BNSF plans $30 - 40M project

Railroad requests inclusion in enterprise zone

Saturday, October 7, 2006

By REBECCA O'HALLORAN

The Register-Mail

GALESBURG - Burlington Northern Santa Fe is interested in adding to its South Henderson Street diesel repair facility in what would be a $30 million to $40 million investment.

"They would look to adding employment of at least 40 new positions," said Roy Parkin, the city's community development director.

The city would expand the boundaries of its enterprise zone by 40,000 square feet to accommodate the project.

The Galesburg Enterprise Zone, one of 96 in the state, provides tax incentives to attract business expansion in low-income areas.

Before zone borders are redrawn, however, a number of steps need to be taken.

The Galesburg City Council will listen to public comments on the subject at its meeting Oct. 16.

"And then later on during the City Council meeting that night there'll be an ordinance, if the council will approve it, to be an expansion of the enterprise property," Parkin said.

If the ordinance passes it will be included in a formal application that will be mailed to the Department of Commerce and Economic Opportunity.

DCEO will evaluate the applications to determine if the proposed annexation meets the guidelines and procedures of the law, said Mark Harris, an agency spokesman.

Among the criteria, DCEO must agree the land is located in a town whose residents suffer from poverty and unemployment.

"We need to make sure that the zone designated is providing an immediate benefit," Harris said. "(The application) is really a local tool to kind of make sure that they are utilizing it in what they believe to be an effective way."

There are three local incentives for BNSF if the project is approved. Permit fees normally applied by the city would be waived, as would the sales tax on any building material purchased in the state.

A 100 percent property tax abatement would be imposed on any new improvement from the project for a 10-year period, not to exceed $1 million per taxing body.

A spokesman for BNSF said details about the project would not be available until Monday.