Groundbreaking for Dixon Gateway Project development on the horizon

DIXON — It won’t be long until developers break ground on a 27-acre project to bring a new hotel, gas station, restaurants and shops to Dixon.

The Gateway Project is a major development on along South Galena Avenue across from Walmart between Keul and Bloody Gulch roads with plans to include the construction of a dozen buildings.

The project is expected to create more than 600 jobs and $1 million a year in new tax revenue.

It’s being developed by Xsite Real Estate of Burr Ridge and Walsh Partners of Elmhurst. Xsite is the developer of Presidential Parkway Plaza, the four-building project north of Walmart along the south side of Keul Road.

After years of planning an preparation, the goal of bringing new development to the Interstate 88 corridor is coming to life, Dixon City Manager Danny Langloss said during a special budget meeting Tuesday.

“This is the year where we get to see things begin to move and earth begin to move,” he said.

Langloss said the Gateway Project is expected to break ground in late March or early April. Work will likely begin on building a hotel and gas station in May or June, and the city will begin infrastructure work to accommodate the project in July, which should be completed by November — around the time shops could start opening up.

The City Council is taking several steps to help facilitate the project and create room for further economic development, including looking to raise the city’s building height restrictions to six stories for hotels and creating two tax increment financing districts — the Industrial Park Redevelopment Project Area and the Fargo Creek Redevelopment Project Area.

TIF districts were created as a tool for towns to use to help restore their run-down, blighted areas or jumpstart economically sluggish parts of town.

New property taxes generated within TIF districts are put back into the districts for improvements such as infrastructure work.

The Industrial Park TIF would cover 236 acres, of which 155 are vacant, 78 are developed and three are right-of-ways. It’s located south of I-88, between South Galena Avenue and U.S. Route 52.

The Fargo Creek TIF would include 619 acres, 432 of which are vacant, 126 are developed and 61 are right-of-ways. The boundaries roughly would cover First Street to the north, Peoria and Chicago avenues to the east, I-88 to the south, and Depot Avenue and Pump Factory Road to the west.

The council will hold a public hearing at 5:30 p.m. Monday for the TIFs.