Century Woods TIF
- Annika OMelia
- Jul 15
- 4 min read
A Cautionary Tale and Opportunity to Do Something Different
THE HISTORY
In 2018, the City of Rock Island created a TIF district surrounding the Century Woods housing development. You can read more about the history of Century Woods, formerly Arsenal Courts, here:
Once the TIF was created, Rock Island entered into an agreement with Millenia to redevelop Century Woods. A link to the original agreement is included here:
In summary, the agreement states that Millenia Housing Development, Ltd. will complete a $12 million investment to renovate and upgrade 230 income-restricted rental units. The city will reimburse up to $2.5 million of eligible expenses. The TIF expires December 31, 2042. The collected TIF funds are to be held in an account called "Mellenia Sub Account" and disbursed once a year with eligible receipts.
Millenia responsibilities include:
Acquire the property within 60 days of approval
Submit renovation plans within 30 days and begin construction promptly
Complete construction within 24 months of approval
Apply for occupancy certificates on all buildings
Additionally, they must provide community services:
After-school childcare
GED classes
English as a Second Language (ESL) classes
Citizenship classes
They must comply with:
City codes
Prevailing Wage Act
Ongoing maintenance and safety regulations
If Mellennia defaults, the city can terminate after a 30-day notice and opportunity to remedy the issues. The city is not obligated to pay beyond what's collected in incremental taxes and no reimbursement occurs unless all conditions are met and the city approves each claim.
The most recent report on the TIF shows that there is $1,020,192 in the fund balance and only $2,213 has been paid out in the TIF fund. You can read a copy of the most recent TIF report here:
RECENT DEVELOPMENTS
December 14, 2023, the Department of Housing and Urban Development gave notice to Millenia and their managing partner, Frank Sinito, that they were suspended and proposed debarment for five years from for the following:
$4.9 million in missing or misused funds
Violations of HUD Regulatory Agreements and Section 8 HAP contracts
Underfunded tenant security deposit accounts to the tune of $405,000
Unauthorized distributions/owner draws from project funds when cash was not available
In March of 2024, Millenia and Sinito were officially debarred from participating in any federally supported contracts, including Section 8 housing, for a period of five years.
Here is a copy of the filing: https://www.hud.gov/sites/dfiles/OCHCO/documents/DEC-CompDiv-24-2Q-NOS-PD-011.pdf
And the final judgment: https://www.hud.gov/sites/dfiles/OCHCO/documents/DEC-CompDiv-24-2Q-FD-010.pdf
Here is a news story about the developments:
And a picture of Sinito's house from the video:
CURRENT SITUATION
It appears that Millenia still technically owns Century Woods and that HUD may be working to assign the property management to related ownership entities. Given that Millenia has not met its obligations to Rock Island and has not upheld its side of the agreement, I assume that the Development Agreement is null and void or has already been cancelled. In this case, the $1 million plus in the TIF fund could go back to the general fund or be used to work with a new developer... OR could be used to do something entirely different that nobody has even thought of yet because their cities aren't as cool, innovative, or creative as Rock Island (my wheels are turning).
Residents at Century Woods tell me there is a new management company, Hayes Gibson, but do not seem to know about the issues with Millenia. Residents report there are issues with non-working fire & smoke detectors, pest/bug infestations with only once annual pest control services, confusion about bills, missing refunds on utility checks, and deteriorating building conditions. Residents do not recall there ever being a functioning community room with a working computer, daycare, GED classes or any of the items Millenia was supposed to provide. It has been 6 years since the project started.
Below you can view Century Woods' website, advertising 1 bedroom (595 sq. ft) apartments for $1,000/month. That is more than my family pays for the mortgage on our beautiful home in Rock Island each month (we bought when interest rates were historically low).
The way the HUD housing voucher program (Section 8 ) works is that a resident pays 30% of their income and the voucher makes up the difference up to a certain amount which is typically 90% - 110% of fair market rent. So, if fair market for a 1-bedroom in Rock Island is $750, for example, the resident will pay $225 and HUD will pay the landlord the $525 difference.
Residents are continuing to pay their portions of rent for subpar housing with code violations, safety issues, and questionable financial practices.
THE ASK
Help me find residents at Century Woods to tell their stories and to help make sure whatever comes next for this historic section of Rock Island is focused on making the lives of residents better, not developers.
If you live in Century Woods, please fill out this form:
There will be more to come on this topic. Stay tuned.
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