Dixon City Council finalizes annexations pegged for future development

In October, the Dixon City Council entered into nine annexation agreements to bring in 657 acres for future commercial, industrial and residential development.

DIXON - The City Council signed off on eight annexation agreements as the next step for priming hundreds of acres for new commercial, residential and industrial development.

In October, the City Council approved annexation agreements across 657 acres after years of working with landowners and developers to open up new opportunities in South Dixon in the Interstate 88 corridor.

Annexation ordinances were unanimously approved by the city’s Plan Commission last month, and the City Council approved the ordinances during a special meeting Friday.

With the annexations, the city is closer to creating two tax increment financing districts that would allow newly generated property tax dollars to go toward redeveloping areas of land stretching from First Street past Interstate 88.

Property tax dollars would go toward developing the districts - such as for infrastructure improvements to accommodate new businesses - which would be named the Industrial Park Redevelopment Project Area and the Fargo Creek Redevelopment Project Area.

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 plan 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.

One of the annexation projects is the Gateway Project – referred to as Dixon Land Group – which will bring a major development across 27 acres on South Galena Avenue across from Walmart between Keul and Bloody Gulch roads.

The project – by developers Xsite Real Estate of Burr Ridge and Walsh Partners of Elmhurst – is expected to bring in a dozen businesses including at least one hotel, gas station, and fast-food restaurant, as well as create more than 600 jobs and $1 million a year in new tax revenue.

Dixon Land Group is expected to finalize a purchase agreement for the property by the end of the month.

Next steps include subdividing property and establishing the TIF districts in April.

The annexations are:

Donna Muntean and Georgia A. Armstrong; 38 acres, to be zoned single family residential.

Celia Fulfs Marin, Fulfs Family Trust, Mae Fulfs McClernon and Kay Fulfs Cayler; 40 acres west of Galena Avenue and 64.44 acres east behind Walmart, to be zoned for business.

Wayne R. Hummel Trust and Wayne R. Hummel; 1 acre north of I-88 that is the Hummel home, to be zoned for commercial use.

Hummel Family Farms LLC; 74.36 acres on both sides of I-88, contiguous to the industrial park, to be zoned for general manufacturing.

Jerry L. Ferguson, Larry G. Clayton and Connie A. Clayton; 155.87 acres to be zoned for general manufacturing.

Chicago Trust Co., Phyllis Louise Wissing Holt Trust, Richard W. Wissing Trust and Rodney H. Piercey, Norma J. Wissing Revocable Trust; 221.34 acres west of South Galena Avenue that are zoned for general manufacturing.

Dixon Land Group LLC; 27.01 acres on the west side of Galena Avenue across from Walmart. The city agrees to install “hard infrastructure,” roads, water and sewer. Already a preliminary plan for a subdivision. City agrees to create a liquor license for consumption on that parcel for a fuel center that won’t be large enough to qualify for state exemptions for alcoholic beverage service. Includes TIF deal that the first $150,000 will be paid to them. Development has $3.8 million in dedicated costs for the city.

Hvarre Holdings LLC; 14.863 acres. This includes both an annexation agreement and an exchange agreement on property. The city in 2020 entered into an intergovernmental agreement with Dixon Public Schools to acquire Washington Park for $1. Hvarre will exchange a separate 18.83 acres within the city for Washington Park. Washington Park then will be used for a family housing development: 15 single-family units and one multifamily lot with four units. In addition, Hvarre has property north of the exchange property for a project with the potential for 70 units. This TIF transaction is a pay-as-you-go agreement. In exchange for the city paying 65% of the TIF (up to a $1.9 million), Hvarre will pay for infrastructure.

Rachel Rodgers

Rachel Rodgers

Rachel Rodgers joined Sauk Valley Media in 2016 covering local government in Dixon and Lee County.