The historic Button Building in downtown Aledo will be sold to Zook Investments, Inc for $233,488.
Aledo alderman on Monday voted to waive the second reading of the ordinance, sealing a deal that has been the subject of closed sessions for several meetings.
"I commend the council on its fact gathering, its efforts and time spent on this matter," Mayor Bill Breeden said after the vote. "A lot of thought went into the planning to make this happen."
Ald. Tab Balmer, who often has criticized tax increment financing loans and grants, said he was pleased with the outcome.
"It's the right thing to do for Aledo," Mr. Balmer said.
Don Zook, president of Zook Investments, said plans include for the three businesses in the building -- Vintage Button, the Liberty Station restaurant and a delicatessen -- to remain.
"I feel optimistic about the business," he said. "Closing the businesses there would impact the city. All make a contribution to bringing the people downtown."
The city bought the landmark building at 101 N. College Ave. from the Button House Development for $200,000. To facilitate the sale, Black Hawk State Bank will release the mortgage for less than is owed, said city attorney Mark Walton.
The $233,488 purchase price includes an additional amount of TIF incentives owed by the Button House Development Group
The council also will be asked to approve a redevelopment loan of $283,000, of which $170,000 will be a forgivable loan as long as there are retail businesses in the building. The remaining $113,000 is a "straight" loan to be repaid in monthly installments over 9.5 years.
Mr. Walton said all obligations are secured by a mortgage, allowing the city to foreclose if payments are not made or if Mr. Zook fails to maintain retail businesses in the building for more than six months.
The council also agreed to issue Mr. Zook the remainder of a 2008 TIF forgivable loan of $66,391 for property on Main Street.
In other business, alderman approved TIF grant applications for two buildings owned by Aledo Welding Enterprises, Inc. Both grants fall under the building code and life safety upgrade program and will cover 50 percent of the cost of improvements, up to $25,000.
Council members also approved spending $5,000 for a billboard advertising campaign to generate interest in Aledo's three main activities: Rhubarb Fest, the Mercer County Fair and Antique Days.
Economic development committee member John Hoscheidt said the billboard will be up for four months starting in May, either on Interstate 280 near Jumer's Casino or on U.S. 67 south of Milan.
In other matters, city economic development coordinator Kathy Albert reported Ameren Illinois has rejected the city's request that it participate in a utility subsidy.
"It's disappointing to learn," she said. "After eight weeks of corresponding with the company, they have decided not to participate."
Mayor Breeden said he met last week with Ameren representatives about four issues and the letter came as a surprise.
"I was semi-promised I would hear back from there about those issues," he said. "The only reply was the rejection letter."
Aldermen on Monday also approved requests for road closing for the April 27 Healthy Kids Day event; the June 7 and 8 Rhubarb Festival and a June 8 Alley Art event.
Today is Wednesday, April 23, the 113th day of 2014. There are 252 days left in the year.
1864 — 150 years ago: Some persons are negotiating for 80 feet of ground on Illinois Street with a view of erecting four stores thereon. It would serve a better purpose if the money was invested in neat tenement houses. 1889 — 125 years ago: The Central station, car house and stables of the Moline-Rock Island Horse Railway line of the Holmes syndicate, together with 15 cars and 42 head of horses, were destroyed by fire. The loss was at $15,000. 1914 — 100 years ago: Vera Cruz, Mexico, after a day and night of resistance to American forces, gradually ceased opposition. The American forces took complete control of the city. 1939 — 75 years ago: Dr. R. Bruce Collins was reelected for a second term as president of the Lower Rock Island County Tuberculosis Association. 1964 — 50 years ago: Work is scheduled to begin this summer on construction of a new men's residence complex and an addition to the dining facilities at Westerlin Hall at Augustana College. 1989 — 25 years ago: Special Olympics competitors were triple winners at Rock Island High School Saturday. The participants vanquished the rain that fell during the competition, and some won their events; but most important, they triumphed over their own disabilities.