EDA grants to fund rail projects in Illinois, South Dakota

Written by Mischa Wanek-Libman, editor
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City of Rochelle Railroad has 12 miles of track.
City of Rochelle, Illinois

The Economic Development Administration (EDA) has awarded $5.1 million to two rail projects in Illinois and South Dakota.

The city of Rochelle, Ill., has been awarded $3.4 million to extend a city-owned and operated rail line and rail switch yard to serve a local industrial/commercial property. In addition, EDA said the improvements would serve as a catalyst for attracting new businesses looking to locate in the region. The $7 million project is expected to create 1,290 jobs and leverage $362 million in private investment.

“Located at the crossroads of the nation, Illinois’ railroad system plays an essential role in transporting Illinois products to markets around the world,” said Sen. Mark Kirk (R-IL). “The city of Rochelle’s proposed shortline rail extension and expansion of the city’s current switchyard will make available 600 acres of land for rail-serviced economic development, providing industry with access to Class 1 railroads and improving the movement of goods through Illinois while creating jobs in Rochelle and surrounding communities in northern Illinois.”

Since 1986, Rochelle has attracted more than 1,500 manufacturing and logistics jobs, making it one of the most robust employment centers in the region. A strong working partnership between EDA and the city has helped to fuel this progress. For example, a $3 million EDA investment in the city helped to build an overpass that led to the creation of the 2,000-acre industrial area where Nippon Sharyo’s manufacturing plant is now located. A subsequent $2.4 million investment helped to improve the City of Rochelle Dual Access RailroadRochelle Dual Access Railroad, which serves the plant site.

In South Dakota, the Sioux Falls Development Foundation received a $1.7 million grant to help provide rail access to the Foundation Park development area.

EDA’s investment will support the development of rail infrastructure in Foundation Park, which will provide local companies access to rail services for their shipping and receiving needs. The new rail sites will significantly improve the success of the park and the region’s economy by attracting new business and allowing local companies to expand. According to grantee estimates, the investment will create 1,200 new jobs and spur $67 million in private investment.

“The Economic Development Administration is committed to ensuring that our communities and regions have the critical infrastructure they need to support businesses and jobs,” said U.S. Secretary of Commerce Penny Pritzker. “This EDA investment will bring rail service to the Foundation Park development area, which will facilitate local companies’ expansion plans and attract new businesses and jobs to the region.”

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