New $40 million business park could spark major industrial growth for Peoria
Major infrastructure developments that include a $40 million business park could be coming to Peoria as new tax-increment financing district on Galena Road Industrial Park moved one step closer to fruition this week.
City officials are hoping to establish the Galena Road Industrial Park TIF in Peoria and spur major industrial and business growth in the area. The district would encompass a chunk of land near Illinois Route 29, spanning roughly from East Gardener Lane and East Koch Drive.
On Tuesday night the Peoria City Council moved the TIF another step closer to reality by approving an ordinance that would set a date for a public hearing and establish an interested parties registry.
Final approval of the TIF is expected to come on March 12.
High demand for industrial land spurs TIF creation
Tens of millions of dollars of both public and private money would be spent to establish growth within the TIF, including $35 million of public funds and an estimated $65 million in private investment.
How to generate public funding for the project will be at the discretion of the City Council, but City Manager Patrick Urich said grant money and bonds are possibilities.
Urich said the idea for this TIF is to fill a need for more industrial land in Peoria.
In the area to the west of Natural Fiber Welding, there are ambitions to build a $40 million business park. However, the city must first acquire the 55 acres of land from Illinois American Water.
"If we're able to acquire that land, we can expand the available footprint of industrial land throughout the city to provide more opportunities for industrial development," Urich said.
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Chris Setti, the CEO of the Greater Peoria Economic Development Council, also said demand for industrial land and property is high in the region. Last year, the GPEDC had 74 inquiries from companies requesting information on the availability of industrial space.
"As a region, we absolutely need more readily available industrial property," Setti said.
Setti said properly developed industrial land is hard to come by in the Peoria area, making spots like the Galena Road TIF and Medina Plains TIF, where Maui Jim is planning an $80 million expansion, all the more valuable to economic development.
"You can never have too many options," Setti said. "It's kind of like being in the market for a house — you never want to go with the first option you see. You want to have different sizes, different types and so developing more options is absolutely a critical part of economic development."
TIF would have major impact on area economy
Natural Fiber Welding is currently the anchor business of the proposed TIF area. If the plan is approved, Urich said a business like it could benefit from TIF-eligible expenses for things such as renovations and property or land improvements, should that be something Natural Fiber Welding would explore.
"They have multiple locations in the community, and hopefully we're able to keep NFW as a growing presence in Peoria," Urich said.
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Industrial and manufacturing facilities are the main focus of the proposed TIF, but the plans also include desire for residential townhomes, restaurants, retail stores, convenience stores and office spaces.
Roads, alleys, sewers and a host of other public infrastructure items would also be improved in the TIF.
The first manufacturing facilities could be completed by 2025 if the TIF stays on its anticipated timeline, and townhomes could be seen in 2033.
Setti said the world is in a very interesting spot right now for industrial expansion. He said things such as supply chain woes, high foreign energy prices and the shift to electric energies has driven industry back to the U.S. in some ways.
The economic impact of bringing industry to the Peoria region in major. Setti said not only do the projects bring job growth and economic activity, but they also give Peoria a "psychological boost."
"When you're picked, when your site is picked, that's a good sign to others who are also looking," Setti said. "People invest in places that are being invested in."
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This article originally appeared on Journal Star: New manufacturing, $40 million business park planned for Peoria
