Sterling aims for designation to land up to $50M in economic development tax incentives

STERLING – Sterling’s mayor and the city’s Riverfront Reimagined Commission are in talks to apply for a designation that, if approved, could provide millions of dollars in additional funding for city development.

Mayor Diana Merdian and commissioners met Wednesday, Oct. 16, to discuss the River Edge Redevelopment Zone Act, which is legislation encouraging economic growth through redevelopment and revitalization projects that are typically in areas along waterfronts. RERZ provides tax incentives for investors and municipalities, and if Sterling receives the designation, Merdian said, it could provide millions of dollars in tax incentives through the riverfront work that the city has already started.

“This takes the project for just Lawrence alone, and takes the tax incentives from $3 million to $50 million,” Merdian said.

According to the Department of Commerce and Economic Opportunity, once a city is designated, certain areas are allocated as a “River Edge Redevelopment Zone.” Investors and businesses that develop in these zones are eligible for several tax incentives, including property tax abatements and sales tax exemptions.

If approved, the designation could mean years of additional growth and funding for Sterling. Ron Clewer of Gorman & Co. said they are considering a two-fold strategy to get the RERZ designation.

“The first is to work with Rep. [Maurice] West to submit a bill that would include Sterling, Springfield and Alton,” Clewer said. “These other cities have also been vying for them, and if we try to submit a bill and we’re not doing in conjunction with these two other cities, we could get into competition. We don’t need a competition.”

Although there is no cost to apply, Merdian plans to put a proposal before the City Council suggesting that the city hire a lobbyist or lobbying firm to advocate on the city’s behalf to the Illinois DCEO, which decides which communities receive the designation.

“Every year, tons of bills are written and filed but never get introduced,” Merdian said. “With a lobbyist, you have someone out there fighting to not only get your bill introduced but passed.”

The meeting also included a Sterling Riverfront Foundation update in which Riverfront Commission co-Chairman Marc Geil said the foundation already has secured $2.9 million in commitments from investors for the $300 million Riverfront Reimagined project.

“The checks are already being deposited,” Geil said. “It’s a good start to things.”