The City of Moline has been designated as a River Edge Redevelopment Zone (RERZ), opening the door to state financial incentives that are designed to spur downtown development and attract private investment.
The city announced it had been officially approved as a RERZ by the Illinois Department of Commerce & Economic Opportunity (DCEO), which administers the program. The new designation, announced in a news release Friday, April 3, covers approximately 3.4 square miles of Moline’s downtown core including its Moline Centre. The zone is bordered by the Mississippi River and extends roughly 4,500 feet to the south.
“From the river to the bluff and along our riverfront, the River Edge Redevelopment Zone designation covers a large portion of the north side of Moline and gives us the toolset we need to deliver on the development we’ve promised,” Moline Mayor Sangeetha Rayapati said in the city’s release.
Thanks to the new designation, eligible property owners can now access incentives to help reduce development costs, make projects more feasible and encourage investment downtown.
Approved by the state legislature in 2006, the River Edge Redevelopment Zone Act created the zones in an effort to revive environmentally challenged properties, stimulate economic revitalization and create jobs in communities along Illinois rivers. Participation is voluntary and limited to property owners who pursue eligible redevelopment projects.
The new financial incentives available include:
- Sales tax savings on building materials for qualified construction projects.
- Historic tax credits equal to 25% of qualified rehabilitation costs, non-competitive and uncapped.
- Property tax abatements for qualified multi-family residential, commercial and industrial development.
- Environmental remediation tax credits equal to 25% of eligible remediation costs exceeding $100,000.
- New construction job credits of $500 per job created, applied to Illinois state income tax.
The historic tax credits are one of the most powerful incentives, in that, River edge cities that meet the State Historic Preservation Office’s (SHPO) criteria and qualifies, the RERZ project can receive the credits automatically and there is no limit. However, others vying for tax credits are part of a competitive process with limited state funds and a limit of $3 million tax credits per project.
Latest Illinois QC zone
Renew Moline, a non-profit economic development organization, supported the City of Moline’s RERZ application helping conduct background research, contracting for technical work and written presentation materials. River Edge is intended to help repurpose former industrial areas along Illinois’ waterways for new development.
“The River Edge Redevelopment Zone has proven to be a powerful incentive for development in other Illinois cities such as Rockford and Peoria,” Renew Moline Board Chair Carrie O-Neill said. “We commend the city for pursuing this opportunity aggressively for the benefit of the whole community.”
The new designation comes as Moline along with Renew Moline is working to advance a new master plan for Moline’s riverfront. Working with MKSK Studios, a final draft of the firm’s proposed Moline Riverfront + Centre Plan was presented last June to the city council.
“While preparatory phases have seemed endless, the work to immediately begin moving our co-created vision forward has commenced,” Ms. Rayapati said in announcing the city’s new RERZ. “This designation reflects that behind-the-scenes work already underway.”
Last October, the City of Rock Island became the first city in the Illinois Quad Cities to earn the designation from DCEO and the largest such zone in the state. Rock Island’s zone spans 11.5 miles along the Mississippi and Rock riverfronts.
When the program first began it was available in five pilot cities: Aurora, East St. Louis, Elgin, Peoria and Rockford. In 2024, the Illinois Quad Cities communities of Rock Island, Moline and East Moline were added to the RERZ legislation, making them eligible for the designation.
