Economic Development Program
This funding initiative provides financial support to local governments in Illinois for transportation infrastructure improvements that facilitate business growth and job creation.
The Illinois Department of Transportation (IDOT) administers the Economic Development Program (EDP) as a state-level funding initiative designed to support local transportation infrastructure improvements necessary for facilitating business expansion and job creation across Illinois. The primary aim of the EDP is to assist with roadway enhancements or the construction of new roads that are essential for providing access to new or expanding industrial, manufacturing, or distribution companies. These projects must lead to the creation or retention of permanent, full-time employment opportunities. Notably, projects that are speculative or only offer potential for future development without a committed employer are not eligible under this program. This program is distinct in that it is non-competitive; funding decisions are determined by the number of jobs committed by the participating company. For each new job created, the state contributes $30,000, and for each retained job, $10,000, with a cap of $2 million per project. The funding supports a variety of project phases including preliminary engineering, construction, and construction engineering, with allowable costs including contingencies. IDOT will only enter into funding agreements with local governmental bodies—such as counties or municipalities—that are located within Illinois and sponsor an eligible business that meets the program criteria. The EDP leverages only state funds and applies a cost-sharing structure. For eligible roadways owned locally, the state will cover 50% of project costs, while for improvements on state-owned routes, 100% of the project costs may be covered. The remaining costs for local projects must be matched by the local government or a private entity. Acceptable sources for the match include Motor Fuel Tax (MFT) funds, federal EDA grants, other state grants, or private company contributions. Projects are limited to a maximum state contribution of $2 million, and any excess costs must be absorbed by the sponsoring local agency or the business partner. Compliance with Public Act 93-552, the Corporate Accountability for Tax Expenditures Act, is a fundamental requirement for receiving EDP funding. Businesses benefiting from the roadwork must complete an Employee Reporting Form annually for five years following the agreement date. This compliance reporting is overseen by the Department of Commerce and Economic Opportunity (DCEO). Additionally, project sponsors must notify IDOT upon completion of the project and must demonstrate that job creation and retention commitments have been met. Failure to do so may result in full or partial repayment of the grant funds. Applicants must not begin any project-related bidding, letting, or construction until they have received an award letter and project plans are approved by the relevant IDOT district. Violation of this condition could jeopardize the funding. Prior to application, preliminary engineering cost estimates must be completed. Reimbursement for preliminary and construction engineering is limited to 15% of the total project cost. No other professional service costs are eligible for reimbursement under this program. To apply, interested parties must contact John Paris at the Illinois Department of Transportation. He can be reached at 2300 South Dirksen Parkway, Room 308, Springfield, Illinois 62674. His phone number is (217) 524-6756, and his email address is john.paris@illinois.gov. For general questions related to the Grant Accountability and Transparency Act (GATA), applicants may visit grants.illinois.gov or email DOT.GATA@Illinois.gov. Engineering-related questions should be directed to the appropriate District Local Roads Engineer.
Award Range
Not specified - $2,000,000
Total Program Funding
Not specified
Number of Awards
Not specified
Matching Requirement
Yes - Requires 50% for local routes
Additional Details
The EDP provides $30,000 per new job and $10,000 per retained job up to $2 million. It covers PE, construction, CE, and contingencies. State pays 50% for local roads and 100% for state roads. 15% PE/CE cap. No other professional services reimbursed.
Eligible Applicants
Additional Requirements
Only county or municipal governments located in Illinois are eligible to apply. These entities must act as sponsors on behalf of industrial, manufacturing, or distribution companies that commit to job creation or retention.
Geographic Eligibility
All
Ensure no construction or bidding begins before receipt of an award letter. Enter agreement with business to ensure reporting compliance.
Application Opens
Not specified
Application Closes
Not specified
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