The city of Rochelle put out a request for proposals on Sept. 24, 2025, for developers interested in purchasing and building on the former site of Hickory Grove at 1127 N. Seventh St., City Manager Jeff Fiegenschuh said Oct. 15.

The Hickory Grove building demolition was completed in early 2021 and the land has been vacant since. The city assumed ownership of the deteriorating building in early 2020 for $1 with the intention of demolishing it and seeing development of the property.

The building was previously owned by the Ogle County Civic Center Authority board, which was under the Ogle County Board umbrella. The city decided to purchase the site so it could control it and likely would’ve had to deal with it later if it was abandoned due to OCCCA being in financial trouble.

Since the demolition and site clearing, the city has seen limited interest in the site and the city council rejected a formal proposal from one developer for a mixed-use development. The city also saw informal interest from a grocery store; that did not materialize.

Development proposals for the site are due to the city by Oct. 23 and the city council would make a final decision on a finalist in January or February, City Community Development Director Michelle Pease said.

Since the demolition, the city has worked with the Comfort Inn & Suites hotel and the Concord Towers condo association next door on a land swap agreement that was recently completed. The city acquired parking spaces, the condo association got access to a new garbage corral and the hotel received land for a pool.

The city also recently began work with the Illinois Department of Transportation on a stormwater detention area at the rear of the Hickory Grove property that will be part of the state’s upcoming Illinois Route 251 reconstruction and widening project.

With the footprint of the Hickory Grove property set, the city is moving forward with the RFP.

“I think the city council is ready to try to see if there is potential interest in the site,” Fiegenschuh said. “Within the last four months we were able to get the property completely replatted. The council wanted to see what kind of interest there is after getting all of that done. We’re optimistic we’ll be able to go forward with a project this time.

“The council has said it’s a marathon, not a sprint. They’re not going to take a project that they don’t think is a good fit for the community and that spot. Hopefully we have some good submissions that piques their interest and we can enter into an agreement. We’ll see.”

Pease said developers have shown recent interest in the property, some local and some from the region. A review team will consider the RFP submissions. The property is zoned B-2 highway commercial and the IDOT project will provide stormwater detention for a potential developer.

“Jeff and I have talked with several developers,” Pease said, “Some have proposed a mixed use where you would have commercial retail on the first floor and residential on the second floor. That’s the only way housing is allowed in B-2 highway commercial zoning. A couple of other developers have been restaurants that fit our demographics that would be supported within the region. That’s what we’ve heard so far.”

Pease said the Hickory Grove property resides within a high-traffic area in the city’s northern corridor, which is why she believes the business that eventually locates there will be successful. The property is in the city’s Northern Gateway tax increment financing (TIF) District, which will make some of an eventual project eligible for TIF funding and aid in future area development projects.

TIF districts generate funds when property values within them rise. The difference then goes into a fund that can be used for development agreements with businesses and infrastructure projects.

“Any property value improvement will be captured and put into our TIF funds to be used for development projects,” Pease said. “When something goes there, it will be a win-win because the value was previously zero because it was publicly owned when it was Hickory Grove. It will be back on the tax rolls.”

Fiegenschuh said the city will come to a TIF redevelopment agreement with a developer if the city council chooses a project for the site. TIF funds cannot be used for new construction costs, but they could go towards site development, utility extensions, parking lot work, detention work or interest on loans.

“I think the city made a very good decision buying that property and tearing Hickory Grove down and marketing it,” Fiegenschuh said. “OCCCA couldn’t keep it open and kept up and the council decided to take over the property and tear it down. Even if we don’t find a deal this time, what’s there now is better than what was there before.”

The city’s northern gateway has seen development in recent years, such as the addition of Benny’s Corner Market and the renovation and opening of Breakthru Beverage. With a possible developer for Hickory Grove and the Illinois Route 251 reconstruction and widening upcoming, the city is excited about the corridor’s prospects.

“In a few years, it’s going to look beautiful,” Fiegenschuh said. “There will be a pedestrian path and new ornamental lighting with our new banners. Hopefully that sparks interest from other businesses in the area to redevelop. We’ve had discussions with some of the businesses on Illinois Route 251 about redeveloping their properties. Hopefully we’ll see some of that and a new business next to the hotel and a lot of foot traffic.”