ROCKFORD — Hard Rock Casino Rockford has won the blessing of City Council and its proposal now moves on for consideration by the Illinois Gaming Board.

City Council on an 11-1 vote Monday certified Hard Rock International's $310 million proposal for a 65,000-square-foot casino, a Hard Rock Café and a 1,600-seat Hard Rock Live venue at the location of the former Clock Tower Resort on East State Street near the entrance to Interstate 90.

Although some aldermen believed it would be better to send more than one casino option to the state for consideration, City Council ultimately followed Mayor Tom McNamara's recommendation to send a single favored choice to state authorities for a final decision. Hard Rock was chosen over two other proposals.

Hard Rock International Chief Operating Officer Jon Lucas said company officials appreciate the support of the city and are determined to win over skeptics.

"We are putting together a first-class facility that will make the residents of Rockford, the City Council, and the mayor, very, very proud," Lucas said.

Alderwoman Linda McNeely provided the lone "no" vote. Alderman John Beck, R-12, abstained because his employer, the Rockford Park District, had endorsed the Hard Rock proposal. Alderwoman Ann Thompson-Kelly was absent.

McNeely said that all investors behind the project should be identified publicly and that she had hoped for more investment on the west side of the city in the agreement. Although as an alderman McNeely viewed a list of investors, the city has complied with a request from Hard Rock to keep it confidential and has refused to release the list publicly, denying a Rockford Register Star public records request.

"What's the secret? Why shouldn't they let it be known?" McNeely said. "I don't get that. They are coming and wanting to be part of the city and they need us, the taxpayers, in order to do that."

Aldermen also authorized McNamara and Legal Director Nicholas Meyer to execute a 109-page "host community agreement," that lays out the deal between the city and the Hard Rock. McNamara said the agreement represents the culmination of weeks of hard work.

"At the very end of all that hard work we have a $300 million-plus project, 2,000 jobs that are going to put people to work with good, solid livable wages, (it) helps put our tradesmen and women to work, and it brings a long-term annual revenue stream to the city of Rockford that will help us continue to fight back on property taxes, and help us invest in areas that long have needed investment."

Under the agreement, Hard Rock agrees to complete an $8.8 million transformation of Giovanni’s Restaurant & Convention Center, 610 N. Bell School Road, into a 21,000-square-foot temporary casino. It is expected to be completed within 90 days of winning a license from the Illinois Gaming Board. Hard Rock would pay the city a minimum of $1.8 million the first year of operations at the temporary location, or 15% of net income. Beyond the first year, Hard Rock would pay the city a minimum of $1 million or 5% of net temporary casino income annually.

Under the agreement, the company will:

• Guarantee the city $7 million annually in gaming tax revenue. If the city’s share of gaming tax revenue should fall below $7 million, the company would pay to close the gap. Negotiations over the guarantee could be reopened if a new casino opens within 50 miles, there’s an increase in gaming taxes or the number of video gaming terminals in the city increases more than 30%.

• Pay city casino impact fees of an additional 1% annually of its adjusted gross receipts — equal to revenue less winnings and certain promotional expenses — for the first two years of operations. Hard Rock would pay the city 0.5% of adjusted gross receipts annually for each ensuing year.

• Provide employee shuttle services from and to convenient city locations from and to the casino, employ 1,000 people, of which no fewer than 800 will be employed on a full-time basis with benefits, and comply with city goals for hiring women, minorities, veterans and persons with disabilities.

The casino impact funding will, according to the agreement, be used to support city police and fire services, for marketing and coordination with the Rockford Area Venues and Entertainment Authority, for operations of the Mayor’s Office of Domestic Violence and Human Trafficking Prevention, at least $150,000 annually to support economic development especially in at-risk or impoverished areas of the city, and to establish an 815 Hard Rock philanthropic foundation.

Jeff Kolkey: 815-987-1374; jkolkey@rrstar.com; @jeffkolkey

Hard Rock Host Community Agreement