New Pilot Program Will Provide Integrated Set of Resources to Continue Revitalization of East St. Louis’ Riverfront

SPRINGFIELD – Gov. Rod R. Blagojevich announced today that the City of East St. Louis has been certified as the third and final River Edge Redevelopment Zone (RERZ). RERZ is an innovative new pilot program designed to help revitalize riverfront areas by providing local developers and businesses with the critical tools to revive and redevelop abandoned or contaminated properties that will stimulate economic development opportunities and create more Illinois jobs.  This initiative combines resources across state agencies and will be administered primarily by the Illinois Department of Commerce and Economic Opportunity (DCEO) and the Illinois Environmental Protection Agency (IEPA). 

“We are targeting areas of the state that have the greatest need for redevelopment and potential for growth.  River communities, like East St. Louis were the original economic engines of Illinois, and there are underutilized and abandoned properties along major waterways prime for redevelopment.  This River Edge Redevelopment Initiative will provide East St. Louis and local businesses with the additional resources they need to be able to clean-up brownfield sites, which is going to attract more businesses and put more people to work,” Gov. Blagojevich said.

The River Edge Redevelopment Initiative includes the designation of redevelopment zones that will be eligible to receive tax credits, exemptions and new grant funding to support clean-up, remediation and redevelopment efforts that will lead to economic revitalization in these areas.  This zone is structured similarly to the current Enterprise Zone designation, where Rockford, Aurora and East St. Louis apply directly to the state to become a River Edge Redevelopment Zone as part of this pilot program.  Since the East St. Louis zone has been approved, developers and businesses could be eligible for tax exemptions, including sales tax on building materials, an investment and jobs tax credit and various other deductions.  Companies or individuals in the zones could also be eligible for an environmental remediation tax credit for certain clean-up costs. While many of these areas were home to former industrial sites, they are now ideal settings for new residential, office, warehouse/distribution, retail, recreational, hospitality, commercial and other productive land uses.

“The River Edge Redevelopment Initiative is a great incentive for private investors to invest in abandoned or underutilized properties in river communities because it helps offset some of the costs associated with redeveloping these properties. This initiative also presents a creative way for the state to bring jobs and other economic opportunities to these areas. It’s a win-win,” said State Senator James Clayborne (D-East St. Louis), who co-sponsored legislation to create the pilot program. 

“In order to continue expanding our economy and creating more jobs across the Metro East, we must continue to find innovative ways to encourage more private investment.  The designation of East St. Louis as a River Edge Redevelopment Zone is an important economic development tool that will attract new development, encourage growth and put more people to work,” State Representative Wyvetter H. Younge (D-East St. Louis) said.

“The East St. Louis Riverfront is a unique area largely because of our unparalleled location directly across the river from the Gateway Arch. Its development potential ranges from first-rate residential to major transportation and industrial opportunities and so much in between.  The River Edge Redevelopment Initiative will be a great tool for helping to redevelop this area, bring jobs, and stimulate economic growth in the Metro East,” said East St. Louis Mayor Alvin Parks, Jr.

“The Governor and I understand the need to redevelop old, underutilized and contaminated properties because it helps attract economic development and growth to an area. Developers and businesses begin to make investments in areas that were once overlooked and bring along with them more opportunities and jobs. The River Edge Redevelopment Initiative is about providing vital resources to communities like East St. Louis to help facilitate this growth,” said DCEO Director Jack Lavin.

Brownfields are abandoned, idled or underused industrial and commercial properties that have actual or perceived contamination and an active potential for redevelopment.  Brownfields vary in size, location, age and past use, and can include contaminated land varying from a multi-acre closed factory to a vacant gas
station.  While brownfields were once considered to be only an environmental health issue, they are now fully recognized as areas with the potential to play a vital role in the economic development of a community.  In Illinois, there are an estimated 7,000-10,000 brownfields sites in need of remediation.

“East St. Louis has developed a plan for sensible growth and deserves praise for achieving certification as a River Edge Redevelopment Zone,” said Illinois EPA Director Doug Scott.  “Its plan to revitalize land that has been abandoned for years is a not only a good example of environmental stewardship and social responsibility on the City’s part, but it is also serves as a fine economic enhancement model for other river communities throughout the state.”

Since Gov. Blagojevich took office, the clean-up of contaminated sites has accelerated in Illinois through Brownfield's initiatives.  Thousands of acres at more than 400 sites across the state have been cleaned up for redevelopment, recreational or natural habitat use. 

Gov. Blagojevich’s Opportunity Returns regional economic development strategy is the most aggressive, comprehensive approach to creating jobs in Illinois’ history.  Since a one-size-fits-all approach to economic development just doesn’t work, the Governor has divided the state into 10 regions – each with a regional team that is empowered and expected to rapidly respond to opportunities and challenges.  Opportunity Returns is about tangible, specific actions to make each region more accessible, more marketable, more entrepreneurial and more attractive to businesses.  It is about upgrading the skills of the local workforce, increasing the access to capital, opening new markets, improving infrastructure, and creating and retaining jobs.  Opportunity Returns is about successfully partnering with companies and communities, both large and small, to help all of Illinois reach its economic potential.