Plans to transform the former National Manufacturing basin building in Sterling into what could become northwestern Illinois’ largest indoor entertainment complex have been put on hold.

During a Riverfront Commission meeting Thursday, Oct. 16, Ron Clewer of developer Gorman & Co. said discussions on JCB Investments’ proposed entertainment complex at 201 Locust St. are on hold until spring 2026 after project partners cited high interest rates and other financial challenges as obstacles to moving forward this year.

Representatives added that the time of the year and personal work obligations of the partners contributed to the decision, and discussions on the project will not resume until spring. The delay also puts the timeline for the second phase – originally planned for fall 2027 – in question.

The yet-to-be-named venue would be a “one-stop shop” of year-round family-friendly entertainment, including on-site food courts, a brewery, a winery, 20,000 square feet of games, including bocce ball and pickleball courts, a boutique bowling alley, virtual-reality video games, an indoor electric go-kart track and more.

JCB CFO John Moore has said the center could create 60 to 100 jobs, attract about 200,000 visitors annually and generate at least $200,000 in city tax revenue each year.

During a Sterling City Council meeting Aug. 18, JCB Chief Visionary Officer Colby Snyder asked the council for a resolution of approval, authorization to enter into a development agreement, and eventual zoning and permit approvals. No action was taken during the meeting and the resolution has yet to be introduced and voted on. At the time, Snyder said the company hoped to hold a groundbreaking in early October, with a target opening in fall 2026.

Snyder told council members that the group had contracted with an engineering firm to conduct site measurements and feasibility studies for the 59,800-square-foot space planned for redevelopment. Early studies gave the project a 96% probability of success, citing strong financial backing, traffic flow at the site, and the absence of a similar facility within 70 miles.

Since submitting its redevelopment plan, Snyder said JCB has worked with the Sterling Fire Department, code enforcement officials and local sprinkler technicians to assess fire safety needs. Portions of the building have an older sprinkler system from 1976, while other areas will require all-new fire protection and smoke alarm systems. He said competitive bids are being sought to bring the entire property up to code.

Snyder said the company has already begun the first steps toward construction, with contractors touring the property and preparing bids for the initial phase of work. That stage will focus on essential structural repairs – including concrete reinforcement, building stabilization and roof improvements – all necessary to secure the aging facility. He said JCB expected to receive the bids in September.

He said financing for the first round of construction has been secured, with additional funding to follow city approval.

JCB has also started legal work to separate the four-story portion of the property and an adjacent parking lot from the parcel it intends to redevelop. Title searches and survey work are underway, and Snyder said attorneys will coordinate with the city on easements, including access to West Second Street and utilities.

The project’s initial phase would take place over a period of 12 to 14 months and would include the construction of a 4,000-square-foot microbrewery with a 15,000-barrel capacity.

Other details for the phase one opening would include a 4,000-square-foot bistro and food hall featuring six to eight kitchens or units that could be subleased to vendors or private chefs, and a 20,000-square-foot gaming space, including full-size bocce ball courts, ax-throwing pits, billiard tables, dart boards, pickleball courts, ping pong, shuffleboard, giant adult games, air hockey, foosball, indoor parking and more.

Phase two, initially proposed to be slated in the fall of 2027, would expand the center to include the construction of a small boutique bowling alley, mini golf, a virtual-reality zone, a lounge and an indoor electric go-kart track.