Story by Jeff Kolkey, Rockford Register Star
West added a clause to the Illinois state budget that makes a promised $4 million state grant for Milwaukee-based developer J. Jeffers & Company's redevelopment of the dilapidated former Barber-Colman factory campus contingent on an executed project labor agreement.
An effort to make collective bargaining part of the city's deal with J. Jeffers last year drove a bitter wedge between City Council members and nearly killed the project.
"Not only do I desire an agreement between labor and the developer, just like there is for the Hard Rock Casino and other major projects in our community so that this project can move forward successfully, but I also desire to see stronger minority representation language in this agreement to ensure Black people and people of color have an opportunity to work on this development," West said. "It's my hope that we can come back to the table and try again for the sake of our community and for the sake of this project."
More: Art of the deal: Rockford hotel, Barber-Colman differed greatly behind the scenes
Rockford Mayor Tom McNamara said city officials were working to determine what the change will mean for the project and the city.
As part of the redevelopment agreement, the city is providing a mix of incentives including two no-interest loans totaling about $10.2 million, roughly $3.5 million in public infrastructure and a $6 million advance on tax increment financing that would be repaid if and when a second phase of the project proceeds. The loans have to be repaid.
But McNamara said the $4 million grant was being counted on to reimburse the city for its costs.
"We were told that we had it," McNamara said. "We were told we had the dollars without any requirements and so it's a wrinkle for sure."
McNamara cast a tie-breaking vote to reject an amendment to the redevelopment agreement that would have required Jeffers to enter into a project labor agreement with area trade unions. Jeffers had threatened to walk away from the project if it had been approved. There had been divisive debate in which alderpersons accused each other of lying and misleading the public.
It was portrayed as a choice between supporting working local laborers or a transformative project in a poor neighborhood.
Work has begun to turn the long-vacant former Barber-Colman factory campus into Colman Yards, a neighborhood of apartments, residences, businesses and green space that will be developed over multiple phases. The project is in an estimated $106 million Phase 1A that includes the "historic adaptive reuse" of three former factory buildings along with the construction of a "historically sensitive" parking structure with retail on the ground floor.
A spokesperson for J. Jeffers did not respond to a request for comment.
Alan Golden, president of the Northwestern Illinois Building Trades Council, said he is hopeful that the new requirement could convince J. Jeffers to revisit inking an agreement with trades unions.
Golden said there aren't enough skilled non-union trades people to get a job of that magnitude completed. He said a year in, progress appears slow at the job site, comparing it to the casino being built on East State Street that is nearly ready to open.
"We're happy about it," Golden said. "As the job sits right now, we have a bunch of people who aren't from the city of Rockford working there. It's all people with Wisconsin license plates or from out of state predominately since it started. The PLA, regardless if people support unions or not, it was good for Rockford because we want the workers to come from our city."
Ald. Mark Bonne, D-14, and Jonathan Logemann, D-2, said the change raises questions about whether local taxpayers or the developer will be on the hook for a shortfall if no labor agreement materializes. Bonne said the developers didn't necessarily oppose a PLA, but were opposed to being required to enter into one and were concerned a delay could have unraveled the project financing.
"I think it's about time, a year later now, that the developers come back to update the council on the project and also that they return to the negotiating table with the building trades, regardless of who is responsible for making up a possible $4 million shortfall," Bonne said.
Jeff Kolkey writes about government, economic development and other issues for the Rockford Register Star. He can be reached at (815) 987-1374, via email at jkolkey@rrstar.com and on X @jeffkolkey.
This article originally appeared on Rockford Register Star: Rockford officials question if Colman Yards wrinkle will leave city on hook for $4M
