Tuesday, March 31, 2009

Peoria Technology Park


PLAN TO BRING MAJOR HIGH TECH MANUFACTURING FACILITY TO PEORIA

We have interest in major companies prepared to develop new high tech manufacturing facilities in the region. One company plans a 1,000,000 square foot building on 60 acres, employing 850 workers. Another company proposes a major facility with as many as 300 employees.

The large company is receiving numerous proposals from Michigan, Ohio, California and Illinois. It is likely that they will get numerous incentives, with a free or very low cost site and infrastructure.

Peoria has shown them a number of locations in and near the city. They are interested in a site in the Growth Cell.

We are getting proposals from land owners who would sell and gift a site to the City or County. This would lower the cost as a result of the tax donation, and also would bring significant State and Federal assistance in constructing the Pioneer Parkway extension and the new interchange.

1. The City/County work with landowners to get an option on the real estate - $3,000,000 + -

2. City/County requests the State extend the life of Enterprise Zone, which now ends in 2013

3. City and County assist in obtaining Federal and State incentive, grants, & stimulus

4. City and County ask Dunlap School District and Kickapoo Township to join Enterprise Zone

5. Area governments requested to consider a longer property tax abatement to close the deal

6. Request substantial Federal and State assistance in infrastructure and development costs



Plan for Technology Park


Plan for Technology Park

High Tech Manufacturing Facility to Peoria

A high tech company is considering a Peoria location for a 1,000,000 square foot building which would cost $30,000,000 plus equipment. They require 60 acres and would hire 850 employees. The company has Peoria connections and would like a Peoria site, but have numerous offers from other States and locations. They are being offered free or very low cost sites, plus large tax credits from the State of Michigan and other Illinois locations.

City and County staff and the company are considering a number of potential sites.  We have identified 9 alternate sites, and are getting prices for acquisition and improvements. We have prices for four sites to date.  The sites range from $3,000,000 to $10,000,000 for acquisition.  The lower cost sites involve a partial sale and donation, and seller will provide terms to roughly match the Enterprise Zone revenue.

The City/County would acquire the site, and pay for the site with Enterprise Zone incentives. Staff estimate that if the Dunlap School District and the Township participate, the Enterprise Zone will generate about $2,400,000 over the remaining life of the Zone (Ends in 2013, payable in 2014).  The Enterprise Zone may be extended by the State to provide a 5 year abatement generating $3,000,000. If Dunlap does not participate revenues drop by about 50%

Mayor Ardis has submitted letters to Federal and State officials asking for assistance for infrastructure to support the development. Formal grant submittals are currently being prepared by staff and will be submitted shortly.

Plan

County and City acquire site, give to Comapny

SSA created, revenue pays for some or all of acquisition cost

Federal and State stimulus grant pays for public improvements

State assists with State programs

State asked to consider matching Michigan Tax Credit program

City constructs improvements



Meeting Notes

Technology Park Task Force
Plan To Attract New High Tech Manufacturing Facility to the Growth Cell
Monday 30 March 2009 at 11:00 am
Fire Station 1 at 505 NE Monroe
Meeting Notes
Members Present:

Jim McConoughey EDC
Vicki Clark EDC
Ryan Spain EDC
Sally Hanley EDC
John Whalen State DCEO
Scott Sorrel Peoria County
Jane Gerdes COP PW
Pat Landes COP PGM
Rachael Parker COP ED
Bobby Gray COP ED
Susan Schlupp COP ED
Craig Hullinger COP ED

1. Introductions

2. Summary of actions to date – Hullinger summarized actions taken to date. We know that we have a chance to attract a high tech company to Peoria that would construct a million square foot building that would have a market value of approximately $30,000,000 plus equipment and hire 850 employees. This company is sought after by a number of other areas, including Michigan, Ohio, California, and other locations in Illinois. The City has shown the business a number of sites. They prefer a Growth Cell site near Route 6 and Allen Road, if the site can be made free or low cost to match offers being made by other States and areas.

3. Site Options – Hullinger showed the company a number of sites within or near the City. They prefer a growth cell site with convenient access to Route 6. The City has identified 7 potential sites that would access Route 6 via Allen Road and Townline Road, and/or Walton, with a secondary access from Radnor Road. Each site has varying costs and benefits.

4. Land Costs - Three of these sites could be acquired by the City or County government with a purchase / donation from the owner for $50,000 per acre. The two available sixty acre sites would cost $3,000,000, with the remaining approximately 55 acre site $2,750,000. We do not yet have prices for the other potential sites. The infrastructure costs for the other sites are higher.

5. Planning & Zoning – Pat Landes noted that depending on the actual uses within the facility, it may require a special use permit. She thought that planning and zoning approval can be obtained for the site.

6. Incentives - Enterprise Zone, Longer Abatement agreements. Craig Hullinger and Susan Schlupp will set up meetings with the Dunlap School District, Kickapoo and Radner Township so that we can propose that they join in the Enterprise Zone and provide Property Tax abatement. The Enterprise Zone only runs for 4 more years. We are asking the State to extend the Enterprise Zone to reauthorize and extend the Zone so we can get the full 5 year abatement. We will also convene the JRB with Dunlap and Kickapoo and Radner Township present to discuss the possibility of a longer abatement agreement. Depending on infrastructure costs, we may ask for 6 or 7 or 8 or 9 years of abatement if that would be required to pay for infrastructure and land costs.

7. Enterprise Zone Expansion - Rachael Parker will get started on the expansion of the Enterprise Zone. We will annex everything that is in the City but not yet in the Enterprise Zone. And we will prepare to annex unincorporated ground if we can get a very good price on a site that is not yet annexed.

8. The Enterprise Zone would generate nearly $3,000,000 if the Dunlap School District and the Township joins and if the State approves the extension of the Enterprise Zone – at present it will end in 2014. The $3,000,000 in revenue could be used to purchase the site, and/or as the local match for

9. Potential Stimulus Grants, Federal and State - Bobby Gray will work with the EDC to apply for grants from the Federal and State to help pay for infrastructure and land acquisition costs. The stimulus bill is creating several possible paths for assistance. EDC has a data base developed for these grants, and will assist in applying for these grants.

10 . State assistance for road, utility, and rail extensions – John Whalen will work with State DOT to determine the amount of help they can provide for road and rail extensions. He will contact the personnel at IDOT to determine current assistance levels.

11. Infrastructure costs – Jane Gerdes and PW will calculate infrastructure costs for the alternate sites, including estimated costs for road, utility, and rail extensions for alternative sites.

11. Free Trade Zone – the EDC will fill out the required paperwork to designate the area as a FTZ. We will seek for all business in the area to be part of the FTZ.

12. Next meeting – the group agreed to meet in two weeks on Monday April 13, 2009 at 11:00 am at Fire Station 1 to report progress.

Meeting Notes

PEORIA TECHNOLOGY PARK

Sustainable Development

The City of Peoria and sister governments plan the development of the Peoria Technology Park, which will be the home of innovative companies originated in the area. The Park is a 1200 acre high tech office and industrial technology park, located on a new interchange on Route 6 just north of I-74 in the City of Peoria, Illinois.


TECHNOLOGY PARK GUIDELINES

The park shall use with “green” sustainable infrastructure

Storm water detention and wetland preservation will be built into the park

Solar and wind energy are permitted and encouraged

High quality aesthetics and natural landscaping will be utilized

Green tech industries will be attracted

The site will be annexed to the Enterprise Zone

A new a full interchange on to Route 6 and a new major east west road are planned

Name the Park, Interchange, and east west road after the Anchor Tennant



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