MercyRockford Health Systems and Rockford Mayor Larry Morrissey have reached an agreement on permit fees and specific development projects to allow a proposed $485 million medical campus to move forward.
The city announced Thursday that MercyRockford President and CEO Javon Bea and Morrissey agreed on terms for the City of Rockford to annex the 263-acre site at I-90 and Riverside Boulevard.
In exchange for reduced permit fees and sales tax rebates in an enterprise zone from the city, MercyRockford agreed to construction of a hotel of no fewer than 80 rooms and development of an additional 40 acres of land for retail business, bringing the total retail development acreage to 60 acres of the site.
Morrissey says the agreement will be good for Rockford financially.
"The economic impact study [on the project] anticipates millions of dollars of annual positive economic impact," Morrissey said.
If the Rockford City Council approves the agreement on Monday, MercyRockford can begin construction of its new hospital and medical campus. Groundbreaking is anticipated later this month with plans to open the hospital campus in 2019.
“We are very excited to have reached an agreement and to move forward on our East Riverside Campus Hospital project, as well as future hotel and retail developments,” said Bea in a news release. “Today’s decision brings us one step closer to breaking ground on the largest project in Rockford’s history.”
Morrissey called the agreement a “big win” for MercyRockford and the Rockford region.
“We very much appreciate their commitment to Rockford through their investment,” the mayor said in the release, “not only at Riverside and I-90, but at the Rockton medical campus as well.”
Morrissey says he's proud of the agreement that the city and health system reached.
"It was very challenging negotiations, but ultimately we know it'll be a great partner that we'll move forward with and look forward to a lot of great opportunity in the future," Morrissey said.
Morrissey said he will recommend the agreement to the Rockford City Council at its meeting Monday.