Extended Zone in Galesburg Will Help BNSF With Major Facility Expansion 

CHICAGO – In an aggressive move to stimulate business growth and job creation in Knox County, Gov. Rod R. Blagojevich today announced the certification of a boundary expansion of the Galesburg Enterprise Zone.  The enterprise zone, which lends critical income and job creation tax credits to companies located within its borders, will be extended to include BNSF Railway Company’s planned $37 million investment for the expansion of its diesel repair facility.  This new development will create a projected 50 new jobs in Galesburg.  

“The Galesburg Enterprise Zone is a tremendous asset for the region in attracting new companies, significant private investment and good new jobs.  BNSF, who we have worked closely with over the last several years, is strategically placed in the region’s transportation and logistics center and committed to expanding and investing in West Central Illinois.  By extending the boundaries of this enterprise zone, we’re encouraging more investment that will lead to more well-paying jobs in Galesburg and across the region,” Gov. Blagojevich said.  

The Galesburg Enterprise Zone will extend its benefits to the BNSF Railway Company, and its plans to invest $37 million in an expansion of its diesel repair facility.  Property located south of the diesel repair facility will also be annexed into the zone.  This additional area includes the BNSF’s classification yard, which is the second largest yard in the BNSF operation, as well as a work equipment building. 

Chief benefits of an enterprise zone include sales tax exemptions and tax credits for job creation.  A 6.25 percent state sales tax exemption is permitted on building materials to be used in an enterprise zone, while the Enterprise Zone Jobs Tax Credit allows a business a $500 credit on Illinois income taxes for each job created in the zone for which a certified eligible worker is hired.  The Enterprise Zone Investment Tax Credit is a state investment tax credit of .5 percent for investments in qualified property in a zone, which includes machinery, equipment and buildings. 

“Incentive programs like the Galesburg Enterprise Zone are an important consideration in BNSF’s decision-making in locating new investments in facilities and jobs.  We appreciate the decision of the Governor and the City of Galesburg to expand the Enterprise Zone boundaries to include this project,” said Paul Nowicki, BNSF Assistant Vice President – Government & Public Policy.

A local enterprise zone may apply to the Illinois Department of Commerce and Economic Opportunity (DCEO) for boundary expansion if the proposed area to be added meets at least one of the tests for poverty, low income, unemployment or population loss, or the proposed area will provide an immediate substantial benefit to the zone.  There are 96 enterprise zones statewide.

“By working closely with companies like BNSF and creating an inviting business climate, Gov. Blagojevich and I believe that we are setting the stage for even more good economic news throughout our region.  Through this enterprise zone expansion and significant investment on the part of BNSF, we are working together to make this project a tremendous success and generate more jobs and economic growth in the area,” said State Rep. Don Moffitt (R-Galesburg).

“BNSF is a central part of the local and regional economy, and our enterprise zone is one of our most important tools to attract greater investment in the area.  We are proud to be working together with the company to support this tremendous opportunity for more job growth and economic activity in Galesburg, and I want to thank Gov. Blagojevich for working with us to expand the enterprise zone,” said Galesburg Mayor Gary Smith.

The collaboration with BNSF began during the drafting of the Governor’s Opportunity Returns West Central region economic development plan, and earlier this year the Governor provided a $30,000 grant to support the U.S. Route 34 Logistics Corridor, a public-private partnership between BNSF Railway and thirteen Illinois communities.  The funding supported marketing and business attraction activities for rail-related transportation and logistics businesses along the Route 34 corridor, which runs from the Greater Chicago area to within 30 miles of the Mississippi River.

“As businesses and organizations expand and necessitate increased capacity in a growing economy, we must make sure they have the tools needed to meet those demands.  By expanding the Galesburg Enterprise Zone and working together with a first-class company like BNSF, we are continuing to advance the economic momentum we’ve been building in Knox County over the last several years.  Gov. Blagojevich understands that by partnering with local businesses and organizations, we are creating an exciting new environment in which they can expand and aggressively pursue new levels of growth and prosperity,” DCEO Director Jack Lavin said.

Illinois led the nation in monthly job growth this year in both April and July, which has never happened twice in one year before in recorded history.  The total number of new jobs created this year is 77,300, which is the best start to a year since 1999 and best in the Midwest.  Since January 2004, Illinois has gained more than 152,000 new jobs, which is also best in the Midwest.

The Illinois unemployment rate has dropped to 4.1 percent, which is the state’s lowest level on record.  It has remained below the national rate for four consecutive months, which is the first time this has happened since 1998.  The unemployment rate in Knox County is 4.3 percent, dropping 3.8 points from 8.1 percent in January 2003.  The federal Bureau of Labor Statistics and the Illinois Department of Employment Security compiled these statistics. 

Site Selection Magazine also ranked Illinois third in the nation for attracting new and expanded corporate facilities in 2005, and Business Facilities Magazine named Illinois the top state for biotech growth last year.