RockValleyGollege

OFFICE OF Tl.IE PRESIDENT

Douglos J. Jensen, Ed.D.
President

October 11,2019

VIA U.S. MAIL AND ELECTRONIC MAIL

City of Rockford Rockford Local Development Corporation

Attn: Todd Cagnoni Attn: John Phelps
City Administrator Executive Director
425 E. State Street 120 West State Street, Suite 306
Rockford, lllinois 61104 Rockford, lllinois 61 101
Todd. Caq noni@rockfordil. qov iohn@rldc.us

Re: Colman Village - Phase I Development Agreement

Dear Mr. Cagnoni and Mr. Phelps:

On behalf of the Board of Trustees of Rock Valley College ("RVC") and its administrators, I would
like to thank you personally for your work to develop the Colman Village project and involving
RVC in the proposed development. We understand and appreciate that the community has shown
great interest and excitement with respect to the project and the possibility of RVC having a
presence in the form of an Advanced Technology Center. RVC trustees and administrators have
shared that interest and excitement dating back as far as 2014.

Unfortunately, at this time we do not see a viable financial plan or master development plan in
place for the project. Based on the September 10,2018 RVC Committee of the Whole meeting
minutes, when the City of Rockford ("City") and Rockford Local Development Corporation
("RLDC') presented the project the proposal called for securing tax credits during the spring of
2019, beginning construction during the summer of 2019, and completing the project in the
summer of 2020. However, RLDC and the City were unable to secure tax credits this year and,
based on our recent conversations, it is possible that the parties will not be able to confirm funding
until the fall/winter of 2020. Assuming the project did receive the necessary funding, this would of
course further delay completion of construction until at least 2022.

ln addition to the concerns about whether the City and RLDC will receive the funding and the
timing of the project, RVC has significant concerns about the increases in scope and cost of the
project. As you are aware, the Colman Village - Phase I Development Agreement ("Agreement")
required RVC to commit to approximately $9,200,000 in an equity contribution forthe construction
of the Advanced Technology Center. The Agreement also requires RVC to pay RLDC for certain
operating and maintenance expenses which shall be specified in a twenty year lease agreement
to be negotiated at a later date. Based on your presentation during the August 12,2019 RVC
Committee of the Whole Meeting and our September 27, 2019 teleconference, and projected
financial documents shared during that discussion, RVC has significant doubts that it will be able
to enter into a lease agreement due to significant increases in projected rent costs.

ln summary, RVC has significant concerns about RLDC and the City's inability to obtain financing
this year, whether they will be able to obtain sufficient financing in the future, when the project will

330'l N.MulfordRood,Rockford,lL6lll4-5699 | Phone,(8.l5)921-4001 I Fox:(815)921-4005 | Emoil:DJensen@RockVolleyCollege.edu

 Todd Cagnoni
John Phelps
October 11,2019
Page2

be completed, and whether RVC will be able to enter into a reasonable lease agreement with
RLDC. We have not seen evidence that the financing will be sufficient or in place in time to deliver
an Advanced Technology Center to this community that needs these skills and training now. Due
to the uncertainties surrounding financing of the project, RVC has made the decision to secure
an alternative site for the Advanced Technology Center. As a result, RVC hereby terminates the
Agreement in accordance with Section Vl.C. of the Agreement.

RVC again thanks you for the opportunity and attempt to develop the project, and hopes that it
can partner with the City and RLDC for future viable projects to continue to develop and grow the
greater Rockford region.

Sincerely,

Vlluev Cor-lece

Douglas J n, Ed.D
President

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