Rockford backs $18.6M redevelopment of the Lafayette

City Council has approved a $650,000 forgivable loan to spur the $18.6 million redevelopment of the historic Lafayette Hotel, 411 Mulberry St. in downtown Rockford.

Gorman & Co. will use the HOME Investment Partnerships Program no-interest, 30-year loan to help finance the cost of turning the 1927 hotel into the 54-unit Lafayette Apartments. In exchange, Gorman promises to maintain a portion of the apartments as affordable housing for the duration of the loan.

It will feature studio and one-bedroom apartments along with ground-floor live-work spaces and community areas.

A vacant bar that faces North Church Street will be turned into community space. The building will be a mixture of market-rate and affordable apartments. Also under an agreement with the city, 10 apartments will be reserved as "project-based units" to provide stable housing for people experiencing homelessness.

Jeff Kolkey writes about government, economic development and other issues for the Rockford Register Star. He can be reached at (815) 987-1374, via email at jkolkey@rrstar.com and on Twitter @jeffkolkey.