Lawmakers vote to extend historic tax credit for Elgin, Aurora by one year
State lawmakers approved a one-year extension of a special tax credit program for the redevelopment of historic properties in river communities including Aurora and Elgin.
The River Edge Redevelopment Zone historic tax credit program, also available in Rockford, Peoria and East St. Louis, was set to expire Dec. 31. The measure was approved with overwhelming bipartisan support by the House on Wednesday and by the Senate on Thursday, said state Rep. Anna Moeller, an Elgin Democrat and a co-sponsor of the bill.
The governor still has to sign the bill, but Moeller expressed optimism that he would given the bipartisan support.
The goal is to approve a long-term extension of the River Edge program as part of the state budget, which lawmakers are still grappling with, Moeller said.
Renovating historic properties, which can be a very expensive endeavor, benefits the entire community by improving property values and boosting the local economy, Moeller said.
"All of our communities (in the River Edge program) are relatively similar. We've got a lot of properties that, because of their age and historical nature, it just costs more money to redevelop and make them usable again."
The state historic tax credit program provided $3 million to the $20 million needed to overhaul the closed St. Charles Hospital in Aurora, set for conversion to a senior living community by the end of the year. The Aurora City Council last week approved a resolution urging state legislators to extend the program.
Aurora acting Mayor Robert J. O'Connor said he was pleased.
"Given that the River Edge tax credit has demonstrated proven success in preserving historic buildings, eliminating blight and stimulating economic growth, we are hopeful that this is a first step toward a longer-term extension that would allow private developers to tackle the most difficult multiyear redevelopment projects in River Edge communities."
Developer Bill Luchini, who's leading a $16.6 million project to turn the Elgin Tower Building into apartments, called the legislation "an early Christmas present."
The project would have come to fruition even without the extension, but having those is an additional safety net, said Luchini, president of Capstone Development Group in St. Louis. The first apartments should be ready for move-in by May, he said.
The tax credit program also provided funding for the construction of Riverside Drive Promenade in Elgin.
"The economy has been terrible for downtown development the last few years, but I see signs that it is coming back, starting with the renovation of the Tower Building," Elgin Mayor Dave Kaptain said in a news release. "This measure ... will help ensure that economic development blossoms in older river cities across the state."