VanDerGinst Law building to be converted to apartments | Local

ROCK ISLAND — The historic VanDerGinst Law building, once home to a Montgomery Ward retail store, soon will be turned into 33 apartments and an 11-room boutique hotel with first-floor commercial space.

The six-story building, located at 1701-1705 2nd Ave., was built in 1908 and has an iconic mural of Chief Black Hawk on its exterior.

City council members on Monday approved a development agreement with Saratoga Capital LLC that includes up to $2,485,000 in incentives.

The incentive package includes tax-increment-finance funds and property tax rebates not to exceed $1 million or 20 years, whichever comes first.

The city also will contribute up to $100,000 for restoration of the Black Hawk mural, up to $75,000 toward sidewalk and safety improvements and up to $100,000 toward renovation of the commercial portion of the property.

Ald. Stephen Tollenaer, 4th Ward, opposed the deal, calling the incentive package a "bailout.”

"I don't think it's a prudent thing to do with taxpayer money to bail out the two lenders. I think we're bailing them out with taxpayer money," Mr. Tollenaer said.

Ald. Dylan Parker, 5th Ward, addressed concerns raised by some of his constituents regarding the incentive package.

"Some residents have asked me why we are not building homes. My understanding is this all comes from TIF (funds)," Mr. Parker said. "The money that is going to this incentive program is from the extra taxes generated from the development of this project. This is not taking away from building homes. This is TIF funding."

Mayor Mike Thoms said that tax-increment-finance money can be spent only within the designated TIF district.

"Another positive thing is this is more than $10 million in investments in downtown Rock Island," he said. "There will be more people living downtown and more people for the businesses downtown. This will be a positive cash flow for the city. This building has sat vacant for far too long."

In the development agreement, a reimbursement process has been set up to protect the city's contribution. Funds will not be released until a certificate of occupancy has been granted for the project.

"I want to thank the city staff and city manager, who put a lot of hours in. These things don't just happen,” Mayor Thoms said.

Ald. Joshua Schipp, 6th Ward, said he had a good meeting with the developer, Saratoga Capital president Sam Estep.

"We want to work with people who see the potential and want to make our downtown attractive,"   Mr. Schipp said. "I really think this is going to be a crown jewel, I really do. We also appreciate that the mural of Chief Black Hawk will be restored and we can honor native people."

Ald. Ivory Clark, 1st Ward, said he was confident the development deal was "going to be a great relationship."

Also on Monday, council members approved the sale of city-owned property at the northwest corner of Illinois 92 and Andalusia Road to Casey's Retail Co. for $50,000.

The company has until Dec. 31, 2018, to develop the site, at which time the city can purchase the property back for $55,000.

"It should really help that industrial park up there," said Ald. Virgil Mayberry, 2nd Ward. "This is going to be a great addition to the city of Rock Island. This could start a lot of other good things in the 2nd Ward."

Mr. Schipp said he also was pleased with the arrival of a Casey's General Store.

"We are thrilled they want to come here and open a successful business," he said.

Council members also:

— Approved a bid of $37,055 by Tri-City Electric for the installation of 10 security cameras in and around the area of Glenhurst Court.

— Approved the sale of city-owned property at 2711 18th Ave. to Rock Island Coffee for $5,000 for a proposed Dunkin' Donuts.

— Approved a proclamation declaring Aug. 13-19 as Rock Island Clown Appreciation Week.