Company plans to invest $2.16M in new manufacturing facility; Galesburg OKs grant
GALESBURG — Galesburg City Council approved various items during their Monday evening council session, including grants for a new manufacturing facility and the intent to pledge money funding for the National Railroad Hall of Fame.
Grant approved for new manufacturing facility to bring jobs
The council unanimously approved a $200,000 grant to FCA, LLC, an industrial packaging company, to incentivize the company to establish a new regional manufacturing center in Galesburg.
The company, which is headquartered in Moline and has 35 locations throughout 17 states, anticipates bringing 100 jobs to Galesburg and investing a total of $2,160,000 in repairing and purchasing lumber equipment for their new location at 1200 Monmouth Blvd.
In order to be eligible for the funding, which comes from the Major Project Grant the city created in 2019, the company had to invest at least $1,000,000 in Galesburg and create at least 50 jobs that pay 125% of Galesburg’s per capita wage.
Starting pay at FCA will be $16 and the company anticipates creating the 100 jobs by Sept. 2, 2024.
Funds pledged for National Railroad Hall of Fame
The council approved a resolution that expresses the city’s intent to pledge up to $1 million toward the construction and development of a new 6,500 square foot building for the National Railroad Hall of Fame.
Third Ward City Council Member Kevin Wallace abstained from the vote.
City documents state that the total cost of the building is estimated to be $7.7 million and although the council passed this resolution, the city is not obligated to provide the pledged funding. It will require a separate action to authorize the payment to the National Railroad Hall of Fame if the council does decide to provide up to $1 million to the organization.
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Phase 2 approved for Lake-Story Multi-Use Path Project
The council unanimously approved a $259,619 engineering agreement with Hutchinson Engineering to create detailed bid documents for construction of a multi-use path along S. Lake Storey Rd and W. Lake Storey Rd and US 150.
City documents state that construction on the project is anticipated to begin in the summer of 2023.
The city will only pay 20%, or $51,923, of that $259,619 engineering agreement, as the Illinois Department of Transportation awarded Galesburg a $2 million grant in 2021 for the Lake-Story Multi-Use Path Project.
The Illinois Department of Transportation will cover the other 80% of the cost of the engineering agreement through Illinois Transportation Enhancement Program funding.
Agreements with Galesburg Tourism and Visitors Bureau approved
The council unanimously approved two agreements with the Galesburg Tourism and Visitors Bureau.
The first agreement establishes a new three-year lease with the bureau to develop, design and implement a tourism marketing program to promote the city and Knox County. The new lease would pay the bureau $190,000 per year from hotel-motel tax revenues. The city’s current three-year lease with the bureau ends this year.
The second agreement approved a lease with the bureau to use and operate a welcome center at 2163 East Main St. The bureau is to operate the center from 9 a.m. to 4:30 p.m. Monday through Friday each week, and a minimum of 48 Saturdays per year, from 10 a.m. to 3 p.m.
City documents state that the previous lease, which ends this year, required the Welcome Center to also operate on Sundays. But due to an “extremely low number of visitors” on Sundays — only eight people visited on Sundays during the first 10 months this year — the bureau only has to open the welcome center during major festivals.
Audit approved for city utility fees
The city approved entering an agreement with the company, Azavar, “to determine if the city is being provided with the correct amount of revenue by various utility companies.”
The company will analyze revenue and expenditure payments from utilities like electricity, natural gas, telecommunications, water, sewer and/or storm sewer providers, fuel providers, waste or refuse hauling providers, and franchise fees.
If revenue and/or expenditure savings are found, Azavar will be allowed to keep 40% of the findings for 36 months and after the 36 month period, the City will receive 100% of the findings.
This article originally appeared on Galesburg Register-Mail: Galesburg City Council FCA grant National Railroad Hall of Fame fund
