The Illinois Department of Commerce and Economic Opportunity approved Sterling’s River Edge Redevelopment Zone application, a major milestone that will help accelerate investment, redevelopment, and economic growth along the city’s riverfront and surrounding areas.

Sterling is the 11th city to be approved since the program’s inception, according to a news release from the city of Sterling.

Properties within the zone are eligible for state and local financial incentives for redevelopment and historic tax credits aimed at attracting private investment. The zone includes approximately 3.14 square miles of Sterling and includes key redevelopment sites along the Rock River. River Edge incentives include:

• Historic tax credits equal to 25% of qualified rehabilitation costs, non-competitive and uncapped, which can be combined with federal historic tax credits equal to 20%
• Sales tax exemption for building materials
• Property tax abatement for qualified multifamily, commercial and industrial developments
• New construction job credits of $500 per job created, applied to Illinois state income tax
• Dividend income deduction
• Interest income deduction

The designation complements Sterling’s ongoing riverfront initiatives to create new economic opportunities, including investments in new public amenities, parks, trails, and planning efforts to redevelop former industrial sites near the Rock River. These incentives are designed to reduce development costs make redevelopment projects more feasible.

“This designation is the catalyst we’ve been working toward and the missing piece that allows us to move forward with confidence,” Sterling Mayor Diana Merdian said. “With final approval of the DCEO River’s Edge designation, Sterling is now positioned to accelerate our $300 million riverfront redevelopment into high gear. This milestone not only unlocks critical incentives but it signals to developers, investors, and our community that this project is real, it’s ready and it’s happening.

“We are transforming our riverfront and our city into a destination that will drive economic growth, create jobs, and enhance quality of life for generations to come.”

The River Edge Redevelopment Zone program was established under the River Edge Redevelopment Zone Act in 2006 to revive environmentally challenged properties, stimulate economic revitalization and create jobs in communities along Illinois rivers.