The city of Dixon is preparing for the next wave of businesses headed to the Gateway Project, its major economic development site along South Galena Avenue near Interstate 88.

Tropical Smoothie, which opened April 17, is the first to open in the multi-tenant building that will also be the site of an OSF OnCall urgent care, which is expected to open this summer, and other businesses that have yet to be announced at the Keul Road intersection.

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Work continues on a lot at the Gateway Project site in Dixon on Thursday, April 23, 2026. (Alex T. Paschal)

City officials announced at Monday’s council meeting that the latest addition to the lineup, which also includes a McDonald’s at the Walton Drive intersection, is a 7 Brew coffee shop planned for a building next to the multi-tenant.

Dixon City Manager Danny Langloss said construction of the McDonald’s is expected to begin in summer 2027.

The city expects the entire 27-acre development on the east side of South Galena Avenue between Keul and Bloody Gulch roads, known as the Gateway Project, to create more than 600 jobs and $1 million a year in new tax revenue once it’s completed.

So far, it includes a Chipotle, Jersey Mike’s, Casey’s gas station, T-Mobile, Wynn Nail Spa, a cannabis dispensary, a child care center operated by the Dixon Family YMCA, Water Castle Car Wash and a Fairfield Inn by Marriott.

The city, along with partners Lee County Industrial Development Association, Xsite Real Estate and Walsh Partners, broke ground on the project in April 2022. Now, four years later, nearly every lot has been developed.

On Monday, the city council approved an ordinance making a 1.27-acre lot available for development by dividing the unused portion of the daycare’s lot at 1675 Fulfs Lane.

Langloss told Shaw Local there are three to four lots left in total.

Dixon Building Official Tim Shipman said the council will be asked to vote on an ordinance to divide another lot at its next meeting.

Also on Monday, the council approved two redevelopment agreements, one for the multi-tenant and one for 7 Brew, with developer Dixon Gateway Plaza Two LLC.

The agreements pertain to the benefits the developer receives by being within the Fargo Creek TIF district.

A TIF district is an economic development tool that allows municipalities to set aside revenue created by the additional property tax generated by new property value in the district’s boundaries. That revenue can be used to fund things like agreements with developers that entice them to build in the area.

“TIFs are a powerful economic growth provider for municipalities. ... It provides incentives on behalf of the city without having an impact on the taxpayers,” Langloss previously told Shaw Local.

For these two projects, the city will reimburse 70% of the property taxes paid by the developer annually for five years and 50% annually for the following five years, according to the agreements.

That reimbursement begins after construction is complete and the city certifies it for occupancy. For the multi-tenant that must be within a year of the date of the agreement and within 18 months for 7 Brew, according to the agreements.