City of Moline will acquire RiverStation Building

The City of Moline will enter into an asset purchase agreement with Kaizen Company of America, LC, and RiverStation on Bass Street, LLC, for the acquisition of a commercial retail/office building at 1601 River Drive in downtown Moline, according to a news release from the City of Molikne. The building commonly is known as the RiverStation Building.

The city will acquire the building, which is about 42,000-square-feet, for $1.65 million. Existing tenants will remain in place and continue operating under their current lease agreements.

Built by Kaizen in 2005 at a total development cost of $7.2 million, the RiverStation Building operates on the site through a ground lease on city-owned land. The building has been the subject of litigation for the past several years concerning contractual obligations related to the ground lease and development agreement.

The acquisition of the building by the city allows the city to own an important asset in the downtown core at a favorable cost basis, revitalize the building and surrounding area with increased commercial tenancy, support the city’s planned adjacent redevelopment of the riverfront and bring resolution to the city’s claim at a fair settlement of the legal matter for all parties.

“City officials are pleased with the spirit of collaboration among all involved parties and the resulting outcome that will lead to this building reaching its full potential for downtown Moline,” the release says. .

The asset purchase agreement was presented to the Moline City Council for consideration at its Tuesday, June 9, Committee-of-the-Whole meeting, with final approval scheduled for the June 23 city council meeting. Closing on the property is anticipated for late June.

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