Illinois Riverfront Redevelopment Initiative

Illinois governor Rod R. Blagojevich has proposed an innovative new program designed to help revitalize riverfront areas across the state by providing communities, developers and businesses with the critical tools to revive and redevelop abandoned or contaminated properties.

The proposed River Edge Redevelopment Initiative includes the designation of redevelopment zones across Illinois that will be eligible to receive tax credits, exemptions and $20 million in new grant funding to support cleanup, remediation and redevelopment efforts that will lead to economic revitalization in these areas. This initiative combines resources across state agencies and will be administered primarily by the Illinois Department of Commerce and Economic Opportunity (DCEO) and the Illinois Environmental Protection Agency (IEPA).

“To promote a healthy and vibrant economy, we are targeting areas of the state that have the greatest need for redevelopment and potential for growth. River communities were the original economic engines of Illinois, and there are countless underutilized and abandoned properties along major waterways prime for redevelopment,” Gov. Blagojevich said.

The River Edge Redevelopment Zones would consist of environmentally challenged areas that lie adjacent to a river and have economic development potential, but where the cost of redevelopment has made attracting investment extremely difficult.  These zones would be structured similarly to the current Enterprise Zone designation, where municipalities would apply directly to the state to become a River Edge Redevelopment Zone.

Once a zone has been approved, developers and businesses could be eligible for tax exemptions, including sales tax on building materials, an investment and jobs tax credit and various other deductions. Companies or individuals in the zones could also be eligible for an environmental remediation tax credit for certain cleanup costs.                                                                 

This proposal would also include $20 million in new grant funding to assist with redevelopment activity in a River Edge Redevelopment Zone. Municipalities, developers and companies located in these zones would be eligible to receive funding to support infrastructure needs for economic revitalization projects, which will ultimately lead to job creation and economic development in a zone.

Through the Municipal Brownfield Redevelopment Program, the Illinois EPA has provided the initial funding and customized technical assistance for environmental assessments and cleanups for 119 municipalities, of which 44 are located along rivers. These grants of up to $240,000 each per community have been the catalyst for future redevelopment in such river cities as the Quad Cities, Aurora, East St. Louis, Alton, Dixon, Freeport, Geneva, Ottawa, Peoria, Rockford, Sterling and Streator. This initiative leverages investments already made in these river communities. BFN