Global III: A Public / Private Development Success Story Neil Palmer 11/23/2018

Background Siting New Facilities is Difficult Intermodal Facilities Need Public Infrastructure Cooperation is Essential 11/23/2018

Union Pacific Needs Chicago area is eastern terminus of the system Chicago area is the “third largest intermodal port in the world” Existing facilities at full capacity Intermodal segment of business growing Two previous siting attempts failed 11/23/2018

Siting Public and then government position can quickly move to NIMBY or NOPE Intermodal requires large land mass on the “mainline” Must have good inter-state highway access Minimize residential impacts Provide regional benefits 11/23/2018

Siting Is Not About What You Are Capable of Building The real issue is “What Can You Get Permission to Build” “Permission” requires understanding to create support Understanding requires communication to build trust 11/23/2018

Rochelle, Illinois-The Hub City 9,300 people in 150 year old community Union Pacific and BN/SF cross in downtown I-39 and I-88 intersect on southeast corner Loss of industrial jobs in the region Decided to build on their strengths in transportation 11/23/2018

The Site Give an example or real life anecdote Sympathize with the audience’s situation if appropriate 11/23/2018

What We Agreed The City would seek and support all available grant funding sources Union Pacific agreed to pay for all public infrastructure costs not covered by grants No local property tax dollars would be used Site and highway design would improve local traffic flow Union Pacific agreed to support some road improvements not directly serving the site 11/23/2018

Those Involved U.S.Congressman Manzullo and Senators Illinois State Elected Officials Greater Rochelle Economic Development Corp. Rochelle Mayor and Council Ogle County Board Lee County Board Flagg Township Drainage District The People of Rochelle 11/23/2018

What We Accomplished Union Pacific investment of $181 million in the site and $120 in new equipment State-of-the-art Intermodal Facility Capable of 750,000lifts/year and expandable $11.5 million in new infrastructure 1500 Construction jobs 400+by 2010 new jobs with $20 million payroll $43 million in local taxes by 2010 Expected private investment of $140 million in buildings and $140 million in equipment Expected 1600 manufacturing and distribution jobs Expected $73 million in local taxes from new development 11/23/2018

Funding Union Pacific = $181 million on-site Union Pacific = $3 million on infrastructure Lee County Enterprise Zone provided $5 million IDOT = $4.5 million Illinois Department of Commerce = $750,000 US EDA = $2.2 million IDOT Rail Facilities low interest loan for $2 million 11/23/2018