Stimulus might help West State project

By Isaac Guerrero

BusinessRockford.com

PAST COVERAGE
Development idea might revitalize Rockford's West State corridor (02/26/09)
Residents say West State project ‘long time coming’ (01/24/08)

ROCKFORD — The federal government’s stimulus program might give a shot in the arm to a proposed multimillion dollar residential and retail development on West State Street.

Aldermen in May approved a deal with Spring Creek Development Group that would leverage more than $5 million in city subsidies with millions of dollars in private investment to transform 50 acres between Pierpont and Springfield avenues. The development, officials say, could become the most significant development seen on the west side of Rockford in decades.

An OSF Saint Anthony immediate-care facility, a private ambulance service and possibly a pharmacy would be in the mix for the first phase of development. Future phases would include a senior-living facility, restaurants, a bank and related offices and retail offerings.

The city subsidies won’t kick in until developers firm up OSF and other tenants. Spring Creek officials met with Community Development Director Reid Montgomery on Wednesday to provide an update on their progress.

“We have to get started building a road that will serve the project and have two or three pads ready for tenants, hopefully, by the first quarter of next year,” Spring Creek project manager Phil Dean said. “We’ve made revisions to the plans along the way and we talked with the city about those details and also about the mix of funding options that may be available.”

The federal stimulus program has set aside more than $16 million for a special bonding program to help the city finance development projects at lower-than-traditional interest rates. City officials are exploring the particulars of the program to see whether the West State Street project would qualify, Dean said.

Another opportunity also has popped up that could shape the development into a “mini medical campus,” Dean said.

The West State Street site is among a half-dozen sites the Veterans Affairs officials are considering for a 30,000-square-foot outpatient clinic to replace the agency’s existing clinic at 4940 E. State St. Officials want to expand their Rockford outpatient offerings, particularly mental-health services.

The East State Street clinic has added staff and medical services in recent years and has outgrown its space, said Michael Frazier, chief engineer at the William S. Middleton Memorial V.A. Hospital in Madison, Wis., which oversees operations at the Rockford clinic.

“We’re looking at several sites within a 5-mile radius of downtown Rockford,” Frazier said.

Assistant Business Editor Isaac Guerrero can be reached at iguerrero@rrstar.com or 815-987-1394.