Moline aldermen will vote Tuesday on a development agreement with IH Mississippi Valley Credit Union for the construction of the credit union's new $26 million headquarters.
According to the city council's agenda, the city plans to sell the property at 2500 River Drive to IH Mississippi Valley Credit Union for $2.925 million. City documents show the payment includes upfront payment for certain public improvements, and Moline will provide a financial incentive in the form of TIF, or tax increment financing, rebates.
The credit union plans to redevelop the vacant land into an 80,000-square-foot office headquarters with a 300-space parking lot. Along with the building and parking lot will be landscaping, storm water utilities and public sidewalks along the right of way.
Credit union officials could not be reached for comment Friday. Both Ray Forsythe, the city's planning and development director, and Caitlin Russell of Russell Construction, which will build the project, said they had been asked to not discuss the project until Tuesday.
The proposed development will first be discussed at Renew Moline's Project Management Team, or PMT, meeting at 4:30 p.m. Tuesday followed by the Moline City Council meetings. All the meetings will be at Moline City Hall.
The property is located in an established TIF Redevelopment Project Area which is set to expire in 2036, the agreement said.
The city’s total incentive payment will be paid from the net incremental real estate tax generated by the project. IH Mississippi Valley will receive a TIF incentive payment of up to $3.9 million, or 15 percent of the $26 million project. The credit union also will be rebated for eligible TIF expenses, including site work up to $525,000 for a total incentive package of $4.425 million.
Russell Construction first revealed plans in May for a then unnamed company to build a new corporate headquarters on the vacant site adjacent to Western Illinois University on Moline's riverfront.
The proposed plan by the Davenport-based construction firm called for a modern headquarters on the eight-acre parcel, which is currently owned by the city. At the time, Caitlin Russell, the company's project developer, told the PMT that "The tenant wants to keep quiet for now."
Russell said Friday that the firm has been asked to not discuss the project until Tuesday's meetings.
City documents indicate that IH Mississippi Valley plans to have 220 employees working at the headquarters when it opens with the potential for up to 300 employees in the next 10 years.
IH Mississippi Valley now has corporate offices at 2121 47th St., Moline.
According to the credit union's 2016 annual report, it has more than $1 billion in assets and 109,545 members across its 42-county service area. It operates 17 branches in eastern Iowa and western Illinois, including seven in the metropolitan Quad-Cities.
Russell said back in May that the tenant expected to break ground in the spring 2018 and the building would be completed in 2019.
Also at that time, Forsythe told the PMT board that Russell Construction was the only company to respond to the city's request for proposal for a new master developer for the site. Under the proposal, the corporate headquarters would occupy the remainder of the former industrial property, he said.
"We had a lot of people call," he said, adding that he suspected that since the state's financial situation has slowed growth of the Western Illinois campus, other developers may have turned away.
The headquarters would replace plans that the city's previous master developer, Three Corners Development, had for the property. The Orland Park, Illinois-based developed had plans for a $100 million mixed-use project, that included student housing, a grocery store and other retail.
Forsythe said previously that Three Corners and the city could not come to an agreement on a parking deck. "Moline already has three parking decks and the city council couldn't see taking on the responsibility of a fourth parking deck," he said.
Three Corners did build the Mills at Riverbend Commons, a student housing and retail development, that will be adjacent to the credit union headquarters. It still owns adjacent property where it has had plans to build additional housing.