Welcome to the finance and personnel committee meeting held tonight, Monday, May 11th.

Sir Clerk, would you please take roll?

Here.

Thank you.

First item in our committee reports number one is approval of vouchers in the amount of 11 million eight hundred and sixteen thousand four hundred and forty dollars and eight cents.

Is there a motion to approve vouchers?

Any questions or comments on vouchers?

Alderman Thunberg.

Chairman, I actually have uh three, but I will hold those off until council and or call during the week, which uh unfortunately I didn't have time to make that call.

So thank you.

All right.

Um other questions or comments.

Seeing none, all those in favor indicate by I.

Aye.

Opposed?

Matter passes.

Item two is an appropriate approval of the bond sale for an issuance of 103 million dollars in taxable general obligation bonds, alternate revenue source for convention center and hotel public-private partnership with Hard Rock Rockford.

Um is there a motion to approve?

Uh before we have any questions or comments, we have a short presentation, Mr.

Kagoni.

Um certain, certainly, Chairman.

Uh Director Hagerty and I can walk through what the request is this evening.

And um Dan Fisher and Gino Fantre are also here this evening and just walking in now and would be happy to answer any questions that may go um directly to them.

But what is up for consideration is the first step in a multi-step process, uh, which we are requesting authorization to start the bonding process where we're looking to secure $90 million in bond proceeds, so a total bond amount of $103 million to fund the construction of a hotel and convention center that would be attached to the Hard Rock Casino.

Um their overall plan would be that this would be a convention center and hotel owned by the city of Rockford.

Um, it would the debt service would be paid uh by Hard Rock Rockford through a development agreement, uh corporate guarantee and management agreement for the operation of the overall um convention center and hotel.

Um they have secured uh a market study.

Uh there's uh a summary of that uh within the packet as from the letter from Mr.

Mr.

Fisher, talking about the overall scope and scale of the project, uh their evaluation of the market, the occupancy rate, the average uh rate per night um within the hotel and convention center, which would demonstrate that it would have significant and sufficient cash flow to pay for the debt service.

Um we I also referenced uh a development agreement that we would prepare uh which set forth additional terms related to an exit strategy for the City of Rockford um in the seven to ten year time frame uh where Hard Rock Rockford would be able to take over ownership um of the facility as well as revive revisions to the host community agreement on the minimum guarantee.

I would note that the authorization to sell bond proceeds is the first step in the process and will come back before committee and city council uh for final approval after all the public notification process as well as the preparation of the development agreement, the management agreement, and the revisions of the host agreement and any other necessary uh documents.

I just could you please explain uh what's meant by the alternate revenue source of these of these bonds for Ms.

Agri.

Certainly.

So this language comes from state statute, which authorizes the city to issue bonds that are backed by the city's taxing authority, uh, but the repayment source is a pledge other than property taxes.

Um we would traditionally issue those for an uh another construction project or development project as what we would call sales tax alternates.

In this instance, the alternate revenue source is the net uh proceeds of the operation of the hotel and convention center.

Thank you so much.

Um do we have any questions from the committee?

Mr.

Alderman Logan.

Thank you, Administrator Cagnonian and Director Uh Hagerty for that little presentation.

I know I was uh tagged in a couple Facebook comments um with neighborhood groups uh wanting to learn more about the project.

And um, of course, we all I think all aldermen around us, we always hear about public safety.

People want to feel safe in their homes, and then um public infrastructure is really important to folks.

Um concerns that uh other neighbors had brought up was like you know, they want they want potholes gone, they want uh better streets.

I know the delta of the the project uh for our annual budget is around like four million dollars.

Um those funds could be used in the future um in some capacity to to help rebuild streets and roads, correct?

Yes, certainly.

So uh as you look over the uh the revenue that will be generated from the project, uh a number of those revenue sources are revenue to the general fund, which is where we pay for our pothole patching operations.

So you know, the the investment we would anticipate would have positive ongoing impacts on the city's general fund and our ability to fund those core services.

Yeah, thank you.

I think it's really important to consider that opportunity cost on page three of the memorandum.

I even uh directly shared that link to the Facebook page.

I don't know how many people have read it.

But uh there we go.

Thank you, Chairman.

Any other questions?

Alderman Grande.

Um just so that uh constituents know that the repayment of this is not in lieu of all the other um taxes or other funding that we receive.

So we're going to still receive, or could you explain to people how we're still going to be receiving taxes from, but then they're also going to be repaying this uh bond back?

Yeah.

Um yes, Alderwoman.

So you you are accurate.

The the bond payment would come from revenue off the convention and hotel center.

Um it will not come from the property taxes that would be generated from the property.

Um similar to Alderman Logan's question, there is a 30-year projection.

Um that is the last page of the staff report and memo where it's anticipated uh upon stabilization that there would be an additional 4.6 million dollars in revenue coming to the City of Rockford, and that would come through a number of different scenarios, but that would be in additional gaming tax um funds, additional host agreement, revenue sharing, attendance agreement, uh municipal sales tax, the non-home real sales tax, food and beverage tax, uh the one percent hotel tax, uh, the five percent hotel tourism tax that we are under agreement with Go Rockford on, and real estate um tax portion.

So, yes, um we're anticipating additional revenue um from what currently exists, and we're not using existing revenue to pay for um the debt service on the bond.

Thank you.

Alderman Bell.

Thank you for allowing me to speak on your committee chairman.

Um that additional revenue that you just mentioned, that would start.

Can you tell us when that would begin?

So this is a 30-year estimate.

Um we would anticipate that upon completion of construction um the and when the hotel and convention center comes online, the property tax will be immediate.

Um, the room night tax will be immediate, the sales tax uh will be uh immediate.

Um I would certainly recognize that understanding that there is a significant investment taking place 18 miles to the north, that that is going to be competition.

We know it's gonna be competition with the Beloit Casino.

It was identified when we originally approved the license to Hard Rock Rockford as a threat.

Um so there could be a dip um in revenues in the short term while this is under construction, and then we would see it slowly graduate and increase through the market analysis completed by Hard Rock Rockford.

Thank you.

And I mean it was made mentioned a little bit ago about uh neighbors input, community input as we make comments about you know the things that we would like to invest in in the future, um, maybe with the revenue that will be generated, uh, would love to add a potential grocery store uh on the on the west side as residents have advocated for that.

So uh while we are investing in to fill in potholes, we would also like to consider potential grocery store investment as well.

Thank you.

Uh some of the revenues that are generated from the project are revenue specific to the redevelopment fund where we would normally fund economic development efforts, so that would certainly be an option for council uh future action.

Thank you.

Thank you, Mr.

Chairman.

This 30-year projection only is showing with the hotel and without the hotel, and that's not showing any first development in terms of entertainment centers, or that might be built beyond that.

My concern is is this just to compare the hotel with or without the hotel, correct?

Correct.

And so does this also take into consideration, for example, a decline in revenue from the Beloit Casino?

Let's say, for example, there is a 15 or 20 percent drop in revenue or in attendees, et cetera, there than here.

Are these numbers indicative of that drop?

Yes.

Another question.

Um when will we get the development agreement so we can see what terms are in that before we support this?

That's one question.

Second question is on this sheet here, under the beneficiaries, you list the fire department and police department pensions.

Now I don't know what number that is.

Is that in addition to what we already are giving based on the law through the general budget?

So what um for everyone's awareness, the document that Alderman Beach is referencing, I believe is the PowerPoint presentation that was at the press conference uh Thursday last week.

Yes, and those numbers reference the spending plan that City Council previously approved.

So it's uh one million dollars addition for each pension plan.

In addition to that.

That's what it is.

Okay.

Um then back to that development agreement.

So I would anticipate that the development agreement will probably take 30 to 60 days for us to draft and complete should the authorizing ordinance be approved tonight and then at City City Council.

So when will we get to know what the final terms are of that agreement between the city and between HardRock?

We we know the principal terms of that agreement already.

Uh you know, that one that you know they will pay the debt service through the development agreement for the bond, that they will agree to uh take over the purchase of the conference center in a hotel somewhere between that seven to ten year time frame yet to be um finalized, uh, that they're willing to uh remove the reopeners on the host community uh agreement so that uh we're we're set advancing uh forward.

Um thank for getting um the corporate guarantee.

Oh, yes.

Uh mentioned earlier, but I should mention it again is the corporate guarantee from 815 um entertainment LLC.

So those were you know from our conversations with um you know Alderman, uh the main concerns that came up.

So we went to uh hard rock to discuss those in advance to make sure that um those could be satisfied before bringing this forward.

Then one last comment, sir.

Go ahead now.

Um do you think the uh 15,000 square foot conference center will be adequate to attract the kinds of business that would fill a conference center, business, trade shows, those kind of things, and the number of meeting rooms.

I am concerned with that number.

You look at Beloit, I think there are over 200,000 square feet in a conference center.

And uh that puts us at about 10 percent less than that.

So I'm concerned about that if if that's a draw uh for large corporations to come in uh to bring their families for trade shows and recreation.

Um so understanding the 15,000 square foot convention center is certainly going to attract opportunity for the region that we currently don't have.

Um but is it the scope and scale of a convention center that's gonna compete nationwide to bring those 70,000 hundred thousand square foot events and activities?

No, it's 15,000 square foot.

Um but it certainly meets the the state statute to advance uh with the bonds, the bond sale and is similar in size to what was done with the Hilton Embassy suite.

So there's opportunity there, but it's not going to compete with a 70,000 square foot convention center.

But when we look at this project as a whole and supported by the market analysis, it will support additional business and activity to the site and to Rockford.

So one more, Mr.

Chairman.

If we get a star bond designation, how does that interfere or affect the funding mechanism that's being laid out now?

Excellent question.

So there's existing uh for everyone's awareness, there's a existing star bond legislation that's currently going through the amendment process uh with the State of Illinois legislators.

So that those rules are not um finalized as of as of yet.

But we have talked to uh Chairman Tirelli and other regional partners, uh Mayor Loves Park, Mayor of Michesney Park, and some of their staff related to the star bond opportunity.

And there's a letter of intent being submitted for uh future application for star bond district.

Uh with a star bond district, it could allow us to capture revenue that would otherwise go to the state of Illinois to offset some of the bond payments and cost.

Uh you know, what that estimate may be could be up towards 20 million dollars, uh, which would be significant in reducing uh the overall debt on this project and allowing Hard Rock to complete additional um investment.

It's anticipated that the Starbond district will be larger than just the city of Rockford, but until those rules are finalized, it's a little bit hard to fully predict.

Um we do believe that it's an opportunity to reduce risk for the organization, um, but it's yet to be perfected, but we will be pursuing it as a region.

Okay.

All right, I think um I had another question or two, but I'll hold those from now.

Thank you.

All of it makes.

Thank you so much for allowing me to speak on your committee.

Um I have a couple of questions from an actual 14th ward resident, but I'm gonna ask um maybe one or two of them.

Um does this how does this impact our city credit rating, or does it impact our city credit rating at all?

Uh we wouldn't uh the the city's bond rating is really uh based on the city's uh overall financial management and resources and um ability to pay.

I would not anticipate um the the issuance of these bonds to negatively impact our our credit rating.

Um obviously the repayment is not from municipal tax sources, it is from the re in the revenue generated by the project.

Um additionally, um you know, generally uh when we go through the rating process, they're more looking at our policies, how are we managing our resources?

They're not looking at what did we issue debt for and how much is outstanding.

But we would be owning this property, so it would be something that would be added to our kind of like debt ratio, would it not?

It certainly.

I mean, it would be increasing the amount of debt we we have on outstanding, um, but that the city has a very low debt utilization number currently, um, and I don't anticipate that adding this um would negatively impact our bond rating.

Okay.

Um I guess if you find out any differently if you could let me know.

Certainly, yeah.

I mean, it certainly as part of the process we would go through an actual bond rating process with Moody's.

Moody's is uh who the city is historically used for a bond rating.

Um the nature of the debt issue it doesn't necessarily impact the process.

But yes, certainly we would obviously once a rating is completed, we would share that.

And I think I asked this question before, but if you could re remind me the answer um for you know future bonding abilities if something tragic were to happen and we needed to buy use these bond revenues for something else significant in the city.

How with this being that we now own, we would own this hotel.

How would this impact our future bonding, our ability to well, it would reduce the amount of debt that we can legally issue?

Um but uh again, the our current utilization of um debt that counts against the city's debt limit is very minimal.

Um so I don't anticipate that this would impact our ability to bond for future projects or in the event of an emergency.

Um I don't anticipate that this would impact that.

And can you just help me understand when you say minimal like we have $13 million currently in outstanding debt that counts against our debt limit?

Okay.

And then the other question that I had was related to, and this is definitely further down the line, it's more aligning with the development agreement.

But I I I do have this question because I have to be reminded of when there was construction the first time at the casino, and there was an agreement to determine um or to give the data of who from the city of Rockford was working.

I don't I know there were zip codes that were monitored.

I'm not positive if minority numbers were monitored or anything of that nature, but what I did find from that was that only 17% of Rockford residents were a part of the construction of the casino.

So, do we have a mechanism for this future development agreement that would uh change that and make that a little bit more um feasible for the city of Rockford?

And if so, what are some of the differences that can that can happen in that development agreement to increase those numbers?

Um so we we talked a little bit about employment uh employment um at the casino, and there's a slide within that presentation that gives you the current most recent breakdown in regards to uh minority employment, women employment, veterans employment, um, and then also you discussed construction.

I don't recall what the construction number was upon completion, but I'd be happy to pull out um that report to determine what the number of you know Rockford residents were um employed on the construction.

Um I would anticipate there would be similar goals to what was in the original host community agreement um related to those uh goals.

So similar, so no changes would be made, so we could end up with 17% again.

I don't know if it was 17%.

Okay.

I could pull the report up now if you want me to.

Go ahead.

I I I honestly I can't recall what the report says so and I appreciate it, you know, the average salary for a worker inside the casino is I think I saw $38,000.

Those construction jobs, average salary for those construction jobs are definitely more than $38,000.

So I think for me, my thought would be let's focus in on the area where we can see um more people from the city of Rockford being able to utilize those particular jobs and those funds not leaving the city of Rockford.

So I guess you know, like I said, this is further down the line.

This is more when we're talking about the development agreement.

Would I like for us to consider another uh option or verbiage or something that makes it so we are realizing more individuals from the city of Rockford that are in the construction of this building?

So I don't know how that happens with us being a non-home rule community.

I don't know if that's something that can take place.

I just know that what we have right now doesn't lend us to be able to realize that because we're already seeing in majority of the construction where those dollars are going outside of the community.

So I just wanted to say that.

I just want to put that out there as you all construct this development agreement to really provide this opportunity to see bigger numbers than 17 percent.

But I will take a little time pull that up that was sent to me that does show and verify that 17%.

Thank you.

Thank you for allowing me to speak on your committee.

Um I have comment, I have comments, not a question.

And I want to also just preface what I'm about to say with my comments have nothing to do with whether I'm not whether or not I'm going to ultimately vote yes or no for this.

They are just simply comments.

But I did receive an email from the mayor last Wednesday.

We all did saying, I think it was around three o'clock.

Don't quote me on the exact amount uh time, but I believe it was around 3 p.m.

saying there's a press conference tomorrow at Hard Rock Casino announcing this hotel at 9 30.

Well, I run a company and I'm also an alderman, so I had a full schedule that day.

I had meetings until about 12.

So I actually wasn't even able to even look at my phone until after 12.

Now, meanwhile, when I did finally get to look at my phone, the final I wasn't able to go to the press conference.

And correct me if I'm wrong, but I don't believe any of the aldermen were able to come to the press conference or were present.

And that's a little questioning and alarming in itself.

When I was able to check my phone, I got all these texts congratulating me on the casino.

And I'm saying, what what casino?

I didn't improve anything.

Hasn't become before council yet.

We haven't seen a development deal.

I see posts from our chamber president.

I see posts from different community leaders and influencers, the Go Rockford Board, everyone's congratulating this big project.

And I'll read exactly what Hard Rock Casino posted.

Today we officially announced the expansion of our casino, including a new hotel and convention center that will bring more guests, more events, and more excitement to our community.

Check out the renderings and photos from today's press event and stay tuned as this vision becomes reality.

Now, nothing in that says this has to go before council, it hasn't been approved yet.

It's getting the city excited.

Now we talk about political theater a lot, and I feel like this rollout was one of the biggest examples of political theater that we've seen in this community.

Let's get the community involved, let's get them excited.

Let's let's sell this dream of exactly why we need this.

And then the last people to see a rendering were the people that actually have to vote on it.

Because ultimately, if it doesn't get voted on, the heat for that doesn't come to the people at the press conference.

It comes to me and my other 13 colleagues.

So a little irritated with the rollout.

So thank you for congratulating me on something that I never even saw pictures of yet because I was in other meetings that I didn't have time to come to because I just get a last minute announcement about a press conference.

So I ultimately that's just want to make those comments known that I was completely not unaware.

I mean, yes, we knew this was coming down, right?

But again, the rollout just was it was unsavory for me.

It was performative for me.

Um because this is a very this is a hundred million dollar decision.

And to roll it out as though we had made this approval and get the community excited about a hundred million dollar decision that we had not even talked about yet was disingenuous.

Um the other portion of that is it it it concerns me that the residents of my ward specifically, I'll speak for myself, have begged for a grocery store, have begged for a bank.

I do not have a bank in my ward, begged for these things all the time.

That's the only thing they asked for.

And and we can so easily give a hundred million dollars to a casino and never once think, you know what, maybe getting a grocery store would only be a six million dollar bond.

Have we ever talked about that?

It's it it it I'm concerned with these things, I'm irritated with these things.

Sometimes I a lot of times I stay silent about a lot of things.

This time I'm just I'm over it.

Um so I just want to make sure that I want my comments to be on record about this.

Again, I may ultimately end up voting yes for it, but it doesn't mean I'm not pissed, pissed at the performative rollout of this to force us into a hundred million dollar decision for this community.

Thank you.

Alderman Chiller.

Thank you, Chairman.

Um I would like to say thank you to the uh to the hard rock for meeting with uh us and openly to uh anyone who wish to meet with them regarding the numbers, the structure, uh administration as well.

Uh I know that I myself wanted to make this uh as transparent to the aldermen as possible.

Uh you know, in relation to and I you know, I I uh you know with the previous comments that were made earlier.

Um I appreciate those.

You know, with the people on the job of a construction site like this, uh a lot of that depends on the contract or they then depend on the uh individuals, the subcontractors, uh, and the qualified people that are necessary.

So you know, we could I would love to have everyone on this job be from Rockford.

Ideally, if the stars were aligned, that would be the case.

Um unfortunately, if you have to have 300 electricians on the job, and there's not enough to fill the 300, uh, you know, the subcontractor is gonna have to look at the you know availability of electricians.

Um I know the trades have had numerous outreach, so I've been told.

And you know, so they they are openly looking for more individuals within our community to enroll in the trades.

So, you know, as as much as uh, you know, I again stars aligned would love to have everyone from Rockford employed on this job.

Um, you know, and is as far as sometimes, and I appreciate the Alder Woman uh you know her concerns on the rollout, you know.

Sometimes with these rollouts, uh, you know, we'll look at previous ones before we came to vote on anything.

Um we uh there were rollouts for uh and talk and and such on anything from the watch factory to uh to the embassy to Barbara Coleman.

Uh you know, those were all rolled out with great fanfare uh before we voted on a lot of this.

So, you know, I'm not discrediting the Alder Woman by any means.

I I appreciate her concern on that.

Um but you know, we we do have these things that do roll out and get people excited before it's all hashed out on city council, as we found out with some other uh projects.

But you know, our our city loves success, and our city uh many times looks forward to good news because we know over the years we've had enough bad news.

So uh this is an item I think that is great news.

We know we need more hotel rooms.

Uh fortunately good news brings us uh the fact that we have attracted many sports um attractions and such, so we need that, and knowing that this will also increase uh revenue uh to the city is definitely an added bonus.

So thank you.

Thank you.

Thank you.

Thank you, Chairman.

Uh just wrote down these two uh questions.

Uh as we consider issuing this bond to help uh finance this this casino hotel development.

Have other communities across the country uh or of our size entered into a similar development agreement that that that require this level of uh support maybe to yeah, Mr.

Yes.

The the answer would would be would be yes, there's an example in Illinois in which the municipality uh not only sold bonds for the the establishment of a casino uh but also created a tax increment financing district um to help support um and provide uh gap assistance on the project.

Um so that that has that has taken place.

Uh I'll be happy to give you the full details on that particular example.

Um this is different in that um it's not being financially supported as a subsidy um to the casino but sale of bonds and then they're paying the hard rock is paying the debt.

And to that uh referenced municipality or community.

Uh do you do you know the name of that community?

Which one was it?

It was was it Aurora?

It was Aurora.

Aurora.

And is that casino still operating?

Uh yes, it's performing well?

Uh oh, that's my understanding, yes.

Okay.

Cool, cool.

And then my other question, thank you.

Maybe this one's for Chief.

Uh what impact will this project have on our public safety services, particularly the fire department?

Um, and specifically, how will it affect emergency response time as we you know continue to have conversations about our staffing levels?

Go ahead.

We haven't specifically forecasted what impact that this project would have.

Uh, but we definitely do um keep track on developments uh east, especially in Station 5 still territory, uh, and then the resources that we have out there currently uh in the addition of engine five have impacted our response times and driven those down.

So with the addition of engine five and the influx of any call volume, I think that uh the resources that we have there right now are adequate, uh, but we'll be evaluating that if this moves forward.

Thank you.

Mr.

President.

Thank you, Mr.

Chairman.

Uh one of the questions I was going to ask is uh how long before there would be sufficient equity in this project to allow regular financing to be available to this company.

And I'd like to make sure that that number appears in the development agreement somewhere.

And I'd like to say something short like five years possible.

But um I just asked that question.

So that seven to ten years?

Seven to ten years.

Yep.

Well, is it seven or ten?

Seven to ten years.

I haven't not uh I need to dig in a little bit farther to perfect that actual date, but that was my earlier reference in regards to the put option in the time frame of seven to ten years in our conversation with Hard Rock.

Um they they want to you know take over the convention center and hotel as soon as possible, and that's the anticipated time frame based on the projections.

Thank you, sir.

Alden Slogano.

Thank you, uh Chairman, for allowing me to speak.

Um I have a similar question to uh Alderman Beach uh in regards to the seven to ten year um transition over from our us having the debt to them taking over the debt.

Um I know I saw the memo in here um regarding uh there's can you go in there um because I know uh some of the folks may not know this, but uh the net hotel contribution uh from EBITA um it it I guess it says 10 to 12 million dollars annually versus if I do my quick calculation um 103 I think is 3.4 million dollars that not including interest um that you know over a 30-year span that that would be the debt requirement.

So and what that margin is from that perspective, just walk us through from that because I think that's very important from my perspective, you know, um when I go out to get a loan and stuff like that, you know, my debt to income ratio and stuff like that, you know, make sure that I'm able to be um cash fluid in order for me to make those payments.

So just if you could just walk us through, it's in the memo, it's uh and can you tell us exactly what occupancy is that 80 percent.

Uh I know there's a reference of 94 percent at one point in 2032.

So just you know, just for the general uh public, because that's one of the concerns that I I think I have as well as Mr.

Beach Alderman Beach uh from my perspective, the sooner the better.

Um I don't you know I understand that this is gonna take some time for to get established constructed within 2027, it will be ready to rock and roll.

But uh those are the concerns that I kind of have without being over-leveraged a little bit here and there.

So if you guys could address that, I'd appreciate that.

Sure.

So I I believe you're uh referencing the memo from Hard Rock, and then that was in the packet, and on the second page, it talks about uh the hotel is forecasted to generate approximately 19 million per year, 19 million per year in incremental gaming tax gaming revenue uh with that's with a three percent annual growth by capturing distance-based um players who would otherwise be day trippers or lost to competitors.

Net hotion to the property, um, including incremental gaming is approximately 10 to 12 million dollars uh annually, and that's based on the innovation group uh market analysis that was completed.

Um as it relates to occupancy, it was you know, it was beginning at approximately 80 percent and then ramping up to 94 percent, and that's uh an evaluation of other casino hotels and what they've seen across the market, understanding the close relationship between Hard Rock Live and the casino.

That's all the questions I had, but I just wanted to make sure uh so everybody understands 10 to 12 million is what they're projecting uh to be a net operating uh from that perspective.

So versus the 3.4 each year, I'm assuming.

I'm not gonna do that.

Yeah, the debt I don't know what the numbers are because we have to go out, yeah, find out what the interest rate is, what the market's currently doing for those bonds, and what the those bond payments are gonna be.

So um I'm we're estimating about six million annually, six six and a half million million annually.

So obviously more than sufficient revenue production from the hotel to cover that debt service payment.

Thank you.

I I just want to make a comment.

Uh with respect to the issue about local uh trades working on it, yeah.

I you know, it obviously a project project like this would take all of the local trades, you know, electrical plumbers, carpenters, glaziers, and I guess I don't know of the local unions what percentage of IBEW workers in our local actually reside in the city of Rockford.

So it would be nice to have a larger number.

It would be very nice to do.

Uh we we can't control where where members of the trade unions choose to live in our local area.

It would be nice if they all lived in Rockford, uh, but that's that's pretty utopian.

So uh, but we can I think it's a good idea to look into that.

I don't know what I you said you were gonna get the the number or the source, maybe you could share that later on with the the source of that, and we could look into that and see uh see you know how what what could be done to improve that.

With respect to the issue of uh uh comparing it to uh to a grocery store, um the this is not we we uh it it's everything I've learned is that the city of Rockford is not quote unquote investing 103 million dollars in the Hard Rock Casino.

We are we are working with Hard Rock Casino to allow them uh as a conduit to uh use these Alton revenue source bonds to finance uh the construction of the hotel and and conference center.

Um with the idea with Mr.

Cagnonia talked about having a put in there for seven to twelve years.

I believe you know, obviously there's interest associated with uh the debt service that the Hard Rock, the casino and the hotel would have.

So it would be in their best interest to pay that off as is as quickly as possible.

Um so it's amortized over 30 years, I believe, uh with with so the payment is less, but there I think the expectation is that that that would be paid off uh sooner.

And I think that we're hopeful that in the development agreement, as Mr.

Kagno indicated, that that would be addressed is a term in in that agreement.

Um that's it.

We do have with us the two of the principals from Hard Rock Casino.

If anyone has some specific questions, I know Ms.

Alderman Beach asked us more of a question that I don't know we were really able to give a uh a concrete answer on for the city that um regarding the conference center.

And so if if one of if no one has an objection, if one of them can answer your specific question about the conference center and how how it would compete or not compete with other regional matters, then uh I'd ask them to step up unless there's an objection.

Um Chairman, while he's coming forward, if I could just loop back to Alderman Bell's question um and confirm one of the examples that we example project that we evaluated was the city of Aurora uh where they also authorized the issuance of taxable general obligation bonds to support um uh the Hollywood casino in partnership with Penn Entertainment and the repayment source was tax increment financing district, and similar to this, there was an obligation for corporate guarantee from from Penn Entertainment.

Um so there they sold the bonds at 55.8 million, and then they had a TIFF to repay it.

So again, that was uh uh a gap subsidy on the overall project, so it's a little bit different.

Yes, go ahead.

Oh thank you, uh Mr.

Genogney, Kegnoni.

I think you know, if we're taking recommendations from Aurora, I think we should take the same record mandation when it comes to the data center as well.

Thank you.

Go ahead.

Yes, Gino Mike Right, President Mark Casino, Rockford, uh Baster A15 entertainment.

Um and Todd, it the um Hollywood Casino opens at the end of June.

I think it's June 24th.

So it's a brand new construction uh right off of Highway 88.

So it was a 30-plus-year-old project, old river boat casino uh in downtown Aurora that through primarily through city uh incentives was able to be moved to a more competitive location out on the highway.

So that project opens June 24th is the current advertised date.

Um they they did the same thing in Joliet.

Uh I don't know what the municipality funding in Juliet, but uh Hollywood did the same thing.

They took an old 30-plus-year-old river boat and they moved it land-based into a new development district uh in Joliet.

I visited that property, it's doing quite well.

Um Aurora I have not visited because it's not open yet.

So uh I will visit.

And uh Councilman Beach, uh, to your question about the 15,000 square feet, it in and of itself is not an impactful amount of square footage, but recognize we currently have 25,000 square feet in Hard Rock Live.

So the addition of the 15,000 square feet is complementary and additive to the current space we have.

We we frequently turn down uh books of business because we have large exhibition space in the 25,000, but then we don't have any breakout space or board space or traditional meeting space to complement the the 25,000 in Hard Rock Live.

And another reason we turned down significant leads is we don't currently have hotel rooms to accommodate those large business groups.

So the 25,000 existing square feet plus the incremental 15,000 and the 200 plus hotel rooms really really puts us in that in that sweet spot for regional uh uh a regional convention conference space.

You're welcome.

You have a question on the bill?

Go ahead.

Uh thank you.

Uh just referring back to the Hollywood Hotel you mentioned?

It's a Hollywood Casino in Aurora.

And do you know how many in Mr.

Kignoli may have touched on this?

Do you know how many hotel rooms are in that one?

Not off the top of my head.

Okay, just trying to see it compared to square footage of the conference center at all?

No.

Uh not off the top of my head.

Okay.

It's it's all readily it's it's been in multiple press releases, so it's pretty easy to Google, but I would definitely don't want to give you a bad number.

It was we we reviewed it as oops, went to the wrong one.

I can tell you how many rooms it was.

I believe 220 room hotel.

I'm not certain the size of the conference convention area.

Thank you, that's it.

Yeah, a point on that is in that in the Aurora model and and I suspect in the Joliet model, but definitively in the Aurora model, through a TIF district and through other funding mechanisms, the the municipality gave that money to the casino.

In this instance, we're we are leveraging the city's uh financing capabilities, and we are the city is not paying that money, we are paying the bond service or the debt service on those bonds, ultimately to stabilize our revenue in the face of new competition and grow that revenue, which will proportionally flow down through the state and local taxes that we generate.

So the investment is is not an outflow.

The investment is ultimately uh increasing the inflow to the municipality.

And uh and our partner uh governments through the host community agreement recognize Winnebago County and Chesney Park and Lowe's Park are also benefactors uh from this development.

Thank you again, Chairman, for allowing me to ask a question.

Um it's more of a procedural uh Todd.

Um come to the seven to ten year mark and um as part of the contract um drafted out, essentially they would buy us out.

How would that work?

Do we do they refinance the bonds?

Do we just change covenants from one person to another?

How does that work?

Can you walk us through that?

So as part of the the bond sale terms, we would have that queued up in advance.

Um, but they would secure private financing and pay all pay off the outstanding debt and take title of the property.

Perfect.

So my question is, do we have a number where they need to get to in order for for them to to go out and get that price?

We we don't have to disclose that.

Uh I understand that, but is there a number that or is it just like seven to ten years?

That's what we're looking at, right?

So what I want to do is get some clarity on that, because I think it would might give some reassurance to some of the folks around this circle here from that perspective.

So the the uh because that seven to ten year window will have to be narrowed down to a specific time period because we will have to build a call option into the structure of the bond sale.

So at that point, we will we will know what the outstanding principal amount is, and that will we will be able to define that.

Yeah.

So I don't I I don't I don't need a number, but I I just would like to see if if there is a number out there that um for them in order for them so if it comes earlier, you know, perfect, you know, whatever the case may be, maybe not, but um I I just you know it it gives some reassurance to some of the folks here.

So, like for example, I'll just give you an example.

Four million dollars, say the bond is right each year that we pay.

So that's 40 million reduction of 103 minus that, that's 60 mil.

So is that the number that they're looking at, 60 mil from that perspective, and that's where I'm asking, you know, is there a number, right?

Versus just the seven to ten year, right?

Because we have projections, we have forecasts.

I get I get it, right?

But there is has to be some sort of uh from my perspective, you know, and and I'm just doing quick math here.

It's nothing that that's what it is, or or whatever the case may be, but it that's just kind of what I'm looking at, right?

Which makes I I think it makes it easier for us to swallow.

As some folks have said, 103 million dollars is is huge, you know, uh debt.

So just want to and I want Hard Rock to be successful.

I want them to uh to continue to do what they do and in order to grow business and all that stuff.

I think we we're all in agreement on that aspect of it, right?

Because it's here now, and when we know we have competition.

So I just want to help the cause where we are reducing our risk as much as we can.

And that's where I would just like it doesn't have to be tonight, but it certainly a discussion from that, whether it's a time frame or whether it's a dollar amount that they they need to get to.

So we'll be happy to share that information as we go forward, understanding that there's multiple numbers that impact that.

Thank you.

Alderman Thunberg.

Chairman.

Uh couple things revisiting that uh star bond um in front of those that the millions of people that watch every Monday night uh via TV.

Uh that's a sales tax and revenue uh bond that uh or that's what we would like to get.

Has uh have we reached out to our city lobbyist on for any influence on that?

So so yes, we we have um spoke to um our city lobbyist on that.

We've also spoke to the chairman that would be Chairman Torelli, that would be submitting a letter of intent, and we've also um spoke to representative of the of the governor's office and Hard Rock Rockford has as well.

Great.

Thank you.

Uh I think that is uh not a make or break by any means, but uh that would that would be nice to to have that.

Um secondly is I know we mentioned that this kind of structure has been done uh in Illinois before uh I'd like to add that it also has been done over the borders uh within our state.

And so I would expect probably that Spear Financial would be reaching out to those underwriters uh that have that experience and you know they sometimes call them the syndicate, uh the bond syndicate.

And so just letting folks know that this isn't a uh Rockford's not unique to this type of structure.

It's been done once in Illinois, but it's been done in other parts of the country as well.

Uh one last question that I'd like to pose to the representatives from Hard Rock here that I did not ask, and I'm not sure if any of the other aldermen have in their meetings.

Uh if if this were to go as successful as we anticipate it to that, meaning the structure itself, the occupancy, the the venues, et cetera.

Um, have you is there any way that uh or any plans that could be made into for expansion of that of if you're consistently selling out enough, and or the conference center seems to be doing well, but it could stand to be a little bigger.

Uh is there any plans in the mix that would allow you to build on or build out.

Thanks.

Thank you, Alderman.

Uh Dan Fisher here, principal owner of uh Hard Rock.

Uh we are uh when the project was designed and built, you always try to look forward into the future and say, what are the expansion pieces look like, whether that's a parking deck, whether that's a hotel, whether that's a second hotel, what other additive amenities can we possibly bring that would drive visitation to Rockford?

Obviously, we chose the music venue first in lieu of the hotel.

You take a cost increase during COVID.

We didn't come back to the city and try to build a smaller project or a cheaper project.

We felt like we did the right thing and built a world-class facility, and and Gino's done an outstanding job operating and won all kinds of awards that Rockford's got attention to and we're really proud of.

And I think the piece of this that you you don't want to lose is it's an additive measure to taxes, not a negative.

The guarantee is it will be negative without it, right?

And we've kind of projected that to the city in advance and would continue to do so that Ho Chunk will have a negative, a serious negative impact for for a legacy, not a short period of time.

It'll take a long time to dig its way out of without this expansion, and a hotel expansion is pretty normal and not aspirational for performance and what you drive for occupancy.

I think we've proven that with Hard Rock's own track record and the casino industry itself.

And when this project was designed, it was built.

If you look at the east entrance where you enter live now, it's exactly in the center of the property.

So it's really situated for two towers for a hotel.

And obviously, going higher is more costly, and the market's got to justify that.

We think we're building, you know, a really high level for quality product, probably could be the nicest hotel in the Winnebago region by a long ways and would attract visitors around that.

But we do have the ability to expand south of that uh with additional towers or other, and we've secured some other land adjacent to us all around us for three years, five years, ten years expansion, and kind of as we explained to city staff and the mayor, is uh because we own the casino and we happen to own some of the land adjacent to us, we'd never do anything that would jeopardize our primary investment.

There's nothing that we could ever build that would rival the casino for revenues.

And I think the one of the biggest components that I haven't heard brought up yet tonight is is compelling job offers.

You know, only the construction and long-term employment of the hotel and what we're adding is extremely additive to the jobs that we have versus uh being a guaranteed uh guaranteed negative.

So we do have uh space to expand, we do have the aspirations of expanding.

Uh it's all determined on future performance and and the market to support that.

Thank you.

Aldinfonti.

I'm sorry, thank you so much.

Is there a timeline?

Uh we would we uh the sale timeline once the authorizing ordinance is approved is uh is 60 days from start to finish.

So in that 60-day period, we would come back to council with the um revisions to the host community agreement, the development agreement, and complete the the steps in the process of selling bonds.

So we would get the bond rating complete, we would hold a public hearing, we would have um be working with our underwriters to market the bonds to bond buyers.

Um all of that happens before the actual sale of the bond.

So um it's 60 days start to finish.

Um but really approval of that authorizing ordinance, uh, which is the next step to this committee report um starts that timeline.

So but there would be no groundbreaking, no opening door opening.

Uh that's all dependent on hard rock and the timing for um the city to complete the sale of the bonds and and have those funds available for the start of construction.

Maybe what is your timeline?

We would we would go I'll be out there with a shovel tomorrow if we can.

Uh but we think it's uh no less than 12 months of actual construction, assuming it takes a few months to get to that point, and as much as 18 months, depending on final product, lead time on items, uh other other factors that may be a little bit outside of our control on how to rush it or move it quicker than that, but somewhere between 12 and 18 months once we put a shovel on the ground.

Start making money in about 18 months.

Yeah, I think ramp yeah, we would open and expect very little ramp time for the hotel.

You'd have a lot of pre-marketing and opportunity to do that.

Thank you.

All right.

Well, thank you so much for coming.

Um seeing no further questions.

Um those in favor to keep aye.

Aye.

Opposed?

Matter passes.

Moving on to item three is an approval of an intergovernmental agreement between the city and the board of education for summer deal early child center services for 2026 and 2027 school year.

The agreement is from July 1, 2026 through June 30, 2027.

The funding sources the head start grant funds.

There are motion to approve.

Sorry, any questions or comments?

Seeing none, all is a favor indicated by aye.

Aye.

Opposed?

Matter passes.

Item four is approval of a lease agreement with comprehensive community solutions for office space located 917 South Main Street to support the operations of the VPC community conveners initiative and a not to exceed the amount of $6,000.

It's from April 1, 2026 to March 31, 2027.

The funding source is Illinois Department of Human Services Community Convener Grant Awards.

Is there a motion to approve?

Any questions or comments for staff?

Seeing that all is a favorite indicate by aye.

Aye.

Opposed?

Matter passes.

Item five is an approval and release of liens in the total amount of 35,635 dollars and fifteen cents and curb and the properties were owned by the Winnipeg County Trustee for properties at 205 North Hinckley and 709 Lee Street, 2143 South Fourth Street, 517 Island Avenue, and 5XX Foster Avenue.

So a motion to approve.

Any questions for staff?

Seeing none, all is a favorite indicate by aye.

Aye.

Opposed?

Matter passes.

Item six is approval of an agreement between the city and Chicago Central Pacific Railroad for the 6th Street and 9th Street two-way conversion preliminary engineering services in the amount of $25,000.

The funding source is the 1% infrastructure sales tax.

Sir motion to approve.

Any questions or comments for staff?

Seeing none, all is in favor indicate aye.

Aye.

Opposed?

Matter passes.

Moving on to resolutions one over one is an award of an engineering agreement for the Rockford Complete Streets Revitalization Program to HR Green in the amount of 1,761,096.

The contract is from September of 2026 to December of 2028.

The funding sources are the MFT funds, state funds, and federal funds, including build grant.

Is there a motion to approve the award?

Any questions for staff?

Seeing that all is a favorite indicate by aye.

Aye.

Opposed?

Matter passes.

Item two is award of bid for citywide street repairs group number four to stents from excavation in the amount of two million four hundred and ninety-two thousand seventy-two dollars and two cents.

The contract is through October two, twenty twenty-six.

The funding source is the one percent infrastructure sales tax.

Is there a motion to approve?

Sorry.

Any questions for staff?

Seeing none, all is in favor indicated by aye.

Aye.

Matter passes.

Item three is award of bid for Jamestown ditch drainage improvements to end track in the amount of 123,414.52 cents.

The contract is through November 28, 2026, and the funding source are the CIP general fund.

Is there a motion to approve?

Any questions for staff?

Seeing none all is a favorite key by aye.

Aye.

Opposed?

Matter passes.

Item 4 is awarded bid for demolition group 33 of Northern Only Service in the amount of 30,858 dollars.

It includes properties of 1814 Kishwaki and 1822 Read Avenue.

The contract duration is through completion of the demo project.

The funding source is the uh Ida Strong Communities Grant.

Is there a motion to approve?

Any questions for staff?

All of them in front of you.

Um what happened?

Why are we demoing 1814?

Kishwalk.

Who can know that?

I'm gonna ask the same question about read.

I think I know why we're demoing 1814, but uh director lies.

I have to look up Kishwaki.

Sorry, one of these was an emergency is actually it was a fire.

Was the fire will be cleaning up the property?

Okay.

Um so I'll look up Kishwaki a minute.

I think it's the other one.

The other one is on read.

Yeah, the fire was on Reed, I believe.

The one on Keshawaki, there was a fire today.

Oh, I'm sorry, I had the notes wrong on my thing.

I'll look up, I'll look up the other one in a minute.

Um then I guess I'm just the reason why I'm asking is I just want to know what's that time um can you give us a timeline?

I know I had a a property fire in my ward, and it just took a very long time to get that down and get that cleaned up.

And I as I drove past that Kishwaki location today, I noticed that there were people um looking and touching.

What's the if this is approved, which this have to go through another step, or can they clean it up now?

So the one that caught on fire was already approved for I mean, sorry, we were already moving through the demo process, which is why it's faster than like normally it wouldn't have been on the agenda right after the fire.

Is that what you're asking?

Yeah, I just want to yeah yeah, so it was already moving towards demo and then happened to have a fire this weekend.

Um right, so we were gonna it was on the agenda this week anyway, and then you call fire fire, yes.

Oh, okay.

Okay, thank you.

Any other questions?

All of this logato.

Thank you again for allowing me to ask a question.

Um Sarah is Ms.

Lace.

Uh, do we have a certain list out there that you can share with the priorities of those properties?

I know I have a ton of a couple uh properties that either one needs to be rehabbed or potentially just demolished.

And so I'd just like to to know if if we do have like a priority list from that perspective that you don't um if you want to just share, you know, by the ward, perfect, that'd be great.

But I think uh you know that'd be great.

Uh I did I know 1814 is in in my ward from that perspective, so um just you know I just would like to see if there is a priority, how can we and to uh Miss Prunti's question about you know, well, I have one in my my ward that you know I'd like to get you know potentially taken down because of a fire, whatever the case may be.

So just you know, if if there is great, if you could share that with us, that'd be great.

It doesn't, you know.

I I'll share whatever that we have.

Uh we do not have as long of a list as in in past years we had a list that we were working through all of the time.

Um the reality is with demolition right now, they're kind of few and far between.

We've created some good tools, first of all.

So especially with residential, um the land bank and other partners um have really been able to answer that.

But more importantly, when we are putting something up for a demo, we're you know, we have to do public notice and send out interested parties.

Most, I would say a majority are um getting objected to, and then having to go another step.

So it's it's a little more rare to get to the demo phase right now, but I can send out what we we do have noted and then what's been objected to and why we're not moving forward with them at this time.

Right.

Seeing no further questions, all those in favor of the demolitions approving the bid indicate by aye.

Aye, opposed, matter passes.

Item five is an award of bid for bituminous patching rebid to DPI construction, the estimated annual amount of 734,340 and 50 cents.

The contract is for one year with three possible uh annual extensions of funding sources, the water operating budget.

So motion to approve.

Any questions on this bid?

Seeing that all is a favorite indicated by aye.

Aye.

Opposed?

Matter passes.

Item six is an award of RFP for a third party administration of F LA leave management to seduct claims in an amount of three dollars and thirty-nine cents per employee per month for a total estimated admin amount of forty-four thousand fifteen dollars.

The crack contract is three years with two annual extensions.

The funding source is the human resources operating budget.

Is there a motion to approve?

Any questions or comments for staff?

Seeing that all is a favorite Nikki by aye.

Aye.

Opposed?

Matter passes.

Item seven is award of sole source contract for police communication radios and accessories to Motorola in amount of 169,464 dollars and twenty-four cents.

This is a one-time purchase.

The funding source is the police capital budget.

Is there a motion to approve?

Sorry.

Any questions or comments regarding the equipment?

Seeing not all is a favorite indicate by aye.

Aye.

Opposed?

Matter passes.

Item eight is a resolution authorizing the central services manager to execute a contract for natural gas supply.

So motion to approve resolution.

Any questions or comments for staff?

Seeing none, all those in favor to keep aye.

Aye.

Opposed?

Matter passes.

Is there a motion to adjourn?

All those in favor indicate aye?

This meeting is adjourned.