TO: Mayor and City Council
FROM: Dustin Anderson, Director of Community Development
SUBJECT:
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Ordinance Designating an Area as the Joliet River Edge Redevelopment Zone
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BACKGROUND:
On June 7, 2023, Governor Pritzker signed an amendment to the River Edge Redevelopment Zone (RERZ) Act to allow the overlap of a RERZ with existing Enterprise Zones for certain communities, including Joliet. The amendment to the RERZ Act allows Joliet to pursue a RERZ designation, even though it is already part of the Des Plaines River Valley Enterprise Zone.
The purpose of the RERZ program is to stimulate the safe and cost-effective reuse of environmentally challenged and/or historically significant properties adjacent to or surrounding rivers through tax incentives.
Some of the benefits this program offers include the following:
* Historic Preservation Tax Credits.
* Remediation Tax Credits.
* Sales Tax Rebates on building materials.
* Dividend income deduction.
* Interest income deduction.
* New construction jobs credits.
The incentives offered through this program would allow the City of Joliet to offer attractive incentive packages for developers interested in redevelopment of our older building stock in our Historic Districts as well as sites that are environmentally challenged and undeveloped sites, etc. Examples in Joliet could include, but are not limited to, the former US Steel property and the old Barrett's building.
As part of the designation process, the City of Joliet must:
* Fill out an application.
* Hold a public hearing.
* Approve an ordinance authorizing the designation of a RERZ.
* Submit the application to the Illinois Department of Commerce and Economic Opportunity (DCEO).
The application consists of identifying an eligible area that meets the following parameters:
* Identify environmentally challenged land within 1,500 yards of a riverfront.
* The proposed area must not be bigger than 12 square miles.
* The area must b...
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