The City of Moline announced plans to purchase the downtown RiverStation Building for $1.65 million as part of its larger downtown redevelopment plan.
In a news release Monday, June 9, the city said it is entering an asset purchase agreement with Kaizen Company of America, LC, and RiverStation on Bass Street, LLC, to acquire the commercial retail/office building located at 1601 River Drive.
The 42,000-square-foot mixed-use building, commonly known as RiverStation, has been the subject of litigation for the past several years concerning contractual obligations related to the ground lease and development agreement with Moline, the city’s release said.
Under the city’s ownership, the building will retain its existing tenants and honor their current lease agreements. Among the building’s tenants are: Visit Quad Cities, Goebel Family Dentistry, Pub 1848 and other office tenants.
RiverStation was built by Kaizen in 2005 at a total development cost of $7.2 million. It sits on city-owned land and operates through a ground lease with the City of Moline.
According to city leaders, the acquisition will allow the City of Moline to own an important asset in the downtown core, known as Moline Centre, at a favorable cost basis. The city indicated plans to revitalize the building and surrounding area with increased commercial tenancy.
The purchase also will bring resolution to the city’s claim at a fair settlement of the legal matter for all parties, the release said.
The property sits in the heart of the redevelopment area the city has identified for its Moline Front + Centre riverfront plan.
The purchase agreement was presented Monday to the Moline City Council at its Committee-of-the-Whole meeting. The council is expected to give final approval at its meeting Tuesday, June 23. The deal is expected to close in late June.
Recent RERZ designation
In the release, Moline said “City officials are pleased with the spirit of collaboration among all involved parties and the resulting outcome that will lead to this building reaching its full potential for downtown Moline.”
The purchase also comes on the heels of Moline’s designation as a River Edge Redevelopment Zone (RERZ), which opens the door to state financial incentives designed to spur downtown development and attract private investment. The program is administered by the Illinois Department of Commerce & Economic Opportunity.
The RERZ covers about 3.4 square miles of Moline’s downtown core and is bordered by the Mississippi River and extends roughly 4,500 feet to the south.
