Planning and Development Committee - Regular Meeting

June 22nd, 2026. Clerk, will you please call the roll? Here.

Here.

Here.

Thank you. Item one is an approval of a proposed grant of easement to comment for the city-owned property located at 850 South Horace Avenue, Rockford, Illinois. Do I have a motion to approve?

So moved. Second.

Are there any questions or comments?

Thank you so much. I was just wondering, are we aware of any plans that are expected to take place at this location?

It's a good question, and currently this site is being developed for a solar farm on the city property just to the west. Where they're crossing the creek is where they need an easement to tie into the existing ComEd lines that run along the property with Alibavich Brothers. So that's just granting this easement so they can tie in the solar farm to the ComEd line. So the lines are buried inside the solar farm, but this section going from the solar farm to the poles is going to be overhead.

Thank you so much. Are there any other questions or comments? All those in favor, please indicate by stating aye. Aye. Any opposed, same sign. The item passes. Item two is an approval of the proposed funding agreement with Comprehensive Community Solutions to expand prevention and intervention programming in collaboration with the City of Rockford's Community Healing Center in the amount of $400,000. The funding source is cannabis funds. Do I have a motion to approve? So moved. I'll second the motion for purposes of discussion only, but will be abstaining from discussion and voting on the matter. That being said, Todd, Diana, did you guys want to add anything?

Thank you, Chair and woman. Certainly, this is a proposal with Comprehensive Community Solutions in the amount of $400,000 utilizing cannabis funds. We have had a partnership with CCS for a number of years, working very closely with the Healing Center. And Diana can talk about the details and answer questions related to the programming and efforts. They work very closely with CCS. When the proposal was built and under for your consideration and additionally will is here from CCS. Should you have any direct questions for him?

Are there any questions or comments Alderman Durkin I'm not going to oppose this Mostly because first of all their data is isn't outstanding They have a 20% is per the memo 20% increase in math performance The other reason for opposition, we pay an awful lot of money to Rockford Public Schools, and I think that this falls under their purview rather than using the cannabis funds. I don't know that this is an appropriate use. So I'm in opposition to this.

Alderman Toonberg?

Thanks, Chairwoman, for allowing me to speak on your committee. I would reiterate a little bit of that. Although I see the various IGAs with the public schools. Also, yeah, I think the public schools could probably pitch in on this as well, but with the taxpayers' money going into the mental health tax, I almost think that these numbers Just my two cents, thank you. As in, we put in 100 and they put in 400. Because there seems to be a larger pot of money in that mental health tax fund right now. So, thank you.

Alderman Weeks?

Yeah, I don't usually agree with Alderman Toomer, but I will agree on that. I do believe that should be reversed. But I do have some questions just related to the program since we're here to discuss. When did the program start in 2025?

Are you referring to the Community Healing Center or Comprehensive Community Solutions?

We're on the funding agreement for Comprehensive Community Solutions, right? That's what we're on number two.

Are you asking specifically for the Live and Free program? Yes. OK. The executive director, William Chapman, is here. We can't hear you.

We don't understand you. Please, everybody speak up.

You couldn't hear me either?

No. It's like nobody's talking. When did the program start in 2025, the Alive and Free program?

Thank you for your question. Executive Director William Chapman is here. If you all would wish for him to answer your question.

To answer the question, the program started in 2021 when allocations for COVID relief funding was given to the state of Illinois. IDHS started a grant fund called trauma And that particular grant funded a number of organizations throughout the state of Illinois. That funding has since gone away as a result of the ending of COVID relief funds. And the first award that we received from the state for that grant was over $800,000.

So the metrics or the information that we receive, at least what I saw, is from 2025 through 2026 is fiscal year. Is that correct? Correct. Are there metrics that we can review to just kind of talk about the success of this program over the course of the years, 2021 through 2025? I don't believe that was included in the package.

That was not requested from me, but I can give that data to anybody that wants to see it. If you would like to also look at the data of all our programs, including this particular program, you can visit our website. There's a page where we post our annual report.

And then, can I just get an idea? And I know, first of all, Diana, thank you so much for giving me the tour of the or we will be having the tour tomorrow for the community healing center and i appreciate that so much um but can i get an idea of the daily kind of the daily or weekly schedule of activities that this program executes and i just want to kind of get an understanding because there's a 11 through 26 or 24 is the age uh So I just kind of want to understand how this program kind of functions.

Shirley, I'll kick us off, and then, Will, you can jump in. So the Community Healing Center, we have our main office inside of Comprehensive Community Solutions. With us being on-site with Comprehensive Community Solutions, we have the opportunity to partner with them on building programs, building strategies to support one another and to better serve the community. We do partner at McIntosh Elementary School as well as on-site at other community centers, one of them being Washington Park Community Center, for example. CCS has a few different programs, and they all are different ages. They have different age requirements. So we'll speak on that.

Yeah, so the Alive and Free, I want to be clear also, because it sounds like there's talk as if Alive and Free only focuses on the young people in RPS tools. of the youth that that program offers services to. I'll just read off a list so that we can be precise when we're thinking about this. Some of the organizations that allow and free provide services to is Northwest Community Center, Patriot's Gateway, emergency response team that's in partnership with the Rockford Police Department, the City of Rockford victims and survivors of gun violence, the Rockford Boys and Girls Club, Alpha, Youth Build Rockford, Rockford Work, and Tanya's House. I also newly will be providing services to Rockford University individuals going into college classes. So Live and Free is not just in the schools. So when you look at the percentage of 20% academic success, that's based on all of the kids that Alpha, I mean Live and Free services a small portion in the public school system. So it's all of kids in and out of our facilities and provide services to. Those are the organizations that we show up on site and provide services to. What was the original question concerning Alive and Free?

I don't know. I'm just trying to get an understanding of are we talking about different programs? Are we talking about Alive and Free? And I think you're explaining it. I'm just trying to get more of a handle on what programming looks like for this particular program.

What programming looks like?

This is what we're funding. Are we funding CCS right now, or are we funding Alive and Free?

We're funding Alive and Free. So again, Alive and Free started receiving funding, and it was launched in 2021 as a response to violence prevention in the city of Rockford through addressing trauma and social-emotional learning. We were awarded over $800,000 from the state. That was through COVID relief funds that was passed through funds from the feds, from the federal government. The federal government has since stopped funding because COVID relief funds ran out. Hence our request now to city council to help support that program. We have already received grant funding from the Winnebago County

Well, I appreciate you explaining. I think for me, what I'm seeing is COVID funding that took place during a very critical time that no longer exists. And so now the question is, how do we sustain some of these things that were created during this time? And it sounds... easy enough to come to the city and get all of the funding from the city. It seems very easy to get funding from the city at this point. So I get it why the ask is here. I just feel, I completely agree with the sentiment that we as a city are funding a mental health tax that really should be funding this at a much higher level, in my opinion. And that's just my thought, so thank you so much.

Thank you. Alderman Durkee?

Yeah, Madam Chair, I just want to know if this is correct. Right now in our memorandum, the only thing that I have is that this is, this appears to be focused on schools, and the number of students served is 100. That's $5,000 a student per year. So are these data incorrect? That it's 100 youth. That's what's in our memorandum. That's what I have in front of me to vote on. And I just heard, I heard somebody tell me that we have kids from all over the place, but that's not what we're voting on. We're voting on this specific program at $5,000 a student, which I agree with. Alderman Thunberg, that the Winnebago County Health Fund has what they're sitting on, I think $48 million. So we have all these cross paths with trauma community. I'm starting to lose track of the number of non-government organizations that are in the city that are doing the same thing. And we're cannibalizing our tax funds to do that. And quite frankly, I don't see improvement culturally with these programs. We have isolated cases, but as an aggregate, I'm not sure that a lot of these approaches are working.

Thank you. Are there any other questions? I'm sorry, did you want to respond?

Just being clear, the 100 youth is the amount that we were awarded from RAC Fund and from the state to service. We've serviced that and exceeded servicing the amount of young people that we service. A small amount of that 100 youth that we service is directly going into the schools and providing those services. Other services are provided by going to other organizations that's a part of that 100 and more. So when we're talking about what's being serviced in Rockford Public Schools, again, it's a small amount of that 100 youth. A lot of it is not just a school program.

Alderman Bell.

Thank you, Chairwoman. This is not my committee, but I'd be remiss if I didn't say a few words and ask a question, especially as it pertains to the young individuals in our community that this program would be servicing and has supported, in my opinion, well. I've been a part of many different events and programs that you all at CCS offer. I just want to say to the executive director of the organization, thank you for what you do for our young people. When I look through weekend incidents on My email here I see and I think each city council member gets these these emails We definitely had one over the weekend we got the email I think today of a young young man who was shot and killed at a gas station you look at 21 18 arrested by you know, a 17-year-old, a 22-year-old in these reports that we get, I think it's very important that we invest into our young people so that they have an opportunity to get off of the street and into productive programming. I do hear you all's comments, and I can appreciate that. I'd hate to just say no because of the current proposal in front of you. If there are amendments or tweaks that you'd like to see, I'd love for this committee to consider that. um but i say all that to ask the question to chief sander and i know that that chief red is not here today um and i'm sure she would comment but i just asked the question how would how would a program like this how does a program like this benefit um our police department and the work that we do here in the city of brockford i can't speak directly to the program but i can speak directly to the

guide them appropriately the fatherhood program that took place this weekend and a number of the other programs um and keep them off the street in a right path it benefits society it benefits the rockford police department benefits the city and benefits us as a community as a whole so thank you and i just i appreciate that um you know this this same

Committee also right there was no second to this last two weeks ago, and so I'm glad that we're having a conversation I think you know if there are you know questions regarding? All of the things that were mentioned maybe maybe we should lay this over instead of saying no to but I I'd just like to see us continue to invest in our young people. And again, CCS does great work in partnering with a multitude of different organizations. And since we were given some information, I'd like to take a look at this as well. Should it come to city council next week, I'd be supporting it. So thank you.

Thank you.

Alderman Meeks. Thank you so much. And I just want to be clear. The questions that are being asked is in no way shape or form not wanting to support our youth. We just want to make sure, or some of us just want to make sure that we're doing it in the most effective and efficient way. And so the suggestion that was made is that we as a community have put forth a lot of intentional efforts to bring funding towards mental health. services and the notion that this should be flipped and mental health should be supporting a large portion of this and the city should be filling gaps like we're very good at doing i don't think that's a notion that we shouldn't be making to be the best stewards of these dollars so i just want to say that thank you thank you alderman

Well, thank you chairwoman All the women Meeks and I don't agree all the time But tonight we do so appreciate that Is there any wiggle room? for This to for this that the amount to go back to be asked to the Winnebago County mental health board This board is responsible for distributing the funds as it was pointed out, has a sizable, sizable amount in it. And I'm wondering if there's any wiggle room to go back to that board for a, final answer.

As I received word from them, this was the final answer. This is the first time that we've ever been funded by the mental health board. Previous applications, when we were kids, this was the first time they've approved us. And I would also like to point out in the packet that I gave you, in terms of fiscal responsibility, there's questions about how money is being used. The past six years since I've been executive director, gold standard on audits. And we continue to increase services in this community.

Yeah, again, I think almost what was alluded to earlier is I don't think we're as much questioning the intent of the program. It's the funding and money being allotted on the city level versus the county level. who has control of the mental health tax every citizen in here is taxed daily on their expenditures going into that mental health tax and reading this surely seems that this is a for the most part of the mental health issue. So I'm just a little flabbergasted that they aren't, if this amount is needed, that there isn't a larger amount

Thank you. Alderman Durkee? Oh, I'm sorry. Did you want to respond to that?

Yeah, could I answer? Yes. So I wanted to add that, yes, this is mental health related, but something that community healing center and comprehensive community solutions have in common is a majority of our families are in survival mode, meaning that they are in need of employment, they are in need of service navigation, support with school, tutoring, mentorship, and our collaboration along with our partners allows us to come together and brainstorm ways that we could address those different issues to help our families thrive in Rockford. And if we don't try different approaches, then we won't know what effectively works in supporting our youth. But working together, we have seen a lot of progress. And Alive and Free is a newer program, just like the Community Healing Center is. And we have made tremendous strides in establishing ourselves in the community and building strong relationships with the youth and families that we serve.

I think Alderman Durkee.

Yeah. I just want to reiterate something. I caught something that the chief said. And I'll start with quoting that great philosopher, Groucho Marx. And he said, politics is government looking for trouble, making the wrong diagnosis, and providing the wrong treatment. The chief mentioned something about a fatherhood program, and you've heard me say this before, and I know all of you in the Tunebergs have said this. We celebrated Father's Day yesterday. We had a shooting this weekend, and I'll bet you the perpetrator came from a fatherless home. I see all these programs, I'm a physician, it's like treating cancer with time. The basis of much of what's happening in our culture has to do with fatherless homes. And we've come up with all these solutions and every program that's come before here, I rarely see community programs trying to address that at its root cause and stop that. You look at statistics prior to the Great Society in the 1950s, things were very, very different. And I'm wondering how much of these programs become nothing more than a toxic charity. We in government like to do a lot of things. We like to say we're for programs and we spent money on this. But it's very rare that somebody will stand up and say, This is the data, this is how it worked. Even the data we are provided here, all I can go by is this document, is insufficient. So, again, I'm wary of this and I think we have a lot of redundant programs. We have a mental health board that can address the funding and we have a school system where these students are Being counsel that can and we do pay money to do that as well I'm sorry So really appreciate the dialogue that's taking place I would say a couple of things one

I share a lot of the frustration, probably even flabbergasted, probably even angry at different taxing bodies and how they choose to use taxes or not to use them. I would say a good thing for the mental health board, they at least tell us where those dollars are going. I am a strong That revenue comes from the city of Rockford, and we have three of the 11 board appointees. I don't always agree with how they allocate funds. One that has not been mentioned this evening is our public safety tax, where when it was originally created, we were supposed to generate $22 million. more than $40 million. When it was originally created, we were supposed to put $2 million towards prevention and intervention. And today, with $40 million being generated every year, we put less than $400,000 into intervention and prevention. I understand the concerns about the school district. I also think, one, they are providing an incredible service. I think all of us can do better, including myself. But I think if we just continue to say, those folks should fund this, we lose. Actually, we don't lose. The kids lose. And I think that's one thing that, yeah, I think other people in my ideal world, someone else should fund this. But they are not. And so to me, it is, do we do it and help these young people or if it's a fountain, they're coming from disadvantaged neighborhoods that are historically crime-ridden, historically oppressed, and we have an opportunity to step up and help fill that gap. I would also say I certainly have benefited from having an amazing dad. I would also say that People a lot smarter than me over at Harvard said that you don't need an amazing dad. You just need one caring, loving adult who loves on you and cares for you. And I guess I see that is what they do. Every time I have the opportunity to go to CCS, I'll be honest, Will, I get a little like, oh man, it's a Saturday, I gotta go. But every single time, I walk away happier and grateful that you're there.

I look at what they've done. Our education outcomes for kids who participate in those programs are up.

Their discipline is down. And their attendance, not as high as we all want, but it's increasing if they go to this program. We spend a lot of time talking about really important things. I do believe this is a program that is a strong program. I think they're excellent at partnering with organizations. They've been a strong partner with our intervention and prevention efforts out of our police department, and the mayor's office, and what we're doing is working. It's not happening overnight, but we're down 48% in violent crime. It didn't just happen because we have a great police department. It happened because grassroots organizations are stepping up and helping fill those gaps and helping these young people get on whatever they're

Any other questions or comments? Alderman Bell?

Thank you, Chairwoman. I just want to throw out the suggestion that I agree, you know, we should put some pressure on the county to fund some of these programs as well, or at least some of them. Maybe that's something that the Legislative and Lobbying Committee can consider when putting together a priority list for this upcoming year.

Thank you. Alderman Salgado?

Yeah, thank you for allowing me to speak on your committee since I'm not part of it. But since Winnebago County has been brought up and I was part of the mental health sales tax, not defending them, I just want to remind folks that There's a set criteria that they go through, right? Does it mean that you're going to get it just like Jennifer and Kathy Bailey came over requesting funding that some of the Justice Department cut out? We have one similar situation to that point. But I do want to bring up an organization, not to throw them under the bus or give them credit or anything like that, but Marshmallow Folk. You guys have all heard of them. If you guys aren't familiar with suicide teens, they went through the mental health board. They got denied. The county funded them. and then now they're well established, they've gotten funding from that perspective. Not defending the mental health or Winnebago County, since I was part of that board, but most definitely, yes, they have a surplus, huge surplus, but they also have criteria on the way they administrate funds in order to make sure that it's new. And to some of the folks that have said here that some of these are, we're cannibalizing, we are also competing for the same thing. And that is the reason why some of the criteria is established to make sure there's new existing program that happens for mental health perspectives, right? So just wanted to bring that up to that point. I do have a question, though, in regards to the CEO. What would be the impact? Say, for example, I've heard propositions about the mental health giving you $100,000. You're asking for four. What if we decide to do a match of $100,000? So now you have $200,000 versus half a million. What impact would that be to your organization? Yeah, I'm sorry. To what level, though, is the impact? Like, for example, I've heard numbers 100, more than 100 participants. What would that shrink down to? 25? What would be the impact?

So again, what we're requesting is $500,000. So if you match it 100, that's $200,000. So you look at that, what's that, a third of the funding that it takes to run at the capacity that we're running now. So we will have to cut services to that third. And I just want to give you an example. One of the things that has started taking place since COVID is dealing with feeding our young people when they come to us. Our young people, many times they're not passing tests because they're trying to take these tests because they're hungry. We feed all the young people that come through our doors two meals a day. So in eating, they get opportunities to do better in school, better at home, better in our community. So what we're talking about is wraparound services that these young people are getting, not to mention we're one of the only programs in Rockford that pick up and drop off. We go pick them up from school, drop them off at home. On the weekends, we pick them up from home and drop them off at home. So we're talking about transportation services. We even provide transportation services to the city of Rockford program, the CHC program. So we're talking about cutting back and rolling back those services in the time of need. When, as you were just saying, an opportunity to fund gives us an opportunity to get more things in place to firmly establish the program in the future. And if you look at our success over the past six years, we're continually doing that. In the past six years, we're up to 12% of our funding as an organization now comes from the private sector, and we're not just relying on grant dollars from the public. So we're building even that sector to make sure that we're able to provide these services to our young people.

And we'll continue. Yeah, and if I may make an additional comment, I agree 100% with Alderman Bell on this. One of the things that my Republican colleagues on this floor is we've brought up at our Democratic caucus is hosting a joint venture. We've done it in the past with Winnebago County on issues like this. with animal shelter, with our ordinances on dogs, cats, that affect both the Winnebago County and City Council. And this is one other example, because it was brought up, the mayor, McNamara, has brought up about the public safety sales tax. in regards to going from 22 to 40 million, and where is that shared? I think those conversations need to be held. I completely understand that's why, you know, when we were in the Democratic caucus, we brought this discussion. I want to have those conversations to address some of these issues and be collaborative. And one of the things that really frustrates me as well, as Alderman Bell, explain it perfectly is I see over the weekend, 16, 15 year old, 17 year old minors that are committing some of the crime that's going on. And my thing is like, if I can save those kids, you know, whatever it is, I'd rather throw in $50,000 now than have them be locked up or in the process in the judicial system where I'm having to pay know property taxes or whatever taxes in order for them to to have their housing or whatever but if i can save an individual from that perspective they can contribute taxes they can have a good painting job raise a family and contribute to this area i think it goes a long way right and so some of these programs like this i appreciate that we have them Yes, it's good to ask questions, you know, is it, are we doing the same thing with this other organization? And I think we need to, you know, take down those silos, right? Because we're all in this, we think our different organizations have the better opportunity, the knowledge to execute on some of these programs. And so I feel that, yes, it's necessary to ask these questions. But I also want to express this is that we also took the regrowth fund and took 3.8, $3.5 million out of it to close the gap. This is what this money is intended to go back into the community and serve those purposes. So, you know, we can choose and pick and choose from that perspective, but at the end of the day, you know, I would love to see a comprehensive, how do we deal with juvenile justice from that perspective and help out both our Winnebago County, our city population from that perspective and work together. But those are kind of my comments from this perspective. I think that, yes, the mental health board has the opportunity to fund some, if it's particularly the healing center, whatever it is, I think they have the opportunity to do that. But let's not lose hope. We had a perfect example, Marshmallow Hope. They didn't get funded. the county found it. And then later on, the mental health came forward and did what they did, right? And establish their significance. So not all hope is lost here, but just trying to figure out if there's a way that we can alleviate some of the pressures that might exist in this organization that has been established since 2020, is that? So the organization is since June 15, 1992. I will urge that perspective and if we need to lay it over and have further conversations, I would recommend that from that perspective.

Thank you. Alderman Meeks and ICU Alderman Beach.

And this request is for cannabis funding for just 2025, 26.

Did you have another question, Alderman Meeks?

I didn't see that this was 2026 and 2027 funding. 25 and 26, two years worth of funding. So it's a total amount of $400,000 and there's sufficient dollars in 2026.

It's a one-year agreement. It would start July 1 through June 30 of 2027. One year.

$500,000 total, but $400,000 for the city. Gotcha. Thank you.

Thank you. Alderman Beach. Thank you, Madam Chair.

I'm part of your committee, and I appreciate it. Has the city of Rockford ever cases like this requested from the mental health board, either a partnership or a need for funding programs like this? That's just a question that needs to be answered now, but have we ever officially as a city gone to them and asked for money? The other thing I want to say is just an observation. I know that in my church there's youth that are funded by various denominations that are working with kids on the street and off the street, if you will, to give a better look at life and to bring them from one point to another. And so I want to just simply say that in the midst of all of these discussions, there are other groups out there, truly pray to me, and they're not getting a penny, not a dime from the city of Rockford to help support their programs. And so, I think Oliver Durkester is right as we talk about it. There's a need to help these kids more than just what they eat, which is very important to start with, or what clothes they put on their back, but what guidance they can get spiritually, if you will. So I don't think this discussion is against these programs. I think this discussion is against the funding of them. And at some point in time maybe we have to

For funding and they have approved Significant amount of funding for a number of different programs that would include the co responder model run out of our police department they've also funded the mental our mobile integrated health program out of the fire department and They've also funded a number of programs with our Family Peace Center staff, as well as a portion of the improvements for Family Peace Center Phase 2. We have provided letters of support for a number of other programs that have gone and asked. They have funded us. on a number of occasions. And I would say that we have a good working relationship with the staff of the Mental Health Board and the Mental Health Board themselves. Did we go to them directly on this grant? No, we did not. CCS went directly and had conversations with them and secured the $100,000. We do think it's an appropriate program to support our community and that the funding source of cannabis dollars is appropriate for the use of those funds.

Alderman Greeniff.

My support for this is because it talks about the whole child and the whole family. It's not just focused on school or home or job. It's focused on the entire family and the whole person. And as an educator, I know that if they come to me hungry, they're not going to learn. And I know that if they come to me homeless, they're going to be worried about it. And if they come to me with a lot of mental health issues, they're going to have those in the classroom. So the fact that they're talking and working with a whole student and a whole family is the reason that I will be supporting this. Thank you.

Thank you. Alderman Frost.

Thanks for letting me speak. Yeah, I just, Mr. Cagnotti kind of cleared it up, but I mean, I hate to throw out a program like this and project, you know, a negative feeling towards CCS because people are mad at the mental health board and how it's operating. I think Mr. Cagnotti gave examples of how at least the city does work. With it, we may not always like all of the outcomes that we get, but I mean, we definitely can see the table. I think we do. I think both the mayor and Mr. that. Some we win, maybe some we don't. But in this particular case, I mean, both YouthBuild and the Rock and Work programs are specifically, I think, not quasi mental health programs, but they're really, you know, we've talked about some of the unfortunate crimes or some of the unfortunate events with with teens that in both of these programs i think you know teach kids you know leadership job placement of long-term uh employment opportunities and exposing them to matters like that i'm sorry what regulate their emotions why don't you be quiet all right So with respect to that matter, I think, as Alderman Salgado suggested as well, it is a really good use of the cannabis fund here. We have the fund. We need to use it properly. And in my mind, when I get the vote next week, this would be a good place and a good program and a good entity to use it on.

Thank you. Thank you. Are there any other comments? Alderman Crunty?

Yeah, thank you. After we get done, well, if this is approved, how much would be left in the cannabis funds for this year?

I know I responded two weeks ago on that number, but I don't know if I have it on my notes. I want to say it's $350,000. Correct. Yeah, $350,000 from 2026.

So there's not any requests under consideration that have been brought from brought forward from the public or the alderman for the remaining funds at this time

Were there any other questions or comments?

Last one. Sorry. All right. Lastly, how much has the mental health money that's been given to you? The mental health tax, the money through the mental health tax, how much has been given?

right now zero dollars we just was awarded okay all right and if there was an opportunity to go back and request more money you would you would take advantage of that absolutely absolutely my understanding of how it works though we'll have to fulfill the current contract that we just entered into with them and then we can be reconsidered once they look at our outcomes and make sure that we use the money correctly

Any other questions or comments? Clerk, will you please call the roll? No. Upstate?

No.

Thank you, Mr. Chapman. Item three is an approval for the proposed funding agreement with Angelic Organics Learning Center Incorporated as Illinois not-for-profit corporation doing business as farmers rising in partnership with City Center Market for the establishment of a mobile grocery store in the amount of $822,000. The funding source is 2025 and 2026 casino funds. Do I have a motion to approve? So moved.

go ahead and second are there any uh questions or comments sir will you please call the room oh i'm sorry sorry i'm going to be further disagreeable tonight so i'm sure i'm off a lot of people's christmas cards again um i'm actually mostly because they're generally mobile groceries, as far as I could read, are not sustainable unless they are supported either by government or donors. So I'm not sure it's a good long-term model. I look at it and their margins are gonna be higher. They have to pay for a truck driver, which is not cheap according to their scale. They can only serve a limited amount of food, limited choice. They have no really shelf life. So it's very difficult. But I looked up, I got online, there's any number of grocers that will deliver. In fact, Walmart, if you have a Walmart Plus, whatever that is, membership, they'll deliver food for free. So different grocers will deliver, have good produce, have a better selection than a truck that drives around the city. so but i haven't found one i haven't found anything that was sustainable and above its own and they generally don't they don't last i haven't found anything somebody can correct me i'm okay with that but most of them that i was reading about don't make it without external support

Thank you. Before we take any other questions or comments, I just want to remind everyone, I know some of these things may be a sensitive topic for you all. Keep in mind, our microphones are not working, so it's already hard enough for us to hear. But in terms of any type of reactions or public comments beyond what is happening around this horseshoe, we would ask that you do not do that. Otherwise, you may be asked to leave. Okay, let's keep it respectful. Do we have any, Alderman Bell?

Thank you, Chairwoman, for allowing me to speak on your committee. Just before the first word, Alderman raised his hand, we were about to go through with the vote. I just wanted to ask Mr. Kignoni, can he kind of walk us through this program and why the administration feels that it's worthy for this investment?

Certainly, Alderman, and whatever questions I cannot answer, Jackie and team from Farmers Rising is here this evening as well to make sure that you do have the opportunity to get all your questions answered. This is a three-year funding agreement. What we have done as a staff and community is evaluated additional opportunities for food insecurity. When we talk about food insecurity, two major issues come up, mobility and cost. When you look at this program here, we are trying to address both of those issues through this mobile grocery store. It is a total amount of... $822,000 over three years. The initial startup costs would be to secure a tractor and trailer, as well as operating costs in year one. And then in years two and three, it's up to $150,000 annually in operational costs. They will be exercising efforts to raise dollars. We have looked at other programs. Our staff has attended community groups that visited Milwaukee, and we have communicated with the mobile grocery down in St. Louis. Both have had different successes in deploying affordable food to their community. This is a pilot program. We believe it's a cost-effective pilot program. when you look at the overall cost over a three-year time period and understanding that we would anticipate that the program would continue beyond the three years. I would agree with Alderman Durkee. It will require additional fundraising to sustain And that's why in years two and three, it's an up-to amount so that our dollars are the last dollars in to help assist in offsetting the overall operational costs. When we looked at the other models in Milwaukee and St. Louis, they also have a private fundraising arm. You know, Farmers Rising will be partnering with City Market downtown, so they will help facilitate in providing the foods for the different locations that they will be stopping at. If you look within the overall project, you'll see that they've identified a number of locations in which they anticipate that that's where they would start. and they used a number of network partners to help identify those locations in Northern Illinois Food Bank, as well as surveys that they completed throughout this process. But by no means are those spots fixed. You know, this is going to be a fluid effort recognizing that they're going to have a mobile grocery that will provide much needed healthy food options to the community, but it also needs to be purchased. So if there's locations that are not purchasing or the count is down, they will continue to test pilot locations so they get the best return for service to the community as they can. On a very high level, that is what is being proposed with this program.

Thank you.

I'll move out.

Yeah, thank you. Mr. DeMone, can you kind of walk us through how this aligns with the food insecurity policy that this body passed in 2025, June of 2025?

Certainly. So when city council reviewed and approved the food insecurity policy, that was work that had come out from the Northern Illinois Center for Nonprofit Excellence, where they had a working group related to food insecurity. And again, those two key points being mobility and affordability. We used the work from that committee to structure a policy that we brought forward. identify the specific goals of the policy within the staff report, which will include increased access, so expand availability of healthy and affordable food options, especially in underserved neighborhoods, support local food initiatives, partner with local farmers, growers, and community organizations, and that is most certainly what they're proposing here as one of those groups themselves. Promote equity, prioritize investments in communities most impacted by food insecurity. I think when you look at those locations, those are areas that are impacted by food insecurity. Support coordination, which I touched on. as well as sustainability. We identify and recognize there are gaps in advancing a project like this, and it does require public dollars to move a pilot program like this forward and why we have brought it forward. Thank you. Alderwoman Meeks?

One of the reasons I think the Milwaukee program, the Hunger Task Force, has seen some success is because they offer 25% discount, at least based on their website, for the food that's offered on the mobile unit. Would this mobile grocery store offer discounts of that nature?

They will they will yes as well as accepting They will have discounts I defer to Jackie a little bit on what the total discount amount will be on also doing Joint locations with the Northern Illinois Food Bank to deliver low cost and in some circumstances free So is this 25% of the comparable pricing dollars or is this 25% of the procurement

that is coming from city center market, that one individual market.

So I will let Jackie answer that question, if acceptable, with the committee in regards to the specifics in regards to the cost structure with city market and how they will deploy that.

So we have budgeted the annual operation budget for this program on farmers rising size $265,000, of which we're asking .

Hello? Does this work?

Okay, so so just top dollar the operations of the farmers rising side of this is $265,000 a year of which we're asking the city to backfill $100,000 of the $265,000 we have $30,000 at allocated for food subsidy specifically we are projecting $120,000 a month in food sales. That will go to lower the cost of the food that's being sold. Basically, it will subsidize the prices that people are paying. In addition to that, we will be accepting SNAP and EBT, and we have access to the Link Match program, so people can use their SNAP dollars to purchase, say, a bunch of collard greens for $5, and they'll get a second bunch for free. So we're able to utilize that funding as well to subsidize the cost of the produce. Thank you. You're welcome.

I know we've been talking about a truck driver and a cab needed and all. Some of the pictures that I saw looked like it was more like a No, it'll be it'll be a heavy-duty pickup truck pulling yeah a gooseneck So I guess my question is more as being a member of the Finance Committee is if the city is gonna purchase this Truck and trailer Who then is, then technically the owner is the organization?

Correct, Farmers Rising is the owner.

Okay, what if after, so you'll be paying insurance and- That's correct. Issues on that. So if maybe after a couple years, God forbid, it ends up not working out, who then has the right to the proceeds? So they would benefit from the proceeds of that sale.

This is actually written into the proposed legal agreement with the city. So we actually have a proposed contract that's kind of set up that is written that if the project does not move forward, that the city would have the rights to the proceeds of the sale of that capital expense, that capital investment, within a certain time period. Yes.

I can provide a little bit of a clarification. The vehicle in the trailer for the term in the agreement so should it discontinue For whatever reason we would be able to foreclose on that More likely we'd work in partnership to dispose of it and then the proceeds would come to the city of Rockford Alderman Torino Yes, thank you I just had a quick question regarding

I did ask multiple times actually if, I wanted a breakdown of who was a part of the stakeholder list of the task force, just to know what organizations and individuals crafted this. That was not in the pro forma. I know some general, you know, someone from the hospital system, I want a list. So if I could please have that. But I do want to know if, was Health and Human Services a part of that list? City of Rockford Health and Human Services? our own health and human services department first that deals with people on this initiative. Thank you. That's all I have at this time.

Thank you. Were there any other questions or comments? Alderman Durkee?

Just one overarching reiteration. If the private sector, which is moving in that direction, has the capacity to deliver, why is this program needed?

I mean, I'm happy to answer that question because it's certainly one that we have had discussions on as a staff that we still believe that there's a gap. And that's ultimately why we adopted a food insecurity policy. They delivered when we adopted that policy. If we didn't recognize as a community that there is a food insecurity issue, we wouldn't be adopting that policy. And I think it's going to take multiple methods, and a mobile grocery can be one of the solutions, but by all means is not the entire solution for getting access to fresh, affordable food to our residents.

Alderman Bell.

Thank you, Chairwoman. I just want to point out, because there was made mention of a list that was not shared, that list was asked of to me during the Democratic Caucus, and June 8th, I did send that email. And I just want to read the list of some of the partners that are a part of the task force. It certainly does not list all, it did not have access to the whole list, but here's a significant part. Crusader Community Health, OSF, UW Health, Rockford Health Council, Live for Lolly, NAMI Northern Illinois, Northern Illinois Food Bank, University of Illinois Extension, University of Illinois Chicago, Rockford Public School District has been represented, Northern Illinois University through NICNI, Western Illinois University, the Accel Center, Goodwill, Learn, Grow, Connect, Platform Group, Rockford area realtors, housing stakeholders have been involved, Winnebago County Housing Authority, Northwest Community Center, Alignment Rockford, Farmers Rising, of course, Community Life Center, City Center Market and Discount Drugs, myself, Senator Steve Stoudelman, Alderman Bonnie, I know Alderman Granth has been there. The city of Rockford on a garrison has been represented for, I think, now a year and a half on behalf of Community Economic Development Department and pretty involved in this process for the last year, I'd say. And I could go on and on with the list, but I just wanted to clarify for the record that that email was sent.

Any other?

Just a clarification from Mr. Cagnotti. Did UW Health contribute any money

Yeah, so the UW Health Foundation has pledged $10,000 towards this project So that's their first pledge and then they'll be in consideration for moving forward Any other questions

All the men for us?

Yeah. I wish the program well. And I hope it is a success. But I know that the Milwaukee one was used as the model. And it's a little bit different because that does have the heavy investment of the Piggly Wiggly Grocery Store. And so those were the 25% off of the Piggly Wiggly rates. But they've done a great job of getting large private donations involved. If you look at their financials, They have about 12 million dollars in donations in 2025 that they've received. So, you know, we just heard a list of all these, you know, government, quasi-government entities, and I guess my suggestion would be that you really need to reach out to the private well and get you know, organizations and entities here in town that are, like in Milwaukee, that are donating cash instead of just saying, you know, you have a major hospital chain donating $10,000 a month. That's like me giving a nickel. You're going to need to get some serious money to run this program. I think the truck budget was $340,000. I looked at the Milwaukee truck. That's no $340,000 truck. So I don't know why. You ought to start maybe looking at a way to kind of buckle it and figure it out now up front before all the money is spent on a fixed asset that's depreciated.

Thank you so much. I just want to just say this, that when I did sit and speak with Commerce Rising, prior to me knowing the dollar amount, I'm going to be completely honest, prior to me knowing the $822,000 dollar amount, i was really liking the idea i really i really was um but i feel like i made it clear on that call and subsequently that i would like to see additional funding before we start here um so um i will not be supporting this surprise surprise today i'm just um i'm having a hard time with some of these request for funding and I think that there's a lot of efforts that can be made to really get more community support and then we come to the city to fill that gap and I would be more than happy to do that and very honored to do that. So I just want to say that.

Thank you. Thank you. Alderman Bell.

Thank you. Appreciate the opportunity to speak on the committee. I have a lot to say. I think I'll start here. The funding sources are 2025 and 2026 casino funds. We are already in 2026. We, I understand that too, I'm speaking. So in 2025, we did not spend the funds that are being requested, right? And in 2026, we have the funding available to use.

So that is correct. We did not spend all the economic development funds in 2025. So a portion of it's 2025 and then 2026. And theoretically understanding that this is three years, we could spread it out if there was other funding opportunities that we wanted to advance forward.

And then understanding, right, it was made mention today during discussion that I think it was $2.6 million in December during the budget time was reappropriated to the general fund to fill the gap. And I remember being an advocate on the other side, the opposing side of that. And I think what... few of my colleagues and I have discussed with the administration and I appreciate you all bring this forward is that We need to come to a consensus on what we are going to support when it comes to our cannabis and casino funds. Otherwise, as you saw and what we continue to hear about is the deficit that we're in, $9.4 million revenue shortfall. And so I think we do have to have more conversations. And I don't think that we're going to solve those issues around this horseshoe. I think maybe this is a call to action. And the item before us, item number two, or before this one, item number two, you know, did not have the votes throughout committee and a lot of different discussions. I'm hearing some of the same when it comes to the funding part. And so maybe it's on us that we come together and have conversations on what we do want to prioritize. For me, I want to support ensuring that individuals in our community have fresh and affordable food and access to that, and I think that this program allows for that. It has successful compared organizations, and NICNI and Farmers Rising has met with and visited, again, the mobile grocery stores, has worked with those teams to ensure that this pro forma was revised in a way that could fit a form of sustainability within their organization. I would just hate that this item fail and we show our community that we don't want to prioritize providing fresh and affordable food. I'm not saying everyone is saying that, but I do think that we ought to have a conversation on how we address the food insecurity issue. We have a framework. This proposal has been in the making for a year and a half with a host of stakeholders. there was an organization that said we'll step up and be that organization that would provide access to maybe I think about six different wards throughout our community and could expand that operation as they receive funding from those private donors. Of course, I'm in support of this. I won't belabor the issue. You all know where I stand on this. Outside of council, on Mondays, we've got to have conversations on what we're going to prioritize. Otherwise, I think 2025 and 2026 casino funds and 2027 casino funds will then go into that general fund, just like the cannabis dollars did as well.

before, Alderman Prunty, did you have your hand up?

Yeah.

It doesn't work.

I just remember a conversation regarding being able to price match Aldi and Walmart, but I just heard $5 for green, so I'm just How are we going to be, how is the organization price matching, how are they gonna get to where they can match or beat those chains?

I would defer to Jackie in regards to their pricing model.

Yeah, so the reference to $5 for a bunch of greens was just an easy example. It wasn't an actual example in reality of the cost of a bunch of collard greens, for example. But we have the ability as a nonprofit to raise private dollars. We've been invited to write grant proposals, for example, to the Community Foundation of Northern Illinois to help support specifically the food subsidy for the mobile grocery store. So that's one example of many opportunities that we have as a nonprofit to bring in private dollars to support specifically the cost of food and make sure that it's affordable. On top of that, in response to the fact that Piggly Wiggly offers a subsidy as well, City Center Market has committed a 10% profit share with us as well. So any offset of costs that help offset the cost of farmers rising to administer this program goes directly into lowering the cost of the food. I think that there's a lot of creative ways and a lot of potentials that an organization like Farmers Rising can bring to the table, making sure that it's mission-driven, that it's not a profit-driven initiative. Profit oftentimes is the reason why we don't have brick and mortar stores in some of the food deserts in our community, is because the profit margin isn't there. That's what we can bring to this is the ability to raise private funds. lower those costs for individuals and that's our commitment to this project and and quite frankly we wouldn't be at the table to administer this project if we wanted to sell expensive groceries to people that's that's not what we're about we're about making sure that people have access to affordable fresh food any other

I think in a conversation somewhere, I asked the question, what happens to this proposal or this initiative if the city does not fund it?

I can at least, I'll start, Jackie can add. Go ahead. I mean, I think there's reasons why there's food insecurity throughout our community.

I'm sorry, Mr. Cagnone. Could you not answer? Because I think I heard an answer when I was on a meeting that wasn't, that it doesn't mean, no. I heard an answer that says, yes, we will still do this. It will just take us longer. That's correct.

That is correct. So we are committed to moving this project forward. We have been reaching out to State Representative West to change some laws at the state level that will enable capital funding to support mobile grocery stores versus brick and mortar stores. All of that is to be determined and pending, of course. And so we are committed to moving this project forward. The timeline will be dramatically pushed back. I believe that the city does not want to make a commitment, but we intend to move it forward. We are also launching our public fundraising campaign as we speak. Tomorrow we'll be holding a press conference to start to have those community-wide conversations and reach out to the private corporations in our community to ask for funding support as well. The project will move forward, but the timeline is going to be pushed back.

Thank you. Did you have a follow-up question?

I was just thinking about the question that talked about filling the gap versus being, because I'm looking for a compromise. Filling the gap versus being the sole proprietor.

I mean Jackie's gonna respond I will just one brief comment is I mean we tried to structure the the agreement as a what we did as a last dollar so if they are successful in securing additional funding those dollars come before our dollars but we did think it was prudent to move this forward sooner rather than later now obviously it's up to the city council if they'd rather wait and see if they're able to secure the funding and the timing that would that would be you know a possibility

Yeah, exactly. We did try to be very creative with our ask to be respectful of public funding. We have a path towards sustainability with the profit share with City Center Market. And also, I just want to point out that we do have a food emergency happening in our community right now. SNAP funding is being cut today. And we had someone at the last Food and Security Task Force meeting state that their parent receives $18 a month in SNAP funding. And so what can that buy? And so we have people who are hungry today. And whether or not this project moves forward next month, six months from now, a year from now, we need to move forward creative solutions to feeding people in our community.

Did you have your hand up? Alderman Salgado.

Yes, thank you for allowing me to speak again on this topic. I just want to thank Alderman Bell for establishing some of the one-on-ones that we had with everybody and discussions about that. But I also want to point out that we have this task force. We brought this framework of food insecurity we talked about the west side not having a grocery store where you talk about certain parts of the city not having you know groceries or availability so i took it upon the research they've done and all the beaches looking at the pro forma that they provided the research the statistics that they provided they did the work that food insecurity now if we have a proposal for building a site somewhere on the west side where we really need it, let's do it. I'm not opposed to that from that perspective. Some might say a million, 1.5 million, whatever it is, might be a good start for anyone for brick and mortar from that perspective. I know that on Broadway and Kishwaukee next to the McDonald's. There is El Rancho grocery store coming in that I believe Steve Stottleman secured 1.3, if I'm not mistaken, on the dollar amount to establish some of the funding for that grocery store there from that perspective. So there is opportunity for those things from that perspective, but I do take, I'm thankful for this body and especially the administration to take in some of the feedback that we've gotten about the framework. We pumped the brakes a little bit. We had discussion, go back, figure this out, and then we went to the task force for insecurity food and they divulged the information and someone brought it up from president of the NAACP that heard about this program, proposed it, took models. Milwaukee may not be the same population compared to Rockford but similar ask or needs for the community and so yes definitely we can have partners I love Collins in my organization to pitch in on certain things private you know sector as well just like I said this is a beginning from this perspective and the way they laid it out you know after year three you know they're gonna be sustainable that's what I I'm more interested of, yes, startup costs are huge from this perspective. But I do want to reiterate, we came back to the city council and said, here's the framework. Go figure it out, task force. And Oliver and Bell explained to the different organizations the connections that we might have. potentially for private donations going forward, et cetera, et cetera. But this is a good stepping stone from this perspective. And once again, this is a good use of these funds back into our community. So I just wanna bring that up. We talk about doing certain things and then we take a step back. And I'm a financial guy. I'll call it out the way it is. And I did it during the budget process last year. And we've heard the deficit, the revenue, You know, so, you know, from that perspective, I'm, I'm cognizant of that, but I'm also respectful of the process that they've taken the information, um, and provide the proforma and their projections on how they're going to be success, uh, sustainable for the next three years. Could something dramatically happen and that does not happen and they dry up in two years? That could be the possibility. Unsuccessful. But that's the risk and opportunity that we're taking as a community to address some of these issues that we have, which is food insecurity at this point. Yeah, I'd love to see more grocery stores where folks don't have access to it for walking distance. Just like I'm having an issue with the food pantry moving, trying to find a new location on Broadway after Crusader Clinic will be redeveloping their site that they won't be able to be housed there. So I have those concerns as well and trying to find them a location. That's another battle that we'll have to do, but I just want to express that they have taken the time. They've gone through the process. They've looked at our framework and put something together to address the issues that we might have. One of the things is, and I expressed this to them when we were there, they're going to come to the financials. What's the ROI? How are you going to make sure that you're going to break even and continue to be sustainable for the future? Those are questions that were addressed, and I feel pretty comfortable where they're at from that. And I just wanted to bring that to your attention, that through my conversations I've had, they were very positive, and I'm very appreciative of that. Thank you.

Thank you. I lost some hands. I'm sorry. Alderman Durkee.

One last question. That is the folks who are in need of this mobile grocery store, where do they get the other staples, like paper towels, things like that? How do they get that? Neither can I.

It's not going to be in this. Thank you. Thank you, Chairwoman. I think one of the coolest things about this project is This is a mobile food grocery store that anyone can shop on. Of course anyone can go to the food pantry, but this is bringing food to people that directly aligns with the mission of the Northern Illinois Center for Nonprofit Excellence Food Insecurity Task Force. Again, I keep referring back to that Food Insecurity Task Force because, well, I've been a part for now a year and a half and have seen the different organizations come together for a comprehensive, coordinated approach and this proposal, thankfully from Farmers Rising saying yes, after months and months of trying to find a nonprofit to answer the call of addressing food insecurity in this way. This is not the end all be all or solution completely, but this is certainly a step in the right direction, so much so that many of our different wards will be impacted and benefited from this investment should it move forward. And so much so, again, that the organization expanded after conversations with a few aldermen who took the meeting and shared their perspective and advocacy to addressing food insecurity. There were additional stops, location stops, added to the performa. over the last two weeks since the original vote two weeks ago. And so it goes from the West Riverside Boulevard corridor, where the Cliff Breakers area is, I believe it's the 12th Ward, Auburn Street retail corridor, Auburn and Central, UW Health, or the Jackson Charter School area. But UW Health is our intended stop. until Crusader is done, and then Crusader would be the stop right there where they're redeveloping the Walgreens. Over there, West State and Springfield, and the Rockford Ridge community that, well, that's, in my words, when I drive down the street or am in the neighborhood, or just growing up, this is exactly what I saw or experienced is, Individuals from Rockford Ridge have to walk all the way to Save-A-Lot with bags and their kids on sidewalks that are dilapidated. And yes, we're investing in infrastructure, but as we invest in infrastructure, we can also invest in access to fresh and affordable food. And so I think that addresses, that stop addresses that need in that area as well. Sandy Hollow and 11th Street in the Horton Keys, Kishwaukee-Harrison area. I believe that that street over there kind of encompasses the 5th and 6th Ward, North Rockton Avenue. I think this stop came from the advocacy of Alderwoman Granath and her conversation at the Good Shepherd Plain CA to ensure that her area was able to be impacted by this mobile food grocery store. The Broadway and 15th. Black Hawk Quartz area, Charles Street Corridor, Patriots Gateway. I think the 11th Ward Alderman during his meeting advocated for that as he mentioned the food pantry transitioning locations and the gap in access that would take place because of that in that general area. Booker T. Washington Center, the historic Booker T. Washington Center, South Main and Morgan area, and then the Boys and Girls Club Stentrum unit that serves about 150 to 200 kids a day during the school year. So I think these areas, again, through the pro forma, really target specific areas that are food swamps and food insecure areas that residents, our residents, have been, they've been longing for the access to be given to them, and I think this is an opportunity to do that. It may not impact you here, my colleagues around the city, or this horseshoe, but it certainly impacts your residents, and I just ask that you take into consideration that, hey, sometimes, I won't say who it is in my family, but And I'm sure it's many individuals throughout our community now that we have slots in every corner and the casino. These funds are probably generated by individuals trying to find a way to double their money at the casino to go and pay for groceries. And so I would just say I probably have talked too much. So thank you.

Thank you.

Alderman Beach. I'll make it short, just as a businessman, taking a look at the national averages on the net margin of grocery stores, running somewhere between one and 3%. So you take a look at a million dollars three years out, as their combined revenue, and you apply, let's say, a 3% number to that, that's not a lot of money left for them to reinvest. And you make that business continue to grow. So I'm just making a comment is that all the goodness that we're talking about, that's wonderful. But the bottom line is the numbers don't lie. And you've got history across the country. And you've got facts in front of you. And so it's not that we're against it, but to get a look at it. Because everything on this performance has to work perfectly in order for the numbers to become what they are. And that's what a performance is. It's just kind of a roadmap to guide you along the way. Any startup is that way. So it's, you know, I don't really expect, I hope they're all right. I hope these numbers are right. But maybe it might take four years. or the fifth year to actually make it work. But I'm just saying based on the average, and maybe their net margin will be greater. I won't deny that because you're saying that some of these other places, they're probably getting some discounts that maybe make that margin. But right now, even 5% of a million doesn't give you a lot of money left to continue investing and making that thing grow. And there's no... dollars in it yet that we know of by the public. So I wish them well, I want them to work out, but the numbers don't lie to us either.

Were there any other questions or comments? Alderman Meeks.

Thank you so much. I just want to, I do have a hard time sitting through constantly feeling like The decisions that I'm trying to make and what I think are thought conscious decisions about funding make it so that I don't care about feeding people. I'm not going to act like that doesn't bother me because it does. There was a moment where I worked at United Way and it was during COVID and they brought a program by the name of Top Box Foods into the community. And this was an opportunity out of Chicago, a nonprofit organization that went into the community, brought fresh foods, brought frozen foods, and delivered it to the door. It was a partnership within the community. There were volunteers that participated and food was delivered directly to people's doors. I think about that program. I know that it didn't last after COVID, but I think about programs of that nature when I think about people like my neighbor who turned 80 years old doesn't have a driver's license anymore, is ineligible to drive. and he currently gets Meals on Wheels delivered to him, but in order for him to get to a grocery store, he needs transportation. And knowing that he's not in one of these 10 areas, I know that this particular individual will not be able to benefit from this particular program unless he still has transportation. And then I don't know, once he gets that transportation, if he's going to choose this as the option versus going to a Schnucks or a Walmart or a Aldi or whatever the options are that exist in the community. So this is a high risk. We talked about the fact that this is a high risk potential opportunity and the, from my perspective, point of view, it's not about not wanting to fund something of this nature. It's about seeing the community's support in dollars before we move forward. And I know the initial thought was, and I don't know which came first. I don't know if it was the task force that gave us the information of the framework or this came directly from the city. I'm not sure how it all came before us. I just know it came before us, and a proven framework is a very easy thing to do. So it really gets more difficult when you start adding in the numbers, because that's one thing I will say. When we talked about the framework back then, I asked back then, what are the numbers that we're talking about? And we never got a number. And then we got this number off of this particular program. So this has just been, I know it's been a long process. I know that it's a sensitive subject. But yeah, I just, I stand to agree that there needs to be more funding. initiate all of the funding. So, sorry I got low there, didn't stay loud, but that's all I have to say. Thank you.

Thank you. Alderman Bell?

Thank you, Chairwoman, for allowing me to speak on your committee. I thought I was done, but I'll circle back around to the questions. So I think one of the things when I look back at budget time in 2025 in November, December when the 2.6 million dollars was reappropriated to the cannabis or sorry to the general fund the cannabis dollars were reappropriated to the general fund We had conversations about bringing back the Rego program for the dollars that we did end up, I guess, reserving for the cannabis dollars, in which I think the item before this one was tapping into those dollars that we reserved for 2026. I forget the number. I think somewhere close to $800,000 was kept for the cannabis pot. No pun intended. But also, this committee, and I wish I had served in planning and development maybe next year, but this same committee did not second the regrow program. And so I think from the conversations that we had during budget time, we were able to save or secure about $800,000 in negotiating through budget time, and thanks to the colleagues for that. Ultimately, we did not set a framework or continue the rubric for regrill, and so I think this program really aligned with potentially tapping into those regrowth funds, but we don't have a regrowth program. And so maybe we should revisit bringing back the regrowth program as well. But again, the Planning and Development Committee, I couldn't vote on that. Otherwise, I would have said yes to bring that back. But I just wanted to bring this back in time six months ago as well from that perspective. Thank you.

Are there any other questions or comments? Please call the roll. No I Am for is an ordinance for the termination of the global trade park South redevelopment project area and the dissolution of the special tax allocation fund for a global trade part South tax increment financing district Do I have a motion to approve? Are there any questions or comments, or did you want to speak on this at all?

Sure. I could just add some clarification so that there's an understanding that the termination that's up right now goes alongside the next three ordinances for the confirmation of a new TIF district.

Any questions or comments? Alderman Meeks?

Can you just clarify, I think this applies to several of the upcoming items. I guess I'll just start with, I'm very aware that this is strictly a conversation about the TIF. not necessarily about the data center that is within the bounds of the TIF. But can I just get some clarity on the, I know that there's no incentive coming from the city of Rockford based on the language that was placed in the ordinance. but is there funding coming from, or can you verify if there's an incentive being offered to Monarch for the state of Illinois DCEO?

Can you say that again a little louder?

Is there funding incentive coming from DCEO to fund Monarch Data Center?

So I would want to just add one clarification to that, as you already stated, that the proposals for the new TIF are just for the creation of the TIF as a mechanism to offer cost reduction tools to encourage development. It is not for any specific project. Um, and even with that, um, when we speak of Monarch in general, um, there, it's not a data center project for Monarch. It is a industrial development that they are looking to, to accomplish. Um, I don't know about anything when it comes to this state, um, on whether or not, um, Monarch is receiving any incentives from them.

That makes it difficult for me to. and ask any questions then. Yeah. I'm gonna just pause for a second to collect my thoughts, thank you.

I'll come back to you, Alderman Meeks. Thank you so much. Alderman Prenti.

Sorry, I know this is somewhere, but if you could tell us all. We're terminating this, but how much time is left on this one?

So the TIF was created, that's currently in place, was created in 2011. It would naturally come to its full life end in 2035. One of the reasons, absent any other monarch or data center or anything like that, for a TIF that is that far into its full life cycle, for us to be able to utilize that, to incentivize that private investment that this land is intended to do, we need to have a TIF with a younger life. Because when companies that are looking to come to the area, they're looking for incentives that are available right now, and to be able to have to say, okay, well now we have to go through this whole process, it sets us apart and we lose our competitiveness from other areas. This is the only, this area is the only rail served area that has a green field available within our region. I'm not talking just Rockford, it's the region. So to be able to have the appropriate tools that when other companies are looking at coming to the United States or coming to Illinois, they're looking to see what we have in place. And to have a TIF that is new enough to be able to really incentivize is imperative. And in addition, this is a large amount of land. And again, it sets us apart as a competitive area within the state of Illinois that we have land of this size available for industrial development.

You can continue, Alderwoman Prenti.

Do you have lookers?

So there are, so I guess it kind of depends on what you mean exactly by lookers. But for our, through the just regular state process, when the state's contacted by companies or site selectors looking to come to the area, we do respond to those requests, including this area, this site. Um, in addition, um, just last week, um, through the greater Rockford chamber of commerce, they held a tour where they had site selectors come and look at different options available within the, within the area. Um, and, um, having again, you know, we, we, so we do have lookers, um, and we do need in order to be able to land a project like that, um, we have to have the right tools in place.

Are tits normally this large? Do we have other tits in our area that are this large?

So we tend to keep the TIF the size that's appropriate for whatever project is going to come alongside it. In this area, that industrial land, when that land was annexed into the city and alongside this is where there's the existing TIF district, there's also additional land being annexed into, again, for industrial development. They were encompassing all of that industrial land with the TIF district to be able to provide that support However last year the the TIF districts that were created were much smaller because they were only serving certain projects that Would align with those sizes in this instance because these This industrial land is of this 1,000 plus acres, this 1,600 acres. That's why it's the size that it is.

So when you talk about the lookers or the people who came and viewed, that seems to suggest either a lot of lookers or a huge number, some huge lookers, right?

So, I mean, we've had great lookers come. There's been, I don't have the exact numbers of how often we've responded to requests with the site, but it's been provided for, you know, industrial projects since it was probably annexed in and definitely since it was, you know, a TIF district was created there to support it. You know, obviously, that TISP district was created in 2011. It was created under a completely different state statute process. And that doesn't exist anymore. That process is not available to go through that Job Recovery Act. It doesn't exist. And so for us to be able to, again, though, make sure that this land was annexed into the city for industrial purposes and to go alongside that is the need for a TIF that can actually support such uses. And in my reference to any of those projects, it's not a reference to any of the specific projects that would include a potential data center. It's only that when we annexed the land in, it was for the purposes of industrial use and zone such.

I was going to add that. of my questions as it relates to this package, because this is about four items. Like, can those TIF dollars, because I'm sorry, like who would be responsible like the streets and making the streets and making the roads and keeping the roads up to par if this annexation and TIF were created. Could the TIF dollars, I'm sorry, could the TIF dollars be used for that?

So TIF funding can be used for public infrastructure, yes.

Is this, this will probably, I just wanna make sure, and I know that, I think I know the answer to this question. In the event that there are some infrastructure type things, I'm sorry. Let me stop. I stop for now.

Alderwoman Meeks, were you ready with your?

I'm just, you know, I don't really feel like I have any questions. I received word that the incentive is already grandfathered into Monarch. So they would be receiving DCEO grant funds through the data center incentive program. And so at first it was, you know, this kind of conversation of could this vote potentially kind of pause things, delay things until we get past that July 1 mark, and would that have any impact? I don't believe it will whatsoever. So I just, you know, I'm feeling a little defeated right now being in the camp where I don't, I don't want to see this direction. This is just a personal opinion of mine that I have had for a while, especially when it comes to agricultural land turning into industrial land, building industrial around an area that was intended to be preserved or utilized. I'm having a really hard time. I appreciate Mr. Good, who I sat with. And I really do appreciate sitting with you, getting the history, understanding that this has been a long time plan for this city. Since I think 2006, we have been talking about the growth of industry in this area. And I don't know how to stop that train here. So I will not be voting for this. I want to stand. It's just a personal opinion that I share. I am fully aware, so I don't need anyone to explain to me that this approval and, you know, that this termination, that this approval, that the redevelopment project area and all of these things are not in relation to Monarch. I do fully understand it. There is a bigger picture for me with saying yes to all of this. And I am just, I cannot comfortably do that, despite it. appreciating what Venture One has brought already to this community. And the fact that infrastructure is, for the most part, already started in the area. So it is a prime area to continue moving that forward. But for someone that appreciates nature and appreciates, damn, the butterflies. I mean, like all of the things that make up the potential change that could come from some of these projects. I just am not comfortable with it. And so I just have to say that. Thank you so much.

Thank you. Alderman Beach, my apologies.

Well, I think I'll just... Because when corporations decide they want to move, and I'm not saying any particular name of corporations, they get together in their boardrooms and they make decisions on their expansion. And when they make that decision, they don't want to wait around for a community to go to the committees and then do this and do that. And eight months later, they can start building. You take places like Love's Park right next to us. If a business wants to go out there, they basically have like a fast team. They say, where do you want to go? And what in the world do we have to do right now to get you in the ground? And try to get themselves ready. You look at the building. And you look at the building from DeKalb right up this corridor towards Rockford, Illinois. And you look at this possibility. We need, if we want to grow in this area, when I say the area, the area of developing, we need to get shovel-ready properties. We need to invest in that kind of thing so that when these corporations are ready, we're ready to go with it and grow. And I tell you, that's enough. But that's what I really believe in my heart.

Thank you. Alderman Bronte.

Thank you for your passion. I guess my question is that I kind of heard this a few times around this area about needing and people walking away if they don't get what they want. And I'm just wondering, like, I had a chance to drive through a lot of this. A lot of this is in my ward, if not all of it will be in my ward. And some work is being done. I mean,

Since Alderman Beach mentioned Mr. Good, who is the proponent of this development, if the committee would like, maybe he could answer what his actual intentions are with respect to the use of this property.

Thank you. My name is Mark Good. I'm a principal at Venture One Real Estate. All we do are build industrial buildings throughout Illinois. We're also in New York and Florida. We've been a major investor in Winnebago County since 2005. You mentioned Love's Park. We have developed the expansion for Danfoss in Love's Park. In addition, we have a business park off of Baxter Road just east of I-39, which houses five different companies from FedEx to Berner Foods, Microsoft, Our business park there is a high-end business park, all precast. We employ about 1,000 people in that business park. Not we, but the companies that are there. Many of you might know people that work at those companies. They pay good rent. We have another 100 acres. just south on Baxter Road there that we would like to develop at some point in that area. We put under contract the land that's just west of the Gensler food stand there or farm stand there for the purpose of building industrial buildings, not a data center. We have signed an agreement with the city of Rockford that we would not do a data center there. So I appreciate your signs. They don't relate to me. And I can understand some of you may not want them. We are not data center developers. If you drive along Baxter Road, you'll see the buildings we build, which are primarily industrial warehouse buildings. I've been doing this only for 50 years, but I have built close to 20 million square feet in the last seven years for companies like an Amazon or a Microsoft. They're good companies. They pay good wages. but communities that bring industrial into their areas in areas near highways and, and not in the, not, I don't build them in the center of town or in residential areas. Every industrial job that comes to a community supports three additional jobs. That's based on a national study. So when I hear you talking about the growth of your community, I've done some research, the Rockford city of Rockford, only 4% of your tax base is industrial. that's on the extremely low end chicago eight to ten percent dupage county eight ten to fifty so you're you're you're looking at rockford and i've been working with the mayor here for years and i and i work with scott christiansen and and and now josh really here in winnebago county building up the tax base in your community starts with industrial and and from industrial you get other jobs And from that you get residential development and you get retail development because people have money from these jobs. And industrial also does not require heavy services from the community. We are on the low end of the chain. Multifamily, retail, residential require heavy services from your fire departments and other areas. You know, we don't require that. We have the lowest need of services, but we pay the highest amount of taxes. So when you look at this, and you can look at where we're locating, behind Gensler, east of the railroad, There's no residences around there. It's on the north side of Edson Road. We have about 165 acres there to develop. We can build about 2 million square feet. Those are nice buildings to build. They'll be precast. Access will be up to 51 which is a truck route to Baxter Road East on Baxter Road to i-39 which you just spent a lot of money improving i-39 and route 20 to support all that They won't be driving through your communities. And that's what we look to we don't put industrial land next to residential we like it out and where two trucks can get to the highway without going through residential areas and So from our perspective, I know the data center thing is a big deal. I don't have any opinion on that. We are not doing data centers. We are only doing industrial buildings that will support the community. And by the way, when we build an industrial building, We employ about 500 union laborers to build that building. And it takes about 12 to 15 months. So when we do all those buildings on Baxter Road, we hire union labor. And again, it takes 12 to 15 months to build them. And we employ about, I guess, I'd say 300 to 500 people on each building that we build. So we would appreciate you thinking about it. And I'll only make one other comment on incentives. Every single business park that we have, and we, you talked about DeKalb earlier, I have the largest business park in DeKalb called Park 88. We built three buildings for 3M there, about 2 million square feet, and targets at about a million and a half square feet in our business park. That has incentives. Our projects in University Park have incentives. in Loves Park have incentives. We have our business park there. So incentives are used to attract companies. But the TIF will wear out, you know, if you provide some incentives and those taxes will then go into the community chest. So, you know, it's a way to bring employment to your area. It's a way to bring union jobs to your area. And you are competing with Wisconsin heavily. That takes a lot of your businesses there into Beloit. And you're competing with other areas in Illinois that are taking your businesses. So I would say that, again, I've been an investor here for 25 years. I want to continue to be an investor in the area. But we need your support on the incentives to do it. And again, most of those go toward public infrastructure, improving your roads, improving your water systems, your sanitary systems. So that's where we spend, you know, we look to those incentives, TIF, to be used for. I can answer any questions. You mentioned transparency. I see a lot of signs here. We are amazingly open book. I will answer any questions from anybody. I'll be happy to hold a town hall offsite. But from our perspective, we are 100% transparent and open book. My company, Venture One. I won't speak about anybody else. Speak about my company. And I'd be happy to answer any questions from anybody.

Thank you.

Thank you for giving me the time.

No problem. Are there any other questions or comments? Alderman Prentice.

but you talked about the other places are offering incentives

Yes, our project on Baxter Road, which is the TIF there is controlled by the county we started that with Scott Christianson now we work with chairman Shirley We offer an incentive there. We used a lot of the TIF money to build the water tower That's there that's being used by Cherry Valley and New Milford. We use the TIF to improve Baxter Road the three lanes We also added sanitary to that area and brought it all the way from the airport out to that business park. And then part of the TIF is used as incentives to attract the companies to come there. So they offer them some tax relief for a period of time, and that can be decided on a deal-by-deal basis. But those are the types of things you use the TIF for, for incentivizing a company to come and then public infrastructure. Yes, ma'am. All of our transaction so okay, so I can back I again I've every one of my business parks has a TIF in them 100% because we always need infrastructure you need roads you need utilities So that the basic creating the basic TIF district just creates the district It doesn't obligate the city to any incentives what ends up happening is once the district is created a then we would have to come to you and say we have this business that would like to be here and in order to bring this business to rockford in this area we would like to extend the sewer extend the water build the road and that will cost this amount of money and then you would then say to us well we'll give you X percent of the taxes being paid in the future from this user to help you pay for those improvements. Sometimes the community will do the improvements and use those taxes. Sometimes we'll pay for the road. We're doing a transaction in Indiana right now where we have a TIF and we're putting an $11 million worth of infrastructure, but we're getting taxes back from the TIF. to compensate us for putting in public improvements. The other way the TIF is used is the TIF could be used to give a percentage of future taxes to the user to attract them to your community. Right now, that real estate that we're buying probably pays $5,000 in taxes a year. That's all you get, agricultural land. If we build two million square feet there, you'll receive about three and a half to four million dollars in taxes per year. Some of that goes to the school district, some of it goes to the city, some of it goes to the county. And if we use 50% of the taxes for public infrastructure or other things, you'll receive $1.5 million. In our estimate, if we build the 2 million square feet, that will come into the TIF district that could be used for other items in the TIF district or with the school district or other places. So it's an opportunity to turn our property from a taxpayer paying $5,000 a year to a taxpayer paying $2 to $4 million a year. That's the benefit, long term. Did I answer your question? I'm not sure I did. Could you do it without the tent? No. You need to bring, the sewer isn't quite there, the water isn't there, Edson Road needs to be rebuilt. It's not a truck route that's appropriate. Similar to what we did on Baxter Road for our project in Cherry Valley. That's what TIFs are used for. And it's not using your money. It's using the future taxes that a company will pay to locate in your community. That's the benefit. And we will not do a data center there. We've agreed to sign an agreement that we wouldn't do that. So these would be industrial, warehouse, and manufacturing jobs. What?

Thank you. Other, I'm sorry, Alderman Frente. Did you have anything? Are there any additional questions or comments? Clerk, will you please call the roll?

Aye.

Aye.

Aye. Aye. No.

Thank you. Item 5 is an ordinance approving the South Rockford Industrial Tax Increment Financing District Redevelopment Project Area. Is there a motion to approve? So moved.

Second.

Are there any questions or comments? All those in favor, please state by saying aye. please state by stating aye aye any opposed same time item six is an ordinance designating the South Rockford industrial redevelopment project area is there a motion to approve are there any questions or comments all those in favor please state by indicating aye aye any opposed same time Item seven is an ordinance adopting tax increment allocation financing for the South Rockford Industrial Redevelopment Project area. Is there a motion to approve? So moved.

Second.

Are there any questions or comments? Alderwoman Meeks.

I just have a question related to the project area. I know this bumps up to the forest preserve, and I I feel like there were conversations that I had about the Forest Preserve wanting to speak about that project area and maybe some setbacks to the Forest Kill Buck Bluff, I believe it is.

So the public comments from that force preserve are are recorded yes So I believe I would have to confirm with the legal department but I believe that all of the comments both orally and we received also written comments are included in the record from the public hearing

So if there was a request for a certain kind of setback for the Forest Preserve to not kind of be so close to the industrial activity, how would they go about making that request? Would it come from the project area, changes to the project area, or would it come in the development agreement process? where would they make that appeal?

So I don't know exactly how that process would work. I can speak to the creation of this TIF district. Just because we are including the entire parcel that might butt up to Kilbuck, the forest preserve there, it doesn't mean that development has to come up right to that parcel line. It's just including that parcel within this area for the TIF creation. Concern that they might have about the actual development that would occur later on within that Could be addressed at that time but creating the Boundary today is not creating the boundary of what's going to be developable It's just indicating which of these parcels and the boundary that's included in this TIF district Are there any other questions or comments

seeing none all those in favor please state by indicating aye aye any opposed same time no moving on to resolutions item one is an approval for the proposed spaces to place this program which is intended to reduce commercial vacancies for small business growth by providing temporary rent assistance for new or expanding businesses The city will reimburse security deposits and 50% of rent for up to 12 months for a total funding level of up to $20,000 per business. The program will have $300,000 designated from 2026 and 2027 casino funds. Do I have a motion to approve? So moved.

Second.

Are there any questions or comments? Alderman Salgado?

Yes, thank you for allowing me to speak. I was wanting to ask a question in regards to, I was looking, it says that for those that are established a badge program, is that correct?

So the initial intent of the program is to be able to make sure we can target areas where there's two pieces that are already gonna be built in they have a business district association already there that's gonna help us with actually securing these vacant storefronts and the property owners that have them in order to begin and connect them in with a small business that could move in and also then those small businesses moving in have that additional support that a business district association can offer. So as additional business districts form under the badge program, they would be eligible to participate in this program.

So if I may follow up, because we also see this in housing, the rehab programs, and there's a wait list potentially. And so my question is, based on the badge programs that exist out there currently or that might come online, How is the $300,000, is it divvied up or is it first come, first serve? Because I'd like to spread the wealth, right? Some business districts may not get a lot of applications, but that does not mean the communication, getting the word out and so forth. So I just wanted to see what perspective you guys have on addressing that, whether it's first come, first serve, I'm just throwing a number out there, 10 badge programs out there, business districts within the city of Rockford, you know, $100,000, whatever, $30,000 per district, you know, I just want to get a sense of how that's going to go. Is it a lottery? You know, kind of, you know, that's...

Sure gonna be first-come first-serve our intent would be to try and Have at least three vacant storefronts filled in the existing business district areas That doesn't exclude though anybody that might be established under badge but we are going to be doing it as first-come first-serve because the intent is that we actually activate and have a success with this program or rather than reserve funds for a area that might not be able to secure a property owner and a business that are able to form the right deal to be able to move forward. So we haven't, we are rather than reserving certain funds for designated areas, are going to be doing it as a first come first serve basis. We understand that certain areas might need additional support to be able to make sure that this program is activated. And so we have already reached out to the business district associations that are established. We are also cataloging the vacant storefronts in their footprints so that they know which ones they can also start targeting on their own. And then we're also engaged with our small business partners who are going to be supporting our businesses as they go through this program, but also are going to be able to use them as a source for these entrepreneurs who are teed up and ready to actually open their first location.

Yeah, and then if I may, so which leads me to my next question is, I noticed that it's encouraged new business openings, support small business and local entrepreneurs. So is the intent really for those that don't have operating costs when it comes to your first starting your business, you're an entrepreneur, you don't know, you're kind of taking a risk, and so this provides some of that relief. So I just wanted to get an understanding. I know it's kind of getting the storefronts filled in, but just is it more geared towards new businesses and entrepreneurs?

definitely geared towards new business or second location we're not gearing this towards people moving into the five districts so we don't want to create more vacancy with this program it's to solve vacancy so that's why we're really focusing in on somebody starting a new location or a second location Thank you.

Alderman Tuber.

Thank you, Chairwoman. I think we can all appreciate helping small businesses in the capacity we can, especially filling storefronts. As an entrepreneur myself, I know that it is tough in most of these situations. has a high, high failure rate in the first year. I think they say in the first year, if you make it, you're doing pretty well. If you make it within three years, you're kind of home free. So in this case, I, you know, having these subsidizations in a sense with a 50% security deposit for the first 12 months and then, you know, other payments made throughout the 12 months as well up to $20,000, understanding that they can't break a lease to go into one of these storefronts. So we're looking for new business and or second locations. They do have to work with SBDC or Think Big, can't be called the third entity offhand.

So we, Think Big and SBDC are example organizations, but we are opening it up so that if somebody had another resource that they were working with, we would determine whether that would be appropriate or not.

Like RLDC.

RLDC, okay, thanks. So who then is ultimately making the final decision So somebody starts and they start working with RLDC or one of the other entities. At what point and at what entity, is it the city then that says, okay, everything looks good, we're going to, or is it these other entities that are weighing in very heavily on the decision? that you're going to then weigh on to give final approval. I just would hate to see a business Almost solely on this to then after 12 months when they're cut off All of a sudden just go into this absolute spiral So yeah, please totally get what you're getting at right and we go through this with

all our different programs, trying to think of how we make it viable and sustainable, right? So some of the criteria we chose, not just, like Ana described, they'd have the partnership of the business association, they'll have a partnership of another partner alongside them, like a Think Bigger that's walking through their portfolio. We've also chosen to make this reimbursement only. So you have to show some financial capacity, because you're going to have to pay the cost upfront. This is only going to be reimbursable. You're going to have to be able to enter into a lease, which means you're going to have to know enough about your business to talk to a property owner to say, this is a good fit for this space, and to get that property owner to lease to you. There are these steps in there that we feel show capacity. If someone can fulfill some of those steps and agree to those steps. They are showing some acumen. This is not written for somebody that says I got a great idea Why don't you give me a space? It'll probably work out right like they will have to sign that they are responsible for the for these things um so we feel that that's built in some amount of safe or safety for the program i guess is what it is like right somebody that is willing to do that um and and think about it in that way because i do think that you have to when you're moving into brick and mortar like say it's the new location because there's there's so many opportunity now to do things like We do more of an inventory, a wholesale to like maybe just be in a market, not have the brick and mortar. If we want to have them in a brick and mortar, they need the sales to prove the lease. So if we can give them, the theory here is we give them the first year. We give some help that first year. They build up some of their financial resources back that they had to put down for everything. And that does get them into that second third or fourth year. That's the goal with the program But again, it's not gonna be for somebody just starting out who has an idea because they're gonna have to front everything and they're gonna have to They have to prove to more than just us that their business is worthwhile because we're not purchasing inventory Right, we're not there's a lot of stuff. We're not doing they're gonna have to have financial relationships and all of those people require a cashflow statements projections business plans all of these kinds of things so we feel like the requirements that we're putting in place have built in requirements that are we don't have to police it as much because some of those partners are going to have to be doing it too that makes sense and it does thank you uh is there do you have any

any is is is is is is is is is is is

We did we we met with think big and I think big has evolved where they they are they have a 1.0 and a 2.0 and now three like they're thinking through the iterations of the Small businesses and off shooters. They've helped like not just beyond the initial start. They've done now so programs is to see I'm sorry sustained businesses and She immediately thought of the ones that are in the 2.0 or 3.0 that are probably ready to move from an inventory base selling this out of my house because it's mail to a location where they could have some retail but then have a more formalized space for that warehousing that they're doing. Or she thought of restaurants that... could potentially think about. We have plenty of restaurants with some kitchens that are open. They maybe need a little bit of rehab, not sure, but we have spaces, right? So there are some people that they're doing well, they're doing good with their catering, they're doing some things, but they do kinda wanna make that leap into a more permanent schedule for what they're doing. So we feel positive about that We do think the first year will be a learning year where we'll see how viable the conversations are this there's a lot of empty spaces and we've got a lot of people that Sell out of food trucks sell at the market do different iterations of their their businesses We think that this will answer that need and be something viable But if it second year we need to think about it again. We'll come back and do that again with you all

are there any businesses that aren't allowed within this program i know it sounded like you want businesses that have face-to-face interaction uh with a personal injury attorney uh Would somebody like that be viable for a second office who may not see, unless they're real good personal injury attorneys, that may not see as many face-to-face people?

So I would say we, I think we called it customer facing, and I don't know if I would, I think, a personal injury lawyer, they have clients, not a customer. So it is to engage people coming into these areas, because I think one of the key things that we also have to keep in mind with this program is it's to address the vacant storefronts. We have great businesses downtown in Midtown on South Main that we need to have people coming and visiting. And when you walk along around several vacant areas to finally get to your destination, that's lost opportunities for sales tax dollars that we don't have because they're not filled. One of the reasons that we're creating this is to address those vacant properties so that when somebody's coming over to 7th Street and they are going there and they're getting their corn ice cream, that they can then go down and finish their shopping down 7th Street. so that they're not just walking by vacant storefronts. And so then also alongside that, it gives the opportunities, because we do get calls on almost a daily basis asked from very small businesses saying, I just need some way to get open. And this is our mechanism to provide that where, as Sarah had shared, there's additional mechanisms that they're going to have to work through in order to be successful. And already, if it's just reimbursement and they were having to sign a multi-year lease, we're only providing part of it. But it is giving that platform for them to really be able to make that first step into a space that's currently empty. And if we're able to help support that step, it does the two pieces of what we're wanting to accomplish. having more opportunities for people coming into Rockford and places for them to go, and then also encouraging our entrepreneurs as they do make that bigger leap into their own space.

All right. Thank you.

Any other questions or comments?

I'll then move it to Rena.

Yes.

I'm starting to get delirious, so I had to write some of my comments down. The alderman asked the question that I wanted to ask was, are there prospective tenants? And respectfully, there was an answer given, but what I heard was no. That's what I heard. So I guess my question is, I like the concept, but it sort of feels like we're creating a solution for a problem that doesn't actually exist. So I guess... I'll ask the second part of my question, which was, what evidence do we have that rental assistance would be the primary barrier for these spaces being

So in our programs that we have, we often get people who apply for rent assistance alone. And it might be somebody who is in an existing property or somebody who is wanting to step in and start a business. So though we don't have a list of businesses that contacted us after this program got announced, what we do have is we are well aware of those that have expressed that this is there, but that this is the support that they do need. because they are the first initial step, that first investment that they have to make is a higher level of, that first big step that they are having to take. So we are, You know understanding that it's not a list of businesses It is a there has been on the community has expressed that this is something that they would Be able to to access or would like to access and we've had that feedback to from think big and small Business Development Center

creating more flexible funding for the rent conversation. They often get their, when they're working with their, when Think Big's educating, when SBDC's applying for loans with people, that's the gap that it's hard to find the security deposit, the rent. And so we are solving to me the problem we didn't give a bunch of like there's one a couple different angles to come at it the problem we're trying to solve because a City's looking at an issue We're trying to ultimately generate sales tax and vacant storefronts as a problem because it takes away from that sales tax base so to get more sales tax and to fill in our vacants we're creating an opportunity then for those partners who have said they need this and to take advantage of it. And maybe to your point or to what we were talking about before, we believe this will work. Based on those conversations, if it doesn't, we'll come back and think about it. Because I sort of think in the second year, we'll talk a little bit more about how we get a few of the vacant storefronts a little more ready physically.

Thank you for that. I think for me in my head, I'm looking at specifically the Fifth Ward. I'm looking at the storefronts that I have empty. I don't see them as turnkey. I see a lot of money that would need to go into completely redeveloping these spaces. So you have businesses that, yes, rental assistance would be phenomenal, but that's not going to be enough for these empty storefronts that have sat for decades in some instances. So that's where my hesitation comes from is that I think that a lot of businesses, especially, again, if you're targeting these empty storefronts in particular, that they're gonna need much more than just what we're offering because there's gonna be a lot of development needs for the spaces. Thank you. Thank you. All the way up in front of you.

Thank you. You talked about that you are aware that they probably would need more. What is your department doing to kind of what's needed beyond this.

So are you talking about specifically for businesses, that business and that small business person, what are we doing for that person? Yeah. Or are you talking about the property owner? Okay.

The business, because I can see I've gone through, they did, I've gone through SBA, I have, you know, I'm going to get this rental assistance. Are you still working with folks to get them

so um so we are so we are relying on our depart our partners and this city council has invested heavily in think big to be a partner that offers workshops and one-on-one coaching think big has expanded the coaching to include financial um like credit and other things but also looking at leases looking at marketing looking at all like there's instead of staffing that here We've invested in that organization, right? And then we've invested in other, not necessarily from direct city money, but the Small Business Development Center is a statewide program that state taxes go into to invest and help walk alongside and help them look at loans and SBA and how to understand. And then over time, in many different ways, All of the public partners have worked with Rockford Local Development Corp and and other Programs that they're running to really think about in this business space. How are we offering those kinds of tools? So for our department, we're really Where we meet with them regularly we talk about what they're providing how it's going where the gaps are if anything else is needed and But we're not necessarily staffing for the one-on-one coaching for the businesses because we've got these great partners. What we're trying to do is make sure that we're understanding what's the in-between. So they get businesses and then there's properties. And to Alderman Tarina's point, some aren't ready, some are. That's where we're focusing. This is The first year of the program, we were told this is what we think we really need. So we're going to try this first year. I do believe years two and three, we will need to come back a little more creatively about getting spaces more ready and making sure that businesses can move in there. And that, we feel we have offered that to property owners, the TIP 5050, the corridor program. You could do that as a property owner or as a tenant. So any property owner could have been working with us, right? And matching that and...

been trying to catch up their properties so we've had programs where we've been in this conversation this is a gap that we have not tried to fund and so we're going to try to fund it see how it goes are there any other questions or comments seeing that there are none um all those in favor please state by indicating hi hi any opposed same time i didn't have a motion