Pritzker’s signature next step in Sterling’s bid to land millions in Riverfront Reimagined investment

STERLING – Sterling is one step closer to receiving a designation that could provide up to $50 million in tax incentives for economic development work the city already has started along its riverfront.

ExpandAutoplay

Image 1 of 5

Sterling is close to a designation that could provide a tax incentive on Riverfront Park. Construction is underway Wednesday, June 4, 2025. (Alex T. Paschal)

Sterling Mayor Diana Merdian told Shaw Local that although House Bill 1919, which the city’s lobbyist, Matt Hughes of MRH Solutions, advocated for earlier this year, did not pass its third reading in the Illinois Senate, its language has been included as part of the state’s omnibus budget package, House Bill 2755.

The state’s fiscal 2026 budget comprises three components: the state operating budget, a budget implementation bill and the revenue omnibus bill. The Illinois House and Senate on Saturday, May 31, approved all three bills just hours before the midnight deadline for the end of the spring session.

The Illinois House approved HB 2755 with a vote of 71-43, followed by the Senate’s approval with a vote of 31-25. The bill is now headed to Gov. JB Pritzker for approval.

In a news release issued by Pritzker on Sunday, June 1, he indicated that he intends to sign the state budget before the fiscal year begins Tuesday, July 1. Once the state’s budget is signed, Sterling officially will receive the River Edge Redevelopment Zone designation.

“The passage of the fiscal 2026 balanced budget is a testament to Illinois’ fiscal responsibility,” Pritzker said. “Even in the face of [President Donald] Trump and congressional Republicans stalling the national economy, our state budget delivers for working families without raising their taxes while protecting the progress we are making for our long-term fiscal health.

“I’m grateful to [House] Speaker [Chris] Welch, [Senate] President [Don] Harmon, the budget teams, and all the legislators and stakeholders who collaborated to shape and pass this legislation. I look forward to signing my seventh balanced budget in a row and continuing to build a stronger Illinois.”

According to the Department of Commerce and Economic Opportunity, once a city is designated, certain areas are allocated as a “River Edge Redevelopment Zone.” The RERZ program provides investors and municipalities that are eligible with several tax incentives, including property tax abatements and sales tax exemptions.

In Sterling’s case, it would assist in redevelopment along the Rock River. Merdian said that without the designation and those tax incentives, the city’s riverfront redevelopment work would be almost “impossible” to complete.

“I have been working to secure this designation for nearly my entire term, and I know a lot of people did not think it would be possible,” Merdian said. “It wasn’t easy, but one of the things we do here is we work hard to do what’s best for this community.”

Merdian said once Pritzker signs the bill, the city will need to fill out an application with the Department of Commerce and Economic Opportunity.

“That is, we have to have a map, we have to have a public hearing,” Merdian said. “We have to have the ordinance, or the information that stays up for so many days, and we have to have everything on the national registry.”

Hughes lobbied for both HB 1919 and Senate Bill 1309 as part of his strategy to help Sterling secure its designation. Merdian and Hughes recruited help from Rep. Maurice West, D-Rockford, and Sen. Michael Halpin, D-Rock Island, who filed the bills in January.

In February, Hughes advised the Sterling City Council that both bills needed to advance out of committee by March 21 and pass both chambers by April 11.

The city of Alton was later added to the legislation, following recommendations from West. Merdian told Sterling’s Riverfront Reimagined Commission on April 2 that the bill had cleared both subcommittees and was likely to be wrapped into the state’s budget package, “where similar bills go.”

Among the “nay” votes for HB 2755 were state Reps. Brad Fritts, R-Dixon; Tony McCombie, R-Savanna; and Amy Elik, R-Alton – all of whom co-sponsored HB 1919. State Sen. Li Arellano Jr., R-Dixon, who co-sponsored Senate Bill 1309 – Sterling’s backup bill should HB 1919 fail – also voted against HB 2755.

Shaw Local reached out to each of them for comment.

“I was chief co-sponsor on HB 1919 because it directly affected a community in my district, Alton, which was added to the bill as another Redevelopment Zone community,” Elik said when responding to Shaw Local’s request for comment. “The bill that passed both chambers, which I voted against, HB 2755, eventually included language for Alton and Sterling, but also raised taxes by nearly $1 billion, and I have promised my constituents I would not vote for a tax increase.

“In the waning hours of session, we often see omnibus bills that include language from many other bills, and although I support the language in the much smaller and more concise HB 1919, I could not support the massive tax increases in the significantly larger HB 2755, which will hurt communities across my district and the state.”

Fritts provided Shaw Local with the following response: “It’s simple. I voted against HB 2755 because it was not just granting the city of Sterling’s River Edge designation, but it was the entire fiscal 2026 revenue package with multiple tax increases. I would have proudly voted yes if this designation was in its own bill, like the originally filed HB 1919. Because of this deceptive tactic utilized by the majority party, I stood united alongside my state senator, Li Arellano, and voted no without hesitation.

“Let me be clear: I will not vote in favor of a tax increase on the hardworking men and women of my district, even if that means also voting no on a local project that was shoved into an over 1,000-page bill. The process of putting multiple bills into one has to stop. It’s just bad governance, and the people of Illinois deserve better.”

McCombie, who is House minority leader, agreed with Fritts in her budget vote response.

“Speaker Welch said the quiet part out loud: tax-and-spend Democrats are thriving in Illinois … at the expense of Illinois families," she wrote. “Rather than pursuing meaningful structural reforms to secure our state’s future, Democrats chose to prioritize politician pay raises, steal from the rainy-day fund, and funnel money into their own pork projects.”

Arellano issued his response Sunday.

“Illinois Democrats have just rammed through the largest and most reckless budget in our state’s history: over $55 billion in spending, passed with zero transparency, minimal debate and no regard for the taxpayers who are footing the bill,” he wrote. “This isn’t leadership. It’s political corruption, plain and simple, snuck in during a midnight vote.

“To make matters worse, they’re hitting working families with nearly a billion dollars in new taxes. Democrats keep demanding more from you while delivering less. Less public safety. Fewer job opportunities. Less economic growth.

“This budget is not just bloated, it’s dishonest and irresponsible. It’s a slap in the face to the very people who keep this state afloat. I voted no because I refuse to stand by while one-party rule continues to drain our state to prop up its political machine.”