GALESBURG — The city of Galesburg, economic development officials and a potential developer are in the early stages of discussing a $45 million plan that would bring an agricultural/rail project to a portion of the Galesburg Business Park.

According an agenda item for the Monday, May 16, City Council meeting, the administration is seeking approval of a resolution authorizing the mayor, city clerk, director of finance and information systems, and interim city manager to sign and submit a grant application for the Multimodal Project Discretionary Grant Program for the Galesburg Business Park through the United States Department of Transportation.

Previously: BNSF certifies Logistics Park

The city is in the early stages of discussions with a potential developer for a portion of the Galesburg Business Park (Logistics Park) property. In order for the project to move forward, the city will need to apply for $22.5 million in federal grant funding through the USDOT, Multimodal Project Discretionary Grant Program. The total estimated cost of the project is approximately $45 million.

"I want to stress that we are very early in the process of working on this opportunity and unless we are successful in obtaining federal funds for the rail, the project will not move forward," said Ken Springer, president of Knox County Area Partnership for Economic Development.

Previously: BNSF VP: Galesburg poised for growth

The funding is needed in order to construct a 15,000 foot loop track and related infrastructure in the Galesburg Business Park. The grant program would provide 50 percent of the funding needed for the project with the balance to be paid by the developer if selected for the grant program. The grant application does not obligate the city to invest or spend money.

If the project is selected for funding, the city would negotiate an agreement with the developer and also would approve a formal grant agreement with the FHWA at that time. Both of these items would come to the City Council for approval.

Previously: Logistics park shovel-ready

Without the federal grant funds, this project will not move forward.

The project is an agricultural/rail project that will positively impact regional agricultural producers, according to the agenda item.

"The other benefit is that the project will install 15,000 feet of rail into Galesburg Business Park," Springer said. "There is currently no rail inside of Galesburg Business Park. Having rail in the park would greatly increase the park’s appeal to companies for subsequent development."

It is anticipated that the USDOT will announce selected projects in August of 2022. If selected, the work could begin as early as 2023.

The city will serve as a pass-through entity for the grant funds and the matching funds required will come from the developer

According to the Knox County Area Partnership website, Galesburg Business Park is a 350-acre site located southeast of Galesburg. The industrial park has access to BNSF Railway and has received certification as part of BNSF Railway's Site Certification program. BNSF certification ensures a site is ready for rapid acquisition and development.

In 2003, the city of Galesburg bought the 350 acres of farmland on the east side of town, with plans to build a logistics park. The city issued $4 million in bonds to buy four farm properties making up the park. The Galesburg Regional Economic Development Association paid $500,000.

This article originally appeared on Galesburg Register-Mail: City, developer eye $45M ag/rail project for Galesburg Business Park