Megasites Development Program

The Illinois Department of Commerce and Economic Opportunity (DCEO) has announced the Megasites Development Program as part of its ongoing efforts to encourage industrial growth and economic development. This funding opportunity is designed to provide grants for infrastructure investments that prepare rail-served industrial property in the City of Rochelle and Lee County, Illinois, making the region more attractive for large-scale industrial projects. The program aims to support site readiness by ensuring key infrastructure, such as transportation, utilities, and site development, is in place to facilitate industrial investment. The primary objective of this grant is to enhance the economic potential of Rochelle and Lee County by preparing a minimum 200-acre industrial site for development. The selected grantee will need to demonstrate partnerships with relevant stakeholders to expedite infrastructure planning and deployment. The grant is structured to leverage matching funds from local municipalities, federal sources, or private investments, requiring a minimum match of 50% of the total project costs. The funding does not allow for indirect cost recovery and is strictly limited to capital improvement expenses. Eligible applicants for this opportunity are government entities located in the City of Rochelle that have a documented agreement with a county Industrial Development Authority and can demonstrate ownership of municipal rail infrastructure. Additional eligibility requirements include clear land title or options, right-of-way and easements, current industrial zoning, and project location within an Enterprise Zone. The grant does not permit reimbursement of pre-award costs, and expenditures must comply with state bondability guidelines. Applications must be submitted between February 7, 2025, and March 10, 2025, at 5:00 PM CST through the Illinois GATA Grantee Portal. Required submission materials include a uniform grant application, a uniform budget, a project summary, site characteristics and ownership details, project information, and documentation supporting project readiness. The application must also include letters of support from local elected officials and project partners, along with relevant design or construction documents. The selection process for this grant is competitive, with applications evaluated based on three primary criteria: Need, Capacity, and Quality. Proposals will be scored on a 100-point scale, with emphasis placed on project feasibility, financial planning, partnerships, and alignment with regional economic development efforts. The grant review process will follow the state's Merit-Based Review Procedures, and applicants will have the right to appeal procedural aspects of the evaluation. The grant award is anticipated to be announced in the second quarter of 2025, with a performance period from May 1, 2025, to April 30, 2027. Award recipients must comply with various state and federal regulations, including the Illinois Prevailing Wage Act and the Illinois Works Jobs Program Act. Awardees will also be required to submit periodic performance and financial reports to the Department to ensure project compliance and progress monitoring.