Kone Centre will 'most definitely' move forward, developer says

Plans to build the 18-story Kone Centre in downtown Moline will “most definitely” move forward, developer Rodney Blackwell said Wednesday.Aldermen doubted the project’s future when Blackwell failed to appear at a Committee-of-the-Whole meeting Tuesday night to answer questions about his finances and give an update.Blackwell said he planned to issue a joint statement on the project’s status with Kone, the elevator company that’s expected to move its headquarters into the proposed building at 17th Street and River Drive, and Renew Moline, either Wednesday or today. No statement was received Wednesday.Blackwell would not detail what the statement will address but said it will be “very positive.” He referred further questions until after the statement is released.Ray Forsythe, Moline’s economic development director, said Blackwell contacted Lew Steinbrecher, the city administrator, Wednesday morning and plans to meet with city staff and attend next week’s City Council meeting where the agreement could be revisited.“Rodney has committed to getting the information that we need,” he said. “We’ll be getting together by the end of the week to review everything.”A Kone official said the company is still committed to moving into the new tower. “We’re working directly with Rodney and we’re continuing to go forward with the project,” Kurt Stepaniak, Kone’s senior vice president of law and business development, said Wednesday afternoon.The City Council took no action Tuesday on an agreement with Blackwell and Financial District Properties K.P. that would give the developer a 90 percent rebate on new property taxes generated by the project, which equals $17.5 million over 23 years.The city plans to create a new tax increment financing district for the area around the proposed tower, replacing an old district that expires in 2021, Forsythe said. The project needs a 23-year TIF district to support the rebate.In December, the city council agreed to sell $7.5 million in bonds to fund a loan to Blackwell, managing principal of Financial District Properties K.P., so he could purchase downtown buildings owned by Kone. Kone will then lease space in Blackwell’s tower. Kone will lease back its property from Blackwell while the new tower is being built.Alderwoman Dorothy Armstrong, Ward 7, said Blackwell called her Wednesday morning and said he was going to sign the lease with Kone Wednesday. The discussion left Armstrong feeling more optimistic about the project’s future.“You get those leases signed and let’s move forward,” Armstrong remarked.Armstrong wants to see a breakdown of Blackwell’s finances before a final decision is made by the council.“We’ve got to see the pro forma for that piece of property downtown or you don’t get it done,” Armstrong said. “If we get the pro forma and lease agreement, chances are we’ll pass it.”Armstrong said Blackwell told her he didn’t attend Tuesday’s meeting because he didn’t know the agreement was going to be discussed.