An estimated $6 million of renovations are planned for the former Midland States Bank site in downtown Kankakee. The second phase of the downtown project, a residential development, is likely to be put on hold, the developer informed city leadership this week.
An estimated $6 million of renovations are planned for the former Midland States Bank site in downtown Kankakee. The second phase of the downtown project, a residential development, is likely to be put on hold, the developer informed city leadership this week.
KANKAKEE — It took more than a half-dozen years and several development agreements before the Ricky Rockets Fuel Center development kicked into its recently-started construction phase.
The Kankakee administration and the Kankakee City Council may be facing much the same issues with the planned $25.5 million downtown development by a pair of out-of-the-region developers who have proposed a five-story, 101-unit, market-rate apartment building as well as the redevelopment of the former three-story Midland States Bank, 310 S. Schuyler Ave.
At this week’s Kankakee City Council Economic Development Committee meeting, Mayor Chris Curtis informed council members that developers have a $3 million financial gap to fill.
In short, developers Joshua Jeffers, of Milwaukee, Wis., and Brian Loftin, of Schaumburg, are seeking help in closing the financial gap after they were unsuccessful in their pursuit of a $3 million Main Street state grant.
This project has been on the developers’ radar since 2019.
The apartment would be located directly east of the former bank property in the area which is a parking lot.
In an interview this week, Jeffers said the group remains firmly committed to this development and he made it clear they are not asking the city to close the $3 million funding gap.
The city has already aided the project by committing $1 million in “pre-development” assistance in late 2021 and has committed to a 75%-25% share on the property tax-sharing agreement for the 21 years remaining within the downtown Tax Increment Financing District.
“We have a financing gap. It is crucial,” Jeffers said. “We are trying to find solutions.”
Curtis told Economic Development Committee members he views the apartment project as being a “game changer” for downtown Kankakee. The city has repeatedly stated its goal is to bring a residential component to the downtown.
The city is exploring the possibility in which American Rescue Plan Act federal money can be used. The city received some $15 million of ARPA funds. It has $4.1 million which has not yet been allocated.
Curtis said there is a limit to how much the city can aid a development.
“Everyone wants this project to happen. We can sweeten the pot to make it happen, but we can’t over-incentive. We have a responsibility with taxpayers’ money,” Curtis said.
The developers are keeping their fingers crossed that the city, through its access to various state and federal funding programs, may be able to find a solution.
“We are committed to this project. We will work on this as long as it takes. We are in this for the long haul,” Jeffers said.
In addition to the pair of downtown projects, the developers are also working toward redevelopment of the Pope Brace building, 197 S. West Ave., into a residential complex. The projected renovation of this project is $20 million.
The first order of business, he noted, is the renovation of the Midland States Bank property. He said leases have already been signed and the goal is to have the building ready for occupants no later than mid-2023.
The clock is ticking.
It is their goal to begin construction work yet this year. That window appears to be extremely tight as Curtis does not expect the city council to consider any type of additions to the development agreement until the Nov. 21 city council meeting.
Jeffers said it would be their goal to start development of the apartment yet this year, but that is not as critical as the bank construction. He said the apartment has a construction timeline of 14 months.
He added the development team is planning to meet with the full city council.
“We are planning to come down and make the pitch to the council members. We are certainly planning on making the case to present to the full council,” Jeffers said.
How the council will respond is unknown. The administration, however, believes the city can only go so far to aid private development.
“At a certain point, we can only do so much. We can take a little risk, but the developer has to take more. ... I think there are things we can do to get them to the finish line,” Curtis said.
