Bonnell Industries expansion moving forward in Dixon

DIXON – Bonnell Industries will be expanding into a 100,000-square-foot manufacturing facility in the Lee County industrial park near Interstate 88 and creating 16 new full-time jobs.

The Dixon City Council approved a business incentive agreement on Tuesday to reimburse Bonnell with up to $4 million in redevelopment costs through future property tax revenue generated in the city’s Industrial Park tax-increment financing district.

“We’ve got a renewed excitement at Bonnell to continue to grow the business, and this makes it absolutely possible.”

—  Joe Bonnell, president and owner of Bonnell Industries

Bonnell would be reimbursed with 70% of its annual city property tax payment until reaching $4 million, City Manager Danny Langloss said.

The project is a $10.7 million investment, with an $8 million manufacturing building, parking and utility extensions as well as outfitting the site with $2.7 million in specialized manufacturing equipment, according to the development agreement.

“This is a $10.7 million project, and it’s going to add very good jobs to our community,” Langloss said.

The TIF reimbursement includes around $650,000 in predevelopment costs such as property acquisition costs, architectural and engineering services, legal services, inspections, surveys, market studies, and environmental studies.

[ Bonnell Industries to build new manufacturing facility in industrial park ]

Bonnell also will annex its properties at 1385 Franklin Grove Road and 501 Anchor Road into the city limits and receive a 10-year property tax abatement as long as those properties weren’t sold.

The new facility will be built on about nine acres off of East Progress Drive next to Nicor in the Lee County Business Park.

Bonnell President Joe Bonnell said they were struggling with planning an expansion on their current land because of the elevation and available space, and the new facility will help promote further growth.

“We’re going to remain at the existing facilities, but hopefully be able to better utilize those facilities for additional future growth,” Bonnell said. “We’ve got a renewed excitement at Bonnell to continue to grow the business, and this makes it absolutely possible.”

They plan to break ground in the fall and have the facility operational by November 2024, he said.

Bonnell Industries is a fourth-generation family owned company that opened in 1960. It manufactures a variety of snow and ice equipment, plows, spreaders, bodies, road maintenance equipment and leaf vacuums.

The industrial park TIF covers 236 acres south of I-88, between South Galena Avenue and U.S. Route 52.