Rockford mayor addresses Hard Rock Casino bonds and concerns over a potential data center

ROCKFORD, Ill. (WIFR) - It was a long Monday night at Rockford City Council, with two topics top of mind for many in the Forest City.

During city council’s finance and personnel committee, members unanimously approved a $103 million bond for the Hard Rock Casino Rockford’s planned expansion.

The funds will go toward Hard Rock’s plans for a hotel and convention center. The proposal includes between 215 and 225 hotel rooms as well as 15,000 square feet of conference space.

Mayor Tom McNamara believes this is the right move.

“Really what’s taking place is Hard Rock is leveraging the city of Rockford’s ability to bond out at a lower interest rate than that they could get on the free market,” McNamara explained. “That’ll allow us to stay competitive with the addition that’s taking place up in Beloit, about 18 miles away.”

He says this will allow the city to keep the money that they have, which is going to great things like Rockford Promise, paying for free college for all of our residents.

“It allows us to invest in the arts,” shared McNamara. “It allows us to be fiscally responsible, adding more money to pensions. allows us to invest in housing and so much more.”

McNamara says neither the city nor the taxpayers, will be on the hook for these payments. Hard Rock will be paying these payments in full on an annual basis.

Some residents shared concerns about money going towards the casino, rather than funding something like a grocery store. McNamara says he’s heard these concerns but explains it’s apples and oranges.

“We have invested and helped bring funds to our community just in the last year and a half for two different grocery stores. One’s just on the west side of Rockford downtown grocer. Then we brought in another grocery store that’s soon to be opening at Kishwaukee and Broadway. We’re also at the final stages of rolling out a mobile grocery store. But this is a totally different deal.”

He says this deal is one that we will be generating more than an additional $4 million back to our community on top of the guaranteed $7 million that we already get.

“If we don’t do this, we lose out on some of the 7 million that we have. Sothis is about growing the amount of revenue that our community gets that we can invest in things such as fixing our streets, making sure that we live in a safe community,” McNamara said. “And yes, we could use some of these additional dollars that we get going towards a grocery store, which our team is actively always pursuing.”

Another hot topic to come out of city council— worries about a potential data center.

The meeting was meant to be a public hearing on the proposed south Rockford industrial Tax Increment Financing (TIF) district and if the proposed redevelopment area and qualifications meet TIF eligibility.

Read more: South Rockford TIF proposal met with resistance from community

“Anytime that any municipality wants to put forward a new TIF district or tax increment financing district, you must hold a public hearing,” explained McNamara. “And so that public hearing is available for all residents to come in and share their thoughts either for or against you creating that tax increment financing district.”

But the meeting was filled with more than an hour and a half of concerns from residents over the possibility of a data center coming to the area.

“We had about 12 different individuals sign up to publicly speak, many of which offered really thoughtful questions and concerns,” said McNamara. “I think all of us share these questions and concerns because we hear so much about data centers, but we’ve heard very little about any proposed data center here in Rockford.”

The mayor makes it clear, as of right now, there is no proposal for a data center in Rockford. But he says he understands the concerns.

“So, when you don’t have information, that creates fear, that creates frustration, and that creates residents wanting to know more. I want to know more,” McNamara explained. “I will tell you that if a data center comes here, that’s a big if, we got to find out if one is coming here. But if one comes here, we need to hold public meetings to make sure residents have the opportunity to have their voices heard, to hear their concerns, then we need to make sure that we’re addressing those concerns.”

McNamara explained if the water usage, the water consumption, the energy consumption, and the environmental impacts aren’t addressed in any development, the city does not want to move forward with that. For now, he says, the city must wait and see.

“Last night’s hearing isn’t about do we provide tax increment financing to a data center? It was do we create a tax increment financing district, which I strongly support,” shared McNamara. “Then development agreements will come forward and the council will decide, as well as the committee, do we want to provide incentives towards this development or that development? It could be a manufacturing building; it could be a data center. All of those discussions will come down the road if some of those discussions come at all.”

The next TIF public hearing is scheduled for 1 p.m. Thursday, May 21, at Rockford City Council Chambers, 425 E. State Street, 2nd Floor.