Tax incentives coming to Byron nuclear plant upgrades, amusement complex near Amboy

DIXON — The Lee County Board has approved three ordinances to expand the boundaries of the Lee-Ogle County Enterprise Zone in preparation for three new projects planned in rural Lee and Ogle counties.

The projects include one to increase power output at the Byron Nuclear Plant; another to build an entertainment complex along with a separate bar and restaurant between Amboy and Sublette; and, the last one, to construct another building at HA International’s existing manufacturing plant just outside Oregon, Zone Administrator Andy Shaw told the board Thursday, Jan. 23.

The enterprise zone, created through the Illinois Department of Commerce and Economic Opportunity, is designed to stimulate economic growth by offering state and local tax incentives to projects within the zone’s boundaries. For most projects in the zone, they’re looking at two major incentives related to new construction, Shaw said.

One is a sales tax exemption on all building materials related to the project, which comes out to about 8% savings at the beginning of the project. The second is property tax abatements if the assessed property value increases after construction is completed, Shaw said.

The proposed zone expansion was approved by the Ogle County Board at its Jan. 21 meeting. Over the next several weeks it will be brought to several local governments within the zone, Dixon, Rochelle and Franklin Grove among them. After that, the zone’s advisory board will submit an application to the Illinois DCEO for final approval, which could take a couple months to receive, Shaw said.

The project developers don’t have to wait for state approval to expand the zone, but Shaw said he expects most of them will because, if not, they could miss out on the full benefits of building within the zone. The whole process is expected to take at least six months, he said.

The majority of the expansion is for the Byron Nuclear Plant, a total of 171.92 acres, which will encompass Constellation’s plan to increase power output by adding six low-pressure turbines, two high-pressure turbines, and making updates to the electrical system, Ryan Tozer, Constellation’s manager of local government affairs, said Thursday. Constellation is an energy company headquartered in Baltimore.

Constellation plans to invest more than $355 million in the project, which is set to begin in 2025 and last until 2029. Throughout that time there are four windows planned for construction; Constellation will be looking to hire between 500 and 600 contractional employees during each window, Tozer said.

“It’s a major investment and a lot of workers to the regional area,” Tozer said. The improvements are expected to extend the life of the Byron nuclear plant until about 2080.

Another amendment to the zone includes about 10.61 acres for two projects – Fun on 52 and Pub & Patio along Route 52 between Amboy and Sublette. Those projects are both being developed by Sanjay Desai, according to the ordinance.

Fun on 52, expected to be completed in late 2027, is planned to be a family oriented amusement complex with golf activities and go-karts, Shaw said. The county board approved a special-use permit for the project, filed by Desai, at its meeting in November.

The other project, adjacent to Fun on 52, is planned to be a bar and grill restaurant, Pub & Patio. It is to be located near the gate to Woodhaven Resort and is expected to be completed in late 2025, Shaw said.

Both projects total about $6 million and are expected to generate about 20 new jobs at each location, he said.

The last amendment approved by the board is the addition of 17.21 acres for a project at HA International in rural Ogle County, west of Oregon on Devils Back Bone Road south of Pines Road. The company plans to expand its existing plant by bringing an improved production line from one of the company’s sites in Ohio, Shaw said.

That expansion would include constructing a new building to manufacture a product called feeders to be used in the metal-casting industry. It will cost about $10 million to complete, create 17 new manufacturing jobs in the short term and 56 new jobs over the course of about 10 years, Shaw said.

The state limits the enterprise zone’s coverage area. In total, it can cover 12,800 acres, Shaw said.

The expansion would grow its total coverage area to 11,483 acres, leaving about 1,316 acres available for future use, he said.

“We feel pretty comfortable that we’re OK with future needs, but there are some other tricks we can do to create some space, too,” Shaw told the board.