively utilized for the development

of the First Amendment within the Amended Area (except as provided in 65 ILCS 5/11-74.4-4(q));

and

WHEREAS, the Amended Area would not reasonably be redeveloped without the use of

such incremental revenues; and

2.4.b

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WHEREAS, the Corporate Authorities have reviewed the conditions pertaining to real

property in the proposed Amended Area to determine whether contiguous parcels of real property

and improvements thereon in the proposed Amended Area would be substantially benefited by the

proposed First Amendment; and

WHEREAS, the Corporate Authorities have reviewed the proposed First Amendment and

also the existing Comprehensive Plan for development of the City as a whole to determine whether

the proposed First Amendment conform to the comprehensive planning process of the City.

NOW, THEREFORE, BE IT ORDAINED by the Corporate Authorities of the City of

Rockford, Winnebago and Ogle Counties, Illinois, as follows:

SECTION 1. Recitals. That the above recitals and findings are found to be true and

correct and are hereby incorporated herein and made a part hereof, as if fully set forth in their

entirety.

SECTION 2. Findings. That the Corporate Authorities hereby make the following

findings:

a. The Amended Area is legally described in Exhibit A, a copy of which is

attached hereto and made a part hereof, as if fully set forth in its entirety. The general street

location for the Amended Area is described in Exhibit B, a copy of which is attached hereto and

made a part hereof, as if fully set forth in its entirety. The map of the Amended Area is depicted

on Exhibit C, a copy of which is attached hereto and made a part hereof, as if fully set forth in its

entirety.

2.4.b

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b. There exist conditions that cause the Amended Area to be subject to

designation as a redevelopment project area under the Act and classified as a “conservation area”

as defined in the Act.

c. The proposed Amended Area on the whole has not been subject to growth

and development through investment by private enterprise and would not be reasonably anticipated

to be developed without the adoption of the Plan.

d. The Amended Area would not reasonably be redeveloped without the tax

increment derived from real property tax incremental revenues, and the increment from such

revenues will be exclusively utilized for the redevelopment as outlined in the First Amendment

within the Amended Area (except as provided in 65 ILCS 5/11-74.4-4(q));

e. The First Amendment conforms to the Comprehensive Plan for the

development of the City as a whole.

f. As set forth in the First Amendment it is anticipated that all obligations

incurred to finance redevelopment project costs, if any, as defined in the First Amendment shall

be retired within twenty-three (23) years after the date of adoption of the original Amerock Hotel

Redevelopment Project Area is so designated.

g. The parcels of real property in the proposed Area are contiguous, and only

those contiguous parcels of real property and improvements thereon that will be substantially

benefited by the proposed Project improvements are included in the proposed Amended Area.

SECTION 3. First Amendment Approved. That the First Amendment, which were the

subject matter of the public hearing held on May 17, 2021, are hereby adopted and approved. A

copy of the First Amendment is set forth in Exhibit D, a copy of which is attached hereto and made

a part hereof, as if fully set forth in its entirety.

2.4.b

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SECTION 4. Severability. This Ordinance, and its parts, is declared to be severable and

if any section, clause, provision, or portion thereof of this Ordinance is declared invalid, the

invalidity thereof shall not affect the validity of any other provisions of this Ordinance which shall

remain in full force and effect.

SECTION 5. Superseder. All ordinances, resolutions, motions, or orders in conflict with

any provision of this Ordinance are, to the extent of such conflict, hereby repealed.

SECTION 6. Effective Date. This Ordinance shall be in full force and effect upon its

passage, approval and publication as provided by law.

2.4.b

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PASSED BY THE MAYOR AND THE CITY COUNCIL of the City of Rockford, Illinois,

at a regular meeting thereof on the ___ day of ____________, 2021, and approved by me as

Mayor on the same day.

VOTING AYE:

VOTING NAY:

ABSENT:

ABSTAIN:

APPROVED: , 2021

____________________________________

MAYOR

ATTESTED:

_______________________________________

LEGAL DIRECTOR

PASSED: APPROVED: PUBLISHED:

ATTESTED and FILED in my office this ______ day of _______________, 2021, and

published in pamphlet form this ______ day of ______________, 2021 by order of the City

Council of the City of Rockford, Illinois.

____________________________________

Legal Director and ex officio

Keeper of the Records and Seal

2.4.b

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APPROVED BY: ___________________________________

NICHOLAS O. MEYER, Legal Director

RECOMMENDED BY:

MEGAN MCNEILL, Assistant City Attorney

2.4.b

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DRAFT

EXHIBIT A

AMEDNDED LEGAL DESCRIPTION

AMEROCK TIF AMENDED LEGAL DESCRIPTION

2.4.b

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mmcneill
Typewritten text
TO BE PROVIDED
Page 100: Planning & Development

2

2.4.b

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EXHIBIT B

GENERAL STREET LOCATION

The Redevelopment Plan of the Amerock Hotel TIF District is amended to include certain tax

parcels to the north, east, south and west of its original boundaries. The expanded RPA is roughly

bound by:

Chestnut Street to the north, the Rock River to the east, Kent Creek to the

south and Winnebago Street to the west.

2.4.b

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EXHIBIT C

MAP OF AMENDED REDEVELOPMENT PROJECT AREA

2.4.b

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Cedar Street

Chestnut Street

S Chu

rch St

reet

S Main

Stree

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S Cou

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et

City of RockfordFirst Amendment Amerock TIF Boundary Map

TIF Boundary

Tax Parcels

Prepared by:0 0.02250.045 0.09 Miles

Sources: WINGIS tax parcel shapefile accessed 03/24/2021

¯

2.4.b

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EXHIBIT D

FIRST AMENDMENT TO THE REDEVELOPMENT PLAN AND PROJECT

2.4.b

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Page 105: Planning & Development

CITY OF ROCKFORD

FIRST AMENDMENT TO THE AMEROCK HOTEL TAX INCREMENT FINANCE

REDEVELOPMENT PLAN AND PROJECT

Prepared jointly by:

City of Rockford

and

Kane, McKenna and Associates, Inc.

June, 2021

Document Date Original Plan and Project October, 2017 First Amendment to Plan and Project June, 2021

2.4.b

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Page 106: Planning & Development

First Amendment to the Amerock Hotel TIF Redevelopment Plan and Project City of Rockford, Illinois

1

The City of Rockford’s Amerock TIF Redevelopment Plan and Project (attached as Exhibit 1) is amended as follows: 1. Section I “Introduction” Page 2 is amended by adding a new paragraph following the third

paragraph on that page to read as follows:

“The Redevelopment Plan of the Amerock Hotel TIF District is amended to include certain tax parcels (the “Amendment Area”) to the north, east, south and west of its original boundaries. The inclusion of these tax parcels is to further the TIF District’s two fundamental goals of promoting redevelopment and securing new economically productive uses for key parcels located within the central core of the City and diversifying the City’s tax base.”

2. Section I “Introduction” Page 4, is amended by adding a new paragraph following the

second paragraph of that page to read as follows:

“The Redevelopment Plan of the Amerock Hotel TIF District is amended to include certain tax parcels to the north, east, south and west of its original boundaries. The expanded RPA is roughly bound by:

Chestnut Street to the north, the Rock River to the east, Kent Creek to the south and Winnebago Street to the west.

In addition to achieving the City’s general economic development objectives of enhancing residential, commercial and mixed use opportunities, the expansion of the TIF district allows for the pursuit of the City’s general economic development objective of enhancing industrial opportunities. A map of the RPA’s boundaries as amended is included in Appendix 2b and is made part of this Redevelopment Plan and Project.”

3. Section II “RPA Legal Description,” Page 8, is amended by adding a new paragraph

following the first paragraph of that page to read as follows:

“The Redevelopment Project Area legal description as amended is attached as Appendix 1b and is made part of this Redevelopment Plan.”

4. Section IV “Evidence of the Lack of Development and Growth; Fiscal Impact on Taxing

Districts” Page 13 is amended by adding a new paragraph following the first paragraph of that page to read as follows:

“As part of the First Amendment to the Amerock Hotel TIF Redevelopment Plan and Project, the Amendment Area was studied in order to determine its qualifications under the Act. It was determined that the Amendment Area qualifies under the Act as a conservation area. The TIF Eligibility Report for the Amendment Area is attached as Appendix 8 and is made part of this Redevelopment Plan.”

2.4.b

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First Amendment to the Amerock Hotel TIF Redevelopment Plan and Project City of Rockford, Illinois

2

5. Section V ”TIF Qualification Factors Present in the RPA” Page 15 is amended by adding

a new sentence to the end of the first paragraph to read as follows:

“Refer to the TIF Eligibility Report for the Amendment Area, attached as Appendix 5b to this Plan.”

and; by adding a new paragraph following the second paragraph of that page to read as follows:

“In addition to initial evaluations, representatives of KMA and City staff evaluated the Amendment Area beginning in the Summer of 2020 to the date of the First Amendment to the Amerock Hotel TIF Redevelopment Plan and Project. Analysis was aided by certain reports obtained from City staff, on-site due diligence and other sources.”

6. Section VI ”Redevelopment Project” Page 24 is amended by replacing Exhibit 4 with the

following figure:

2.4.b

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First Amendment to the Amerock Hotel TIF Redevelopment Plan and Project City of Rockford, Illinois

3

Table 3. Redevelopment Project Cost Estimates

Program Actions/Improvements Estimated Costs Land Acquisition, Assembly and Relocation

$3,500,000

Site Preparation including Environmental Remediation, Demolition and Site Grading

$6,000,000

Utility Improvements including Water, Storm and Sanitary Sewers, Service of Public Facilities and Road Improvements

$6,500,000

Rehabilitation of Existing Structures, Taxing District Capital Improvements

$20,000,000

Public Facilities including Parking Facilities and Streetscaping

$5,000,000

Interest Costs Pursuant to the Act

$1,000,000

Professional Service Costs (Including Planning, Legal, Engineering, Administrative, Annual Reporting and Marketing)

$1,000,000

Job Training

$500,000

Statutory School District Payments

$5,000,000

TOTAL ESTIMATED TIF BUDGET $48,500,000 Notes: (1) All project cost estimates are in 2021 dollars. Costs may be adjusted for inflation per the TIF Act. This is an increase to the budget set with the Original Plan and Project, which had been set an amount of $23,750,000. (2) In addition to the costs identified in the exhibit above, any bonds issued to finance a phase of the Project may include an amount sufficient to pay (a) customary and reasonable charges associated with the issuance of such obligations, (b) interest on such bonds, and (c) capitalized interest and reasonably required reserves. (3) Adjustments to the estimated line-item costs above are expected. Adjustments may be made in line-items within the total, either increasing or decreasing line-items costs for redevelopment. Each individual project cost will be reevaluated in light of the projected private development and resulting tax revenues as it is considered for public financing under the provisions of the Act. The totals of the line-items set forth above are not intended to place a total limit on the described expenditures, as the specific items listed above are not intended to preclude payment of other eligible redevelopment project costs in connection with the redevelopment of the RPA – provided the total amount of payment for eligible redevelopment project costs shall not exceed the overall budget amount outlined above and all as provided for in the Act.

2.4.b

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First Amendment to the Amerock Hotel TIF Redevelopment Plan and Project City of Rockford, Illinois

4

7. Section VI ”Redevelopment Project” Page 26 is amended by replacing the third and fourth paragraphs of that page with the following:

“Most Recent Equalized Assessed Valuation (EAV) for the RPA. The most recent EAV for the Amendment Area is based on 2019 tax year EAV and is estimated to be approximately $699,686. It is anticipated the base equalized assessed value of the Amendment Area will be the 2019 tax year. The base equalized assessed value of the original RPA has been set by the Winnebago County Clerk’s office at an amount of $154,853 based on tax year 2016. That amount and tax year will not be affected by this Amendment. Anticipated Equalized Assessed Valuation for the RPA. Upon completion of the anticipated private development of the RPA over a 23-year period, it is estimated that the EAV of the property within the RPA as amended will be approximately $31.8 million depending upon market conditions and the scope of redevelopment projects.”

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First Amendment to the Amerock Hotel TIF Redevelopment Plan and Project City of Rockford, Illinois

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New Appendix Items Appendix 1b – “Amended Legal Description of Project Area” Appendix 3b – “Amended Boundary Map of RPA” Appendix 4b - “Amended Existing and Future Land Use Maps of RPA” Appendix 5b – “TIF Eligibility Report for the Amendment Area” Appendix 6b – “TIF PIN List for Original RPA Only” Appendix 7b – “TIF PIN List for Amendment Area Only”

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APPENDIX 1b

Amended Legal Description of Project Area

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October 29, 2020

AMEROCK TIF LEGAL DESCRIPTION

Part of the Southwest Quarter of Section 23, part of the Southeast Quarter of Section 22, part of the Northwest Quarter of Section 26, and part of the Northeast Quarter of Section 27 all in Township 44 North, Range 1 East of the Third Principal Meridian, bounded and described as follows; beginning at the Southwest corner of Lot 10 in Block 16 as designated upon the Plat of that part of the Original Town (now city) of Rockford, on the West side of Rock River, the Plat of which is recorded in Book D of Deeds on pages 428 & 429 in the Recorder’s Office of Winnebago County, Illinois, thence northeasterly along the westerly line of Lots 10, 11, and 12 in said Block 16, a distance of 190 feet, more or less, to the centerline of Chestnut Street; thence easterly, along the centerline of Chestnut Street, a distance of 679 feet, more or less, to the westerly bank of the Rock River; thence southerly, along the westerly bank of the Rock River, a distance of 1118 feet, more or less, to the southerly right of way line for the Union Pacific Railroad; thence westerly, along the southerly line of said Union Pacific Railroad right of way line, a distance of 130.5 feet, more or less, to its intersection with a line that is 104.65 feet perpendicularly distant easterly from and parallel with the centerline of Wyman Street (now vacated); thence southerly, along said parallel line, a distance of 98.63 feet; thence westerly at right angles from the previous course, a distance of 98.6 feet; thence South 73 degrees 50 minutes West, a distance of 26 feet to the southwesterly line of premises vacated by the City recorded in Book 21 of Plats on page 359 in said Recorder’s Office; thence northwesterly along the southwesterly line of said premises so vacated, a distance of 180 feet, more or less, to the westerly line of Lot 6 in Block 3 as designated upon said Plat of that part of the Original Town (now city) of Rockford, on the West side of Rock River; thence westerly, at right angles from the westerly line of said Block 3, a distance of 33 feet to the centerline of South Main Street; thence southerly, along said centerline, a distance of 480.5 feet, more or less, to the easterly extension of the northerly line of premises conveyed to David Ayres and Cynthia Campbell by Warranty deed recorded as Document No. 200800845075 in said Recorder’s Office; thence westerly, along said extension and along the northerly line of said premises conveyed to Ayres and Campbell, a distance of 284.8 feet to the northwest corner of said premises conveyed to Ayres and Campbell; thence southerly, along the westerly line of said premises conveyed to Ayres and Campbell and along the southerly extension of said line, a distance of 142.33 feet to the centerline of Tinker Street as laid out and established in Book 72 of Mortgages on page 179 in said Recorder’s Office; thence easterly, along said centerline, a distance of 284.8 feet to the centerline of said South Main Street; thence southerly, along the centerline of South Main Street, a distance of 15 feet, more or less, to the westerly extension of the northerly line of Lot 3 in Block 1 as designated upon said Plat of that part of the Original Town (now city) of Rockford, on the West side of Rock River; thence easterly along said extension and along the northerly line of said Lot 3 and along the easterly extension of said northerly line, a distance of 183 feet; thence southerly, parallel with the centerline of said South Main Street, a distance of 135 feet; thence westerly, parallel with the northerly line of said Lot 3 in Block 1, a distance of 10 feet; thence southerly, parallel with the centerline of South Main Street, a distance of 141.71 feet; thence South 73 degrees 33 minutes, a distance of 14 feet to the northerly line of Mill Street; thence westerly, along the northerly line of said Mill Street, a distance of 163 feet, more or less, to the

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centerline of South Main Street; thence southerly, along the centerline of said South Main Street, a distance of 260 feet, more or less, to the northerly bank of Kent Creek; thence westerly and northerly along the northerly bank of Kent Creek and the northeasterly bank of the North Fork of Kent Creek, a distance of 1548 feet, more or less, to the centerline of South Winnebago Street; thence northerly, along the centerline of South Winnebago Street, a distance of 699 feet, more or less to the westerly extension of the southerly line of premises conveyed to Donald Swinson by Quit Claim Deed recorded in Microfile 88-05-2387 in said Recorder’s Office; thence easterly along said extension and along the southerly line of said premises conveyed to Swinson and the easterly extension of said southerly line, a distance of 396 feet, more or less, to the centerline of South Court Street; thence northerly along the centerline of South Court Street, a distance of 175 feet, more or less, to the centerline of Cedar Street; thence easterly, along the centerline of Cedar Street, a distance of 791 feet to the centerline of South Main Street; thence northerly, along the centerline of South Main Street, a distance of 605 feet to the easterly extension of the southerly line of said Lot 10 in Block 16; thence westerly along said extension and along the southerly line of said Lot 10, a distance of 190 feet to the point of beginning; situated in the City of Rockford, the County of Winnebago and the State of Illinois; containing 49.4 acres, more or less.

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APPENDIX 2b

Amended Boundary Map of RPA

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Cedar Street

Chestnut Street

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City of RockfordFirst Amendment Amerock TIF Boundary Map

TIF Boundary

Tax Parcels

Prepared by:0 0.02250.045 0.09 Miles

Sources: WINGIS tax parcel shapefile accessed 03/24/2021

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APPENDIX 4b

Amended Existing and Future Land Use Maps of RPA

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Cedar Street

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City of RockfordFirst Amendment Amerock TIF Existing Land Use Map

TIF Boundary

Tax Parcels

Land UseIndustrial

Urban Mixed Use

Prepared by:0 0.02250.045 0.09 Miles

Sources: WINGIS tax parcel shapefile accessed 03/24/2021

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Cedar Street

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City of RockfordFirst Amendment Amerock TIF Future Land Use Map

TIF Boundary

Tax Parcels

Land UseUrban Mixed Use

Prepared by:0 0.02250.045 0.09 Miles

Sources: WINGIS tax parcel shapefile accessed 03/24/2021

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APPENDIX 5b

Eligibility Report for Amendment Area

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CITY OF ROCKFORD, ILLINOIS FIRST AMENDMENT TO THE AMEROCK HOTEL TIF

DISTRICT ELIGIBILITY REPORT

Prepared By:

City of Rockford, Illinois &

Kane, McKenna and Associates, Inc.

June, 2021

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TABLE OF CONTENTS

EXECUTIVE SUMMARY ............................................................................................................. i

I. INTRODUCTION ................................................................................................................... 1

II. QUALIFICATION CRITERIA ........................................................................................... 4

III. METHODOLOGY OF EVALUATION ............................................................................. 7

IV. QUALIFICATION FINDINGS FOR STUDY AREA ........................................................ 8

V. SUMMARY ....................................................................................................................... 14

APPENDIX A: Tax Parcels within Study Area ............................................................................. A

APPENDIX B: Boundary Map of Study Area ............................................................................... B

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City of Rockford, First Amendment to the Amerock Hotel TIF District Eligibility Report i

EXECUTIVE SUMMARY

The City of Rockford, Illinois (the “City”) is pursuing the first amendment to the existing Amerock Hotel Tax Increment Finance District (the “TIF District”, “Redevelopment Project Area” or “RPA”) to continue the promotion and revitalization of underutilized properties in a portion of the City’s Downtown. In the context of planning for the amendment of the RPA, the City has initiated the study of certain additional tax parcels adjacent to the existing Amerock Hotel TIF District (the “Study Area”) to determine whether they qualify separately or in aggregate under the Tax Increment Allocation Redevelopment Act, 65ILCS 5/11-74.4-3, et seq., as amended (the “TIF Act” or “Act”) for inclusion in the RPA. Kane, McKenna and Associates, Inc. (KMA) has been retained by the City to conduct this study on the City’s behalf. KMA has reached the following conclusions regarding the qualification of the Study Area based upon the analysis completed to date:

1) The Study Area qualifies as a conservation area - The Study Area qualifies as a conservation area as defined in the TIF Act. The conservation area factors found in the Study Area are present to a meaningful extent and are distributed throughout the area.

2) Current conditions impede redevelopment – The existence of certain conditions found within the Study Area present a barrier to the area’s successful redevelopment. The current conditions in the Study Area are impediments to redevelopment, creating an environment where it is reasonable to conclude redevelopment would not take place “but for” the use of the TIF Act. The factors present on the ground negatively impact coordinated and substantial private sector investment in the overall area. Without the use of City planning and economic development resources to mitigate such factors, potential redevelopment projects and other activities that require private sector investment are not likely to be economically feasible.

3) Viable redevelopment sites could produce incremental revenue - The Study Area potentially could, with TIF-related assistance, be redeveloped and thereby produce incremental property tax revenue. Such revenue, used in combination with other City resources for redevelopment incentives or public improvements, would likely stimulate private investment and reinvestment in these sites in the Study Area.

4) TIF amendment is recommended - To mitigate conservation area conditions, promote private sector investment, and foster the economic viability of the Study Area, KMA recommends that the City proceed with the formal TIF amendment process to include the properties described within this report into the existing Amerock Hotel TIF District.

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City of Rockford, IL First Amendment to the Amerock Hotel TIF District Eligibility Report 1

I. INTRODUCTION Description of the Study Area The Study Area is located in the central portion of the City of Rockford, Illinois and in the southern portion of its Downtown. The area is a gateway into the City’s Downtown and contains or is near key destination points (e.g. Davis Park, BMO Harris Bank Center, U.S. District Court building, etc.). The surrounding area is characterized by a wide variety of land uses including commercial, institutional, residential and mixed uses. The Study Area generally consists of certain tax parcels that run along Main Street from Kent Creek to the south to Chestnut Street to the north. The Study Area includes a number of former industrial uses, commercial uses and mixed uses. The Study Area consists of 27 tax parcels that are approximately 85 acres in size incuding right-of-ways. Please see Appendix A for a list of the tax parcels included in the Study Area and Appendix B for a visual depiction of the Study Area. Background The Study Area is located in the southern portion of the City of Rockford’s Downtown. The area is considered a gateway into the City’s central core and connects the South Main Street commercial area located to the south of Kent Creek with the City’s Downtown to the north. The Study Area’s history follows the greater history of industrial development in the City of Rockford closely. Beginning in the early-1800’s the area developed to accommodate industrial users taking advantage of nearby Kent Creek and the Rock River. The Galena and Chicago Union Railroad, Chicago’s first railroad, was constructed through the area in the mid-1830s which eventually attracted freight depots and other rail services. By the late-1800s a number of manufacturers had located and constructed factories or warehouses throughout the Study Area. The Study Area remained an active and vibrant place of industrial activity until the late-20th Century when the needs of industrial users began to shift them away from the central cores of cities. Structures throughout the Study Area were vacated and fell into states of disrepair. In some cases, the degree of disinvestment and disrepair prompted the City to purchase and demolish or repurpose properties within the Study Area. Conditions exist today, within the Study Area, that impede private reinvestment. Over recent years, efforts have been made to mitigate these conditions and encourage redevelopment of the area including the designation of the South Rockford and Westside #2 TIF Districts. However, these efforts have yet to successfully arrest those conditions which challenge successful redevelopment of those tax parcels that are the subject of this report.

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City of Rockford, IL First Amendment to the Amerock Hotel TIF District Eligibility Report 2

Given the existing conditions of the area, the effect of past redevelopment efforts and the importance of the Study Area in fulfilling the City’s economic and community development goals, the City has determined that the area be studied for possible inclusion into the existing Amerock Hotel Tax Increment Finance District. The City with the assistance of Kane, McKenna and Associates, Inc. (KMA), has commissioned this Eligibility Report as part of an amendment to the Amerock Hotel Tax Increment Finance Redevelopment Plan in order to alleviate those conditions which deter private investment in the area and to meet certain redevelopment goals and objectives. Overview of Tax Increment Financing (TIF) Tax Increment Financing (or “TIF”) is an economic development tool which uses future revenues to finance redevelopment activity. In the State of Illinois an area can be designated as a TIF district if it faces certain impediments to redevelopment. At the time of designation, the equalized assessed value of tax parcels within the boundaries of the district are “frozen” for the term of the TIF district. Taxing jurisdictions that overlap that district continue to receive property taxes, but those revenues generated from increase in equalized assessed value relative to the frozen values are deposited in a special tax allocation fund. This revenue is then used to finance redevelopment activities within the district to accomplish community and economic development goals. The Eligibility Report The TIF Act enables Illinois municipalities to establish and amendTIF districts either to eliminate the presence of blight or to prevent its onset. The Act finds that municipal TIF authority serves a public interest in order to, “promote and protect the health, safety, morals and welfare of the public, that blighted conditions need to be eradicated and conservation measures instituted, and that redevelopment of such areas be undertaken; that to remove and alleviate adverse condition sit is necessary to encourage private investment and restore and enhance the tax base of the taxing districts in such areas by the development or redevelopment of project areas” (65 ILCS-5/11-74.4-2(b)). To establish a TIF district Illinois municipalities must adopt several documents including a Redevelopment Plan and an Eligibility Report. An Eligibility Report is a document which provides the basis for the RPA’s qualification under the TIF Act in reasonable detail. If a TIF district is amended by adding tax parcels to the existing TIF district, Illinois municipalities must adopt an Eligibility Report for those additional tax parcels and adopt an amendment to the existing Redevelopment Plan. The City has authorized KMA to evaluate the Study Area in relation to its inclusion into the existing Amerock Hotel TIF district, to prepare a TIF District Eligibility Report for the Study Area and to prepare a Redevelopment Plan for the RPA.

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City of Rockford, IL First Amendment to the Amerock Hotel TIF District Eligibility Report 3

Determination of the “But-For” Historically, it was advantageous for industrial uses to locate near the central core of cities, along railways and waterways and on smaller parcels of land as compared to current market standards. As the needs of industrial users have shifted with national and regional trends, areas which are no longer ideal for such users face increasing challenges in attracting private investment. The Study Area is one such location and the City has determined that planned redevelopment of the Study Area is feasible only with public financial assistance. The creation and utilization of a TIF redevelopment plan and redevelopment agreements is intended by the City to help provide the assistance required to eliminate conditions detrimental to successful redevelopment of the Study Area, strengthen the tax base and improve resident quality of life. General Scope and Methodology KMA formally began its analysis by conducting a series of meetings and discussions with City staff starting in Spring 2020 and continuing up to the date of this report’s issuance. The purpose of the meetings was to establish boundaries for initial analysis and to gather data related to the qualification criteria for parcels included in the Study Area. These meetings were complemented by a series of field surveys for the entire area to evaluate conditions in the Study Area. KMA also analyzed the City’s most recent comprehensive plan and other reports relevant to the Study Area. Properties within the Study Area were examined in the context of the TIF Act governing improved areas (separate provisions of the Act address non-improved or vacant areas). The qualification factors discussed in this report qualify the area as a “conservation area,” as the term is defined pursuant to the TIF Act. During the course of its work, KMA reported findings to key City staff regarding TIF qualification and the feasibility of redevelopment within the Study Area. Based upon these findings the City directed KMA to complete this report and move forward with the preparation of an amendment to the existing Redevelopment Plan and Project for the RPA. For additional information about KMA’s data collection and evaluation methods refer to Section IV of this report.

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City of Rockford, IL First Amendment to the Amerock Hotel TIF District Eligibility Report 4

II. QUALIFICATION CRITERIA

The TIF Act sets out specific procedures for qualifying and amending an RPA. By definition, a RPA is:

“An area designated by the municipality, which is not less in the aggregate than 1½ acres and in respect to which the municipality has made a finding that there exist conditions which cause the area to be classified as a blighted area or a conservation area, or a combination of both blighted areas and conservation areas.”

Under the TIF Act, “conservation area” means any improved area within the boundaries of a RPA located within the territorial limits of the municipality where: 50% or more of existing structures are 35 years or older in age At least three of 13 eligibility factors are present and distributed to a meaningful extent

The 13 possible eligibility factors are:

1. Dilapidation: An advanced state of disrepair or neglect of necessary repairs to the primary structural components of building or improvements in such a combination that a documented building condition analysis determines that major repair is required or the defects are so serious and so extensive that the buildings must be removed.

2. Obsolescence: The condition or process of falling into disuse. Structures become ill-suited

for the original use.

3. Deterioration: With respect to buildings, defects are evident, including, but not limited to, major defects in the secondary building components such as doors, windows, porches, gutters, downspouts, and fascia. With respect to surface improvements, that the condition of roadways, alleys, curbs, gutters, sidewalks, off-street parking and surface storage areas demonstrate evidence of deterioration, including, but limited to, surface cracking, crumbling, potholes, depressions, loose paving material and weeds protruding through paved surfaces.

4. Presence of Structures Below Minimum Code Standards: All structures that do not meet

the standards of zoning, subdivision, building, fire and other governmental codes applicable to property, but not including housing and property maintenance codes.

5. Illegal Use of Individual Structures: The use of structures in violation of applicable

Federal, State, or local laws, exclusive of those applicable to the presence of structures below minimum code standards.

6. Excessive Vacancies: The presence of buildings that are unoccupied or under-utilized and

that represent an adverse influence on the area because of the frequency, extent, or duration of the vacancies.

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City of Rockford, IL First Amendment to the Amerock Hotel TIF District Eligibility Report 5

7. Lack of Ventilation, Light, or Sanitary Facilities: The absence of adequate ventilation for

light or air circulation in spaces or rooms without windows, or that require the removal of dust, odor, gas, smoke or other noxious airborne materials. Inadequate natural light and ventilation means the absence of skylights or windows for interior spaces or rooms and improper window sizes and amounts according to room area to window area ratio requirements. Inadequate sanitary facilities refer to the absence or inadequacy of garbage storage and enclosure, bathroom facilities, hot water and kitchens and structural inadequacies preventing ingress and egress to and from all rooms and units within a building.

8. Inadequate Utilities: Underground and overhead utilities such as storm sewers and storm

drainage, sanitary sewers, water lines and gas, telephone and electrical services that are shown to be inadequate. Inadequate utilities are those that are: (i) of insufficient capaCity to serve the uses in the RPA; (ii) deteriorated, antiquated, obsolete or in disrepair; or (iii) lacking within the RPA.

9. Excessive Land Coverage and Overcrowding of Structures and Community Facilities: The

over-intensive use of property and the crowding of buildings and accessory facilities onto a site. Examples of problem conditions warranting the designation of an area as exhibiting excessive land coverage are: (i) the presence of buildings either improperly situated on parcels or located on parcels of inadequate size and shape in relation to present-day standards of development for health and safety and (ii) the presence of multiple buildings on a single parcel. For there to be a finding of excessive land coverage, these parcels must exhibit one or more of the following conditions: insufficient provision for light and air within or around buildings, increased threat of spread of fire due to the close proximity of buildings, lack of adequate or proper access to a public right-of-way, and lack of reasonably required off-street parking or inadequate provision for loading service.

10. Deleterious Land-Use or Layout: The existence of incompatible land-use relationships,

buildings occupied by inappropriate mixed-uses or uses that are considered to be noxious, offensive or unsuitable for the surrounding area.

11. Environmental Clean-Up: The RPA has incurred Illinois Environmental Protection

Agency or United States Environmental Protection Agency remediation costs for (or a study conducted by an independent consultant recognized as having expertise in environmental remediation has determined a need for) the clean-up of hazardous waste, hazardous substances or underground storage tanks required by State or federal law. Any such remediation costs would constitute a material impediment to the development or redevelopment of the RPA.

12. Lack of Community Planning: The RPA was developed prior to or without the benefit or

guidance of a community plan. This means that the development occurred prior to the adoption by the municipality of a comprehensive or other community plan or that the plan was not followed at the time of the development of the area. This factor must be

2.4.b

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documented by evidence of adverse or incompatible land-use relationships, inadequate street layout, improper subdivision, parcels of inadequate shape and size to meet contemporary development standards or other evidence demonstrating an absence of effective community planning.

13. Lagging or Declining EAV: The total equalized assessed value (EAV) of the RPA has

declined for three (3) of the last five (5) calendar years prior to the year in which the RPA is designated, or is increasing at an annual rate that is less than the balance of the municipality for three (3) of the last five (5) calendar years, for which information is available or increasing at an annual rate that is less than the Consumer Price Index for All Urban Consumers published by the United States Department of Labor or successor agency for three (3) of the last five (5) calendar years prior to the year in which the RPA is designated.

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City of Rockford, IL First Amendment to the Amerock Hotel TIF District Eligibility Report 7

III. METHODOLOGY OF EVALUATION

The following method was applied to evaluate the Study Area’s qualification as a TIF district.

1. KMA representatives collected primary data during site visits to the Study Area. These site visits consisted of visual observation of the area which included, but was not limited to, tax parcel counts, address matches and the identification of current land uses, building conditions, lot conditions and traffic flows. KMA documented these observations via notes and photography.

2. KMA representatives collected secondary data including, but not limited to, 2014 to 2019

tax information, tax parcel maps, site data, planning documents and information related to local history and context from interviews with City staff and other stakeholders.

3. The age of existing structures was ascertained by matching data collected during site visits

to local tax and building records to determine if the Study Area would qualify as a conservation area as defined by the TIF Act.

4. KMA also utilized the collected data to conduct an evaluation of the presence and extent

of the aforementioned eligibility factors (e.g. deterioration, excessive vacancies, etc.) that would qualify the Study Area as a conservation area as defined by the TIF Act.

2.4.b

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City of Rockford, IL First Amendment to the Amerock Hotel TIF District Eligibility Report 8

IV. QUALIFICATION FINDINGS FOR STUDY AREA

Summary of Age Findings for a Conservation Area As mentioned in Section II of this report, an area may qualify as a conservation area under the TIF Act if 50% or more of existing structures are 35 years in age or older. KMA collected primary data from site surveys and secondary data from the Rockford Township Assessor and the City of Rockford regarding the age of existing structures within the Study Area. KMA found that at least six of the nine existing structures in the Study Area are 35 years in age or older.1 Therefore, it is possible for the Study Area to qualify as a conservation area as defined by the TIF Act.

Table 1. Summary of Age Findings for Conservation Area

Total number of structures in Study Area 9

Number of structures in Study Area at least 35 years or older in age 6

Percent of structures in Study Area at least 35 years or older in age 67%

Summary of Factor Findings for a Conservation Area Once it was established that the Study Area may qualify as a conservation area based upon the age threshold of structures within the area, KMA analyzed the Study Area in relation to the 13 aforementioned eligibility factors. Three of these factors must be present and distributed to a meaningful extent within the Study Area to qualify the area as a conservation area under the TIF Act. KMA determined that six of the 13 possible factors were present and distributed to a meaningful extent within the Study Area.

Table 2. Summary of Factor Findings for Conservation Area

Total number of possible factors per TIF Act 13

Minimum factors needed to qualify per TIF Act 3

Factors present in Study Area 6

The nine factors found to be present and distributed to a meaningful extent within the Study Area are:

1. Lack of Community Planning 2. Deleterious Land Use or Layout 3. Lagging/Declining EAV 4. Excessive Vacancies 5. Deterioration

1 Age for two existing structures located on 11-27-505-013 could not be identified. Visually it appears these structures are more than 35 years in age; however KMA adopted the strictest interpretation for the age finding and has proceeded by not counting these properties in the list of those that are 35 years in age or older.

2.4.b

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City of Rockford, IL First Amendment to the Amerock Hotel TIF District Eligibility Report 9

6. Obsolescence These factors are summarised as follows:

1. Lack of Community Planning: The Act states that this factor is present if the Study Area developed prior to or without the benefit or guidance of a community plan. This factor must be documented by evidence of adverse or incompatible land use relationships, an inadequate street layout, improper subdivision, parcels of inadequate shape or size to meet contemporary development standards or other evidence demonstrating an absence of effective community planning.

When evaluating an area for the presence of this factor it is helpful to compare the age of existing structures with any key community planning events in the area’s history. In the case of the Study Area, and as indicated in the below Table 3, at least six of the nine existing structures in the Study Area, or 67% of existing structures, were built prior to the approval of the City’s original comprehensive plan in 1972. Notably, at least five of the nine existing structures, or 56% of existing structures, were built prior to or in the same decade that the U.S. Congress passed the Standard State Zoning Enabling Act (SZEA) -an event often cited as the beginning of modern community planning. The development that has occurred in the Study Area took place in an era prior to modern community planning techniques and without the benefit of guidance from comprehensive and coordinated planning.

Table 3. Support for Lack of Community Planning Factor

Total number of structures in Study Area 9

Number of structures in Study Area at least older than 1972 6

Percent of structures in Study Area older than 1972 67%

Total number of structures in Study Area 9

Number of structures in Study Area at least contemporary or older to SZEA 5

Percent of structures in Study Area at least contemporary or older to SZEA 56%

This lack of guidance from comprehensive and coordinated planning is evidenced by the presence of incompatible land use relationships, an inadequate street layout and tax parcels of inadequate shape to meet contemporary development standards. The Study Area is primarily comprised of active and inactive industrial uses and such uses are out of character with the area’s greater surroundings. Downtown Rockford, of which the Study Area acts as a gateway to, is characterized by dense commercial, residential, institutional and mixed uses. Historically, it was advantageous for industrial users to locate in the central core of cities. However, changes in industrial users needs means the advantages of a central location no longer outweigh the disadvantages caused by conflicting land use relationships. In the case of the Study Area active and inactive

2.4.b

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industrial uses abut or are in close proximity to a variety of uses which are adversely impacted by the noise, traffic and visual aesthetic that accompanies industrial use. The Study Area’s former history as an industrial area has also impacted the efficacy of the existing road layout to serve non-industrial uses. Several rail right-of-ways and Kent Creek cross through the Study Area creating substantial barriers to the continuation of Rockford’s street grid from the north and south of the Study Area. Along with challenging the creation of an effective gateway into Downtown Rockford along Main Street, these natural barriers also challenge private reinvestment into the area due to a lack of existing road infrastructure to support non-industrial uses. The lack of existing road infrastructure within the Study Area also results in the presence of parcels of inadequate size and shape to accommodate non-industrial uses. Many tax parcels within the Study Area are too large to accommodate uses that would be consistent with the Study Area’s surroundings (i.e. commercial, institutional, residential and mixed uses) or are “orphaned” within a larger tax parcel and lack appropriate access to facilitate redevelopment. In all three cases described above, existing conditions are a result of the Study Area’s early development as an industrial area located in the central core of a City. A lack of guidance from community planning in the area’s initial development has resulted in an area that is not easily adaptable to changes in primary use and has such created substantial challenges to attracting private investment in the area’s redevelopment.

2. Deleterious Land Use or Layout: The act states that deleterious land use and or layout

occurs with the existence of incompatible land use relationships, buildings occupied by inappropriate mixed uses or when uses are considered to be noxious, offensive or unsuitable for the surrounding area.

As described in the “Lack of Community Planning” factor finding, incompatible land use relationships are present within the Study Area. Active and non-active industrial properties abut or are in close proximity to commercial, residential, institutional and mixed uses. These types of uses are adversely impacted by the noise, traffic and visual aesthetic that accompanies industrial use. Furthermore, the presence of industrial uses challenges the ability of Main Street to act as an effective gateway into Downtown Rockford due to the inconsistency in land use along the corridor and the presence of industrial-related traffic.

3. Lagging/Declining Equalized Assessed Value (EAV): This factor is present if the total

equalized assessed value (EAV) of the Study Area has either: (i) declined for three of the last five calendar years prior to the year in which the area is to be designated; (ii) changed at an annual rate that is less than the annual rate of change (i.e. lagged) of the balance of the municipality’s EAV for three of the last five calendar years prior to the year in which the area is to be designated; or (iii) changed an annual rate that is less than the annual rate of change (i.e lagged) of the Consumer Price Index for All Urban Consumers (CPI-U) as

2.4.b

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published by the United States Department of Labor or successor agency for three of the last five calendar years prior to the year in which the area is to be designated.

Data regarding change in historical EAV for the Study Area and the City, as well as change in the CPI-U, is presented in the following Table 4.

Table 4. Annual Rates of Change for Tax Years 2019 to 2015 for Study Area EAV and CPI-U

Tax Year 2019 2018 2017 2016 2015 2014 Study Area EAV 699,686 659,400 631,064 625,651 626,004 644,422 EAV Change 6.1% 4.5% 0.9% -0.1% -2.9% - Years Declined - - - X X City EAV Change 7.1% 4.1% 1.9% 1.1% -3.1% - Years Lagged Citye X - X X - CPI-U 1.80% 2.40% 2.10% 1.30% 0.10% - Years Lagged CPI-U - - X X X

The Study Area qualifies under two measurements; that is, the rate of annual change of the total EAV of the Study Area; (a) lagged the balance of the City’s EAV for three of the last five calendar years prior the most recent year in which the Study Area is to be added; and, (b) lagged the CPI-U for four of the last five calendar years prior to the year in which the Study Area is to be added.

4. Excessive Vacancies: The Act describes excessive vacancies as the presence of buildings

that are unoccupied or underutilized and that represent an adverse influence on the area because of the frequency extent or duration of the vacancies. Historically the Study Area developed as an extremely active and vibrant industrial area. However, as the needs of industrial users began to change in the late-20th Century, vacancy and disuse began to characterize the Study Area. The degree of disrepair that had befallen a number of vacated structures in the Study Area led to the City purchasing and demolishing or repurposing several structures over the past three decades. As indicated in the below Table 5, at the time of KMA’s site surveys of the area, five of the nine existing structures in the Study Area, or 56% of existing structures, were found to be vacant and in a state of disrepair. Indeed, three of the four structures not found to be vacant were all part of the same active industrial site and the remaining non-vacant structure was the repurposed industrial “Lorden” building in Davis Park.

Table 5. Summary of Vacancy Findings

Total number of structures in Study Area 9

Number of vacant structures in Study Area 5

Percent of vacant structures in Study Area 56%

2.4.b

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City of Rockford, IL First Amendment to the Amerock Hotel TIF District Eligibility Report 12

Currently, there are a number of vacant buildings and inactive industrial sites The extent of vacancy in the area creates certain conditions which create an adverse impact on the area and impede private redevelopment efforts. This impact is heightened by the high degree of visibility of these structures, many of which are located along Main Street, a gateway into Downtown Rockford. The degree of deterioration associated with the vacancies contributes to a “tired” appearance which discourages reinvestment and suggests an area whose time has passed.

5. Deterioration: The Act describes deterioration in the context of secondary building components and surface improvements. For secondary building components (e.g. doors, windows, porches, gutters and downspouts and fascia) deterioration may be evidenced by the presence of major defects. For surface improvements (e.g. roadways, alleys, curbs, gutters, sidewalks, off-street parking and surface storage areas), deterioration may be evidenced by surface cracking, crumbling, potholes, depressions, loose paving material and weeds protruding through paved surfaces. In July 2020 KMA conducted an analysis of the condition of existing improvements within the Study Area. This analysis included the collection of primary data from on-site surveys as well as the review of various building condition reports. Deterioration was found to be present in secondary building components throughout the Study Area. Several vacant industrial buildings were found to be in an extreme state of disrepair. Common required repair items include brick, cement and other exterior surface materials breaking and falling off exterior walls, broken, rotting and/or unsecured doorways and windows, exposed electrical wiring and damaged roofing. Signs of trespassing in structures was observed. The level of deterioration of some structures in combination with the lack of securitization suggests a potential safety hazard to community members.

Deterioration was also found to be present in surface improvements throughout the Study Area. Surface improvements primarily consist of parking areas, walkways, former rail right-of-ways and overpasses. At the time of KMA’s survey observations included, but were not limited to, cracked and crumbling asphalt, cracked, crumbling and spalling concrete, unkempt landscaping and weeds protruding through surface improvements.

6. Obsolescence: The Act states that obsolescence is the condition or process of falling into

disuse or structures that have become ill-suited for their original use. Historically, the Study Area developed to accommodate industrial users. As the needs of industrial users have changed with time, improvements within the Study Area have fallen into disuse and have become ill-suited for their original use.

2.4.b

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City of Rockford, IL First Amendment to the Amerock Hotel TIF District Eligibility Report 13

Obsolescence is most directly observed by examining the age of existing structures in an area. As noted in the “Summary of Age Findings” subsection of this report, at least six of the nine existing structures in the Study Area are 35 years in age or older. Indeed, at least five existing structures were constructed prior to 1930. The presence of incompatible land use relationships, an inadequate street layout and tax parcels of inadequate size and shape to facilitate redevelopment also suggests an area that has not changed in step with time. Rather, these conditions reflect the needs of an industrial user that has moved away from the central cores of cities, leaving their original locations in states of obsolescence. This lack of use has led to prolonged vacancy declining/lagging equalized assessed value and disrepair which further contributes to barriers to reinvestment and arresting the continued onset of obsolescence.

2.4.b

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City of Rockford, IL First Amendment to the Amerock Hotel TIF District Eligibility Report 14

V. SUMMARY

Relevant qualification findings as related to the designation of the Study Area as a conservation area are as follows:

1. The Study Area is contiguous and is greater than 1 ½ acres in size;

2. The Study Area qualifies as a conservation area as; i) 50% or more of the existing structures are 35 years in age or older; and, ii) at least three eligibility factors are present to a meaningful extent and are distributed throughout the area;

3. All property in the Study Area would substantially benefit by the proposed redevelopment project improvements;

4. The growth of EAV for all taxing districts overlaying the area, including the City, has been impaired by the factors found present in the Study Area; and,

5. The Study Area would not be subject to redevelopment without the investment of public funds, including property tax increment.

In the judgement of KMA, these findings provide the City with sufficient justification to consider designation of the Study Area as a TIF district.

2.4.b

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APPENDIX A: Tax Parcels within Study Area

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City of Rockford First Amendment Amerock TIF Amendment Area PIN List

11-22-484-004

11-22-485-003

11-22-485-004

11-22-486-001

11-22-486-003

11-22-487-001

11-22-488-001

11-22-489-001

11-22-489-002

11-22-501-001

11-22-504-006

11-22-504-007

11-22-504-008

11-23-355-005

11-23-355-006

11-23-355-007

11-23-357-005

11-23-357-006

11-27-210-001

11-27-226-001

11-27-226-010

11-27-227-001

11-27-229-013

11-27-229-014

11-27-230-019

11-27-505-013

11-27-505-014

2.4.b

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APPENDIX B: Boundary Map of Study Area

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Cedar Street

Chestnut Street

S Chu

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S Main

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City of RockfordFirst Amendment Amerock TIF Boundary Map

TIF Boundary

Tax Parcels

Prepared by:0 0.02250.045 0.09 Miles

Sources: WINGIS tax parcel shapefile accessed 03/24/2021

¯

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ROCKFORD, ILL.

June 21, 2021

TO THE CITY COUNCIL OF THE CITY OF ROCKFORD:

Council Members:

The Committee on Planning & Development to whom was referred the Amended

Amerock Hotel Tax Increment Financing (TIF) District, begs leave to report recommending that

the Designation of the Amended Amerock Hotel Tax Increment Financing District (TIF)

Redevelopment Project Area as recommended by the Joint Review Board be approved. The

Legal Director shall prepare the appropriate ordinance.

_____________________________________________

_____________________________________________

_____________________________________________

_____________________________________________

_____________________________________________

Committee Action: June 14, 2021

Meeks: Ayes:___ Nays:____ Absent:____

Durkee: Ayes:___ Nays:____ Absent:____

Hoffman: Ayes:___ Nays:____ Absent:____

McNeely: Ayes:___ Nays:____ Absent:____

Prunty: Ayes:___ Nays:____ Absent:____

2.5.a

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DRAFT

ORDINANCE NO. 2021-____-O-___

AN ORDINANCE OF THE CITY OF ROCKFORD, WINNEBAGO AND OGLE

COUNTIES, ILLINOIS, DESIGNATING THE AMENDED AMEROCK HOTEL

REDEVELOPMENT PROJECT PURSUANT TO THE TAX INCREMENT ALLOCATION

REDEVELOPMENT ACT

WHEREAS, the City of Rockford, Winnebago and Ogle Counties, Illinois (the “City”),

is a duly organized and existing municipal corporation created under the provisions of the laws of

the State of Illinois and under the provisions of the Illinois Municipal Code, as from time to time

supplemented and amended; and

WHEREAS, it is desirable and in the best interest of the citizens of the City of Rockford,

Winnebago and Ogle Counties, Illinois, for the City to implement tax increment allocation

financing pursuant to the Tax Increment Allocation Redevelopment Act, Division 74.4 of Article

11 of the Illinois Municipal Code, as amended (the "Act"), for a proposed first amendment to the

Amerock Hotel redevelopment and redevelopment project (the "First Amendment") within the

municipal boundaries of the City and further within a proposed amended Amerock Hotel

redevelopment project area (the "Amended Area") described in Section 2 of this Ordinance; and

WHEREAS, the Corporate Authorities have heretofore by ordinance approved the First

Amendment, which Amended the original Amerock Hotel Redevelopment Plan and

Redevelopment Project (as adopted by the City Council of the City on October 16, 2017) were

identified in such ordinance and were the subject, along with the Amended Area designation

hereinafter made, of a public hearing held on May 17, 2021, and it is now necessary and desirable

to designate the Amended Area as a redevelopment project area pursuant to the Act.

2.5.b

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DRAFT

NOW, THEREFORE, BE IT ORDAINED by the Mayor and City Council of the City

of Rockford, Winnebago and Ogle Counties, Illinois, as follows:

SECTION 1. Recitals That the above recitals and findings are found to be true and correct

and are hereby incorporated herein and made a part hereof, as if fully set forth in their entirety.

SECTION 2. Amended Area Designated. That the Amended Area, as legally described in

Exhibit A, a copy of which is attached hereto and made a part hereof, as if fully set forth in its entirety,

is hereby designated as an amended redevelopment project area pursuant to Section 11-74.4-4 of the

Act. The general street location for the Amended Area is described in Exhibit B, a copy of which is

attached hereto and made a part hereof, as if fully set forth in its entirety. The map of the Amended

Area is depicted on Exhibit C, a copy of which is attached hereto and made a part hereof, as if fully

set forth in its entirety.

SECTION 3. Severability. This Ordinance, and its parts, is declared to be severable and if

any section, clause, provision, or portion thereof of this Ordinance is declared invalid, the

invalidity thereof shall not affect the validity of any other provisions of this Ordinance which shall

remain in full force and effect.

SECTION 4. Superseder. All ordinances, resolutions, motions, or orders in conflict with

any provision of this Ordinance are, to the extent of such conflict, hereby repealed.

SECTION 5. Effective Date. This Ordinance shall be in full force and effect upon its

passage, approval and publication as provided by law.

2

2.5.b

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PASSED BY THE MAYOR AND THE CITY COUNCIL of the City of Rockford, Illinois, at a regular

meeting thereof on the ___ day of ____________, 2021, and approved by me as Mayor on the same

day.

VOTING AYE:

VOTING NAY:

ABSENT:

ABSTAIN:

APPROVED: , 2021

____________________________________

MAYOR

ATTESTED:

_______________________________________

LEGAL DIRECTOR

PASSED: APPROVED: PUBLISHED:

ATTESTED and FILED in my office this ______ day of _______________, 2021, and published in

pamphlet form this ______ day of ______________, 2021 by order of the City Council of the City of

Rockford, Illinois.

____________________________________

Legal Director and ex officio

Keeper of the Records and Seal

APPROVED BY: ___________________________________

NICHOLAS O. MEYER, Legal Director

RECOMMENDED BY:

MEGAN MCNEILL, Assistant City Attorney

2.5.b

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EXHIBIT A

AMEDNDED LEGAL DESCRIPTION

AMEROCK TIF AMENDED LEGAL DESCRIPTION

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TO BE PROVIDED
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EXHIBIT B

GENERAL STREET LOCATION

The Redevelopment Plan of the Amerock Hotel TIF District is amended to include certain tax parcels to the

north, east, south and west of its original boundaries. The expanded RPA is roughly bound by:

Chestnut Street to the north, the Rock River to the east, Kent Creek to the south and

Winnebago Street to the west.

2.5.b

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DRAFT

EXHIBIT C

MAP OF REDEVELOPMENT PROJECT AMENDED AREA

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Cedar Street

Chestnut Street

S Chu

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S Main

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City of RockfordFirst Amendment Amerock TIF Boundary Map

TIF Boundary

Tax Parcels

Prepared by:0 0.02250.045 0.09 Miles

Sources: WINGIS tax parcel shapefile accessed 03/24/2021

¯

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Page 150: Planning & Development

ROCKFORD, IL

June 21, 2021

TO THE CITY COUNCIL OF THE CITY OF ROCKFORD:

Council Members:

The Committee on Planning & Development to whom was referred the Amended

Amerock Hotel Tax Increment Financing (TIF) District, begs leave to report recommending that

the Adoption of the Tax Increment Allocation Financing for the Amended Amerock Hotel Tax

Increment Financing (TIF) District Redevelopment Project Area as recommended by the Joint

Review Board be approved. The Legal Director shall prepare the appropriate ordinance.

_____________________________________________

_____________________________________________

_____________________________________________

_____________________________________________

_____________________________________________

Committee Action: June 14, 2021

Meeks: Ayes:___ Nays:____ Absent:____

Durkee: Ayes:___ Nays:____ Absent:____

Hoffman: Ayes:___ Nays:____ Absent:____

McNeely: Ayes:___ Nays:____ Absent:____

Prunty: Ayes:___ Nays:____ Absent:____

2.6.a

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ORDINANCE NO. 2021-____-O-___

AN ORDINANCE OF THE CITY OF ROCKFORD,

WINNEBAGO AND OGLE COUNTIES, ILLINOIS,

ADOPTING TAX INCREMENT ALLOCATION FINANCING

FOR AMENDED AMEROCK HOTEL REDEVELOPMENT

PROJECT AREA

WHEREAS, the City of Rockford, Winnebago and Ogle Counties, Illinois (the “City”),

is a duly organized and existing municipal corporation created under the provisions of the laws of

the State of Illinois and under the provisions of the Illinois Municipal Code, as from time to time

supplemented and amended; and

WHEREAS, it is desirable and in the best interest of the citizens of the City of Rockford,

Winnebago and Ogle Counties, Illinois, for the City to implement tax increment allocation

financing pursuant to the Tax Increment Allocation Redevelopment Act, Division 74.4 of Article

11 of the Illinois Municipal Code, as amended (the "Act"), and

WHEREAS, the City has heretofore approved a first amendment to the Amerock Hotel

redevelopment plan and redevelopment project (the "First Amendment”) as required by the Act by

passage of an ordinance and has heretofore designated an amended Amerock Hotel redevelopment

project area (the "Amended Area") as required by the Act by the passage of an ordinance and has

otherwise complied with all other conditions precedent required by the Act.

WHEREAS, pursuant to the Act, the initial equalized value of all parcels designated as

part of the original Amerock Hotel Redevelopment Plan and Project (adopted by the City Council

of the City on October 16, 2017) are not to be modified by this First Amendment.

NOW, THEREFORE, BE IT ORDAINED by the Mayor and City Council of the City

of Rockford, Winnebago and Ogle Counties, Illinois, as follows:

2.6.b

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SECTION 1. Recitals. That the above recitals and findings are found to be true and correct

and are hereby incorporated herein and made a part hereof, as if fully set forth in their entirety.

SECTION 2. Tax Increment Financing Adopted for Amended Area. That tax increment

allocation financing is hereby amended to pay redevelopment project costs as defined in the Act

and as set forth in the First Amendment within the Amended Area as legally described in Exhibit

A, a copy of which is attached hereto and made a part hereof, as if fully set forth in its entirety.

The general street location for the Amended Area is described in Exhibit B, a copy of which is

attached hereto and made a part hereof, as if fully set forth in its entirety. The map of the Amended

Area is depicted in Exhibit C, a copy of which is attached hereto and made a part hereof, as if fully

set forth in its entirety.

SECTION 3. Allocation of Ad Valorem Taxes. That pursuant to the Act, the ad valorem

taxes, if any, arising from the levies upon taxable real property for the additional parcels added by

this First Amendment and included in the Amended Area by taxing districts and tax rates

determined in the manner provided in Section 11-74.4-9(c) of the Act each year after the effective

date of this Ordinance until the Project costs and obligations issued in respect thereto have been

paid shall be divided as follows:

a. That portion of taxes levied upon each taxable lot, block, tract, or parcel of

real property that is attributable to the lower of the current equalized assessed value or the initial

equalized assessed value of each such taxable lot, block, tract, or parcel of real property in the

Amended Area shall be allocated to and when collected shall be paid by the Counties collector to

the respective affected taxing districts in the manner required by law in the absence of the adoption

of tax increment allocation financing.

b. That portion, if any, of such taxes that is attributable to the increase in the

current equalized assessed valuation of each lot, block, tract, or parcel of real property in the

2

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Amended Area which shall be deposited into a special fund, previously created and designated as

the "Amended Amerock Hotel" Redevelopment Project Area Special Tax Allocation Fund" of the

City and such taxes shall be used for the purpose of paying Project costs and obligations incurred

in the payment thereof.

SECTION 4. Severability. This Ordinance, and its parts, is declared to be severable and if

any section, clause, provision, or portion thereof of this Ordinance is declared invalid, the

invalidity thereof shall not affect the validity of any other provisions of this Ordinance which shall

remain in full force and effect.

SECTION 5. Superseder. All ordinances, resolutions, motions, or orders in conflict with

any provision of this Ordinance are, to the extent of such conflict, hereby repealed.

SECTION 6. Effective Date. This Ordinance shall be in full force and effect upon its

passage, approval and publication as provided by law.

3

2.6.b

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PASSED BY THE MAYOR AND THE CITY COUNCIL of the City of Rockford, Illinois, at a regular

meeting thereof on the ___ day of ____________, 2021, and approved by me as Mayor on the same

day.

VOTING AYE:

VOTING NAY:

ABSENT:

ABSTAIN:

APPROVED: , 2021

____________________________________

MAYOR

ATTESTED:

_______________________________________

LEGAL DIRECTOR

PASSED: APPROVED: PUBLISHED:

ATTESTED and FILED in my office this ______ day of _______________, 2021, and published in

pamphlet form this ______ day of ______________, 2021 by order of the City Council of the City of

Rockford, Illinois.

____________________________________

Legal Director and ex officio

Keeper of the Records and Seal

APPROVED BY: ___________________________________

NICHOLAS O. MEYER, Legal Director

RECOMMENDED BY:

MEGAN MCNEILL, Assistant City Attorney

2.6.b

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EXHIBIT A

AMEDNDED LEGAL DESCRIPTION

AMEROCK TIF AMENDED LEGAL DESCRIPTION

2.6.b

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TO BE PROVIDED
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EXHIBIT B

GENERAL STREET LOCATION

The Redevelopment Plan of the Amerock Hotel TIF District is amended to include certain tax parcels to the

north, east, south and west of its original boundaries. The expanded RPA is roughly bound by:

Chestnut Street to the north, the Rock River to the east, Kent Creek to the south and

Winnebago Street to the west.

2.6.b

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EXHIBIT C

AMENDED MAP OF REDEVELOPMENT PROJECT AREA

2.6.b

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Cedar Street

Chestnut Street

S Chu

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S Main

Stree

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S Cou

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City of RockfordFirst Amendment Amerock TIF Boundary Map

TIF Boundary

Tax Parcels

Prepared by:0 0.02250.045 0.09 Miles

Sources: WINGIS tax parcel shapefile accessed 03/24/2021

¯

2.6.b

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1

PUBLIC HEARING ON THE PROPOSED AMENDED AMEROCK-HOTEL

REDEVELOPMENT PROJECT AREA Monday, May 17, 2021 – 4:00 p.m.

City Hall- Council Chambers

Present:

Alderman Gina Meeks, Chairman Planning & Development Committee

Alderman Linda McNeely

Alderman Frank Beach

Alderman Gabrielle Torina

Megan McNeill, City of Rockford, Assistant City Attorney

Troiana Gearns City of Rockford, Administrative Assistant, Legal Department

Karl Franzen, City of Rockford, Director of Community & Economic Development

Kristian Dominquez, City of Rockford, Financial Analyst

Carrie Hagerty, City of Rockford, Finance Director

Charles Durham, Kane McKenna, Executive Vice President (via webex)

I. Call to Order

Alderman Gina Meeks, Chairman, called the meeting to order at 4:00 p.m. This meeting is

regarding the proposed Amended Amerock-Hotel Redevelopment Project Area. Pursuant to

65 ILCS 5/11-74.4-5, a public hearing must be conducted by the corporate authorities upon

submission of a proposed Redevelopment Plan and the designation of the proposed

Redevelopment Project Area. Notice was given by publication in the Rockford Register

Star on May 1st and May 2nd of 2021. The notice informed the citizens of Rockford that the

City of Rockford would holding a public hearing on Monday May 17, 2021 at 4:30 p.m., in

Council Chambers, 2nd floor, at Rockford City Hall, 425 E State Street, Rockford, Illinois for

the consideration of the proposed Amended Redevelopment Plan and the Designation of

that certain proposed Amended Redevelopment Project Area to be known as the Amended

Amerock-Hotel Redevelopment Project Area.

II. Proposed Amended Amerock-Hotel Redevelopment Project Area

Chairman Meeks asked if there were any questions or oral or written

comments from the general public with regard to the proposed Amended

Redevelopment Plan.

Gino Galuzzo, on behalf of Rockford Public School District #205, objected to

the proposed plan. Mr. Galuzzo stated while the District welcomes and

supports economic development in the community, it is not in a position to

agree to development plans which do not allow for the schools to participate

in the improvements to the tax base as they occur.

The District has a desire to work with the City to support future

development. He stated the same objection would be made on the proposed

Kishwaukee and Harrison Redevelopment Project Area.

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The school district has a desire to work with the City to support future

development.

Kyle Beavers stated that he, Marge Beavers and Don Bissel are partners in B

& B Properties and own the Richardson Building on the corner of State and

Wyman and the former Comden Brothers Seed Company building in the 600

block of Cedar Street. They have been working with a team for the past year

to redevelop those Cedar Street building along with the Bartlet Murphy

building located on the SE corner of Winnebago and Cedar Street. Their

buildings are in Ward 13, TIF District 30, and the Bartlet Building is in

Ward 5, TIF 28.

The proposed Amended Amerock-Hotel Redevelopment Project Area, contains

6 buildings available for redevelopment and TIF funding. The Cedar Street

properties are inside another TIF with 9 years remaining. The Murphy

Bartlet Building intended for this project is directly impacted by the TIF

changes. The building is scheduled to be completely removed from a TIF

District.

Mr. Beavers asked that the Shumway buildings and the Bartlet properties be

included in any new or expanded TIF District.

Mr. Beavers urges the City of Rockford decision makers to examine creative

ways to keep the TIF Districts working for the City, its developers, residents

and the taxing bodies.

Gary Anderson stated he was offering support of this TIF District and to also

ask to revise the boundaries as proposed in the amended Amerock Hotel TIF

District. He requested an additional three properties be considered for

inclusion in the Amended TIF that are to the west on Winnebago and Cedar

Street. He stated the construction of the Federal Building did not stimulate

private investment surrounding that site.

Mr. Anderson stated the proposed Amerock Amendment TIF District

excludes some very viable development opportunities that are adjacent to the

proposed TIF District and they feel their projects in-particular would be in a

very timely fashion would be able to come to fruition. The boundary they

would like to have expanded includes 502 Cedar Street, which includes the

Mack Paper Building and the 600-642 Schumway Seed Building, as well as

631 Cedar Street, which is the Mike Harris Masonry Building.

Assistant City Attorney Megan McNeill stated that the City received written

comments from the Rockford Public School District #205, Cedar Street

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Partners, property owner Alan Murphy, B&B Properties and also from Mike

Harris Mason Contractor.

Alderman McNeely stated her concern is with Cedar Street and removing the

Murphy Building and Schumway Seed Building. She is hoping they include

those and any other building in that area to be a part of this TIF. She does

not want to see these buildings demolished but refurbished instead to see

that part of the City grow. She will not support this proposed new TIF.

Meeting was adjourned at 4:49 p.m.

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Page 1 of 6

JOINT REVIEW BOARD MEETING

CITY OF ROCKFORD

PROPOSED AMENDMENT TO THE AMEROCK HOTEL

TAX INCREMENT FINANCING (TIF) DISTRICT

Thursday, April 15, 2021– 10:00 a.m. City Hall- City Council Chambers (2nd Floor)

I. Call to Order (City)

Megan McNeill, Assistant City Attorney, called the meeting to order at 10:09 a.m. This meeting is held

to meet the requirement under the TIF Act and the notice that was sent to the respective taxing districts.

She stated that this group would select representatives and then proceed with the business on the agenda

that was distributed.

II. Introduction of Representatives

Attorney McNeill suggested that everyone introduce themselves, state what taxing district you represent

and if you are a voting member.

Present: Chuck Durham, Kane, McKenna and Associates, City of Rockford’s TIF Consultant

Jeff Bailey, President of Ward 12 and Public Member – Voting Member

Ellen Olson, Rock Valley College – Voting Member

Tim Bragg, Rockford Park District -Voting Member

Chris Dornbush, Winnebago County -Voting Member

Karl Franzen, City of Rockford Community & Economic Development Director -Voting Member

Carrie Hagerty, City of Rockford Finance Director

Kristian Dominguez, City of Rockford Financial Analyst

Megan McNeill City of Rockford, Assistant City Attorney

Nora Doyle, Administrative Assistant, City of Rockford Legal Department

III. Selection of Public Member

Attorney McNeill said the first order of business for the board is to select a public member.

Karl Franzen made a motion to nominate Jeff Bailey as the public member. Seconded by Chris Dornbush,

Motion prevailed.

IV. Selection of Chairperson

Karl Franzen made a motion to nominate Chris Dornbush as the chairperson. Seconded by Tim Bragg.

Motion prevailed.

V. Review of Joint Review Board Procedures and Duties

Chris Dornbush stated the next item on the agenda was the review of the Joint Review Board Procedures

and Duties.

Attorney McNeill stated that the board will review the public record, planning documents and proposed

ordinances approving the redevelopment plan and project and any proposed amendments to the

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redevelopment plan or additions of parcels of property to the redevelopment project area to be adopted by

the City of Rockford.

The goal of the board is to make an advisory non-binding recommendation to the City Council that needs

to be submitted within 30 days after this meeting. A majority of those members present and voting shall

adopt the recommendation. The recommendation would be considered in the Public Hearing, which is

currently scheduled for May 17, 2021 in City Council Chambers. It would also be considered in the City

Council’s action on the formation of this proposed amendment to the TIF.

The recommendation is supposed to be based on whether the criteria in the statute are met for this

redevelopment area and the plan. Those findings would be contained in a resolution. She stated that we

have a draft resolution prepared in case the board is ready to make a final decision today. A copy was

included in the packet that was distributed.

VI. Amended TIF Plan and Amended Area Eligibility Report Review

Chis Dornbush indicated the we will next review the TIF Plan and the TIF Eligibility Criteria.

Chuck Durham introduced himself and stated that Kane, McKenna and Associates were the City of

Rockford’s TIF consultant. He explained that he would give an overview of the TIF Plan, Proposed

Amendment to the Amerock Hotel TIF project and review the qualifying factors for this proposed TIF

District.

Mr. Durham stated that the Amerock Hotel TIF District was originally adopted October, 2017; it has been

in existence for approximately three and a half years. The City of Rockford proposes to amend the TIF

district in order to consolidate certain parcels that are adjacent to this TIF district. The proposal is to add

certain tax parcels currently in the South Rockford and West Side #2 TIF Districts to the Amerock Hotel

Redevelopment Area.

Mr. Durham explained that the City of Rockford retained their firm to do the analysis of the amended area

and they found that the amended area qualifies. They found that unless the City of Rockford proactively

does something for this area, the area would not redevelop on their own. They recommend that the City

of Rockford proceed with the amendment to the TIF district.

Mr. Durham reviewed a boundary map of the proposed amendment and reviewed the details of the

amendment. Karl Franzen, City of Rockford Community & Economic Development Director, clarified

that the southeast triangular portion of the parcel, which is the majority of the parcel, will not be included

in the proposed amendment. Only the southwest portion of that parcel will be included in this TIF.

Mr. Durham will now briefly review the following: Redevelopment Project and Plan, Qualifying Factors

that they found on behalf of the City, Key elements of TIF Plan, and the Next Steps.

The Redevelopment Project and Plan- The TIF plan will become part of the documents related

to the City of Rockford’s planning process which is all governed by the plan which specifically

utilizes TIF as a mechanism to help redevelop this area.

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TIF Mechanism- Mr. Durham stated that the next several slides explains the TIF Mechanism,

which the group is familiar with how the concept works. He then briefly reviewed the process.

Qualifying Factors – Mr. Durham explained that they began looking at this area a year ago. The

amended area is as you all know is an older part of the City of Rockford. There is a number of

ways to qualify properties under the TIF Act. In this case, they selected the

Conservation Area under the Qualifying Factors. The threshold for an area to qualify for

that designation is that 50% or more of the buildings within the area are at least 35 years

or older.

In addition, the TIF Act lays out 13 factors which are called blighting factors.

The presentation listed the 13 possible qualifying factors (see below). Mr. Durham stated that

3 out of the 13 factors must be present in this area in order for it to qualify for as a conservation

area.

1. Dilapidation: Advanced state of disrepair

2. Obsolescence: The condition or process of falling into disuse

3. Deterioration: Primary or secondary building components have defects

4. Presence of structures below minimum code standards

5. Illegal Use of Individual Structures

6. Excessive vacancies: The presence of buildings that are unoccupied or underutilized

7. Lack of Ventilation: Light or Sanitary Facilities

8. Inadequate Utilities: Insufficient in capacity, deteriorated antiquated, obsolete, in disrepair

or lacking

9. Excessive Land Coverage and Overcrowding of Structures and Community Facilities

10. Deleterious land-use/layout: Incompatible land-use relationships or inappropriate mixed

uses or unsuitable uses

11. Environmental Clean-up: Area has incurred IEPA or EPA remediation costs

12. Lack of Community Planning: Area was developed prior to or without benefit of

community planning

13. Declining/Lagging EAV: 3 of last 5 years declining or lagging the municipality or CPI-U

Mr. Durham stated that after they reviewed documents, they determined that this area qualified for

six (6) of the factors that are listed below:

1. Lack of Community Planning

2. Deleterious land-use/layout

3. Declining/Lagging EAV

4. Excessive vacancies

5. Deterioration

6. Obsolescence

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Mr. Durham reported the specific details of each of the factors as they relate to these facilities.

Lack of Community Planning:

- He stated that 6 of the 9 structures are older than the City of Rockford’s original comprehensive

plan (i.e. 1972)

- At least 5 of the 9 structures are older than Standard State Zoning Enabling Act (i.e. 1926)

Deleterious Land Use/Layout:

- Active and non-active industrial properties abut or in close proximity to commercial,

residential, institutional and mixed uses

- Adverse impacts from:

o Noise

o Traffic

o Visual Aesthetic

Lagging/Declining EAV:

- Study Area qualifies under 2 out of 3 possible measurements for this factor

o Study Area EAV lagged the balance of the City of Rockford’s EAV for last 3 out of 5

years

o Study Area EAV lagged the Consumer Price Index for Urban Consumer for last 4 out

of 5 years

Excessive Vacancies:

- Vacancy driven from shifts in industrial market beginning in late 20th Century

- Vacancy has led to deteriorating structures, many requiring demolition

- 5 of 9 existing structures found to be vacant and in disrepair at time of Kane, McKenna and

Associates surveys

Deterioration:

- The buildings in the area exhibited signs of deterioration

Obsolescence:

- The buildings are very old and some are past their useful life and need to be demolished and

replaced or rehabilitated

- Area originally developed for large-scale industrial users that needed to be near the City’s

center

- Industrial needs have changed since the area’s original development

Key Elements of First Amendment

The 2019 base EAV for the proposed TIF District is estimated to be $699,686

The proposed TIF Budget is approximately $48,500,000

The budget represents the maximum possible amount of expenditures by the City

o Sized to accommodate potential development requirements

o Multi-year budget, not annual budget

o TIF eligible costs include public improvements as well as incentives for private

redevelopment

Proposed land uses are Urban Mixed Use

Mr. Durham stated the packet and presentation included details of the budget.

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Next Steps –

On May 17th the City of Rockford will hold a public hearing to consider the proposed

amendment to the TIF district.

An ordinance amending the TIF district would be considered no earlier than 14 days after close

of the Public Hearing, but no more than 90 days after.

VII. Review of Draft TIF Ordinances

Attorney McNeill explained that there are draft copies of the three ordinances that are required for

amending a TIF under the TIF Act. The first ordinance will approve the TIF Plan and make the findings

that the conditions exist. The second ordinance will approve the redevelopment project area and includes

the legal description and map. The third ordinance instructs the County Clerk to implement taxing

increment financing for the amended area.

VIII. Questions/Comments (Chairperson)

Chis Dornbush asked if any one had questions or comments.

Karl Franzen explained that there are portions of the proposed addition that are a currently part of other

TIFs. There are parcels that bisect the Westside #II TIF and if this is approved then it will require the City

to terminate the Westside II TIF early. They are also investigating if they could also do this for the South

Rockford TIF so they could reduce the number of TIFs.

Chris Dornbush asked if there were any other questions

IX. Consideration of Recommendation to City Council (Chairperson)

Chris Dornbush stated that at this time the board would consider the recommendation to City Council

regarding the Amendment to the Amerock Hotel TIF. Attorney McNeill clarified that if it is the will of

the board today to move forward with this proposed TIF District, then someone would make a motion to

adopt the resolution.

Chris Dornbush made a motion to approve the resolution and Tim Bragg seconded the motion. MOTION

PREVAILED (5-0)

Ayes: Chris Dornbush, Tim Bragg, Beth Young, Karl Franzen, and Jeff Bailey.

Nayes: None

X. Review of Timetable and Next Steps

This was addressed above under TIF Plan and TIF Eligibility Criteria - Review

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XI. Adjournment

Chris Dornbush made a motion to adjourn and Jim Bailey seconded the motion. The meeting

was adjourned at 10:20 am. It was taped in its entirety and will be on file in the Legal

Department for a period of 18 months.

Respectfully Submitted,

Nora Doyle, Administrative Assistant

Phone: 779-348-7154

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Page 173: Planning & Development

6735 Vistagreen Way Suite 110 | Rockford, IL 61107-5643 815.265.6464 | www.aghllaw.com

May 11, 2021

Mr. Karl F. Franzen

Director, Community and Economic Development Department

City of Rockford

425 E. State Street

Rockford, IL 61104

VIA EMAIL— [email protected]

Re: Proposed Amendment to Amerock Hotel TIF District and

Proposed Kishwaukee/Harrison TIF

Dear Mr. Franzen:

On behalf of my client, Rockford Public School District #205, I am writing to express the objection

of the District to each of the proposed plans referenced above. While the District welcomes and

supports economic development in our community, it is not in a position to agree to development

plans which do not allow for the schools to participate in the improvements to the tax base as they

occur. While it is understood that the improvements will eventually benefit all, in the interim while

the TIF is in effect, the District faces ever increasing costs with potential revenue held in multiple

TIF districts scattered about Rockford.

We understand the City’s use of TIF to incentivize development and renovation, but the District has

come to see its over-use (which in some cases has not yielded the planned return), as an impediment

to the District even being able to see the natural accretion of EAV that occurs organically. As a

result, we must object to the creation of the Kishwaukee/Harrison TIF and the amendment to the

Amerock Hotel TIF.

Please place our objection on file and inform the City Council that these measures do not have the

support of the District.

Sincerely,

Gino Galluzzo

(815) 265-6142

[email protected]

Cc: Yashekia T. Goldsmith

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