Council designates Kankakee River Edge Development Zone to support downtown housing and redevelopment

The Kankakee City Council Monday adopted an ordinance designating a Kankakee River Edge Development Zone and authorized staff to submit the designation to the State of Illinois to secure incentive tools for redevelopment, including residential projects downtown.

Council members described the zone as a tool to support the downtown market-rate housing and riverfront redevelopment by providing incentives similar to enterprise or redevelopment zones. Mayor and council notes indicated this zone will be a tool alongside other local enterprise zones; city officials said they had confirmation the state will permit incentives to be used for residential construction within this zone, which city leaders said was important for downtown housing feasibility.

The council voted to suspend the rules and place the ordinance on final reading the same night; suspension and final reading each passed unanimously, 13–0. Staff said the designation will be submitted to the Illinois Department of Commerce and Economic Opportunity and other state agencies to obtain formal state designation and enable the incentive package described in the ordinance.

Council members emphasized the designation is a required step for a private downtown development to proceed; staff said developers for Jefferson-related downtown projects count on this tool before beginning construction.

No procedural or financial commitments beyond the ordinance were taken at the meeting; staff said additional hearings and state approvals remain. The council’s affirmative vote allows city administrators to proceed with the state submission process.