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The River Edge Redevelopment Initiative includes the designation of
redevelopment zones that will be eligible to receive tax credits,
exemptions and, potentially, new grant funding, upon appropriation,
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 and the Illinois Environmental Protection Agency. State
Sen. James Clayborne, D-East St. Louis, and state Rep. Linda Chapa
LaVia, D-Aurora, sponsored
Senate Bill 17. With the Senate's concurrence on May 3, the
legislation headed to the governor's desk for his signature.
"We are targeting areas of the state that have the greatest need
for redevelopment and potential for growth," Blagojevich said.
"River communities, like Aurora and East St. Louis, were the
original economic engines of Illinois, and there are underutilized
and abandoned properties along major waterways prime for
redevelopment. This River Edge Redevelopment Initiative will provide
municipalities and businesses with the additional resources they
need to be able to clean up brownfield sites, which is going to
attract more businesses and put more people to work."
The redevelopment zones would consist of environmentally
challenged areas that lie adjacent to a river and have economic
development potential, but the costs of redevelopment have made
attracting investment extremely difficult. These zones would be
structured similarly to the current enterprise zones, and
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.
Municipalities, developers and companies located in these zones
could be eligible to receive funding, upon appropriation, to support
infrastructure needs for economic revitalization projects, which
will ultimately lead to job creation and economic development in a
zone. While many of these areas were home to former industrial
sites, they are now ideal settings for new residential, office,
warehouse and distribution, retail, recreational, hospitality,
commercial, and other productive land uses.
"We are always looking for innovative ways to take advantage of
all of our assets to continue growing the economy and creating more
jobs," said state Sen. James Clayborne, D-East St. Louis. "Governor
Blagojevich's River Edge Redevelopment Initiative is exactly the
kind of spark needed to turn promise into prosperity by allowing
East St. Louis to attract more private investment and economic
development opportunities."
"Governor Blagojevich and I are committed to ensuring that our
river communities won't sit on the sidelines as important
redevelopment projects float past them. This creative pilot program
will provide businesses in Aurora the tools they need to spur
renewed interest in prime properties that once were and still can be
key components of Illinois' economy," said state Rep. Linda Chapa
LaVia, D-Aurora.
"We have an opportunity here in Aurora, and across Illinois, to
revitalize land that has been languishing for years without
providing any economic benefits to our taxpayers," said Aurora Mayor
Tom Weisner. "Governor Blagojevich and I understand that by making
this kind of important investment, we can open the door to economic
development opportunities that have been closed for far too long."
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 "In Aurora, East St. Louis and across the state, we constantly
hear about the need to redevelop old, underutilized and contaminated
properties," said Jack Lavin, director of the Department of Commerce
and Economic Opportunity. "But developers and businesses generally
won't make significant investments in areas that require significant
amounts of remediation. The River Edge Redevelopment Initiative will
provide vital resources to offset some of these costs so we can
bring more opportunities and jobs to these areas. Governor
Blagojevich and I want to thank Senator Clayborne, Representative
Chapa LaVia and Aurora Mayor Weisner for working so hard with us to
make this innovative new pilot program to grow our economy a
reality."
Brownfields are abandoned, idled or underused industrial and
commercial properties that have actual or perceived contamination
and an active potential for redevelopment. Brownfields vary in size,
location, age and past use and can include contaminated land varying
from a multi-acre closed factory to a vacant gas station. While
brownfields were once considered to be only an environmental health
issue, they are now fully recognized as areas with the potential to
play a vital role in the economic development of a community. In
Illinois, there are an estimated 7,000-10,000 brownfield sites in
need of remediation.
"As a former mayor of a river community, I know that brownfield
sites, especially those with abandoned properties, present
significant roadblocks to redevelopment," said Doug Scott, director
of the Illinois Environmental Protection Agency. "Municipalities
often don't have enough resources to make a site viable for
potential economic development projects. This is a new, integrated
set of tools that will lead to a renaissance along our riverbanks."
Since Blagojevich took office, the cleanup of contaminated sites
has accelerated in Illinois, with thousands of acres at more than
400 sites cleaned up for redevelopment, recreational or natural
habitat use. Through the Municipal Brownfield Redevelopment Program,
the Illinois EPA has provided the initial funding and customized
technical assistance for environmental assessments and cleanups for
120 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 Aurora, East St.
Louis, Alton, Dixon, Freeport, Geneva, Ottawa, Peoria, Rockford,
Sterling, Streator and the Quad Cities. The new initiative leverages
the investments already made in these river communities.
About Opportunity Returns
The governor's Opportunity Returns regional economic development
strategy is the most aggressive, comprehensive approach to creating
jobs in Illinois' history. Since a one-size-fits-all approach to
economic development just doesn't work, the governor divided the
state into 10 regions, each with a regional team that is empowered
and expected to rapidly respond to opportunities and challenges.
Opportunity Returns is about tangible, specific actions to make
each region more accessible, more marketable, more entrepreneurial
and more attractive to businesses. It is about upgrading the skills
of the local work force, increasing the access to capital, opening
new markets, improving infrastructure, and creating and retaining
jobs. Opportunity Returns is about successfully partnering with
companies and communities, both large and small, to help all of
Illinois reach its economic potential.
[News release] |
