Illinois EPA Director Announces $1 million Brownfields Loan to City of Sterling for Redevelopment

Sterling—Illinois Environmental Protection Agency Director Doug Scott joined state and local officials to announce the approval of a $1 million Illinois Brownfields Revolving Loan Fund award to the City of Sterling to mitigate asbestos contamination at the former Northwestern Steel and Wire Plant 1 site and ready it for redevelopment.  The abandoned 21-acre former steel mill is at 121 W. Wallace Street.

 

"The City of Sterling has successfully addressed brownfield cleanup and redevelopment issues on other portions of the sprawling 730-acre Northwestern Steel and Wire site," said Director Scott.  "We have worked closely with the city to investigate and clean up the site, and will continue to work with Sterling as they undertake the cleanup of Plant 1, one of the remaining and possibly most challenging parcels." 

 

The Brownfields loan will enable the City to continue the economic revitalization of the Sterling riverfront area in order to create employment and investment opportunities.   The City is currently developing a comprehensive vision for the sustainable development of the riverfront to promote new commercial and residential uses interwoven with green space and recreational activities. 

 

"The City of Sterling is thrilled to be moving forward with reclaiming our riverfront," said Mayor Amy Viering.  "We are very appreciative to the IEPA for their leadership and support with this project."  

 

The City of Sterling has lost more than 2,500 jobs over the past 10 years with the closing of several major industrial facilities.  Because of the economic challenges facing Sterling and the substantial equity commitment required by the City, the Agency's technical and financial assistance will provide substantial support the riverfront redevelopment.

 

The Illinois Brownfield Revolving Loan Fund, which is capitalized by grants to the Illinois EPA from US EPA, provides interest free loans to municipalities with brownfield sites and are committed to environmental cleanup. The City of Sterling has agreed to a 15-year repayment term and has committed funds anticipated from redevelopment of the site and TIF revenue. 

 

The Sterling loan is the tenth Illinois Brownfields Revolving Loan awarded.  Last year, the Agency awarded a $257,000 brownfield loan to the City of Rock Falls to conduct environmental cleanup activities at the former Reliant Fastener site, which is located across the Rock River from the former Northwester Steel and Wire Plant 1 site in Sterling.  The loan funded cleanup at the former Reliant Fastener site is expected to be completed this summer and the City is working with potential developers for the redevelopment of that riverfront site.

 

Brownfields redevelopment loans are awarded to Illinois municipalities for environmental cleanup of abandoned or underutilized properties in preparation for redevelopment, which leads to more jobs and increased tax revenue.