Elwood officials have laid out a timetable for making key decisions about a proposed industrial park in the former Joliet Arsenal.
David Silverman, an attorney representing the village, said the Village Board will consider a series of actions Monday. He made the announcement at a public hearing on an annexation agreement for the project.
Oak Brook-based CenterPoint Properties wants to build the park on 1,820 acres of the former arsenal and on the adjacent 360-acre former Steffes Farm. Both pieces of land are just west and south of Elwood.
CenterPoint plans to build an intermodal train facility in the park and create 17 million square feet of facilities for light industrial uses. The development, expected to cost at least $2 billion to build over seven to 10 years, could produce 20,000 new construction jobs and 8,000 to 12,500 permanent jobs.
CenterPoint has requested that Elwood create a tax increment financing (TIF) district so the project can be financially feasible. If the district is created, tax breaks could be worth $100 million to $200 million for the development.
Last week, CenterPoint said it will provide financial help to the taxing bodies affected by its project.
In a presentation to the Village Board, officials of CenterPoint said they will make an immediate $6 million contribution, with no strings attached, to two government bodies.
The payments would consist of $3.6 million to the village and $2.4 million to Consolidated School District 203.
“This is a very good start,” said Elwood Supt. Ronald J. Kanzulak, whose district has expressed concerns about how the project would affect the local schools.
Despite the proposed donation, school board President Paige VanderHydn said she is still concerned about the special tax breaks involved in the TIF district, which would be in place for 23 years.
Still, she said, the district could use the $2.4 million to address some of its needs, such as raising its per-student spending average.
The school district has expressed concerns that the project will result in so many people moving to the area that it will cause a housing boom and a surge in student enrollment.
The Joliet Township High School District, which also has opposed the TIF district, would get $300,000 to $400,000 by the sixth year, according to CenterPoint officials.
Joliet Township Supt. James Clark said that some money is better than none. But he couldn’t say whether it would be enough because of too many unknown variables, such as how many new students would enter the district because of the project.
Under the proposed redevelopment agreement, the developer would donate 13 acres that Elwood could use to build a park and a new village hall. CenterPoint also will pay $100,000 a year to Elwood to cover the village’s administrative costs for the project.
CenterPoint would also provide up to $22 million to serve as the local match for $44 million of needed area road improvements to be done by the Illinois Department of Transportation.
The agreement would give CenterPoint access to $100 million in funds from the TIF district to cover its costs. The amount could be increased by $25 million if construction of a $25 million water and sewage treatment plant, to be paid for with a low-interest state loan, costs more than expected. The money also could be used to provide more matching dollars for road improvements.
On Monday, the Village Board will vote on annexing the land for the park, giving it an industrial zoning, creating the TIF district and an agreement with the state about construction of a water and sewer treatment plant for Elwood. The state has agreed to provide a $25 million, no-interest loan so Elwood can build the plant.
