PEORIA SUSTAINABLE TECHNOLOGY PARK
Project Area
The City of Peoria, Peoria County and the Heartland Partnership have targeted an area in north central Peoria for acquisition and development of Peoria Sustainable Technology Park (PSTP). The entire area is located in census tracts 34.01 and is bordered by Illinois State Route 6 to the west and north, Allen Road to the east and an active railroad to the south. The site has easy access to Illinois Route 6 which connects directly to Interstate 74 and Interstate 474.
There are several contiguous tracts of land available for purchase ranging in size from 50 to 80 acres which make up the boundaries for PSTP. The Park has the potential to exceed 1200 acres in size and will easily accommodate future graduates of the Peoria NEXT Innovation
Center which was built, in part, with a $2,000,000 grant from EDA in 2004. The purpose of the Innovation Center is to cultivate high technology startup companies in Central Illinois. Other organizations that participated in planning and funding the Innovation Center include the Illinois Department of Commerce and Economic Opportunity, the City of Peoria, Caterpillar, Inc., Methodist Medical Center, National City Bank, Bradley University and the Heartland Partnership.
The City of Peoria has negotiated purchase prices for several of these tracts at or below fair market value due to the fact that land owners share the City’s vision for planned growth and economic diversification. A partial donation of land brings down the cost of land to government. Build out of Peoria Sustainable Technology Park has been planned in phases, with those parcels already fronting public roads developed first to minimize infrastructure costs. However, it will be necessary to extend utilities, roadways and the railroad in order to maximize the potential of the area.
The Project Area is ideally located within the City of Peoria’s Planned Growth Cell 2. The Growth Cells are large tracts of land located in the City of Peoria and Peoria County where, by governmental agreement, land use, infrastructure improvements and funding mechanisms have been planned and approved by both the City and County.
Project Region
The City of Peoria, with a population of 112,936, is located in Peoria County which is situated in Central Illinois along the Illinois River, midway between St. Louis and Chicago. It is part of the Peoria Metropolitan Area which has an estimated population of 365,000 people. The Peoria County area is excellent for logistics, with access to the river, rail, roads and an international airport. All four modes of transportation have been instrumental in the past and for future development.
The local interstate infrastructure in Peoria County is ideal for transporting products both east-west and north-south. Many trucking companies find the area ideal for distribution. Interstates within the County include I-74 and I-474. The area is exploring an eastern expansion of the I-474 bypass to continue the loop through Woodford and Tazewell Counties. This bypass would not only help alleviate traffic congestion along I-74, but would also better connect the eastern counties of Woodford County and Tazewell County to the Peoria County area.
The entire City of Peoria and surrounding communities will benefit from the creation of Peoria Sustainable Technology Park due to the fact that users in the Park will primarily be new industries creating new jobs. Below is a list of some companies and organizations that contributed to the creation of the Peoria NEXT Innovation Center and would benefit from the creation of Peoria Sustainable Technology Park:
The University of Illinois College of Medicine | National Center for Agricultural Utilization Research (NCAUR) |
Methodist Medical Center | Bradley University |
| OSF Saint Francis Medical Center | Caterpillar, Inc. |
| Proctor Community Hospital | Illinois Central College |
Komatsu American International Firefly Energy | Ameren-CILCO The Illinois Medical Center |
Need and Potential Economic Impact
The City of Peoria is the world headquarters of Caterpillar, Inc., a fortune 500 company that is the world’s largest manufacturer of construction and mining equipment, diesel and natural gas engines, and industrial gas turbines. Caterpillar has been severely impacted by the current economic downturn and has laid-off over 22,000 of their employees worldwide. In Peoria County the company has laid off 814 production workers beginning on February 23, 2009. Caterpillar has also laid off 1,669 employees in Tazewell County. Caterpillar is also planning two-one week layoffs in Tazewell County that will affect more than 1,200 employees. From the Caterpillar layoffs alone, this has caused the unemployment rate for the Peoria MSA to increase by 1.25%.
Caterpillar, Inc. is such an integral part of the nation’s economy that when President Obama visited the East Peoria Caterpillar plant on February 12, 2009 he stated ““Those 22,000 layoffs aren’t just a crisis for those families, or for the communities like Peoria and Decatur and Aurora — they are an urgent warning sign for America, because when a company as good and successful and efficient and lean and mean as Caterpillar is cutting back production and shedding jobs, that means we’re not building up this country”. (Peoria Journal Star, February 13, 2009)
The City of Peoria unemployment rate is currently 9.4%, which is higher than the State of Illinois at 9.3% and the national rate of 8.9% (numbers are not seasonally adjusted). In addition, the Central Illinois Workforce Development Board estimates that between July 2008 and March 2009 there have been a total of 6,685 displaced workers with 80% of those coming from manufacturing, engineering or logistics industries. Workers from these industries will be targeted for employment by companies locating in Peoria Sustainable Technology Park.
The Central Illinois economy is facing many challenges. Much of the region’s recent economic growth has been in trade, services, and other activities mainly catering to domestic markets. People and companies within Central Illinois have increasingly been producing goods and services for other people in Central Illinois. The area’s traditional export industries have suffered, creating the need to diversify even farther away from dependence on a few major employers and to develop new competitive advantages in industrial clusters that can and will profitably export goods and services to markets outside the region.
Peoria Sustainable Technology Park will help fill this industrial clustering need by retaining local startup companies and attracting companies from outside the region. The Park will incorporate green technology and sustainability with practices such as utilizing solar panels and wind turbines for power generation and reclaiming storm water for irrigation purposes.
There are several potential users for Peoria Sustainable Technology Park that would bring new jobs to the region. One such company is an established graduate of the Peoria NEXT initiative whose mission is “to bring the worldwide battery marketplace new levels of power, capacity and life at lower cost and lighter weight”. This company is in the process of evaluating several sites and various incentives being offered by multiple states. What they will provide is a 1,000,000 square foot building valued at $30,000,000 and the creation of 850 jobs. The City of Peoria is also in discussions with another prospective tenant which specializes in manufacturing wind turbines.
Comprehensive Economic Development Strategy (CEDS)
The development of Peoria Sustainable Technology Park satisfies many of the goals and objectives outlined in the Comprehensive Economic Development Strategy (CEDS) developed by the Economic Development Council for Central Illinois. The CEDS was updated in September of 2007 and includes Peoria, Tazewell, Mason, and Woodford Counties in Central Illinois. The CEDS identified 4 primary economic development goals that are vital for the success of the region. The Peoria Sustainable Technology Park project meets two of those goals: Goal 1 - Development of Targeted Industries, and Goal 2 – Infrastructure.
Goal One – Development of Targeted Industries
Promote activities and opportunities in ten targeted industries.
Industry: Technology Commercialization and Innovation and Specialized Manufacturing
Objectives:
Develop additional industrial/business parks and technology parks and the needed
infrastructure to accommodate private sector business growth support and develop
efforts to develop and improve green technologies foster improved intergovernmental
relationships and collaboration analyze ways to support new, existing and emerging
industries support existing businesses and encourage and expand opportunities for new
businesses pursue Federal, State and private grants and loans for business expansion
projects.
Industry: Intermodal logistics
Objectives:
Develop additional industrial/business parks and technology parks and the needed
infrastructure to accommodate private sector business growth support efforts to
construct digital quality power parks for high-tech companies requiring reliable, quality
power.
Industry: Healthcare Services
Objective:
Support efforts to construct digital quality power parks for high-tech companies requiring
reliable, quality power.
Industry: Energy
Objectives:
Support and develop efforts to develop and improve green technologies encourage and
support efforts to increase employment and diversify the regional economy through the
use of non-revenue producing structures as incubator facilities for start-up and early
stage businesses. Foster improved intergovernmental relationships and collaboration.
support and expand workforce training for expanding and emerging industries. Analyze
ways to support new, existing and emerging industries. Support existing businesses and
encourage and expand opportunities for new businesses. Assist communities in the
region to study and implement incentives which attract new business and diversify the
employment base. Pursue Federal, State and private grants and loans for business
expansion projects. Develop additional industrial/business parks and technology parks
and the needed infrastructure to accommodate private sector business growth.
Industry: Specialized Manufacturing
Objectives:
Support efforts to construct digital quality power parks for high-tech companies requiring
reliable, quality power. Develop additional industrial/business parks and technology
parks and the needed infrastructure to accommodate private sector business growth.
Support and develop efforts to develop and improve green technologies.
Goal Two - Infrastructure
Improve and/or upgrade the condition of infrastructure and transportation services in the region.
Objectives:
Construct and improve roads throughout the region to facilitate improved traffic flow and
business development. Improve rail services throughout the region bring infrastructure
and create facilities for new and expanding industrial and commercial enterprises.
The CEDS document also contains the Strategic Projects, Programs & Activities section which identifies a number of regional projects, programs and activities that are designed to implement the goals and objectives listed above. Of particular note are the projects entitled the “Construction of Digital Quality Power Park(s) and Technology Parks”, which is a real and tangible project that can be accomplished with the support of an EDA grant. In fact, the “Construction of Digital Quality Power Park(s) and Technology Parks” are identified in the CEDS as Vital Projects for the region, with potential future funding from the EDA.
Anticipated Costs
Peoria Sustainable Technology Park is unique in that it can be immediately developed on an available 60 acre parcel that fronts an existing public road. This allows the City of Peoria to react quickly to meet the needs of the previously mentioned company that is in a position to construct a facility and begin manufacturing in 2010. As users are identified additional land can be purchased to accommodate their specific needs. However, infrastructure improvements are necessary to maximize the potential of the Park. These items include the extension of Radnor and Townline Roads as well as the extension of Pioneer Parkway to create a direct connection to Illinois Route 6. Rail service will also need to be extended north into the Park. Below are cost estimates for these improvements and acquisition of the 60 acre parcel.
